Inotiv, Inc. (Nasdaq: NOTV) announced Q1 FY 2026 earnings with total revenue of $120.9 million. Moreover, Inotiv’s Discovery and Safety Assessment segment achieved 12.0% growth compared to the prior year. Consequently, the company delivered record segment performance and expanded backlog. For official details, see the Inotiv Q1 2026 earnings investor relations page.
Contract Research Organization Market Overview
Inotiv operates as a leading contract research organization specializing in nonclinical and analytical drug discovery and development services. The company provides research models and related products and services. Furthermore, Inotiv serves pharmaceutical, biotechnology, and medical device companies. In addition, the company’s platform supports discovery and preclinical development. Most importantly, Inotiv’s services help clients accelerate development timelines. Consequently, the firm occupies a critical niche in pharmaceutical development. For additional context, visit Inotiv’s official website.
Inotiv Q1 2026 Earnings: First Quarter Results
First quarter fiscal 2026 revenue totaled $120.9 million. This represented a 0.8% increase compared to Q1 FY 2025. Most importantly, the Discovery and Safety Assessment segment delivered strong performance. DSA revenue increased $5.1 million, or 12.0%, to $48.0 million. Additionally, DSA operating income reached $3.1 million. Meanwhile, Research Models and Services revenue totaled $72.9 million. Consequently, combined segment revenue exceeded management expectations. As a result, Inotiv demonstrated resilience in a challenging environment.
Inotiv Q1 2026 Earnings: Segment Performance Analysis
The DSA segment achieved exceptional results during Q1 FY 2026. Discovery and Safety Assessment revenue grew 12.0% year-over-year. Specifically, discovery translational sciences revenue increased. Additionally, safety assessment revenue gained momentum. Furthermore, DSA operating income improved to $3.1 million. Notably, DSA net awards grew approximately 27% year-over-year. In contrast, RMS revenue declined 5.4% to $72.9 million. However, this decline reflected lower non-human primate volumes sold. Most importantly, higher selling prices partially offset the volume decline. As a result, the company demonstrated segment diversification and strategic focus.
Growing Backlog and Forward Pipeline
DSA backlog reached $145.4 million at December 31, 2025. This represented a significant increase from $138.2 million at September 30, 2025. Most importantly, backlog expanded 11.5% compared to the prior year quarter. Furthermore, the book-to-bill ratio for DSA services totaled 1.16x. This metric indicates strong future revenue visibility. Consequently, Inotiv possesses substantial revenue momentum heading into Q2. Most importantly, management maintains confidence in growth trajectory. Looking ahead, the company targets continued backlog expansion and margin improvement.
DSA and RMS Revenue Trend
Inotiv Q1 2026 Earnings: Revenue Segment Performance (FY24-FY26)
Operational Highlights and Strategic Initiatives
CEO Robert Leasure Jr. highlighted operational execution and margin discipline. According to management, client satisfaction remains central to strategy. Furthermore, on-time delivery of high-quality products drives competitive advantage. In addition, the company exited two leased facilities during Q1 FY 2026. This move supports the U.S. site optimization plan. Most importantly, Inotiv continues building durable client relationships. Consequently, recurring business momentum accelerates. As a result, the company maintains strategic focus on profitable growth.
Cash Position and Debt Management
Cash and cash equivalents totaled $12.7 million at December 31, 2025. This reflected a decrease from $21.7 million at September 30, 2025. Most importantly, cash used in operating activities totaled $5.4 million for Q1 FY 2026. Furthermore, capital expenditures reached $5.2 million. Additionally, total debt net of issuance costs amounted to $405.8 million. Notably, the company maintained $6.0 million of borrowings on its $15.0 million revolving credit facility. Consequently, Inotiv maintains sufficient liquidity to support operations and strategic initiatives.
Segment Operating Income Performance
Inotiv Q1 2026 Earnings: Operating Income by Segment
Competitive Positioning and Service Portfolio
Inotiv operates at the forefront of nonclinical and analytical drug discovery services. The company’s platform encompasses discovery pharmacology and safety assessment capabilities. Furthermore, research model services provide critical support for pharmaceutical development. In addition, the company serves as a trusted partner to leading pharmaceutical companies. Most importantly, the expanded service portfolio attracts diverse client bases. Consequently, Inotiv’s market position continues strengthening. As a result, the company remains well-positioned for sustained growth in contract research services.
Forward Outlook and Growth Strategy
Management maintains a positive outlook for FY 2026 and beyond. The company continues advancing strategic initiatives focused on operational excellence. Furthermore, margin discipline remains a core priority. In addition, client retention and relationship expansion drive revenue growth. Most importantly, the DSA segment’s momentum creates expansion opportunities. Consequently, Inotiv targets sustained backlog growth and margin improvement. Looking ahead, the company expects to benefit from continued pharmaceutical industry demand for nonclinical research services.
Inotiv Q1 2026 Earnings: Key Takeaways
In summary, Inotiv Q1 2026 earnings reflected solid execution. The DSA segment achieved 12.0% revenue growth. Additionally, total revenue reached $120.9 million. Most importantly, segment backlog expanded to $145.4 million. Consequently, the company demonstrated strategic momentum in contract research services. Looking ahead, management targets continued growth. For more details, see the Inotiv Q1 2026 earnings announcement. For updates, follow Inotiv on LinkedIn and visit Yahoo Finance NOTV for market data.