The scale of IQVIA Holdings ( IQV ) in healthcare information, real-world evidence collection, and AI-enabled trials and commercialization make it much more than a large CRO. Other CROs compete for share within the contract researchDubai-based investor focused on building a resilient, income-generating portfolio with a long-term growth mindset. My approach is primarily long-only, blending dividend-paying equities, REITs, and other income strategies with selective growth opportunities. I believe in disciplin ...

Group 1 - IQVIA Holdings is positioned as a leader in healthcare information, real-world evidence collection, and AI-enabled trials and commercialization, distinguishing itself from traditional contract research organizations (CROs) [1] - The company operates in a competitive landscape where other CROs are vying for market share, but IQVIA's scale and capabilities provide a significant advantage [1] Group 2 - The investor profile mentioned indicates a focus on building a resilient, income-generating portfolio with a long-term growth mindset, blending dividend-paying equities, REITs, and selective growth opportunities [1] - The investment strategy emphasizes disciplined, fundamentals-driven investing, prioritizing capital preservation while compounding returns over time [1]

Durham, North Carolina-based IQVIA Holdings Inc. (IQV) provides clinical research services, commercial insights, and healthcare intelligence to the life sciences industry. Valued at $38.4 billion by market cap, the company operates through Technology & Analytics (TAS), Research & Development (R&DS), and Contract Sales & Medical Solutions (CSMS) segments. Companies worth $10 billion or more are generally described as "large-cap stocks." IQVIA fits right into that category, with its market cap exceeding thi ...

Core Insights - IQVIA Holdings Inc. is valued at $37.6 billion and provides healthcare research services, including analytics, technology solutions, and clinical research to the life sciences industry, aimed at improving healthcare outcomes for patients [1] Performance Overview - Over the past year, IQV shares have gained 12.2%, underperforming the S&P 500 Index, which increased by nearly 13.7% [2] - In 2025, IQV's stock rose 10%, while the S&P 500 saw a 13.4% rise on a year-to-date basis [2] - Compared to the Health Care Select Sector SPDR Fund (XLV), which gained about 7% over the past year, IQV's performance is relatively better, although the ETF's 10.3% year-to-date returns outshine IQV's gains [3] Financial Results - For Q3, IQV reported an adjusted EPS of $3, exceeding Wall Street expectations of $2.96, and revenue of $4.10 billion, beating forecasts of $4.07 billion [4] - The company expects full-year adjusted EPS to be in the range of $11.85 to $11.95 and revenue between $16.2 billion and $16.3 billion [4] Analyst Expectations - Analysts project IQV's EPS to grow by 5.1% to $10.77 for the current fiscal year ending in December [5] - Among 22 analysts covering IQV, the consensus rating is a "Strong Buy," with 16 "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [5] - A month ago, the bullish sentiment increased, with 15 analysts suggesting a "Strong Buy" [6] Price Targets - BMO Capital initiated coverage of IQV with an "Outperform" rating and a price target of $260, indicating a potential upside of 20.3% from current levels [6] - The mean price target is $244.38, representing a 13.1% premium to current prices, while the highest price target of $265 suggests an upside potential of 22.6% [6]

Financial Performance - The company reported third quarter financial results at the high end of its guidance, indicating strong performance [1] - Guidance for the remainder of the year suggests over 5% revenue growth [1] Business Development - The company booked $2.6 billion in new business within its clinical segment during the third quarter, reflecting a healthy book-to-bill ratio of 1.15 [2] - There was a significant increase in request for proposals, which rose by 20% in dollars year-over-year [3] Market Trends - Decision timelines in the industry have started to normalize after a period of uncertainty, suggesting a recovery in the market [3] - The company believes that the end of 2024 and the beginning of 2025 likely represent the trough of the recent cycle [3]

Summary of IQVIA Holdings Conference Call Company Overview - **Company**: IQVIA Holdings (NYSE:IQV) - **Industry**: Healthcare, specifically focused on clinical research and data analytics for the pharmaceutical sector Key Financial Highlights - **Third-Quarter Results**: Reported financial numbers at the high end of guidance, with over 5% revenue growth expected for the year [2][30] - **New Business Bookings**: $2.6 billion in new business booked in the clinical segment, with a book-to-bill ratio of 1.15 [2][3] - **Request for Proposals (RFPs)**: Increased by 20% year-over-year, indicating strong demand [2][14] Industry Dynamics - **Market Recovery**: The period of uncertainty in the pharmaceutical industry is lifting, with decision timelines returning to normal [3][9] - **Impact of COVID-19**: The industry experienced overspending and overinvestment during the pandemic, leading to a subsequent decline in capital availability for emerging biotech [5][6] - **Cancellations of Clinical Trials**: Elevated cancellations due to economic reasons and uncertainty have largely subsided [6][7] Macro Environment - **Regulatory Changes**: The Inflation Reduction Act (IRA) and other macro events created uncertainty, affecting large pharma's investment decisions [6][9] - **FDA Changes**: Leadership changes and unclear policies at the FDA contributed to a difficult environment for investment [7][9] Business Segments and Trends - **R&D Spend Growth**: Long-term growth forecast for the top 15 pharma companies is around 3% annually, while the Emerging Biopharma (EBP) segment is expected to grow 8-10% per year [21][22] - **TADs Business**: Comprises three main parts: data business (low growth), real-world evidence (double-digit growth), and analytics/consulting (mid-single digits) [26][27] - **Pricing Environment**: Stabilized after a period of volatility, with no significant pricing pressures currently reported [20] Strategic Partnerships - **Agreement with Veeva**: Resolved long-standing disputes to enhance collaboration, reflecting the need for integration between data and technology applications in the pharma ecosystem [28][29] Future Outlook - **2026 Growth Expectations**: Anticipated to deliver at least 5% growth, with a long-term growth target of 6-9% [30][32] - **EBITDA Margins**: Expected to remain flat with a potential for 30 basis points of expansion annually, influenced by business mix and operational efficiencies [32][36] Additional Insights - **Client Relationships**: Strong relationships with clients across the biopharma industry, contributing to confidence in future bookings and demand [12][36] - **Market Segmentation**: The market for EBP is larger than perceived, with opportunities in segments previously overlooked by IQVIA [18] This summary encapsulates the key points discussed during the IQVIA Holdings conference call, highlighting the company's performance, industry trends, and future outlook.

Industry Overview - Companies in the drug development inputs and services sector are essential to the pharmaceutical and biotechnology value chain, providing support for drug discovery, preclinical testing, and manufacturing [2] - The industry benefits from stable demand as pharmaceutical companies often outsource non-core functions with medium to long-term contracts [2] - Future growth is expected due to increasing investments in biologics, cell and gene therapies, and advancements in precision medicine, which will drive demand for sophisticated tools and services [2] - There is a trend towards outsourcing in drug development for increased nimbleness and cost efficiency [2] - Potential challenges include pricing pressures from healthcare cost containment efforts and an evolving regulatory environment that could slow innovation or client activity [2] Q3 Earnings Performance - The seven tracked drug development inputs and services stocks reported strong Q3 results, with revenues exceeding analysts' consensus estimates by 3.1% [3] - On average, share prices of these companies have increased by 2% since the latest earnings results [3] Company-Specific Highlights - IQVIA (NYSE:IQV) reported revenues of $4.1 billion, reflecting a year-on-year increase of 5.2%, which surpassed analysts' expectations by 0.5% [5] - Despite the revenue growth, IQVIA's performance was mixed, with constant currency revenue aligning with analysts' estimates [5] - IQVIA delivered the weakest performance against analyst estimates within the group, resulting in a 3% decline in stock price since reporting, currently trading at $211 [6] - Medpace (NASDAQ:MEDP) was highlighted as the best performer in Q3, providing outsourced clinical trial management and research services [7]

Core Insights - IQVIA Holdings reported revenue of $4.1 billion for the quarter ended September 2025, reflecting a year-over-year increase of 5.2% and an EPS of $3.00, up from $2.84 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.07 billion by 0.86%, while the EPS also surpassed the consensus estimate of $2.96 by 1.35% [1] Financial Performance Metrics - The backlog stood at $32.40 billion, slightly below the average estimate of $32.49 billion from two analysts [4] - Revenue from Technology & Analytics Solutions was reported at $1.63 billion, compared to the average estimate of $1.66 billion, marking a 5% year-over-year increase [4] - Revenue from Research & Development Solutions reached $2.26 billion, exceeding the estimated $2.23 billion, with a year-over-year change of 4.5% [4] - Revenue from Contract Sales & Medical Solutions was $209 million, surpassing the average estimate of $180.27 million, representing a significant year-over-year increase of 16.1% [4] - Segment profit for Technology & Analytics Solutions was $370 million, below the average estimate of $412.55 million [4] - Segment profit for Contract Sales & Medical Solutions was reported at $13 million, significantly higher than the estimated $0.84 million [4] - Segment profit for Research & Development Solutions was $496 million, slightly above the average estimate of $495.9 million [4] Stock Performance - IQVIA shares have returned +20.3% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Revenue Performance - For Q3 2025, total revenues reached $3,896 million, an increase of $204 million or 5.2% compared to Q3 2024, driven by constant currency revenue growth of approximately $150 million or 3.9%[98] - For the first nine months of 2025, revenues increased to $11,946 million, up $499 million or 4.4% from the same period in 2024, with constant currency growth of approximately $418 million or 3.7%[99] - For the third quarter of 2025, total revenues increased to $4,100 million, up 5.2% from $3,896 million in the same period of 2024[115] - Technology & Analytics Solutions reported revenues of $1,631 million for Q3 2025, a 5.0% increase from $1,554 million in Q3 2024, driven by growth in the Americas region[118] - Research & Development Solutions achieved revenues of $2,260 million in Q3 2025, reflecting a 4.5% increase from $2,162 million in Q3 2024, primarily due to growth in the Americas region[129] - Contract Sales & Medical Solutions' revenues for Q3 2025 were $209 million, an increase of $29 million, or 16.1%, compared to Q3 2024[138] - For the first nine months of 2025, revenues reached $578 million, up $37 million, or 6.8%, from the same period in 2024[139] Cost and Expenses - Cost of revenues for Q3 2025 was $2,727 million, representing 66.5% of revenues, an increase of $209 million from Q3 2024, with a constant currency increase of approximately $183 million or 7.3%[100] - Selling, general and administrative expenses for Q3 2025 were $514 million, accounting for 12.5% of revenues, a decrease of $8 million from Q3 2024[102] - Depreciation and amortization for Q3 2025 was $286 million, or 7.0% of revenues, reflecting an increase of $8 million compared to Q3 2024[105] - Restructuring costs for Q3 2025 were $20 million, down from $28 million in Q3 2024, as the company continues to streamline operations[106] - Technology & Analytics Solutions' cost of revenues increased by $252 million, or 9.3%, in the first nine months of 2025 compared to the same period in 2024[122] - Research & Development Solutions' selling, general and administrative expenses increased by $10 million, or 4.5%, in Q3 2025 compared to Q3 2024[135] - Cost of revenues, exclusive of depreciation and amortization, increased by $27 million, or 17.5%, in Q3 2025 compared to Q3 2024[141] - In the first nine months of 2025, cost of revenues rose by $37 million, or 8.0%, compared to the same period in 2024[142] - Selling, general and administrative expenses increased by $1 million, or 7.1%, in Q3 2025, but decreased by $2 million, or 4.4%, in the first nine months of 2025[144][145] Financial Position - The company had a cash balance of $1,814 million as of September 30, 2025, an increase from $1,702 million as of December 31, 2024[148] - Net cash provided by operating activities was $1,919 million for the first nine months of 2025, an increase of $88 million compared to the same period in 2024[159] - Cash used in investing activities was $(1,201) million for the first nine months of 2025, an increase of $67 million compared to the same period in 2024[160] - Cash used in financing activities increased by $182 million to $(685) million during the first nine months of 2025 compared to the same period in 2024[161] - The company repurchased 6.4 million shares for $1,032 million under its equity repurchase program during the nine months ended September 30, 2025[151] Current and Noncurrent Liabilities - Total current assets as of September 30, 2025, decreased to $599 million from $935 million as of December 31, 2024, representing a decline of approximately 36%[168] - Total current liabilities increased to $5,120 million as of September 30, 2025, from $3,792 million as of December 31, 2024, marking an increase of about 35%[168] - Total noncurrent liabilities slightly decreased to $12,223 million as of September 30, 2025, from $12,333 million as of December 31, 2024[168] - Amounts due from subsidiaries that are non-Guarantors decreased to $4,663 million as of September 30, 2025, from $4,952 million as of December 31, 2024, a decline of about 6%[168] - Amounts due to subsidiaries that are non-Guarantors increased to $7,190 million as of September 30, 2025, from $6,341 million as of December 31, 2024, an increase of approximately 13%[168] Income and Taxation - Consolidated segment profit for the first nine months of 2025 was $1,555 million, slightly down from $1,576 million in the same period of 2024[116] - The effective income tax rate for the first nine months of 2025 was 18.3%, compared to 16.8% in the same period of 2024, influenced by changes in the geographical mix of earnings[111] - Net income for the nine months ended September 30, 2025, was $117 million, significantly lower than $554 million for the twelve months ended December 31, 2024, representing a decrease of approximately 79%[168] - Income from operations for the nine months ended September 30, 2025, was $1,074 million, down from $1,259 million for the twelve months ended December 31, 2024, reflecting a decline of approximately 15%[168] Other Information - The company operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions, each contributing to revenue growth[93] - Approximately 30% of revenues in the first nine months of 2025 were denominated in currencies other than the US dollar, impacting financial results due to exchange rate fluctuations[96] - The contracted backlog for Research & Development Solutions rose from $31.1 billion at the end of 2024 to $32.4 billion by September 30, 2025, with an expected $8.1 billion to convert to revenues in the next twelve months[128] - The company’s equity in earnings (losses) of unconsolidated affiliates showed a loss of $14 million for the first nine months of 2025, a decrease from the previous year[114] - The U.S. government's One Big Beautiful Bill Act is not expected to materially impact the company's consolidated financial statements for 2025[112] - There have been no material changes to critical accounting policies as previously disclosed in the 2024 Form 10-K[171] - The company does not have any material off-balance sheet arrangements[169]

Core Insights - IQVIA Holdings Analytics Inc. reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][9] - Adjusted earnings were $3 per share, a 5.6% increase year-over-year, while total revenues reached $4.1 billion, reflecting a 5.2% growth from the previous year [1][9] Financial Performance - The Research and Development segment generated revenues of $2.3 billion, up 4.5% year-over-year, surpassing the estimate of $2.2 billion [3] - Technology and Analytics segment revenues were $1.6 billion, growing 5% year-over-year, but fell short of the projected $1.7 billion [3] - Contract Sales and Medical Solutions revenues increased 16.1% year-over-year to $209 million, exceeding the estimate of $181.7 million [4] - Adjusted EBITDA for the quarter was $949 million, a 1.1% rise from the previous year, surpassing the anticipated $945.3 million [4] Cash Flow and Debt - The company ended the quarter with cash and cash equivalents of $1.8 billion, down from $2 billion in the previous quarter [5] - Long-term debt decreased to $15 billion from $15.4 billion at the end of the second quarter [5] - Net cash generated from operating activities was $908 million, with capital expenditures of $136 million, resulting in a free cash flow of $772 million for the quarter [5] 2025 Guidance - IQVIA updated its revenue guidance for 2025 to a range of $16.15-$16.25 billion, with the midpoint exceeding the Zacks Consensus Estimate of $16.16 billion [6] - The earnings per share outlook was revised to $11.85-$11.95, with the midpoint also above the consensus estimate of $11.86 [6] - Adjusted EBITDA guidance was updated to $3.775-$3.800 billion, reflecting a slight increase from the previous quarter's view [7]