Financial Data and Key Metrics Changes - The company reported third quarter revenue of $4.1 billion, reflecting a year-over-year growth of 5.2% on a reported basis and 3.9% at constant currency [16] - Adjusted EBITDA for the quarter was $949 million, representing a growth of 1.1% [17] - Third quarter adjusted diluted EPS was $3, an increase of 5.6% year over year [18] - Free cash flow reached a record high of $772 million for the quarter [19] Business Line Data and Key Metrics Changes - Technology and Analytics Solutions (TASS) revenue for the third quarter was $1.631 billion, up 5% reported and 3.3% at constant currency [16] - R&D Solutions revenue was $2.26 billion, growing 4.5% reported and 3.4% at constant currency [16] - Contract Sales and Medical Solutions (CSMS) revenue was $209 million, up 16.1% reported and 13.9% at constant currency [16] Market Data and Key Metrics Changes - Net bookings in the quarter totaled $2.6 billion, resulting in a net book-to-bill ratio of 1.15, with bookings up 13% year over year [22] - The backlog reached a record of $32.4 billion, showing growth of 4.1% compared to the prior year [18] - Biotech funding momentum reached $18 billion in Q3, indicating strong demand in the sector [6] Company Strategy and Development Direction - The company is focusing on expanding capabilities in Contract Sales and Medical Solutions, responding to a trend of large pharma clients outsourcing commercial operations [8] - The "see more, win more" strategy has been implemented to capture market segments previously overlooked, leading to improved RFP flows and bookings [26] - The company is investing in AI capabilities, with plans to develop 500 specialized AI agents by early 2027 to enhance operational efficiency and client service [99] Management's Comments on Operating Environment and Future Outlook - Management noted an improved industry backdrop and a reduction in market uncertainty, contributing to stronger client decision-making and demand [25] - The company reaffirmed its full-year 2025 guidance, expecting revenue growth of 4.8% to 5.5% [20] - Management expressed confidence that revenue growth in 2026 would be at least the same or better than the current year [32] Other Important Information - The CFO transition was announced, with Mike Fedock set to succeed Ron Bruehlman in February 2026 [13] - The company is seeing growing demand for phase one trials, indicating a shift in its operational focus [86] Q&A Session Summary Question: About the "see more, win more" strategy and its impact on RFP flows - Management indicated that the strategy has led to improved bookings momentum and a reduction in pricing competition, with a strong backlog supporting future revenue [25][27] Question: Expectations for business momentum into 2026 - Management refrained from providing specific guidance for 2026 but expressed confidence in maintaining or exceeding current growth rates [31][32] Question: Differences in performance between pharma and biotech segments - Management noted that large pharma has completed internal reprioritization, leading to stronger RFP flows and a healthier business environment [39] Question: Contributions from inorganic advancements in TASS - Management highlighted that most inorganic contributions are expected to come from TASS, with ongoing efforts to acquire technology companies to enhance capabilities [43][45] Question: Status of mega trials and their impact on guidance - Management confirmed that there are no changes to guidance due to the status of mega trials, which have been pushed out and are not factored into current revenue expectations [90][92] Question: Insights on AI's impact on customer business models and internal efficiencies - Management discussed the development of AI agents to improve operational efficiency and the potential for margin improvements in the long term [99][103]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $4.1 billion, reflecting a year-over-year growth of 5.2% on a reported basis and 3.9% at constant currency [16] - Adjusted EBITDA for the quarter was $949 million, representing a growth of 1.1% [17] - Third quarter adjusted diluted EPS was $3, an increase of 5.6% year-over-year [17] - Free cash flow reached a record high of $772 million for the quarter [19] Business Line Data and Key Metrics Changes - Technology and Analytics Solutions (TASS) revenue for the third quarter was $1.631 billion, up 5% reported and 3.3% at constant currency [16] - R&D Solutions revenue was $2.26 billion, growing 4.5% reported and 3.4% at constant currency [16] - Contract Sales and Medical Solutions (CSMS) revenue was $209 million, up 16.1% reported and 13.9% at constant currency [16] Market Data and Key Metrics Changes - Net bookings in the clinical segment totaled $2.6 billion, resulting in a net book-to-bill ratio of 1.15, with a year-over-year growth of 13% [22] - The backlog reached a record of $32.4 billion, showing growth of 4.1% compared to the prior year [18] - Biotech funding momentum reached $18 billion in Q3, indicating strong demand in the sector [5] Company Strategy and Development Direction - The company is focusing on expanding capabilities in commercial operations for established brands, capitalizing on trends in outsourcing by large pharma clients [7] - The "see more, win more" strategy has been implemented to target previously untouched markets, leading to improved RFP flows and bookings [26] - The company plans to develop 500 highly specialized AI agents by early 2027 to enhance operational efficiency and client service [103] Management's Comments on Operating Environment and Future Outlook - Management noted an improved industry backdrop and a reduction in market uncertainty, contributing to stronger bookings and client decision-making timelines [25] - The company expects to deliver over 5% top-line revenue growth for the year, with confidence in maintaining or exceeding this growth into 2026 [34] - Management highlighted that the reprioritization of large pharma programs has largely been completed, leading to a healthier business environment [40] Other Important Information - The CFO transition was announced, with Mike Fedock set to succeed Ron Bruehlman in February 2026 [13] - The company reaffirmed its full-year 2025 guidance, narrowing ranges for revenue, adjusted EBITDA, and adjusted diluted EPS [20] Q&A Session Summary Question: About the "see more, win more" strategy and its impact on RFP flows - Management indicated that the strategy has led to improved bookings momentum and a reduction in pricing competition, with a strong backlog supporting future revenue [25][28] Question: Expectations for business momentum into 2026 - Management expressed confidence that revenue growth in 2026 would be at least the same or better than the current year, although specific guidance for 2026 will be provided in early 2024 [34] Question: Differences in performance between pharma and biotech segments - Management noted that large pharma has completed internal reprioritization, leading to strong RFP flow growth, while biotech funding is improving, driving growth in the EBP segment [40] Question: Contributions from inorganic advancements in TASS - Management confirmed that inorganic contributions primarily come from TASS, with a recent acquisition expected to enhance capabilities in R&D Solutions [46] Question: Status of mega trials and their impact on guidance - Management clarified that there are no changes to guidance due to the status of mega trials, which have been pushed out and are not factored into current revenue projections [93] Question: Insights on AI's impact on customer business models and internal efficiencies - Management highlighted ongoing development of AI agents to improve operational efficiency and client service, with expectations for long-term margin improvements from these initiatives [103][107]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $4.1 billion, reflecting a year-over-year growth of 5.2% on a reported basis and 3.9% at constant currency [17] - Adjusted EBITDA for the quarter was $949 million, representing growth of 1.1% [18] - Third quarter adjusted diluted EPS was $3, an increase of 5.6% year over year [18] - Free cash flow reached a record high of $772 million for the quarter [20] Business Line Data and Key Metrics Changes - Technology and Analytics Solutions (TASS) revenue for the third quarter was $1.631 billion, up 5% reported and 3.3% at constant currency [17] - R&D Solutions revenue was $2.26 billion, growing 4.5% reported and 3.4% at constant currency [17] - Contract Sales and Medical Solutions (CSMS) revenue was $209 million, up 16.1% reported and 13.9% at constant currency [17] Market Data and Key Metrics Changes - Net bookings in the clinical segment totaled $2.6 billion, resulting in a net book-to-bill ratio of 1.15, with bookings up 13% year over year [24] - The backlog reached a record of $32.4 billion, showing growth of 4.1% compared to the prior year [19] - Biotech funding momentum reached $18 billion in Q3, indicating strong demand in the sector [5] Company Strategy and Development Direction - The company is focusing on expanding capabilities in commercial operations outsourcing, particularly for established brands in specific markets [8] - The "see more, win more" strategy has been implemented to target previously untouched markets, leading to improved RFP flows and bookings [28] - The company plans to develop 500 highly specialized AI agents by early 2027 to enhance operational efficiency and client service [72] Management's Comments on Operating Environment and Future Outlook - Management noted an improved industry backdrop and a reduction in market uncertainty, contributing to stronger demand and decision-making timelines [27] - The company expects to deliver over 5% top-line revenue growth for the year, with confidence in maintaining or improving growth in 2026 [32] - Management highlighted that the reprioritization of large pharma programs has largely been completed, leading to a more stable environment for future engagements [36] Other Important Information - The company confirmed its full-year 2025 guidance, narrowing ranges for revenue, adjusted EBITDA, and adjusted diluted EPS [21] - The CFO transition was announced, with Mike Fedock set to succeed Ron Bruehlman in February 2026 [14] Q&A Session Summary Question: Insights on the "see more, win more" strategy and its impact on RFP flows - Management indicated that the strategy has led to improved bookings momentum and a reduction in pricing competition, with a strong backlog mitigating any past pricing impacts [28][29] Question: Expectations for business momentum into 2026 - Management refrained from providing specific 2026 guidance but expressed confidence in maintaining or exceeding current growth rates based on improved market conditions [32] Question: Differences in dynamics between pharma and biotech - Management noted that large pharma has completed internal reprioritization, leading to strong RFP flow growth, while biotech funding is also improving, driving overall business growth [36][38] Question: Contributions from inorganic advancements in TASS - Management highlighted that recent acquisitions, particularly in oncology, are expected to contribute positively to revenue, with ongoing focus on technology and analytics capabilities [42] Question: Status of mega trials and phase one involvement - Management confirmed that there have been no changes in the status of mega trials, and the company is seeing increased demand for phase one work, expanding its presence in this area [61][68] Question: Impact of AI on customer business models and internal efficiencies - Management discussed the development of AI agents to improve operational efficiency and enhance client service, with expectations for long-term margin improvements from these initiatives [72]

Core Insights - IQVIA Holdings reported quarterly earnings of $3 per share, exceeding the Zacks Consensus Estimate of $2.96 per share, and showing an increase from $2.84 per share a year ago, resulting in an earnings surprise of +1.35% [1] - The company achieved revenues of $4.1 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.86% and reflecting a year-over-year increase from $3.9 billion [2] - IQVIA has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.40 on revenues of $4.24 billion, while for the current fiscal year, the estimate is $11.86 on revenues of $16.16 billion [7] - The trend of estimate revisions for IQVIA was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] Industry Context - The Medical - Instruments industry, to which IQVIA belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Q3 2025 Financial Performance - Revenue for Q3 2025 reached $4,100 million, a 5.2% increase AFx (actual foreign exchange rates) and 3.9% increase CFx (constant currency) compared to $3,896 million in Q3 2024[12] - Adjusted EBITDA for Q3 2025 was $949 million, a 1.1% increase AFx compared to $939 million in Q3 2024[12] - Adjusted Diluted EPS for Q3 2025 was $3.00, a 5.6% increase AFx compared to $2.84 in Q3 2024[12] - Net income attributable to IQVIA Holdings Inc was $331 million in Q3 2025, compared to $285 million in Q3 2024[31] Year-to-Date (YTD) Performance - YTD Revenue for 2025 reached $11,946 million, a 4.4% increase AFx and 3.7% increase CFx compared to $11,447 million in 2024[15] - YTD Adjusted EBITDA for 2025 was $2,742 million, compared to $2,688 million in 2024[17] - YTD Adjusted Diluted Earnings per Share was $8.50, compared to $8.02 in 2024[17] Segment Performance (Q3 2025) - Technology & Analytics Solutions revenue was $1,631 million, a 5.0% increase AFx compared to $1,554 million in Q3 2024[15] - Research & Development Solutions revenue was $2,260 million, a 4.5% increase AFx compared to $2,162 million in Q3 2024[15] - Contract Sales & Medical Solutions revenue was $209 million, a 16.1% increase AFx compared to $180 million in Q3 2024[15] R&D Solutions Bookings and Backlog - R&D Solutions backlog increased by 4.1% from $31.1 billion in Q3 2024 to $32.4 billion in Q3 2025[21] Balance Sheet and Cash Flow - Cash & Cash Equivalents totaled $1,814 million[23] - Free Cash Flow for Q3 2025 was $772 million[23] Full Year 2025 Guidance - The company projects full-year 2025 revenue between $16,150 million and $16,250 million[26] - The company projects full-year 2025 Adjusted EBITDA between $3,775 million and $3,800 million[26] - The company projects full-year 2025 Adjusted Diluted EPS between $11.85 and $11.95[26]

Core Viewpoint - IQVIA Holdings has narrowed its annual profit forecast, reducing the upper end of its outlook due to expected ongoing cancellations of research contracts from pharmaceutical clients [1] Company Summary - The company anticipates that the trend of contract cancellations will continue into the future, impacting its financial performance [1] Industry Summary - The pharmaceutical industry is facing challenges that are leading to a reduction in research contracts, which may affect companies like IQVIA Holdings that rely on these contracts for revenue [1]

Core Points - The company is hosting an investor update in Zurich in two days to discuss strategic direction, capital allocation, and midterm guidance [3] - The focus of the current call is on Q3 and year-to-date financial results, along with details regarding nonrecurring impairment charges announced on September 18 [3]

Revenue Performance - Third-quarter 2025 revenue was $4,100 million, an increase of 5.2% year-over-year[3]. - Year-to-date revenue for 2025 reached $11,946 million, a 4.4% increase compared to the same period in 2024[7]. - Revenues for Q3 2025 reached $4,100 million, a 5.2% increase from $3,896 million in Q3 2024[21]. - Full-year 2025 revenue guidance is between $16,150 million and $16,250 million, with Adjusted EBITDA expected between $3,775 million and $3,800 million[11]. Profitability Metrics - Third-quarter GAAP Net Income was $331 million, with Adjusted Net Income of $515 million and Adjusted Diluted Earnings per Share of $3.00[5][8]. - Net income attributable to IQVIA Holdings Inc. for Q3 2025 was $331 million, up from $285 million in Q3 2024, representing a 16.1% increase[21]. - Adjusted EBITDA for Q3 2025 was $949 million, slightly up from $939 million in Q3 2024[27]. - Adjusted net income for Q3 2025 was $515 million, compared to $523 million in Q3 2024, and for the nine months ended September 30, 2025, it was $1,480 million, slightly up from $1,478 million in the prior year[29]. - Adjusted earnings per share for Q3 2025 were $3.00 diluted, compared to $2.84 diluted in Q3 2024, and for the nine months ended September 30, 2025, it was $8.50 diluted, up from $8.02 in the prior year[29]. Cash Flow and Assets - Operating Cash Flow for the third quarter was $908 million, with Free Cash Flow of $772 million, representing a 35% increase year-over-year[10][8]. - Net cash provided by operating activities for Q3 2025 was $908 million, compared to $721 million in Q3 2024, and for the nine months ended September 30, 2025, it was $1,919 million, up from $1,831 million[31]. - Total current assets as of September 30, 2025, were $5,979 million, compared to $5,829 million as of December 31, 2024, reflecting a 2.6% increase[23]. - Cash and cash equivalents at the end of Q3 2025 were $1,814 million, up from $1,702 million at the end of 2024[23]. Debt and Leverage - The company maintains a Net Leverage Ratio of 3.52x trailing twelve-month Adjusted EBITDA[10]. - Long-term debt, less current portion, was $12,793 million as of September 30, 2025, slightly down from $12,838 million at the end of 2024[23]. - Gross debt as of September 30, 2025, was $14,957 million, with a gross leverage ratio of 4.00x based on the last twelve months adjusted EBITDA of $3,738 million[33]. - Net debt as of September 30, 2025, was $13,143 million, resulting in a net leverage ratio of 3.52x[33]. Stock and Shareholder Activities - The company repurchased $1,032 million of common stock during the nine months ended September 30, 2025[25]. - The weighted average diluted shares outstanding decreased to 171.7 million in Q3 2025 from 184.2 million in Q3 2024[21]. - Stock-based compensation for Q3 2025 was $55 million, slightly up from $54 million in Q3 2024, and for the nine months ended September 30, 2025, it was $187 million, compared to $158 million in the prior year[29]. Other Financial Metrics - The company reported third-quarter net new bookings of $2.6 billion, resulting in a book-to-bill ratio of 1.15x[4][8]. - RFP growth accelerated to 20% year-over-year, indicating strong demand across all customer segments[6]. - Acquisition-related expenses for Q3 2025 were $15 million, up from $7 million in Q3 2024, and for the nine months ended September 30, 2025, they were $31 million, compared to $21 million in the same period last year[29]. - Restructuring and related expenses for Q3 2025 were $30 million, down from $38 million in Q3 2024, and for the nine months ended September 30, 2025, they were $114 million, compared to $99 million in the prior year[29].

Core Insights - IQVIA Holdings Inc. is a global leader in healthcare data, analytics, technology, and clinical research services with a market cap of $34.6 billion [1] - The company operates in three main segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions, serving clients in over 100 countries [1] Earnings Expectations - IQV is set to report Q3 earnings on October 28, with analysts expecting a profit of $2.68 per share, a 2.7% increase from $2.61 per share in the same quarter last year [2] - For the current fiscal year, analysts project an EPS of $10.73, reflecting a 4.7% increase from $10.25 in fiscal 2024, with further growth expected to $11.81 by fiscal 2026, a 10.1% annual improvement [3] Stock Performance - Over the past 52 weeks, IQV's stock has declined by 12.2%, underperforming the S&P 500 Index, which rose by 13.4%, and the Health Care Select Sector SPDR Fund, which decreased by 8% [4] Analyst Ratings - Truist Financial analyst Jailendra Singh reaffirmed a "Buy" rating on IQVIA, indicating confidence in the company's growth prospects, which led to a 2.8% increase in share price in the following trading session [5] - The consensus among analysts is highly bullish, with a "Strong Buy" rating from 15 out of 21 analysts, one recommending a "Moderate Buy," and five advising "Hold." The mean price target is $220.45, suggesting a potential upside of 7.7% from the current market price [6]

Upgrades - RBC Capital upgraded Sealed Air (SEE) to Outperform from Sector Perform with a price target of $48, up from $35, citing stabilization in Protective and continued strength in Food segments, along with over $100 million of cost reductions and G&A optimization [2] - Citi upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $62, up from $60, noting same-store sales momentum and earnings growth heading into 2026 [2] - Piper Sandler upgraded PNC Financial (PNC) to Overweight from Neutral with a price target of $220, up from $211, expressing confidence in PNC's near-term prospects due to its conservative guidance and attractive valuation [3] - HSBC upgraded Iqvia (IQV) to Buy from Hold with a price target of $235, up from $195, expecting easing regulatory clouds in pharma to support a re-rating of the shares [3] - MoffettNathanson upgraded Roblox (RBLX) to Neutral from Sell, acknowledging that user metrics have significantly improved driven by new viral experiences [4] Downgrades - Jefferies downgraded Freshpet (FRPT) to Hold from Buy with a price target of $53, down from $97, citing an abrupt and persistent growth slowdown and lack of near-term catalysts [5] - HSBC downgraded Bloom Energy (BE) to Hold from Buy with a price target of $100, up from $44, while expecting consensus estimates to revise higher but awaiting a better entry point [5] - RBC Capital downgraded Graphic Packaging (GPK) to Sector Perform from Outperform with a price target of $21, down from $25, due to oversupply in bleached paperboard limiting price increases [5] - JPMorgan downgraded RenaissanceRe (RNR) to Neutral from Overweight with an unchanged price target of $303, adopting an incrementally cautious view on reinsurance pricing [5] - Northland downgraded Nutanix (NTNX) to Market Perform from Outperform with a price target of $76, highlighting risks related to VMware customer migrations and competition from Red Hat [5]