IQVIA (IQV) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants Kerri Joseph - SVP of Investment Relation & TreasuryAri Bousbib - Chairman & Chief Executive OfficerRon Bruehlman - Executive Vice President & Chief Financial OfficerShlomo Rosenbaum - Managing DirectorMichael Ryskin - Managing DirectorJailendra Singh - Managing DirectorDave Windley - Managing Director Conference Call Participants Justin Bowers - AnalystMatt Sykes - AnalystEric Coldwell - Senior Research AnalystTejas Savant - Ex ...

Financial Performance - Total revenue for Q1 2025 was $3,829 million, representing a year-over-year growth of 2.5% on a reported basis and 3.5% at constant currency, with adjusted EBITDA increasing by 2.4% [29][30][31] - Adjusted diluted EPS for Q1 2025 was $2.7, up 6.3% year-over-year [31] - The backlog reached a record $31.5 billion, growing 4.8% compared to the prior year [10][31] Business Segment Performance - Technology and Analytics Solutions (TAS) revenue for Q1 2025 was $1,546 million, up 6.4% reported and 7.6% at constant currency, driven by strong growth in real-world evidence [30][29] - R&D Solutions revenue was $2,102 million, up 0.3% reported and 1.1% at constant currency, with approximately 3% growth when excluding COVID-related work [30] - Contract Sales and Medical Solutions revenue declined by 4.2% reported and 2.1% at constant currency, indicating challenges in this segment [30] Market Insights - The company noted a strong recovery trend in the biopharmaceutical sector, with clients launching new drugs despite a challenging environment [8][10] - The average time from RFP issuance to award increased by approximately 10%, reflecting heightened caution in the sector [10][60] - The funding environment for early-stage projects has deteriorated, impacting decision-making processes [10][60] Strategic Direction and Industry Competition - The company is well-positioned to navigate near-term challenges and remains confident in the industry's resilience and prospects [6][19] - The U.S. biopharmaceutical sector is recognized as a strategic sector deserving strong support, contributing significantly to global drug approvals and economic output [20][21] - The company is focusing on deploying AI agents to enhance productivity and efficiency across its operations [27] Management Commentary on Operating Environment - Management highlighted that while there is uncertainty in the market, leading indicators such as pipeline and decision timelines remain strong [55][56] - The company expects pent-up demand to drive continued growth in necessary spending, particularly in TAS [55][56] - Management acknowledged that the reprioritization of R&D pipelines due to previous regulatory changes is largely complete, but new uncertainties may still cause delays [59][60] Other Important Information - The company repurchased $425 million of its shares during the quarter, with approximately $2.6 billion remaining under the current program [32][36] - Full-year revenue guidance was raised by $275 million, now expecting revenue between $16 billion and $16.4 billion [32][33] Q&A Session Summary Question: Drivers behind the strength in RWE and order book outlook - Management noted that TAS delivered better-than-expected revenue growth, driven largely by strong growth in real-world evidence, and expects this trend to continue due to pent-up demand [38][39] Question: Margin expansion opportunities - Management explained that FX impacts margins, and while there are ongoing cost reduction efforts, the overall margin picture has not changed significantly [43][44] Question: Competitiveness of RFPs and vendor consolidation - Management indicated that RFP flow remains strong, with no significant changes in the flow of RFPs, and noted that large pharma clients are beginning to revert to full-service models [46][49] Question: Impact of uncertainty on TAS - Management acknowledged that while there is uncertainty, leading indicators remain strong, and pent-up demand is driving necessary spending in TAS [55][56] Question: Book-to-bill trends and cancellations - Management attributed softer bookings to delays in contract signings and funding uncertainties, rather than cancellations, and emphasized that the overall growth outlook remains positive [64][66] Question: Pricing environment changes - Management confirmed that there have been no significant changes in the pricing environment, and they are comfortable operating under current conditions [73] Question: Mix of FSO versus FSP and mega trial updates - Management noted a shift back towards full-service work and confirmed that one mega trial is expected to start in the second half of the year, while another has been delayed [82][84]

Exhibit 99.1 IQVIA Reports First-Quarter 2025 Results RESEARCH TRIANGLE PARK, N.C. – (BUSINESS WIRE) – May 6, 2025 – IQVIA Holdings Inc. ("IQVIA") (NYSE:IQV), a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries, today reported financial results for the quarter ended March 31, 2025. First-Quarter 2025 Operating Results Revenue for the first quarter of $3,829 million increased 2.5 percent on a reported basis an ...

IQVIA Holdings Inc. (IQV) will release its first-quarter 2025 results on May 6, before market open.IQV has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.7%.IQVIA Holdings Inc. Price, Consensus and EPS Surprise IQVIA’s Q1 ExpectationsThe Zacks Consensus Estimate for revenues is pegged at $3.8 billion, increasing marginally on a year-over-year basis.Research and Development Solutions (R&DS) revenues are expected to ...

Wall Street analysts expect IQVIA Holdings (IQV) to post quarterly earnings of $2.63 per share in its upcoming report, which indicates a year-over-year increase of 3.5%. Revenues are expected to be $3.77 billion, up 0.9% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefr ...

The market expects IQVIA Holdings (IQV) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...

Investment Rating - The report does not explicitly provide an investment rating for the MedTech sector but highlights the ongoing risks and disruptions that could affect investment decisions. Core Insights - The MedTech sector is currently facing significant challenges due to global supply chain issues, trade policy changes, and the imposition of tariffs, particularly from the U.S. on imports from Canada, Mexico, and China. These factors are expected to increase costs for medical devices and negatively impact healthcare systems and sales outside the U.S. [4][5][9] - The report emphasizes the need for MedTech companies to adopt both short- and long-term strategies to navigate these disruptions effectively, including scenario analyses, supply chain diversification, and regulatory compliance [4][30][39]. Summary by Sections Executive Summary - The MedTech sector is experiencing ongoing risk and disruption due to factors such as the semiconductor shortage, supply chain issues from the COVID-19 pandemic, and recent trade policy changes leading to tariffs on imports from Canada, Mexico, and China [4]. - The report outlines strategies for manufacturers to mitigate these risks, emphasizing the importance of scenario analyses and strategic planning [4]. Potential Impact of New Tariffs on MedTech - The U.S. has imposed a 25% additional tariff on imports from Canada and Mexico, with a 10% baseline tariff on all countries. This has created uncertainty in global markets and could lead to increased costs for medical devices [5][6]. - Canada’s medical technology imports from the U.S. accounted for 38% of total imports in 2022, with significant reliance on components from China and Mexico [10][9]. Canada: Impacts on Various Device Categories - Class 3 and 4 medical devices, which include higher-risk and life-sustaining equipment, are expected to be significantly affected by the tariffs, with 90-100% of certain categories imported [13][15]. - The diagnostics sector, particularly in-vitro diagnostics, is heavily reliant on U.S. imports, with around 90% of devices sourced from the U.S. [15]. Canada and the United States: Impact on MedTech Manufacturers - Canadian MedTech manufacturers may face increased production costs due to U.S. tariffs, while U.S. manufacturers may also experience higher costs from tariffs on imports from various countries [22][23]. - The report highlights the importance of collaboration between organizations like MedTech Canada and AdvaMed to address tariff impacts and maintain market access [21][24]. Canada: Resilience in the MedTech Market - Health Canada has established pathways to streamline the importation and sale of medical devices, which could support the Canadian MedTech market amid ongoing disruptions [26][27]. - The report notes that Canadian manufacturers are adapting to the evolving landscape through supply chain modifications and market diversification [28]. Short- to Medium-Term Strategies - Companies are advised to gain comprehensive market insights, accelerate advocacy efforts, diversify supply chains, localize production, and adjust financial strategies to mitigate tariff impacts [30]. - Engaging with stakeholders and enhancing market surveillance systems are crucial for informed decision-making [30]. Medium- to Long-Term Strategies - The report emphasizes the need for supply chain diversification, regulatory agility, and investment in digital transformation to navigate uncertainties effectively [39][40][42]. - Companies should explore strategic partnerships and M&A opportunities to secure cost-effective components and enhance resilience [44]. Conclusion - The Canadian medical device industry is navigating a complex landscape marked by economic uncertainties and shifting trade policies, necessitating resilience and strategic foresight for long-term stability [39][43].

Company Overview - IQVIA Holdings (IQV) shares increased by 8.7% to close at $157.02, supported by high trading volume, despite a 21.3% loss over the past four weeks [1] - The price surge is attributed to recent bookings in the clinical business and the renewal of partnerships with large pharmaceutical companies [1] Earnings Expectations - IQVIA is expected to report quarterly earnings of $2.62 per share, reflecting a year-over-year increase of 3.2% [2] - Revenue projections stand at $3.77 billion, which is a 1% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for IQVIA has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - IQVIA operates within the Zacks Medical - Instruments industry, where another company, Si-Bone (SIBN), also experienced a price increase of 6.6% to $13.92, despite a -15.1% return over the past month [3] - Si-Bone's consensus EPS estimate is -$0.24, showing an 11.1% improvement from the previous year, and it also holds a Zacks Rank of 3 (Hold) [4]

Core Viewpoint - IQVIA Holdings Inc. is positioned for growth through its expansion strategy, strong partnerships, and innovative collaborations, particularly with NVIDIA, despite facing macroeconomic challenges and liquidity concerns [1][4][6]. Financial Performance - Revenues are projected to grow by 3.1% in 2025 and 6.4% in 2026, while earnings are expected to rise by 6.6% in 2025 and 11.7% in 2026 [2]. - The company's top line increased by 2.8% year over year in 2024, with anticipated growth rates of 3%, 6%, and 6% for 2025, 2026, and 2027, respectively, if the expansion strategy is successful [3]. Strategic Partnerships - IQVIA has secured 22 partnerships with the top 25 pharmaceutical companies, focusing on strengthening existing relationships and acquiring new ones, which positions the company for sustained growth and market leadership [5]. - The collaboration with NVIDIA aims to enhance healthcare and life sciences through advanced AI solutions, improving clinical trial processes and patient treatment adherence [6]. Shareholder Value - The company has shown a strong commitment to returning value to shareholders through an active share repurchase program, repurchasing shares worth $1.35 billion in 2024, which lowers the outstanding share count and boosts earnings per share [7]. Liquidity Concerns - IQVIA's current ratio at the end of Q4 2024 was 0.84, significantly lower than the industry average of 1.93, indicating potential challenges in meeting short-term obligations [9].

Core Insights - IQVIA Holdings Inc. is positioned to benefit from a large addressable market exceeding $330 billion, which includes outsourced research and development, real-world evidence, and technology-enabled clinical operations [3] - The company reported adjusted earnings of $3.12 per share for Q4 2024, a 9.9% increase year-over-year, with total revenues reaching $4 billion, reflecting a 2.3% growth from the previous year [2] - IQVIA's proprietary data, comprising around 61 petabytes from nearly 150,000 suppliers, serves as a significant competitive advantage, creating barriers for new entrants [4] Market Position and Offerings - The company aims to innovate and enhance its offerings through advanced analytics and transformative technology, leveraging its extensive data to penetrate various healthcare markets [3][5] - IQVIA maintains a diversified client base of over 10,000, including pharmaceutical companies, healthcare providers, and government agencies, across 100 countries [6] Financial Considerations - The company currently has no plans to pay dividends, which may deter dividend-seeking investors [7] - IQVIA's current ratio at the end of Q4 2024 was 0.84, indicating potential liquidity concerns compared to the industry average of 1.93 [8]