Investment Rating - The report assigns a "Buy" rating to Thermo Fisher, while other companies such as Danaher, Samsung Bio, and Lonza remain unrated [2]. Core Insights - The report highlights that the impact of tariffs on the life sciences upstream sector is less than expected, leading to an overall upward revision of performance guidance for 2025 by most companies [4][29]. - Clinical CRO orders have unexpectedly increased, driven by strong biotech client demand, although the sustainability of this trend remains uncertain [4][31]. - The revenue recovery is outpacing profit recovery, with cost control pressures increasing due to external macroeconomic challenges [6][14]. Summary by Sections Performance Analysis - In 1H25, the performance of overseas CXO and life sciences upstream companies remained under pressure, but a sequential improvement was observed in 2Q25, with 7 out of 10 tracked companies showing revenue growth compared to 1Q25 [6][31]. - The median and average revenue growth rates for 2Q25 were +4.3% and +7.1%, respectively, compared to +0.2% and +6.0% in 1Q25, primarily driven by clinical CRO companies [6][8]. Tariff Impact - The impact of tariffs on sales of instruments and equipment for drug development and production was reported to be less than anticipated, with management from major life sciences companies indicating a more favorable outlook [29][30]. - Companies like Thermo Fisher and Danaher have adjusted their performance guidance upwards, reflecting a more optimistic view on tariff impacts [29][30]. Demand Trends - The C(D)MO sector continues to see strong commercial production demand, while life sciences upstream companies benefit from a recovery in consumable demand as clients complete inventory destocking [31][32]. - Clinical CRO demand has been bolstered by unexpected growth from biotech clients, although the sustainability of this demand is still in question [33][34]. Financial Metrics - The average gross margin for heavy asset companies decreased from 50.2% in 2021 to 45.7% in 2024, but showed signs of recovery in 2Q25 [15]. - The report notes that capital expenditures are expected to reverse the declining trend observed in 2023-24, potentially increasing future depreciation pressures [17]. Market Reactions - Following the release of 2Q25 results, stock prices for most overseas CXO and life sciences companies reacted positively, particularly for clinical CROs, which saw significant price increases due to better-than-expected performance [24][25].

Core Viewpoint - The company, Sinovac Biotech, has established a comprehensive strategic partnership with IQVIA to enhance the clinical design, registration, and commercialization of its innovative drugs and biosimilars in Europe and globally [1] Group 1 - The partnership aims to leverage the strengths of both companies to advance the development of Sinovac's products [1] - The collaboration will focus on the clinical design and registration processes, indicating a commitment to regulatory compliance and market readiness [1] - The strategic alliance is expected to facilitate the commercialization of Sinovac's innovative drugs and biosimilars, potentially increasing market access and revenue opportunities [1]

Core Viewpoint - Iqvia Holdings Inc. (IQV.US) has been upgraded from AA to AAA in MSCI ESG ratings as of July 29, 2025 [1] Group 1 - The upgrade reflects an improvement in the company's environmental, social, and governance practices [1]

Core Insights - The article emphasizes the importance of IQVIA Holdings' international operations in assessing its financial strength and growth potential [1][2] Revenue Performance - IQVIA's total revenue for the quarter ending June 2025 reached $4.02 billion, reflecting a 5.3% increase from the same quarter last year [4] - Revenue from Europe and Africa was $1.24 billion, accounting for 30.89% of total revenue, which was a decrease of 2.23% compared to Wall Street's expectations [5] - The Asia-Pacific region contributed $841 million, representing 20.94% of total revenue, exceeding analyst expectations by 4.89% [6] Future Projections - Analysts project IQVIA's total revenue for the current fiscal quarter to be $4.06 billion, indicating a 4.2% increase year-over-year [7] - For the entire year, total revenue is forecasted at $16.11 billion, a 4.6% improvement from the previous year, with Europe and Africa expected to contribute 32.1% and Asia-Pacific 20.4% [8] Market Dynamics - The reliance on international markets presents both opportunities and challenges for IQVIA, making the analysis of international revenue trends crucial for future forecasts [9][10] - The company's stock has increased by 26.5% over the past month, outperforming the S&P 500's 4.9% rise, indicating strong market performance [13]

Financial Performance - IQVIA Holdings stock surged after second-quarter results topped estimates [1]

Group 1 - The article discusses IQVIA Holdings Inc.'s recent performance, highlighting a revenue of $3.83 billion in Q1, which was driven by growth in the Technology & Analytics Solutions (TAS) segment [1] - The author emphasizes the importance of innovative companies in the biotech and pharmaceutical sectors, particularly those developing breakthrough therapies with potential acquisition catalysts [1] Group 2 - The article is part of a subscription marketplace service called Compounding Healthcare, which offers model healthcare portfolios, a weekly newsletter, and a daily watchlist for investors [1]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents IQVIA's unaudited condensed consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and equity [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Key Financial Metrics | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Revenues | $4,017 | $3,814 | $7,846 | $7,551 | | Income from operations | $506 | $520 | $1,002 | $1,026 | | Net income | $266 | $363 | $515 | $651 | | Basic Earnings per share | $1.55 | $1.99 | $2.96 | $3.58 | | Diluted Earnings per share | $1.54 | $1.97 | $2.94 | $3.53 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Key Financial Metrics | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Net income | $266 | $363 | $515 | $651 | | Unrealized (losses) gains on derivative instruments, net of income tax | $(4) | $15 | $(21) | $49 | | Foreign currency translation, net of income tax | $102 | $(42) | $181 | $(111) | | Comprehensive income | $362 | $325 | $671 | $569 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Key Financial Metrics | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------------ | :----------------------- | :--------------------------- | | Total assets | $28,632 | $26,899 | | Cash and cash equivalents | $2,039 | $1,702 | | Trade accounts receivable and unbilled services, net | $3,344 | $3,204 | | Goodwill | $15,611 | $14,710 | | Total liabilities | $22,846 | $20,832 | | Long-term debt, less current portion | $14,177 | $12,838 | | Total stockholders' equity | $5,786 | $6,067 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Key Financial Metrics | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $1,011 | $1,110 | | Net cash used in investing activities | $(651) | $(535) | | Net cash used in financing activities | $(113) | $(366) | | Increase in cash and cash equivalents | $337 | $169 | | Cash and cash equivalents at end of period | $2,039 | $1,545 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Key Financial Metrics | Metric | Balance, December 31, 2024 (millions) | Balance, June 30, 2025 (millions) | | :------------------------------------------ | :------------------------------------ | :-------------------------------- | | Common Stock | $3 | $3 | | Additional Paid-In Capital | $11,140 | $11,222 | | Retained Earnings | $6,065 | $6,580 | | Treasury Stock | $(10,103) | $(11,145) | | Accumulated Other Comprehensive (Loss) Income | $(1,038) | $(882) | | Noncontrolling Interests | $— | $8 | | Total Stockholders' Equity | $6,067 | $5,786 | - For the six months ended June 30, 2025, the Company **repurchased** **$1,032 million** of **common stock** and recorded **$515 million** in **net income**[19](index=19&type=chunk)[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures for financial statements, covering accounting policies, revenue, assets, liabilities, debt, and segment information [1. Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) - **IQVIA Holdings Inc.** is a leading global provider of clinical research services, commercial insights, and healthcare intelligence to the life sciences and healthcare industries, operating in over **100** countries with approximately **90,000** employees[22](index=22&type=chunk) - The adoption of **ASU 2023-07 (Segment Reporting)** for the annual period beginning January 1, 2024, and for the three and six months ended June 30, 2025, did not have a **material effect** on the Company's disclosures[24](index=24&type=chunk) - The Company is assessing the impacts of **ASU 2023-09 (Income Taxes)** and **ASU 2024-03 (Disaggregation of Income Statement Expenses)** on its disclosures, with effective dates for annual periods beginning January 1, 2025, and January 1, 2027, respectively[25](index=25&type=chunk)[26](index=26&type=chunk) [2. Revenues by Geography, Concentration of Credit Risk and Remaining Performance Obligations](index=9&type=section&id=2.%20Revenues%20by%20Geography,%20Concentration%20of%20Credit%20Risk%20and%20Remaining%20Performance%20Obligations) Key Financial Metrics | Segment/Region | Q2 2025 (millions) | Q2 2024 (millions) | H1 2025 (millions) | H1 2024 (millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | **Revenues by Segment:** | | | | | | Technology & Analytics Solutions | $1,628 | $1,495 | $3,174 | $2,948 | | Research & Development Solutions | $2,201 | $2,147 | $4,303 | $4,242 | | Contract Sales & Medical Solutions | $188 | $172 | $369 | $361 | | **Revenues by Region (Q2 2025):** | | | | | | Americas | $1,935 | $1,863 | $3,742 | $3,665 | | Europe and Africa | $1,241 | $1,178 | $2,465 | $2,335 | | Asia-Pacific | $841 | $773 | $1,639 | $1,551 | | **Total Revenues:** | $4,017 | $3,814 | $7,846 | $7,551 | - As of June 30, 2025, approximately **$34.6 billion** of **revenues** are expected to be recognized in the future from remaining performance obligations, with about **30%** expected within the next twelve months and **85%** over the next five years[28](index=28&type=chunk) [3. Trade Accounts Receivable, Unbilled Services and Unearned Income](index=10&type=section&id=3.%20Trade%20Accounts%20Receivable,%20Unbilled%20Services%20and%20Unearned%20Income) Key Financial Metrics | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :------------------------------------------ | :----------------------- | :--------------------------- | :---------------- | | Trade accounts receivable | $1,485 | $1,390 | +$95 | | Unbilled services | $1,896 | $1,856 | +$40 | | Allowance for doubtful accounts | $(37) | $(42) | +$5 | | **Trade accounts receivable and unbilled services, net** | **$3,344** | **$3,204** | **+$140** | | Unearned income | $(2,123) | $(1,779) | $(344) | | **Net balance (Unbilled services and Unearned income)** | **$(227)** | **$77** | **$(304)** | - During the six months ended June 30, 2025, the Company factored approximately **$330 million** of **customer invoices** on a **non-recourse basis**, receiving **$327 million** in **cash proceeds**[31](index=31&type=chunk) [4. Goodwill](index=11&type=section&id=4.%20Goodwill) Key Financial Metrics | Segment | Balance as of December 31, 2024 (millions) | Business Combinations (millions) | Impact of Foreign Currency Fluctuations and Other (millions) | Balance as of June 30, 2025 (millions) | | :------------------------------------------ | :----------------------------------------- | :------------------------------- | :--------------------------------------------------------- | :--------------------------------------- | | Technology & Analytics Solutions | $11,957 | $157 | $632 | $12,746 | | Research & Development Solutions | $2,608 | $79 | $29 | $2,716 | | Contract Sales & Medical Solutions | $145 | $— | $4 | $149 | | **Consolidated** | **$14,710** | **$236** | **$665** | **$15,611** | [5. Derivatives](index=11&type=section&id=5.%20Derivatives) Key Financial Metrics | Derivative Type | June 30, 2025 Assets (millions) | June 30, 2025 Liabilities (millions) | December 31, 2024 Assets (millions) | December 31, 2024 Liabilities (millions) | | :------------------------------------------ | :------------------------------ | :------------------------------- | :---------------------------------- | :----------------------------------- | | Interest rate swaps | $— | $45 | $— | $5 | | Cross-currency swaps | $— | $361 | $39 | $— | | Foreign exchange forward contracts | $9 | $— | $— | $2 | | **Total Derivatives** | **$9** | **$406** | **$39** | **$7** | - The Company terminated existing **cross-currency swap agreements** and entered into new ones totaling **$2,735 million** notional amount, designated as a hedge of its **net investment** in certain foreign subsidiaries[34](index=34&type=chunk) - For the six months ended June 30, 2025, the Company recorded a **$(400) million loss** within **Accumulated Other Comprehensive Income (AOCI)** as a result of these **cross-currency swaps**[35](index=35&type=chunk) [6. Fair Value Measurements](index=12&type=section&id=6.%20Fair%20Value%20Measurements) Key Financial Metrics | Asset/Liability | June 30, 2025 (millions) | Level | December 31, 2024 (millions) | Level | | :------------------------------------------ | :----------------------- | :---- | :--------------------------- | :---- | | Marketable securities | $182 | 1 | $170 | 1 | | Derivatives (Assets) | $9 | 2 | $39 | 2 | | Derivatives (Liabilities) | $406 | 2 | $7 | 2 | | Contingent consideration | $105 | 3 | $102 | 3 | | Total debt (fair value) | $15,619 | 2 | $13,966 | 2 | - **Contingent consideration** is valued using a weighted probability calculation of potential payment scenarios discounted at rates reflective of the risks, with approximately **77%** of the maximum potential payments accrued as of June 30, 2025[43](index=43&type=chunk) [7. Credit Arrangements](index=14&type=section&id=7.%20Credit%20Arrangements) Key Financial Metrics | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------------ | :----------------------- | :--------------------------- | | Principal amount of debt | $15,573 | $14,045 | | Long-term debt, less current portion | $14,177 | $12,838 | | Available borrowing capacity (revolving credit facility) | $1,995 | N/A | - On March 10, 2025, the Company established a new incremental **Term B-5 dollar loan facility** of **$1,985 million** to refinance existing **Term B-4 dollar loans** and repay **Term B-2 Euro loans**, recognizing a **$4 million loss on extinguishment of debt**[47](index=47&type=chunk) - On June 4, 2025, IQVIA Inc. issued **$2,000 million** of **6.250% Senior Notes** due 2032, using **net proceeds** to repay existing borrowings under the **revolving credit facility** and for general corporate purposes[49](index=49&type=chunk) [8. Contingencies](index=16&type=section&id=8.%20Contingencies) - The Company is involved in **legal and tax proceedings**, claims, and litigation in the ordinary course of business, with management not expecting a **material adverse effect** on results, cash flows, or financial position[53](index=53&type=chunk)[56](index=56&type=chunk) - **IQVIA Parties** filed a lawsuit against **Veeva Systems, Inc.** in 2017, alleging unlawful use of **IQVIA intellectual property** and seeking damages and injunctive relief, while Veeva filed counterclaims alleging anticompetitive practices and claiming damages in excess of **$200 million**[57](index=57&type=chunk) - In May 2021, the Court found significant evidence that **Veeva misappropriated IQVIA data**, engaged in a cover-up by **deleting evidence**, and **improperly withheld evidence**, imposing sanctions including **adverse inference instructions** to the jury[58](index=58&type=chunk) [9. Stockholders' Equity](index=17&type=section&id=9.%20Stockholders'%20Equity) - On February 5, 2025, the Board of Directors **increased** the **stock repurchase authorization** by an additional **$2,000 million**, raising the **total authorized** under the **Repurchase Program** to **$13,725 million**[60](index=60&type=chunk) - During the six months ended June 30, 2025, the Company **repurchased** **6.4 million** shares of its **common stock** for **$1,032 million** under the **Repurchase Program**[61](index=61&type=chunk) - As of June 30, 2025, the Company had **remaining authorization** to repurchase up to **$1,981 million** of its **common stock** under the **Repurchase Program**[61](index=61&type=chunk) [10. Business Combinations](index=17&type=section&id=10.%20Business%20Combinations) Key Financial Metrics | Acquired Asset/Liability | June 30, 2025 (millions) | | :------------------------------------------ | :----------------------- | | Cash and cash equivalents | $60 | | Accounts receivable | $35 | | Other assets | $18 | | Goodwill | $236 | | Other identifiable intangibles | $132 | | Other liabilities | $(29) | | Deferred income taxes, long-term | $(31) | | **Net assets acquired** | **$421** | - The Company completed individually and in the aggregate immaterial acquisitions during the six months ended June 30, 2025, including gaining a controlling interest in and consolidating a previously unconsolidated affiliate[62](index=62&type=chunk) - **Goodwill** from these acquisitions, preliminarily assessed as **$16 million** deductible for income tax purposes, is primarily attributable to **assembled workforce**, **expected synergies**, and **new customer relationships**[62](index=62&type=chunk)[64](index=64&type=chunk) [11. Restructuring](index=18&type=section&id=11.%20Restructuring) - The Company continued **restructuring actions** in 2025 to align resources, reduce overcapacity, and integrate acquisitions, with these actions expected to continue throughout 2025 and into 2026[66](index=66&type=chunk) Key Financial Metrics | Metric | Severance and Related Costs (millions) | | :------------------------------------------ | :------------------------------------- | | Balance as of December 31, 2024 | $21 | | Expense, net of reversals | $61 | | Payments | $(50) | | Foreign currency translation and other | $2 | | **Balance as of June 30, 2025** | **$34** | [12. Income Taxes](index=18&type=section&id=12.%20Income%20Taxes) Key Financial Metrics | Period | Effective Income Tax Rate | | :------------------------------------------ | :------------------------ | | Second quarter of 2025 | 17.3% | | Second quarter of 2024 | 17.2% | | First six months of 2025 | 18.1% | | First six months of 2024 | 16.0% | - The **effective income tax rate** was favorably impacted by changes in the **geographical mix of earnings** amongst the United States and **foreign tax jurisdictions**[68](index=68&type=chunk) - The Company is assessing the impacts of the **U.S. 'One Big Beautiful Bill Act'** (enacted July 4, 2025) and the **OECD Pillar Two global corporate minimum tax rate** (effective 2024) on its consolidated financial statements, with no **material impacts** from **Pillar Two** for the current year[69](index=69&type=chunk)[70](index=70&type=chunk) [13. Accumulated Other Comprehensive (Loss) Income](index=19&type=section&id=13.%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) Key Financial Metrics | Component | Balance as of December 31, 2024 (millions) | Other Comprehensive Income (Loss) before Reclassifications (millions) | Reclassification Adjustments (millions) | Balance as of June 30, 2025 (millions) | | :------------------------------------------ | :----------------------------------------- | :---------------------------------------------------- | :------------------------------------ | :--------------------------------------- | | Foreign Currency Translation | $(1,092) | $42 | $— | $(1,050) | | Derivative Instruments | $(5) | $(27) | $(2) | $(34) | | Defined Benefit Plans | $15 | $(4) | $— | $11 | | Income Taxes | $44 | $146 | $1 | $191 | | **Total AOCI** | **$(1,038)** | **$157** | **$(1)** | **$(882)** | [14. Segments](index=19&type=section&id=14.%20Segments) - **IQVIA** manages its operations through three **reportable segments**: **Technology & Analytics Solutions**, **Research & Development Solutions**, and **Contract Sales & Medical Solutions**[72](index=72&type=chunk) - **Technology & Analytics Solutions** provides **mission-critical information**, **technology solutions**, and **real-world insights**; **Research & Development Solutions** provides **outsourced clinical research**; and **Contract Sales & Medical Solutions** provides **healthcare provider and patient engagement services**[72](index=72&type=chunk) - **Segment revenue** and **segment profit** are key metrics used by the **chief operating decision maker (CODM)** for annual budgeting, forecasting, and performance assessment, and in determining employee compensation[74](index=74&type=chunk) [15. Earnings Per Share](index=21&type=section&id=15.%20Earnings%20Per%20Share) Key Financial Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic Earnings per share | $1.55 | $1.99 | $2.96 | $3.58 | | Diluted Earnings per share | $1.54 | $1.97 | $2.94 | $3.53 | | Basic weighted average common shares outstanding (millions) | 171.8 | 182.2 | 173.7 | 182.0 | | Diluted weighted average common shares outstanding (millions) | 173.2 | 184.3 | 175.3 | 184.3 | - For the three and six months ended June 30, 2025, **3.6 million** and **3.0 million weighted average stock-based awards**, respectively, were not included in **diluted earnings per share computation** due to unmet performance conditions or anti-dilutive effects[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses IQVIA's financial condition and results, analyzing consolidated and segment performance, liquidity, capital, and critical accounting policies [Overview](index=23&type=section&id=Overview) - **IQVIA** is a leading global provider of clinical research services, commercial insights, and healthcare intelligence, leveraging **IQVIA Connected Intelligence™** and **Healthcare-grade AI** to deliver actionable insights and improve patient outcomes[83](index=83&type=chunk) - The Company is committed to using **AI** responsibly, with capabilities built on best-in-class approaches to privacy, regulatory compliance, and patient safety[83](index=83&type=chunk) - **IQVIA** operates with approximately **90,000** employees in over **100** countries and is managed through three **reportable segments**: **Technology & Analytics Solutions**, **Research & Development Solutions**, and **Contract Sales & Medical Solutions**[83](index=83&type=chunk)[84](index=84&type=chunk) [Sources of Revenue](index=23&type=section&id=Sources%20of%20Revenue) - **Total revenues** are comprised of **revenues** from the provision of services, with no **material product revenues**[85](index=85&type=chunk) [Costs and Expenses](index=23&type=section&id=Costs%20and%20Expenses) - **Cost of revenues** includes compensation and benefits for billable employees, costs of acquiring and processing data, direct service contract expenses, and reimbursed expenses (e.g., payments to investigators, travel)[86](index=86&type=chunk) - Selling, general and administrative expenses cover costs related to sales, marketing, and administrative functions, including compensation, travel, professional services, and information technology and facilities expenses[86](index=86&type=chunk) [Foreign Currency Translation](index=24&type=section&id=Foreign%20Currency%20Translation) - Approximately **30%** of **revenues** in the first six months of 2025 were denominated in foreign currencies, making reported results susceptible to significant effects from exchange rate fluctuations[87](index=87&type=chunk) - The Company believes that reporting results of operations that exclude the effects of foreign currency rate fluctuations (constant currency information) can facilitate analysis of period-to-period comparisons[87](index=87&type=chunk) [Consolidated Results of Operations](index=24&type=section&id=Consolidated%20Results%20of%20Operations) [Revenues](index=24&type=section&id=Revenues_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Revenues | $4,017 | $3,814 | $203 | 5.3% | | Constant currency revenue growth | $139 | N/A | N/A | 3.6% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Revenues | $7,846 | $7,551 | $295 | 3.9% | | Constant currency revenue growth | $268 | N/A | N/A | 3.5% | - The constant currency **revenue growth** for both periods primarily reflected **increases** in **Technology & Analytics Solutions**, **Research & Development Solutions**, and **Contract Sales & Medical Solutions**[89](index=89&type=chunk)[90](index=90&type=chunk) [Cost of Revenues, exclusive of Depreciation and Amortization](index=24&type=section&id=Cost%20of%20Revenues,%20exclusive%20of%20Depreciation%20and%20Amortization_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Cost of revenues | $2,694 | $2,488 | $206 | 8.3% | | % of revenues | 67.1% | 65.2% | +1.9 pp | | | Constant currency increase | $171 | N/A | N/A | 6.9% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Cost of revenues | $5,225 | $4,932 | $293 | 5.9% | | % of revenues | 66.6% | 65.3% | +1.3 pp | | | Constant currency increase | $308 | N/A | N/A | 6.2% | - The constant currency **increases** were primarily driven by **Technology & Analytics Solutions** and **Research & Development Solutions**[91](index=91&type=chunk)[92](index=92&type=chunk) [Selling, General and Administrative Expenses](index=25&type=section&id=Selling,%20General%20and%20Administrative%20Expenses_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | SG&A expenses | $509 | $509 | $0 | 0.0% | | % of revenues | 12.7% | 13.3% | -0.6 pp | | | Constant currency change | $(7) | N/A | N/A | -1.4% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | SG&A expenses | $1,017 | $1,017 | $0 | 0.0% | | % of revenues | 13.0% | 13.5% | -0.5 pp | | | Constant currency change | $1 | N/A | N/A | 0.1% | - The constant currency **decrease** for the three months ended June 30, 2025, primarily reflected a **$12 million decrease** in general corporate and unallocated expenses[94](index=94&type=chunk) [Depreciation and Amortization](index=25&type=section&id=Depreciation%20and%20Amortization_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Depreciation and amortization | $276 | $269 | $7 | 2.6% | | % of revenues | 6.9% | 7.1% | -0.2 pp | | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Depreciation and amortization | $541 | $533 | $8 | 1.5% | | % of revenues | 6.9% | 7.1% | -0.2 pp | | - The **increase** in depreciation and amortization is mainly related to an **increase** in amortization of capitalized software costs[96](index=96&type=chunk) [Restructuring Costs](index=25&type=section&id=Restructuring%20Costs_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Restructuring costs | $32 | $28 | $4 | 14.3% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Restructuring costs | $61 | $43 | $18 | 41.9% | - **Restructuring costs** were incurred due to ongoing efforts to streamline global operations, reduce overcapacity, and integrate acquisitions, with actions expected to continue throughout 2025 and into 2026[97](index=97&type=chunk) [Interest Income and Interest Expense](index=25&type=section&id=Interest%20Income%20and%20Interest%20Expense_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Interest income | $(10) | $(12) | $2 | -16.7% | | Interest expense | $182 | $163 | $19 | 11.7% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Interest income | $(21) | $(23) | $2 | -8.7% | | Interest expense | $347 | $329 | $18 | 5.5% | - Interest income **decreased** primarily as a result of lower interest rates, while interest expense **increased** due to higher outstanding **debt** balances[98](index=98&type=chunk)[99](index=99&type=chunk) [Other Expense (Income), Net](index=26&type=section&id=Other%20Expense%20(Income),%20Net_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | | Other expense (income), net | $11 | $(67) | +$78 | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | | | Other expense (income), net | $26 | $(56) | +$82 | - The **increase** in other expense (income), net, was primarily due to fewer revaluations of **contingent consideration** arrangements and, to a lesser extent, foreign currency **losses** on transactions[100](index=100&type=chunk) [Income Tax Expense](index=26&type=section&id=Income%20Tax%20Expense_MD%26A) Key Financial Metrics | Period | Income Tax Expense (millions) | Effective Income Tax Rate | | :------------------------------------------ | :---------------------------- | :------------------------ | | Second quarter of 2025 | $56 | 17.3% | | Second quarter of 2024 | $75 | 17.2% | | First six months of 2025 | $117 | 18.1% | | First six months of 2024 | $124 | 16.0% | - The **effective income tax rate** was favorably impacted by changes in the **geographical mix of earnings** amongst the United States and **foreign tax jurisdictions**[101](index=101&type=chunk) - The Company is assessing the impacts of the **U.S. 'One Big Beautiful Bill Act'** (enacted July 4, 2025) and the **OECD Pillar Two global corporate minimum tax rate** (effective 2024) on its consolidated financial statements, with no **material impacts** from **Pillar Two** for the current year[102](index=102&type=chunk)[103](index=103&type=chunk) [Equity in (Losses) Earnings of Unconsolidated Affiliates](index=26&type=section&id=Equity%20in%20(Losses)%20Earnings%20of%20Unconsolidated%20Affiliates_MD%26A) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | | Equity in (losses) earnings | $(1) | $2 | $(3) | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | | | Equity in (losses) earnings | $(14) | $(1) | $(13) | - Equity in **losses** from unconsolidated affiliates **increased** due to changes in the operations of these affiliates[104](index=104&type=chunk) [Segment Results of Operations](index=27&type=section&id=Segment%20Results%20of%20Operations) [Technology & Analytics Solutions](index=28&type=section&id=Technology%20%26%20Analytics%20Solutions) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Revenues | $1,628 | $1,495 | $133 | 8.9% | | Constant currency revenue growth | $101 | N/A | N/A | 6.8% | | Segment profit | $389 | $361 | $28 | 7.8% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Revenues | $3,174 | $2,948 | $226 | 7.7% | | Constant currency revenue growth | $211 | N/A | N/A | 7.2% | | Segment profit | $749 | $696 | $53 | 7.6% | - The constant currency **revenue growth** was primarily driven by an **increase** in **real-world services** and, to a lesser extent, by **information and technology services**[110](index=110&type=chunk) [Research & Development Solutions](index=29&type=section&id=Research%20%26%20Development%20Solutions) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Revenues | $2,201 | $2,147 | $54 | 2.5% | | Constant currency revenue growth | $27 | N/A | N/A | 1.3% | | Segment profit | $451 | $493 | $(42) | -8.5% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Revenues | $4,303 | $4,242 | $61 | 1.4% | | Constant currency revenue growth | $50 | N/A | N/A | 1.2% | | Segment profit | $911 | $972 | $(61) | -6.3% | - **Research & Development Solutions' contracted backlog increased** from **$31.1 billion** as of December 31, 2024, to **$32.1 billion** as of June 30, 2025, with approximately **$8.1 billion** expected to convert to **revenues** in the next twelve months[117](index=117&type=chunk) - The constant currency **revenue growth** was primarily the result of **volume-related increases** in **clinical services**, though impacted by a **decrease** in **COVID-19 related work**[120](index=120&type=chunk) [Contract Sales & Medical Solutions](index=30&type=section&id=Contract%20Sales%20%26%20Medical%20Solutions) Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Revenues | $188 | $172 | $16 | 9.3% | | Constant currency revenue growth | $11 | N/A | N/A | 6.4% | | Segment profit | $12 | $9 | $3 | 33.3% | | **H1 2025 (millions)** | **H1 2024 (millions)** | **Change ($)** | **Change (%)** | | | Revenues | $369 | $361 | $8 | 2.2% | | Constant currency revenue growth | $7 | N/A | N/A | 1.9% | | Segment profit | $23 | $22 | $1 | 4.5% | - The constant currency **revenue growth** for both periods was primarily due to **volume-related increases** in services performed[127](index=127&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) [Overview](index=31&type=section&id=Overview_Liquidity) - **IQVIA's principal source of liquidity** is **operating cash flows**, supplemented by **revolving credit and receivables financing facilities**, and access to the **capital markets**[132](index=132&type=chunk) - **Cash and cash equivalents increased** to **$2,039 million** as of June 30, 2025, from **$1,702 million** at December 31, 2024[134](index=134&type=chunk) - The Company expects to fund **operating requirements**, **capital expenditures**, **contractual obligations**, and **debt** for at least the next **12** months using **available cash**, **future operating cash flows**, and **credit facilities**[135](index=135&type=chunk) [Equity Repurchase Program](index=31&type=section&id=Equity%20Repurchase%20Program_Liquidity) - On February 5, 2025, the Board of Directors **increased** the **stock repurchase authorization** by an additional **$2,000 million**, raising the **total authorized** under the **Repurchase Program** to **$13,725 million**[136](index=136&type=chunk) - During the six months ended June 30, 2025, the Company **repurchased** **6.4 million** shares of its **common stock** for **$1,032 million** under the **Repurchase Program**[137](index=137&type=chunk) - As of June 30, 2025, **$1,981 million remained authorized** for repurchase under the program[137](index=137&type=chunk) [Debt](index=32&type=section&id=Debt_Liquidity) - As of June 30, 2025, **total indebtedness** was **$15,573 million**, with **$1,995 million** of additional **available borrowings** under **revolving credit facilities**[138](index=138&type=chunk) - On March 10, 2025, the Company established a new incremental **Term B-5 dollar loan facility** of **$1,985 million** to **refinance existing Term B-4 dollar loans** and **repay Term B-2 Euro loans**[139](index=139&type=chunk) - On June 4, 2025, the Company issued **$2,000 million** in **6.250% Senior Notes** due 2032, using **net proceeds** to **repay existing borrowings** under its **revolving credit facility**[141](index=141&type=chunk) [Cash Flow from Operating Activities](index=32&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Key Financial Metrics | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $1,011 | $1,110 | - The **$99 million decrease** in **operating cash flow** was primarily driven by a **decrease** in **cash from accounts receivable and unbilled services** (**$119 million**), **cash-related net income** (**$97 million**), and **cash from other operating assets and liabilities** (**$84 million**), partially offset by an **increase** in **cash from unearned income** (**$201 million**)[143](index=143&type=chunk) [Cash Flow from Investing Activities](index=32&type=section&id=Cash%20Flow%20from%20Investing%20Activities) Key Financial Metrics | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash used in investing activities | $(651) | $(535) | - The **$116 million increase** in **cash used in investing activities** was primarily driven by more cash used for **acquisitions of businesses** (**$94 million**), **investments in debt and equity securities** (**$17 million**), and **acquisitions of property, equipment and software** (**$5 million**), and less **proceeds from sale of property, equipment, and software** (**$25 million**)[144](index=144&type=chunk) [Cash Flow from Financing Activities](index=33&type=section&id=Cash%20Flow%20from%20Financing%20Activities) Key Financial Metrics | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash used in financing activities | $(113) | $(366) | - The **$253 million decrease** in **cash used in financing activities** was primarily due to more **proceeds from issuance of debt, net** (**$3,950 million**), offset by more **cash payments for debt and principal payments on finance leases** (**$2,054 million**), **repurchase of common stock** (**$1,032 million**), and **revolving credit facilities, net of repayments** (**$615 million**)[145](index=145&type=chunk) [Information about our Guarantors and the Issuer of our Guaranteed Securities](index=33&type=section&id=Information%20about%20our%20Guarantors%20and%20the%20Issuer%20of%20our%20Guaranteed%20Securities) - The **summarized financial information** is presented on a **combined basis** for **IQVIA Holdings Inc. (parent company)**, **IQVIA Inc. (issuer of guaranteed obligations)**, and the **Guarantor subsidiaries** (collectively, the '**obligated group**') in accordance with **Rule 3-10 of Regulation S-X**[148](index=148&type=chunk)[149](index=149&type=chunk) Key Financial Metrics | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------------------------ | :----------------------- | :--------------------------- | | Total current assets (excluding non-Guarantor subsidiaries) | $966 | $935 | | Total noncurrent assets | $10,739 | $10,937 | | Amounts due from subsidiaries that are non-Guarantors | $3,901 | $4,952 | | Total current liabilities | $4,238 | $3,792 | | Total noncurrent liabilities | $13,594 | $12,333 | | Amounts due to subsidiaries that are non-Guarantors | $5,982 | $6,341 | | **Six months ended June 30, 2025 (millions)** | **Twelve months ended December 31, 2024 (millions)** | | | Net revenues | $3,365 | $6,661 | | Income from operations | $745 | $1,259 | | Net income | $17 | $554 | [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company does not have any **material off-balance sheet arrangements**[154](index=154&type=chunk) [Contractual Obligations and Commitments](index=34&type=section&id=Contractual%20Obligations%20and%20Commitments) - There have been no **material changes**, outside of the ordinary course of business, to the Company's **contractual obligations** as previously disclosed in its **2024 Form 10-K**[156](index=156&type=chunk) [Application of Critical Accounting Policies](index=35&type=section&id=Application%20of%20Critical%20Accounting%20Policies) - There have been no **material changes** to the Company's **critical accounting policies** as previously disclosed in its **2024 Form 10-K**[157](index=157&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=page&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to IQVIA's market risk disclosures compared to its 2024 Form 10-K - There have been no **material changes** to the Company's **quantitative and qualitative disclosures about market risk** as compared to the disclosures described in its **2024 Form 10-K**[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=35&type=page&id=Item%204.%20Controls%20and%20Procedures) Management concluded IQVIA's disclosure controls and procedures were effective as of June 30, 2025, with no material internal control changes - Management, with the participation of the CEO and CFO, concluded that the Company's **disclosure controls and procedures** were effective as of June 30, 2025[159](index=159&type=chunk) - There were no changes in **internal control over financial reporting** identified during the period that materially affected, or are reasonably likely to materially affect, **internal control over financial reporting**[160](index=160&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=page&id=Item%201.%20Legal%20Proceedings) Refers to Note 8 for legal proceedings, with management not expecting a material adverse effect on financial statements - The Company is party to **legal proceedings** incidental to its business, with information pertaining to these matters incorporated by reference from Note **8** to the condensed consolidated financial statements[162](index=162&type=chunk)[163](index=163&type=chunk) - Management does not believe that the resolution of these matters is reasonably likely to have a **material adverse effect** on the Company's financial statements[162](index=162&type=chunk) [Item 1A. Risk Factors](index=36&type=page&id=Item%201A.%20Risk%20Factors) States no material changes to the risk factors previously disclosed in IQVIA's 2024 Form 10-K - There have been no **material changes** from the **risk factors** previously disclosed in the Company's **2024 Form 10-K**[164](index=164&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=page&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Board increased stock repurchase authorization by **$2,000 million** to **$13,725 million**, repurchasing **6.4 million** shares for **$1,032 million** - On February 5, 2025, the Board **increased** the **stock repurchase authorization** under the **Repurchase Program** by an additional **$2,000 million**, raising the **total authorized** to **$13,725 million**[167](index=167&type=chunk) - During the six months ended June 30, 2025, the Company **repurchased** **6.4 million** shares of its **common stock** for **$1,032 million** under the **Repurchase Program**[168](index=168&type=chunk) - As of June 30, 2025, the Company had **remaining authorization** to repurchase up to **$1,981 million** of its **common stock** under the **Repurchase Program**[169](index=169&type=chunk) [Item 5. Other Information](index=37&type=page&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement for company securities during Q2 2025 - No director or officer of **IQVIA Holdings Inc.** adopted or terminated a **Rule 10b5-1 trading arrangement** for the purchase or sale of company securities within the meaning of **Item 408 of Regulation S-K** during the second quarter of 2025[173](index=173&type=chunk) [Item 6. Exhibits](index=38&type=page&id=Item%206.%20Exhibits) Lists exhibits filed or furnished, including Indenture, Subsidiary Guarantors, and CEO/CFO certifications - **Exhibits** filed or furnished as part of this report include the **Indenture** dated June 4, 2025, the **List of Subsidiary Guarantors**, and **certifications** from the **Chief Executive Officer** and **Chief Financial Officer** pursuant to the **Sarbanes-Oxley Act of 2002**[176](index=176&type=chunk) SIGNATURES Formal declaration that the Quarterly Report on Form 10-Q was signed by Ronald E. Bruehlman, CFO, on July 22, 2025 - The **Quarterly Report on Form 10-Q** was duly signed on July 22, 2025, by Ronald E. Bruehlman, **Executive Vice President** and **Chief Financial Officer** of **IQVIA Holdings Inc.**[178](index=178&type=chunk)[179](index=179&type=chunk)

Core Insights - IQVIA Holdings Analytics Inc. reported strong second-quarter 2025 results, with adjusted earnings of $2.81 per share, exceeding estimates by 1.8% and reflecting a 6.4% year-over-year increase. Total revenues reached $4 billion, surpassing consensus estimates by 1.5% and growing 5.3% from the previous year [1][9]. Financial Performance - The Research and Development segment generated revenues of $2.2 billion, a 2.5% increase year-over-year, while the Technology and Analytics segment saw revenues of $1.6 billion, up 8.9% from the prior year [3][9]. - Contract Sales and Medical Solutions revenues rose 9.3% year-over-year to $188 million, exceeding estimates of $181.9 million. Adjusted EBITDA for the quarter was $910 million, a 2.6% increase from the previous year, beating projections of $899.4 million [4][9]. Cash Flow and Debt - The company ended the quarter with cash and cash equivalents of $2 billion, up from $1.7 billion in the previous quarter. Long-term debt increased to $15.5 billion from $13.1 billion [5]. - Net cash generated from operating activities was $443 million, with capital expenditures of $151 million, resulting in a free cash flow of $292 million for the quarter [5]. 2025 Guidance - IQVIA updated its revenue guidance for 2025 to a range of $16.10-$16.30 billion, higher than the previous estimate and above the Zacks Consensus Estimate of $16.06 billion. However, adjusted EBITDA guidance was lowered to $3.75-$3.825 billion from the previous range [6][7]. - The adjusted EPS guidance was also updated to $11.75-$12.05, with the midpoint of $11.90 exceeding the Zacks Consensus Estimate of $11.84 [7].

Financial Data and Key Metrics Changes - Company reported quarterly revenue of over $4 billion for the first time, with a year-over-year growth of 5.3% on a reported basis and 6.3% excluding COVID-related work [8][11] - Adjusted EBITDA for the second quarter increased by 2.6%, with adjusted diluted EPS of $2.81, reflecting a 6.4% year-over-year increase [12][25] - Cash flow from operations was $443 million, with free cash flow of $292 million for the quarter [27] Business Line Data and Key Metrics Changes - Technology and Analytics Solutions (TAS) revenue for the second quarter was $1.628 billion, up 8.9% on a reported basis [21] - R&D Solutions revenue was $2.201 billion, up 2.5% reported, with a growth of 4.2% excluding COVID-related revenues [22] - Contract Sales and Medical Solutions revenue was $188 million, up 9.3% reported [22] Market Data and Key Metrics Changes - The backlog reached a record of over $32.1 billion, growing over 5% year-over-year [25] - RFP flow grew in the low teens year-over-year and high single digits sequentially, indicating strong demand across all customer segments [10][80] Company Strategy and Development Direction - The company is focusing on AI-driven solutions, developing custom-built AI agents to streamline operations across life sciences [13][75] - A strategic collaboration with NVIDIA aims to enhance AI capabilities, with over 20 agents already in production and more in development [14][75] - The company is intensifying its "see more, win more" go-to-market strategy to expand market share and improve win rates [9][49] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall market environment remains unsettled, clients are continuing to launch new drugs, leading to improved revenue growth [36][39] - There is a cautious optimism regarding the recovery in client decision-making timelines, with indications of improved demand metrics [47][48] - The company expects revenue growth guidance for the full year to be between 4.5% to 5.8% [28] Other Important Information - The company repurchased $607 million of its shares in the quarter, bringing the first half total to over $1 billion [27] - The company issued $2 billion of senior notes maturing in February 2032 [27] Q&A Session Summary Question: How does Taz continue to perform well despite the overall environment? - Management indicated that Taz delivered better-than-expected revenue growth, driven by clients launching new drugs despite uncertainties [34][36] Question: What is the outlook for R&D Solutions? - Management noted that while the environment remains unsettled, clients are moving forward with important programs, leading to improved demand metrics [46][48] Question: What are the expectations for gross margin in the back half of the year? - Management acknowledged some compression in gross margin due to product mix and FX impacts, but expects a gradual improvement in the growth rate [57][62] Question: Are there any changes in pricing trends? - Management confirmed that there is pricing pressure due to increased competition, but the company is willing to accept short-term margin pressure to build backlog [70] Question: What is the status of AI development and client demand? - Management reported significant client interest in AI solutions, with over 20 agents in production and more being developed, indicating a strong demand for AI capabilities [75][76]

Financial Data and Key Metrics Changes - The company reported quarterly revenue exceeding $4 billion for the first time, with total revenue for Q2 at $4,017 million, representing a year-over-year growth of 5.3% on a reported basis and 6.3% excluding COVID-related work [6][20][26] - Adjusted EBITDA for Q2 was $910 million, with adjusted diluted EPS of $2.81, an increase of 6.4% year-over-year [23][24] - The backlog reached a record of over $32 billion, growing over 5% compared to the prior year [9][24] Business Line Data and Key Metrics Changes - Technology and Analytics Solutions (TAS) revenue for Q2 was $1,628 million, up 8.9% on a reported basis [20] - R&D Solutions revenue for Q2 was $2,201 million, up 2.5% reported, with a growth of 4.2% excluding COVID-related revenues [21] - Contract Sales and Medical Solutions revenue for Q2 was $188 million, up 9.3% reported [21] Market Data and Key Metrics Changes - The company experienced strong demand in the R&D segment, with net bookings of approximately $2.5 billion and a net book-to-bill ratio of 1.12 [7][28] - RFP flow grew in the low teens year-over-year and high single digits sequentially, indicating a positive trend across all customer segments [8][75] Company Strategy and Development Direction - The company is focusing on AI-driven solutions, developing custom-built AI agents to streamline operations across life sciences, with over 20 agents already in production [11][70] - A strategic collaboration with NVIDIA aims to enhance AI capabilities, which is expected to improve operational efficiency and speed in executing a larger backlog [12][72] - The company is intensifying its "see more, win more" go-to-market strategy to expand market share and improve win rates [7][46] Management's Comments on Operating Environment and Future Outlook - Management noted that while the overall market environment remains unsettled, clients are continuing to launch new drugs, leading to improved sales recovery [34][44] - The company expressed confidence in the fundamentals of the business, with leading indicators showing continued strength in 2025 [37][78] - Management acknowledged ongoing uncertainties regarding administration policies affecting the biopharmaceutical industry but indicated a slight improvement in client decision-making timelines [44][108] Other Important Information - The company repurchased $607 million of its shares in Q2, bringing total repurchases for the first half to over $1 billion [25][28] - The company issued $2 billion of senior notes maturing in February 2032 [25] Q&A Session Summary Question: How does Taz continue to perform well despite the overall environment? - Management indicated that Taz delivered better-than-expected revenue growth, driven by clients launching new drugs and a strong recovery in sales since early last year [32][34] Question: What is the outlook for R&D Solutions? - Management noted that while the environment remains unsettled, clients are moving forward with important programs, leading to improved demand metrics [44][45] Question: What are the expectations for the second half of the year? - Management highlighted seasonality in the business, with expectations for a stronger fourth quarter due to the resumption of delayed trials [51][52] Question: Are there any changes in pricing trends? - Management acknowledged pricing pressures due to increased competition but emphasized their strategy to accept short-term margin pressure to build backlog [65] Question: What is the status of AI development? - Management reported significant client interest in AI solutions, with over 50 agents in development for deployment in Q3 [71][72] Question: What are the trends in cancellation rates? - Management confirmed that cancellation rates have returned to normal historical ranges, with no significant unusual cancellations in the first half [102][103]