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]

Core Insights - Artisan Partners' "Artisan Select Equity Fund" reported returns of 6.77%, 6.76%, and 6.80% for its Investor Class, Advisor Class, and Institutional Class respectively in Q2 2025, underperforming the S&P 500 Index which returned 10.94% [1] Company Insights - IQVIA Holdings Inc. is highlighted as a key stock in the Artisan Select Equity Fund's portfolio, operating in the analytical technology services and clinical research sector for life sciences and healthcare [2][3] - The stock of IQVIA Holdings Inc. experienced a one-month return of -5.90% and a 52-week decline of 24.23%, closing at $179.56 per share with a market capitalization of $30.525 billion as of September 26, 2025 [2] Industry Insights - The contract research organization (CRO) industry, where IQVIA is a leader, has seen a significant increase in clinical trial outsourcing, with penetration rising from approximately 30% 15 years ago to over 50% currently, with projections suggesting it could reach 70% or more [3] - IQVIA holds a 22% market share in the CRO industry, followed closely by ICON and PPD (a unit of ThermoFisher), each with a 20% share, indicating a fragmented industry landscape [3]

Group 1 - Illumina's stock has dropped by 11% in a week due to increased competition from China's MGI Tech, which is gaining market share in DNA sequencing [2] - MGI Tech's global market presence remains strong despite a recent decline in international sales due to U.S. sanctions [2] - IQVIA presents stronger revenue growth at 5.3% compared to Illumina's decline of 4.8%, indicating a potentially better investment opportunity [3][6] Group 2 - Illumina offers solutions for genomic analysis and sequencing, serving research and clinical markets globally [4] - IQVIA provides advanced analytics and clinical research services, including cloud applications and project management for the life sciences sector [4] - IQVIA's revenue growth for the last 12 months is 3.6%, surpassing Illumina's -3.3%, and IQVIA's average margin is 13.7% compared to Illumina's 6.7% [6]

Group 1: Broyhill Asset Management Performance - Broyhill Partners appreciated 3.7% net of all fees and expenses in Q2 2025, underperforming the MSCI All Country World Index which returned 11.7% [1] - For the six months ended June 30, the strategy returned 6.6% net of all fees and expenses, compared to 10.3% for the index [1] Group 2: IQVIA Holdings Inc. Overview - IQVIA Holdings Inc. (NYSE:IQV) is an analytical technology services and clinical research provider for the life sciences and healthcare industries [2] - The stock experienced a one-month return of -0.50% and a 52-week loss of 21.44%, closing at $190.20 per share with a market capitalization of $32.334 billion on September 18, 2025 [2] Group 3: Investment Insights on IQVIA Holdings Inc. - Broyhill Asset Management added a new position in IQVIA Holdings Inc. following a market dislocation, recognizing its entrenched revenue stream and competitive advantages [3] - IQVIA is a result of the 2016 merger between Quintiles and IMS Health, focusing on later-stage trials and generating significant profits from its technology and data business [3] - Despite its strengths, IQVIA shares are valued at 11x forward earnings, which is below historical levels [3] Group 4: Market Position and Earnings of IQVIA Holdings Inc. - IQVIA Holdings reported record revenue of $4 billion in Q2 2025, but is not among the 30 most popular stocks among hedge funds, with 65 hedge fund portfolios holding the stock at the end of Q2, down from 67 in the previous quarter [4] - While IQVIA is recognized for its potential, certain AI stocks are viewed as offering greater upside potential and less downside risk [4]

Company Overview - IQVIA Holdings Inc. has a market cap of $32.2 billion and is a leading global provider of advanced analytics, technology solutions, and clinical research services for the life sciences industry [1] - The company operates through four segments: Technology & Analytics Solutions, Research & Development Solutions, Contract Sales & Medical Solutions, and Contract Sales & Medical Solutions [1] Market Position and Growth Potential - IQVIA is classified as a "large-cap" stock and is positioned for steady growth due to its diverse offerings and strong backlog, with digital health and AI trends providing long-term tailwinds [2] - The company has a consensus rating of "Strong Buy" from 22 analysts, with a mean price target of $213.52, indicating a potential upside of 16.1% from current market prices [6] Stock Performance - Shares of IQVIA have decreased 25.9% from their 52-week high of $248.03, but have surged 15.1% over the past three months, outperforming the Langar Global Healthtech ETF's (LGHT) 1.3% decrease [3] - Year-to-date, IQVIA's stock has declined 6.4%, lagging behind LGHT's marginal rise, and over the past 52 weeks, shares have plunged nearly 21.8%, compared to LGHT's 2.3% drop [4] Recent Financial Results - On July 22, IQVIA shares jumped 17.9% following the release of Q2 results, with adjusted EPS of $2.81 exceeding Wall Street's estimate of $2.76, and revenue of $4.02 billion surpassing expectations of $3.96 billion [5] - The company guided for full-year adjusted EPS between $11.75 and $12.05 and revenue in the range of $16.1 to $16.3 billion [5] Competitive Landscape - Top rival Agilent Technologies, Inc. has seen its shares fall 7.6% year-to-date and 10.1% over the past 52 weeks, which is a greater decline than IQVIA's performance during the same timeframe [6]

Group 1 - The company IQVIA (NYSE: IQV) is rated with a buy recommendation, indicating a positive outlook for generating value for investors [1] - The analysis suggests that despite regulatory changes, such as the U.S. President signing an executive order affecting drugmakers, the company is expected to perform well [1] Group 2 - The analyst has a background in economics and statistics, with experience in analyzing agricultural commodities and managing trading and data analysis teams [1] - The analyst's approach to generating investment recommendations is based on financial statements, regulations, and macroeconomic variables [1]

Group 1 - IQVIA Holdings Inc. has partnered with Flagship Pioneering to enhance the growth of innovative life sciences companies [2][3] - The collaboration will leverage IQVIA's extensive data assets, AI-driven analytics, and expertise throughout the drug development cycle, aiming to improve the success rate of early-stage therapies [3][4] - Both companies anticipate that this partnership will lead to faster and more efficient drug development, ultimately delivering transformative treatments to patients and creating long-term value in the life sciences sector [4] Group 2 - Despite the potential of IQVIA as an investment, there are other AI stocks that are perceived to offer greater upside potential and lower downside risk [5]