Q2 2025 Earnings Call July 22, 2025 IQVIA Template (V2.1.0) 1 Legal This presentation should be viewed in conjunction with IQVIA's Q2 2025 earnings call Safe Harbor Statement for Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, our third-quarter and full-year 202 ...

[Company Overview & Executive Summary](index=1&type=section&id=Company%20Overview%20%26%20Executive%20Summary) IQVIA, a global leader in life sciences and healthcare intelligence, reported strong second-quarter financial results with revenue exceeding targets and improved demand indicators in clinical development [Company Description](index=1&type=section&id=Company%20Description) IQVIA Holdings Inc. is a global leader in clinical research services, commercial insights, and healthcare intelligence, serving the life sciences and healthcare industries - IQVIA is a global leader in clinical research services, commercial insights, and healthcare intelligence, serving the life sciences and healthcare industries[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) IQVIA's Chairman and CEO, Ari Bousbib, highlighted strong second-quarter financial results with revenue exceeding targets and profit near the upper end of expectations, driven by robust TAS performance and improved clinical development demand indicators - IQVIA reported strong second-quarter financial results, with revenue exceeding targets and profit near the upper end of expectations[6](index=6&type=chunk) - The TAS segment achieved high single-digit year-over-year growth, while forward-looking demand indicators for clinical development improved, with net bookings up **15% sequentially** and RFP flow showing high single-digit sequential growth and low double-digit year-over-year growth[6](index=6&type=chunk) [Second-Quarter 2025 Financial Results](index=1&type=section&id=Second-Quarter%202025%20Financial%20Results) IQVIA reported strong second-quarter 2025 financial results with total revenue of **$4.017 billion**, a **2.6%** increase in Adjusted EBITDA, and a robust R&D Solutions contract backlog of **$32.1 billion** [Revenue Performance](index=1&type=section&id=Revenue%20Performance) IQVIA achieved total revenue of **$4.017 billion** in the second quarter of 2025, growing **5.3%** on a reported basis and **3.6%** at constant currency, with significant growth in Technology & Analytics Solutions (TAS) revenue Second-Quarter 2025 Revenue Performance | Indicator | Amount (Millions USD) | Y-o-Y Growth (Reported Basis) | Y-o-Y Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 4,017 | 5.3% | 3.6% | | **TAS Revenue** | 1,628 | 8.9% | 6.8% | | **R&DS Revenue** | 2,201 | 2.5% | 1.3% | | **CSMS Revenue** | 188 | 9.3% | 6.4% | - Excluding reimbursement revenue, R&DS revenue grew **1.8%** on a reported basis[3](index=3&type=chunk) [Profitability and Earnings Per Share](index=1&type=section&id=Profitability%20and%20Earnings) Second-quarter GAAP net income was **$266 million** with diluted EPS of **$1.54**, while Adjusted EBITDA increased **2.6%** to **$910 million**, reflecting strong adjusted net income and diluted EPS performance Second-Quarter 2025 Profitability and Earnings | Indicator | Amount (Millions USD) | Y-o-Y Growth | | :--- | :--- | :--- | | **GAAP Net Income** | 266 | -26.7% | | **GAAP Diluted EPS** | 1.54 | -21.9% | | **Adjusted EBITDA** | 910 | 2.6% | | **Adjusted Net Income** | 486 | -0.2% | | **Adjusted Diluted EPS** | 2.81 | 6.4% | [R&D Solutions Backlog and Bookings](index=1&type=section&id=R%26D%20Solutions%20Backlog%20and%20Bookings) As of June 30, 2025, R&D Solutions (R&DS) contract backlog reached **$32.1 billion**, a **5.1%** year-over-year increase, with net new bookings of **$2.5 billion** and a book-to-bill ratio of **1.12x** in the second quarter R&D Solutions Backlog and Bookings as of June 30, 2025 | Indicator | Amount (Billions USD) | Y-o-Y Growth (Reported Basis) | Y-o-Y Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | **R&DS Contract Backlog** | 32.1 | 5.1% | 3.2% | | **Estimated Revenue Conversion in Next 12 Months** | 8.1 | 4.8% | - | | **Q2 Net New Bookings** | 2.5 | - | - | | **Q2 Book-to-Bill Ratio** | 1.12x | - | - | | **LTM Book-to-Bill Ratio** | 1.10x | - | - | [First-Half 2025 Financial Results](index=1&type=section&id=First-Half%202025%20Financial%20Results) IQVIA's first-half 2025 financial results show total revenue of **$7.846 billion**, with TAS revenue growing **7.7%**, and Adjusted EBITDA reaching **$1.793 billion** alongside strong adjusted earnings per share [Revenue Performance (First Half)](index=1&type=section&id=Revenue%20Performance%20(H1)) Total revenue for the first half of 2025 was **$7.846 billion**, increasing **3.9%** on a reported basis and **3.5%** at constant currency, with TAS revenue growing **7.7%** and modest increases in R&DS and CSMS First-Half 2025 Revenue Performance | Indicator | Amount (Millions USD) | Y-o-Y Growth (Reported Basis) | Y-o-Y Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | **Total Revenue** | 7,846 | 3.9% | 3.5% | | **TAS Revenue** | 3,174 | 7.7% | 7.2% | | **R&DS Revenue** | 4,303 | 1.4% | 1.2% | | **CSMS Revenue** | 369 | 2.2% | 1.9% | [Profitability and Earnings Per Share (First Half)](index=1&type=section&id=Profitability%20and%20Earnings%20(H1)) First-half 2025 GAAP net income was **$515 million** with diluted EPS of **$2.94**, while Adjusted net income reached **$965 million**, Adjusted diluted EPS was **$5.50**, and Adjusted EBITDA totaled **$1.793 billion** First-Half 2025 Profitability and Earnings | Indicator | Amount (Millions USD) | | :--- | :--- | | **GAAP Net Income** | 515 | | **GAAP Diluted EPS** | 2.94 | | **Adjusted Net Income** | 965 | | **Adjusted Diluted EPS** | 5.50 | | **Adjusted EBITDA** | 1,793 | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of June 30, 2025, IQVIA maintained a strong financial position with **$2.039 billion** in cash, generating **$443 million** in operating cash flow during Q2, and reporting a net leverage ratio of **3.61x** [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, IQVIA reported cash and cash equivalents of **$2.039 billion**, total debt of **$15.490 billion**, and net debt of **$13.451 billion** Balance Sheet Highlights as of June 30, 2025 | Indicator | Amount (Millions USD) | | :--- | :--- | | **Cash and Cash Equivalents** | 2,039 | | **Total Debt** | 15,490 | | **Net Debt** | 13,451 | [Cash Flow Activities](index=2&type=section&id=Cash%20Flow%20Activities) Second-quarter operating cash flow was **$443 million**, resulting in **$292 million** of free cash flow Second-Quarter 2025 Cash Flow | Indicator | Amount (Millions USD) | | :--- | :--- | | **Q2 Operating Cash Flow** | 443 | | **Q2 Free Cash Flow** | 292 | [Leverage Ratios](index=2&type=section&id=Leverage%20Ratios) As of June 30, 2025, IQVIA's net leverage ratio stood at **3.61x**, with a gross leverage ratio of **4.16x** Leverage Ratios as of June 30, 2025 | Indicator | Ratio | | :--- | :--- | | **Net Leverage Ratio** | 3.61x | | **Gross Leverage Ratio** | 4.16x | [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) In the second quarter of 2025, IQVIA repurchased **$607 million** of common stock, with cumulative first-half repurchases totaling **$1.032 billion**, and **$1.981 billion** remaining under authorization as of June 30 Share Repurchase Activity | Indicator | Amount (Millions USD) | | :--- | :--- | | **Q2 Share Repurchases** | 607 | | **H1 Share Repurchases** | 1,032 | | **Remaining Repurchase Authorization** | 1,981 | [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) IQVIA updated its full-year 2025 guidance, projecting revenue between **$16.1 billion** and **$16.3 billion**, Adjusted EBITDA between **$3.75 billion** and **$3.825 billion**, and Adjusted diluted EPS between **$11.75** and **$12.05**, factoring in COVID-related revenue decline, foreign exchange tailwinds, and acquisition contributions Full-Year 2025 Financial Guidance | Indicator | Full-Year 2025 Guidance (Millions USD) | | :--- | :--- | | **Revenue** | 16,100 - 16,300 | | **Adjusted EBITDA** | 3,750 - 3,825 | | **Adjusted Diluted EPS** | 11.75 - 12.05 | - Revenue guidance assumes approximately **$100 million** in COVID-related revenue decline (all from R&DS), about **100 basis points** of foreign exchange tailwind, and approximately **150 basis points** of acquisition contribution[12](index=12&type=chunk) - All financial guidance assumes foreign currency exchange rates as of July 21, 2025, remain constant throughout the forecast period[13](index=13&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) IQVIA will host a conference call today at 9:00 AM ET to discuss second-quarter 2025 results and provide third-quarter and full-year guidance, with webcast and presentation slides available on the investor relations website - The conference call will be held at **9:00 AM ET** to discuss second-quarter results and provide third-quarter and full-year guidance[14](index=14&type=chunk) - Investors can access the webcast and presentation slides via IQVIA's investor relations website at http://ir.iqvia.com or register to participate in the conference call[14](index=14&type=chunk) [About IQVIA](index=2&type=section&id=About%20IQVIA) IQVIA is a global leader in clinical research services, commercial insights, and healthcare intelligence, powered by IQVIA Connected Intelligence™ and a global workforce of approximately **90,000** employees dedicated to advancing innovative medical treatments and improving global health outcomes - IQVIA provides clinical research services, commercial insights, and healthcare intelligence, with solutions powered by IQVIA Connected Intelligence™ combining health data, AI, analytics, and technology[15](index=15&type=chunk) - The company employs approximately **90,000** people in over **100** countries, dedicated to accelerating the development and commercialization of innovative medical treatments to improve patient outcomes and global population health[15](index=15&type=chunk) - IQVIA is a global leader in protecting patient privacy, utilizing privacy-enhancing technologies and safeguards to help healthcare stakeholders identify disease patterns and correlate treatment paths[15](index=15&type=chunk) [Legal and Non-GAAP Disclosures](index=3&type=section&id=Legal%20and%20Non-GAAP%20Disclosures) This section provides cautionary statements regarding forward-looking information and clarifies the use of non-GAAP financial measures as supplementary to GAAP, emphasizing their role in understanding operational performance [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements, including full-year 2025 guidance, where actual results may differ materially due to various factors such as natural disasters, pandemics, contract termination risks, and market growth shortfalls - This press release contains forward-looking statements, and actual results may differ materially from expectations due to various factors[16](index=16&type=chunk) - Risk factors include business disruptions (e.g., pandemics, conflicts), contract terminations, failure to achieve market growth, data use restrictions, security breaches, intellectual property risks, global operational risks, and changes in economic conditions and tax laws[16](index=16&type=chunk) [Note on Non-GAAP Financial Measures](index=4&type=section&id=Note%20on%20Non-GAAP%20Financial%20Measures) This press release includes non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, presented as supplementary to GAAP to enhance understanding of the company's financial performance and underlying operational results - This press release includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, presented as supplementary to GAAP financial statements[17](index=17&type=chunk) - The company uses non-GAAP measures to focus on the underlying operating performance of the business, excluding certain items like amortization of acquisition-related intangible assets[17](index=17&type=chunk) - Non-GAAP measures are not GAAP-recognized terms, should not be considered in isolation or as a substitute for GAAP analysis, and may not be comparable to similarly titled measures used by other companies[17](index=17&type=chunk)[19](index=19&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the preliminary unaudited condensed consolidated financial statements, including statements of income, balance sheets, cash flows, and reconciliations for non-GAAP measures, providing a comprehensive overview of IQVIA's financial performance and position [Statements of Income](index=5&type=section&id=Statements%20of%20Income) This section provides IQVIA Holdings Inc. and subsidiaries' preliminary unaudited condensed consolidated statements of income for the three and six months ended June 30, 2025, detailing key financial metrics such as revenue, costs, expenses, operating income, net income, and earnings per share IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited) | (in millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $4,017 | $3,814 | $7,846 | $7,551 | | Cost of revenues, exclusive of depreciation and amortization | 2,694 | 2,488 | 5,225 | 4,932 | | Selling, general and administrative expenses | 509 | 509 | 1,017 | 1,017 | | Depreciation and amortization | 276 | 269 | 541 | 533 | | Restructuring costs | 32 | 28 | 61 | 43 | | Income from operations | 506 | 520 | 1,002 | 1,026 | | Interest income | (10) | (12) | (21) | (23) | | Interest expense | 182 | 163 | 347 | 329 | | Loss on extinguishment of debt | — | — | 4 | — | | Other expense (income), net | 11 | (67) | 26 | (56) | | Income before income taxes and equity in (losses) earnings of unconsolidated affiliates | 323 | 436 | 646 | 776 | | Income tax expense | 56 | 75 | 117 | 124 | | Income before equity in (losses) earnings of unconsolidated affiliates | 267 | 361 | 529 | 652 | | Equity in (losses) earnings of unconsolidated affiliates | (1) | 2 | (14) | (1) | | Net income | $266 | $363 | $515 | $651 | | Earnings per share attributable to common stockholders: | | | | | | Basic | $1.55 | $1.99 | $2.96 | $3.58 | | Diluted | $1.54 | $1.97 | $2.94 | $3.53 | | Weighted average common shares outstanding: | | | | | | Basic | 171.8 | 182.2 | 173.7 | 182.0 | | Diluted | 173.2 | 184.3 | 175.3 | 184.3 | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) This section presents IQVIA Holdings Inc. and subsidiaries' preliminary unaudited condensed consolidated balance sheets, outlining assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (preliminary and unaudited) | (in millions, except per share data) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Current assets: | | | | Cash and cash equivalents | $2,039 | $1,702 | | Trade accounts receivable and unbilled services, net | 3,344 | 3,204 | | Prepaid expenses | 200 | 154 | | Income taxes receivable | 62 | 36 | | Investments in debt, equity and other securities | 149 | 141 | | Other current assets and receivables | 551 | 592 | | Total current assets | 6,345 | 5,829 | | Property and equipment, net | 536 | 535 | | Operating lease right-of-use assets | 280 | 238 | | Investments in debt, equity and other securities | 134 | 108 | | Investments in unconsolidated affiliates | 272 | 266 | | Goodwill | 15,611 | 14,710 | | Other identifiable intangibles, net | 4,596 | 4,499 | | Deferred income taxes | 345 | 194 | | Deposits and other assets, net | 513 | 520 | | Total assets | $28,632 | $26,899 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Current liabilities: | | | | Accounts payable and accrued expenses | $3,399 | $3,684 | | Unearned income | 2,123 | 1,779 | | Income taxes payable | 124 | 156 | | Current portion of long-term debt | 1,313 | 1,145 | | Other current liabilities | 613 | 193 | | Total current liabilities | 7,572 | 6,957 | | Long-term debt, less current portion | 14,177 | 12,838 | | Deferred income taxes | 216 | 196 | | Operating lease liabilities | 210 | 173 | | Other liabilities | 671 | 668 | | Total liabilities | 22,846 | 20,832 | | Commitments and contingencies | | | | Stockholders' equity: | | | | Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2025 and December 31, 2024, $0.01 par value, 258.5 shares issued and 170.0 shares outstanding as of June 30, 2025; 258.2 shares issued and 176.1 shares outstanding as of December 31, 2024 | 11,225 | 11,143 | | Retained earnings | 6,580 | 6,065 | | Treasury stock, at cost, 88.5 and 82.1 shares as of June 30, 2025 and December 31, 2024, respectively | (11,145) | (10,103) | | Accumulated other comprehensive loss | (882) | (1,038) | | Equity attributable to IQVIA Holdings Inc.'s stockholders | 5,778 | 6,067 | | Noncontrolling interests | 8 | — | | Total stockholders' equity | 5,786 | 6,067 | | Total liabilities and stockholders' equity | $28,632 | $26,899 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) This section provides IQVIA Holdings Inc. and subsidiaries' preliminary unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, detailing cash flows from operating, investing, and financing activities IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited) | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Operating activities:** | | | | Net income | $515 | $651 | | Adjustments to reconcile net income to cash provided by operating activities: | | | | Depreciation and amortization | 541 | 533 | | Amortization of debt issuance costs and discount | 11 | 11 | | Stock-based compensation | 132 | 104 | | Losses from unconsolidated affiliates | 14 | 1 | | Gain on investments, net | (16) | (12) | | Benefit from deferred income taxes | (86) | (80) | | Changes in operating assets and liabilities: | | | | Change in accounts receivable, unbilled services and unearned income | 269 | 187 | | Change in other operating assets and liabilities | (369) | (285) | | Net cash provided by operating activities | 1,011 | 1,110 | | **Investing activities:** | | | | Acquisition of property, equipment and software | (293) | (288) | | Acquisition of businesses, net of cash acquired | (315) | (221) | | Sales of marketable securities, net | 2 | — | | Investments in unconsolidated affiliates, net of payments received | (27) | (49) | | Investments in debt and equity securities | (19) | (2) | | Proceeds from sale of property, equipment and software | — | 25 | | Other | 1 | — | | Net cash used in investing activities | (651) | (535) | | **Financing activities:** | | | | Proceeds from issuance of debt | 3,985 | — | | Payment of debt issuance costs | (35) | — | | Repayment of debt and principal payments on finance leases | (2,140) | (86) | | Proceeds from revolving credit facility | 875 | 375 | | Repayment of revolving credit facility | (1,700) | (585) | | Payments related to employee stock incentive plans | (35) | (60) | | Repurchase of common stock | (1,032) | — | | Contingent consideration and deferred purchase price payments | (20) | (10) | | Other | (11) | — | | Net cash used in financing activities | (113) | (366) | | Effect of foreign currency exchange rate changes on cash | 90 | (40) | | Increase in cash and cash equivalents | 337 | 169 | | Cash and cash equivalents at beginning of period | 1,702 | 1,376 | | Cash and cash equivalents at end of period | $2,039 | $1,545 | [Net Income to Adjusted EBITDA Reconciliation](index=10&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) This section presents IQVIA Holdings Inc. and subsidiaries' preliminary unaudited reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2025, detailing adjustments from GAAP net income to non-GAAP Adjusted EBITDA IQVIA HOLDINGS INC. AND SUBSIDIARIES NET INCOME TO ADJUSTED EBITDA RECONCILIATION (preliminary and unaudited) | (in millions) | 2025 (Three Months) | 2024 (Three Months) | 2025 (Six Months) | 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $266 | $363 | $515 | $651 | | Provision for income taxes | 56 | 75 | 117 | 124 | | Depreciation and amortization | 276 | 269 | 541 | 533 | | Interest expense, net | 172 | 151 | 326 | 306 | | Loss (income) in unconsolidated affiliates | 1 | (2) | 14 | 1 | | Stock-based compensation | 60 | 48 | 132 | 104 | | (1) Other expense (income), net | 29 | (66) | 44 | (45) | | Loss on extinguishment of debt | — | — | 4 | — | | (2) Restructuring and related expenses | 42 | 39 | 84 | 61 | | Acquisition related expenses | 8 | 10 | 16 | 14 | | **Adjusted EBITDA** | **$910** | **$887** | **$1,793** | **$1,749** | [Net Income to Adjusted Net Income Reconciliation](index=11&type=section&id=Net%20Income%20to%20Adjusted%20Net%20Income%20Reconciliation) This section provides IQVIA Holdings Inc. and subsidiaries' preliminary unaudited reconciliation of net income to Adjusted Net Income for the three and six months ended June 30, 2025, detailing adjustments from GAAP net income to non-GAAP Adjusted Net Income IQVIA HOLDINGS INC. AND SUBSIDIARIES NET INCOME TO ADJUSTED NET INCOME RECONCILIATION (preliminary and unaudited) | (in millions, except per share data) | 2025 (Three Months) | 2024 (Three Months) | 2025 (Six Months) | 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $266 | $363 | $515 | $651 | | Provision for income taxes | 56 | 75 | 117 | 124 | | (1) Purchase accounting amortization | 131 | 133 | 256 | 262 | | Loss (income) in unconsolidated affiliates | 1 | (2) | 14 | 1 | | Stock-based compensation | 60 | 48 | 132 | 104 | | (2) Other expense (income), net | 29 | (66) | 44 | (45) | | Loss on extinguishment of debt | — | — | 4 | — | | (3) Restructuring and related expenses | 42 | 39 | 84 | 61 | | Acquisition related expenses | 8 | 10 | 16 | 14 | | Adjusted Pre Tax Income | $593 | $600 | $1,182 | $1,172 | | Adjusted tax expense | (107) | (113) | (217) | (217) | | **Adjusted Net Income** | **$486** | **$487** | **$965** | **$955** | | Adjusted earnings per share attributable to common stockholders: | | | | | | Basic | $2.83 | $2.67 | $5.56 | $5.25 | | Diluted | $2.81 | $2.64 | $5.50 | $5.18 | | Weighted average common shares outstanding: | | | | | | Basic | 171.8 | 182.2 | 173.7 | 182.0 | | Diluted | 173.2 | 184.3 | 175.3 | 184.3 | [Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation](index=12&type=section&id=Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow%20Reconciliation) This section presents IQVIA Holdings Inc. and subsidiaries' preliminary unaudited reconciliation of net cash provided by operating activities to free cash flow for the three and six months ended June 30, 2025, detailing adjustments from operating cash flow to free cash flow IQVIA HOLDINGS INC. AND SUBSIDIARIES NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (preliminary and unaudited) | (in millions) | 2025 (Three Months) | 2024 (Three Months) | 2025 (Six Months) | 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Net Cash provided by Operating Activities | $443 | $588 | $1,011 | $1,110 | | Acquisition of property, equipment and software | (151) | (143) | (293) | (288) | | **Free Cash Flow** | **$292** | **$445** | **$718** | **$822** | [Calculation of Gross and Net Leverage Ratios](index=13&type=section&id=Calculation%20of%20Gross%20and%20Net%20Leverage%20Ratios) This section provides IQVIA Holdings Inc.'s preliminary unaudited calculation of gross and net leverage ratios as of June 30, 2025, based on gross debt, net debt, and Adjusted EBITDA for the last twelve months IQVIA HOLDINGS INC. AND SUBSIDIARIES CALCULATION OF GROSS AND NET LEVERAGE RATIOS AS OF JUNE 30, 2025 (preliminary and unaudited) | (in millions) | | | :--- | :--- | | Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of June 30, 2025 | $15,490 | | Net Debt as of June 30, 2025 | $13,451 | | Adjusted EBITDA for the twelve months ended June 30, 2025 | $3,728 | | Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) | 4.16x | | Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) | 3.61x | [Contacts](index=13&type=section&id=Contacts) This section provides contact information for IQVIA's Investor Relations department, including the contact person's name, email, and phone number - Investor Relations contact: Kerri Joseph, email: kerri.joseph@iqvia.com, phone: **+1.973.541.3558**[35](index=35&type=chunk)

Core Viewpoint - The upcoming earnings report from IQVIA Holdings is anticipated to show a quarterly earnings increase of 4.6% year over year, with revenues expected to rise by 3.8% [1] Financial Performance Estimates - Analysts project quarterly earnings of $2.76 per share for IQVIA, reflecting a 4.6% increase compared to the same period last year [1] - Revenue estimates for the quarter are set at $3.96 billion, indicating a 3.8% year-over-year growth [1] Segment Revenue Projections - Revenue from Technology & Analytics Solutions is expected to reach $1.59 billion, a 6.3% increase year over year [4] - Research & Development Solution revenues are projected at $2.19 billion, showing a 2% increase from the previous year [4] - Contract Sales & Medical Solutions revenues are estimated at $172.59 million, reflecting a 0.3% year-over-year change [4] Backlog and Segment Profit Estimates - The consensus for backlog is $31.83 billion, up from $30.60 billion in the same quarter last year [5] - Segment Profit for Technology & Analytics Solutions is expected to be $388.26 million, compared to $361.00 million a year ago [5] - Segment Profit for Research & Development Solutions is projected at $496.72 million, slightly up from $493.00 million in the previous year [6] Market Performance - Over the past month, IQVIA shares have returned +2.6%, while the Zacks S&P 500 composite has seen a +4.2% change [6] - IQVIA holds a Zacks Rank of 3 (Hold), suggesting its performance will likely align with the overall market in the near term [6]

Core Insights - IQVIA Holdings Inc. (IQV) is set to release its second-quarter 2025 results on July 22, with earnings estimated at $2.76 per share, reflecting a 4.6% year-over-year increase, and revenues projected at $3.96 billion, indicating a 3.8% rise year-over-year [1][8]. Revenue Expectations - Research and Development Solutions (R&DS) revenues are anticipated to reach $2.2 billion, representing a 2% increase from the previous year, driven by strong indicators such as qualified pipeline and backlog [3][8]. - Technology and Analytics Solutions (TAS) revenues are estimated at $1.58 billion, suggesting a 5.5% year-over-year growth, supported by robust demand for integrated solutions [4][8]. - Contract Sales and Medical Solutions revenues are projected at $181.9 million, indicating a 5.8% growth compared to the same quarter last year [4][8]. Earnings Performance - The adjusted EBITDA for the first quarter is estimated at $899.4 million, reflecting a 1.4% year-over-year growth, attributed to strong revenue performance and price discipline [5]. - IQV has a history of earnings surprises, having exceeded the Zacks Consensus Estimate in the last four quarters with an average surprise of 1.7% [2]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for IQV, with an Earnings ESP of -0.26% and a Zacks Rank of 3 (Hold) [6]. Comparative Stocks - Veralto Corporation (VLTO) and Equifax (EFX) are highlighted as potential stocks to consider, with VLTO showing an Earnings ESP of +1.55% and EFX at +1.46%, both indicating favorable conditions for earnings performance [7][9].

Company Overview - IQVIA Holdings Inc. provides advanced analytics, technology solutions, and contract research services to the life sciences industry, formed through the merger of IMS Health and Quintiles [11] - The company operates in over 100 countries and employs approximately 88,000 people [11] Investment Ratings - IQVIA is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A [12] - The Growth Style Score for IQVIA is B, indicating a forecasted year-over-year earnings growth of 6.4% for the current fiscal year [12] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing to $11.84 per share [12] - IQVIA has an average earnings surprise of +1.7%, suggesting a positive trend in earnings performance [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, IQVIA is recommended as a potential investment opportunity for growth investors [13]

Core Insights - IQVIA (IQV) is currently in Phase 18 of its 18-Phase Adhishthana Cycle, indicating a complex situation that may not resolve until 2030 [1] - The stock has shown an 88.88% alignment with the Adhishthana Principles up to Phase 17, which forecasts stock behavior through cyclical analysis and quantitative signals [2] - The stock's Level of Nirvana was established at $101.885 during Phase 6, serving as a long-term valuation barometer [4] - A breakdown occurred between Phases 4 and 8, leading to strong selling pressure and a waterfall correction, with support found around the Level of Nirvana [7] - The stock's rally during Phases 10 and 11 was deemed illusory due to the earlier breakdown, resulting in a bearish trend lasting over 1200 days [8][11] - Weak Guna Triads during Phases 14 to 16 indicate low chances of reaching the Phase 18 peak [11] - The stock is expected to remain in a time spiral until 2030, with a phase of inaction from April 2026 to April 2030 [14][16] Adhishthana Cycle Overview - IQVIA began its Adhishthana Cycle on May 6, 2013, with significant events occurring throughout the phases [2] - The formation of the Cakra between Phases 4 and 8 indicated potential strength, but the subsequent breakdown attracted selling pressure [7] - The stock's performance in Phases 10 and 11 was initially promising but was invalidated by earlier bearish trends [8] Current Phase Analysis - Currently in Phase 18, which ends on October 4, 2026, the stock is also in Phase 3 on monthly charts, indicating a prolonged downtrend [16] - The upcoming Phase 4 on monthly charts will be a period of inaction lasting until April 30, 2030 [16]

Summary of IQVIA (IQV) 2025 Conference Call Company Overview - **Company**: IQVIA (IQV) - **Industry**: Life Sciences Tools and Diagnostics Key Financial Highlights - **Q1 Performance**: Revenue exceeded the high end of guidance, EBITDA was above the midpoint, and EPS was at the high end of guidance [3][4] - **TAS Growth**: TAS experienced over 7.6% growth at constant currency [3] - **Cash Flow**: Cash flow increased by 13% year-over-year, representing 89% of adjusted net income, which is at the high end of forecasts [4] - **Revenue Guidance**: Revenue guidance was raised by $275 million, primarily due to foreign exchange (FX) impacts [4] - **Bookings**: Book-to-bill ratio was 1.02, with a noted slowdown in decision-making and an increase in the time between RFPs and awards by about 10% [5][6] Industry Dynamics - **Emerging Biopharma vs. Large Pharma**: Emerging biopharma is experiencing a slowdown in funding, while large pharma is facing delays in decision-making due to uncertainty from recent government actions [8][9] - **Funding Environment**: The funding environment for biotech has been weak year-to-date, impacting order placements and decision-making [10][11] - **Regulatory Environment**: Concerns regarding agency changes, tariffs, and pricing actions are affecting large pharma's decision-making processes [13][14][17] Market Trends - **Real World Evidence (RWE)**: Growth in RWE is driven by the introduction of new drugs and increased scrutiny from payers for evidence of effectiveness [29][32] - **TAS Business**: The TAS segment is expected to continue its recovery, supported by new drug approvals and the need for commercialization support [22][23][26] Competitive Landscape - **Pricing Pressure**: Increased competition has led to pricing pressures, particularly in the FSP business, but management is focused on offsetting this with cost reductions [40][41] - **Market Dynamics**: Smaller CROs are feeling more pressure for business, which may lead to increased pricing competition [42] Margin and Growth Outlook - **Margin Projections**: Adjusted EBITDA margin is projected to contract by 20 basis points due to FX impacts, but long-term margin growth is expected to remain stable [45][49] - **Revenue Growth Expectations**: Anticipated constant currency revenue growth of 6-9% annually, driven by pharma spending, market share expansion, outsourcing, and M&A [49][50] Capital Deployment Strategy - **M&A and Share Repurchase**: The company is focused on M&A and share repurchase, with a preference for M&A opportunities that enhance growth capabilities [51][54] - **Debt Management**: Comfortable with current debt levels, with a net leverage ratio between 3.3 and 3.5 [52] Underappreciated Aspects - **Business Model**: IQVIA is not a pure CRO; its TAS business represents 40% of operations, which is often overlooked in comparisons with CRO peers [57][58] This summary encapsulates the key points discussed during the IQVIA conference call, highlighting the company's financial performance, industry dynamics, market trends, competitive landscape, margin outlook, capital deployment strategy, and aspects of the business that may be underappreciated.

Core Insights - The performance of IQVIA Holdings' international operations is crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $3.83 billion, reflecting a year-over-year increase of 2.5% [4] International Revenue Breakdown - Revenue from Europe and Africa was $1.22 billion, accounting for 31.97% of total revenue, which was a surprise of +1.2% compared to analyst expectations [5] - Asia-Pacific contributed $798 million, making up 20.84% of total revenue, exceeding the consensus estimate by +3.66% [6] Future Revenue Expectations - Analysts anticipate total revenue of $3.95 billion for the current fiscal quarter, a 3.5% increase year-over-year, with expected contributions of 31.9% from Europe and Africa and 20% from Asia-Pacific [7] - For the full year, total revenue is projected to be $16.01 billion, up 4% from the previous year, with Europe and Africa expected to contribute $5.11 billion and Asia-Pacific $3.21 billion [8] Conclusion on International Operations - The reliance on global markets presents both opportunities and challenges for IQVIA, making the analysis of international revenue trends essential for forecasting future performance [9][10]

Core Insights - IQVIA Holdings reported $3.83 billion in revenue for Q1 2025, a year-over-year increase of 2.5% and an EPS of $2.70, up from $2.54 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $3.77 billion by 1.55%, and the EPS also surpassed the consensus estimate of $2.63 by 2.66% [1] Financial Performance Metrics - The backlog stood at $31.5 billion, slightly above the average estimate of $31.43 billion from two analysts [4] - Revenue from Technology & Analytics Solutions was $1.55 billion, exceeding the estimated $1.52 billion, reflecting a 6.4% increase year-over-year [4] - Revenue from Research & Development Solutions reached $2.10 billion, slightly above the $2.08 billion estimate, with a year-over-year change of 0.3% [4] - Revenue from Contract Sales & Medical Solutions was $181 million, below the estimated $183.42 million, showing a year-over-year decline of 4.2% [4] - Segment profit for Technology & Analytics Solutions was $360 million, compared to the estimated $365.56 million [4] - Segment profit for Contract Sales & Medical Solutions was $11 million, below the estimated $15.65 million [4] - Segment profit for Research & Development Solutions was $460 million, compared to the estimated $471.69 million [4] Stock Performance - IQVIA shares have returned -0.5% over the past month, while the Zacks S&P 500 composite increased by 11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Revenues for Q1 2025 increased by $92 million, or 2.5%, to $3,829 million compared to Q1 2024, driven by a constant currency revenue growth of approximately $129 million, or 3.5%[89] - Total revenues for the first quarter of 2025 were $3,829 million, an increase of $92 million, or 2.5%, compared to $3,737 million in the same period of 2024[99] - Income from operations for Q1 2025 was $558 million, while net income was $173 million[136] Cost and Expenses - Cost of revenues, exclusive of depreciation and amortization, rose by $87 million to $2,531 million, representing 66.1% of revenues, compared to 65.4% in Q1 2024[90] - Selling, general and administrative expenses remained consistent at $508 million, accounting for 13.3% of revenues, a slight decrease from 13.6% in Q1 2024[91] - The company reported a constant currency increase in cost of revenues of approximately $137 million, or 5.6%, for Q1 2025[90] - Restructuring costs increased to $29 million in Q1 2025 from $15 million in Q1 2024, aimed at streamlining global operations and integrating acquisitions[93] Segment Performance - Technology & Analytics Solutions contributed a $110 million increase in revenues, while Contract Sales & Medical Solutions saw a $4 million decrease[89] - Technology & Analytics Solutions segment revenues increased by $93 million, or 6.4%, to $1,546 million, driven by constant currency growth of approximately $110 million, or 7.6%[101] - Research & Development Solutions segment revenues were $2,102 million, a slight increase of $7 million, or 0.3%, with a constant currency growth of approximately $23 million, or 1.1%[108] - Contract Sales & Medical Solutions segment revenues decreased by $8 million, or 4.2%, to $181 million, primarily due to volume-related decreases in services performed[114] - The total segment profit for the first quarter of 2025 was $496 million, compared to $506 million in the same period of 2024[99] - Research & Development Solutions' contracted backlog increased from $31.1 billion to $31.5 billion, with an expected revenue conversion of approximately $7.9 billion in the next twelve months[107] Tax and Equity - The effective income tax rate for Q1 2025 was 18.9%, up from 14.4% in Q1 2024, influenced by changes in the geographical mix of earnings[96] - Equity in losses of unconsolidated affiliates increased to $13 million in Q1 2025 from $3 million in Q1 2024, reflecting operational results of unconsolidated affiliates[98] Cash Flow and Financing - Cash balance as of March 31, 2025, was $1,740 million, an increase from $1,702 million as of December 31, 2024[119] - Net cash provided by operating activities increased by $46 million to $568 million in the first quarter of 2025, driven by increases in cash from accounts receivable and unbilled services[127] - The company repurchased 2.3 million shares for $425 million under its equity repurchase program, with remaining authorization to repurchase up to $2,588 million[122] - Net cash used in financing activities increased by $152 million to $(258) million in Q1 2025 compared to $(106) million in Q1 2024, primarily due to higher cash payments on debt and stock repurchases[129] - Cash payments for debt and principal payments on finance leases totaled $2,053 million in Q1 2025[129] Indebtedness and Assets - Total indebtedness as of March 31, 2025, was $14,389 million, with $895 million of additional available borrowings under the revolving credit facility[123] - Total current assets decreased from $935 million as of December 31, 2024, to $629 million as of March 31, 2025[136] - Total current liabilities slightly increased from $3,792 million as of December 31, 2024, to $3,809 million as of March 31, 2025[136] - Total noncurrent liabilities increased from $12,333 million as of December 31, 2024, to $12,626 million as of March 31, 2025[136] - Amounts due from non-Guarantor subsidiaries decreased from $4,952 million to $3,718 million from December 31, 2024, to March 31, 2025[136] Debt Issuance - The company issued $1,250 million in 6.250% senior secured notes due 2029 and $750 million in 5.700% senior secured notes due 2028, raising a total of $2,000 million in gross proceeds[130] Currency Impact - Approximately 30% of revenues in Q1 2025 were denominated in currencies other than the US dollar, impacting financial results due to foreign currency fluctuations[87] Corporate Governance - The company reported no material changes to its critical accounting policies or market risk disclosures compared to the previous year[139][140] AI Commitment - The company is committed to using AI responsibly, with a focus on privacy, regulatory compliance, and patient safety in its service offerings[82]