IQVIA(IQV) - 2025 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Presents IQVIA's unaudited condensed consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and equity Condensed Consolidated Statements of Income 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 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 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 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 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][17] Notes to Condensed Consolidated Financial Statements Provides detailed disclosures for financial statements, covering accounting policies, revenue, assets, liabilities, debt, and segment information 1. Summary of Significant Accounting Policies - 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] - 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] - 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][26] 2. Revenues by Geography, Concentration of Credit Risk and Remaining Performance Obligations 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] 3. Trade Accounts Receivable, Unbilled Services and Unearned Income 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] 4. Goodwill 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 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] - 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] 6. Fair Value Measurements 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] 7. Credit Arrangements 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] - 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] 8. Contingencies - 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][56] - 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] - 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] 9. Stockholders' Equity - 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] - 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] - 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] 10. Business Combinations 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] - 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][64] 11. Restructuring - 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] 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 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] - 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][70] 13. Accumulated Other Comprehensive (Loss) Income 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 - IQVIA manages its operations through three reportable segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions[72] - 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] - 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] 15. Earnings Per Share 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] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses IQVIA's financial condition and results, analyzing consolidated and segment performance, liquidity, capital, and critical accounting policies 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] - The Company is committed to using AI responsibly, with capabilities built on best-in-class approaches to privacy, regulatory compliance, and patient safety[83] - 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][84] Sources of Revenue - Total revenues are comprised of revenues from the provision of services, with no material product revenues[85] Costs and Expenses - 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] - 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] Foreign Currency Translation - 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] - 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] Consolidated Results of Operations Revenues 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 | $268 | N/A | N/A | 3.5% | - The constant currency revenue growth for both periods primarily reflected increases in Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions[89][90] Cost of Revenues, exclusive of Depreciation and Amortization Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 | $308 | N/A | N/A | 6.2% | - The constant currency increases were primarily driven by Technology & Analytics Solutions and Research & Development Solutions[91][92] Selling, General and Administrative Expenses Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 $12 million decrease in general corporate and unallocated expenses[94] Depreciation and Amortization Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 | $8 | 1.5% | | % of revenues | 6.9% | 7.1% | -0.2 pp | | - The increase in depreciation and amortization is mainly related to an increase in amortization of capitalized software costs[96] Restructuring Costs Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | :--------- | | Restructuring costs | $32 | $28 | $4 | 14.3% | | H1 2025 (millions) | H1 2024 (millions) | Change ($) | Change (%) | | | Restructuring costs | $61 | $43 | $18 | 41.9% | - Restructuring costs were incurred due to ongoing efforts to streamline global operations, reduce overcapacity, and integrate acquisitions, with actions expected to continue throughout 2025 and into 2026[97] Interest Income and Interest Expense Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 | $18 | 5.5% | - Interest income decreased primarily as a result of lower interest rates, while interest expense increased due to higher outstanding debt balances[98][99] Other Expense (Income), Net Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | | 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] Income Tax Expense 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 | $124 | 16.0% | - The effective income tax rate was favorably impacted by changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions[101] - The Company is assessing the impacts of the U.S. 'One Big Beautiful Bill Act' (enacted July 4, 2025) and the OECD Pillar Two global corporate minimum tax rate (effective 2024) on its consolidated financial statements, with no material impacts from Pillar Two for the current year[102][103] Equity in (Losses) Earnings of Unconsolidated Affiliates Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | | :------------------------------------------ | :----------------- | :----------------- | :--------- | | Equity in (losses) earnings | $(1) | $2 | $(3) | | H1 2025 (millions) | H1 2024 (millions) | Change ($) | | | Equity in (losses) earnings | $(14) | $(1) | $(13) | - Equity in losses from unconsolidated affiliates increased due to changes in the operations of these affiliates[104] Segment Results of Operations Technology & Analytics Solutions Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 | $53 | 7.6% | - The constant currency revenue growth was primarily driven by an increase in real-world services and, to a lesser extent, by information and technology services[110] Research & Development Solutions Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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 $8.1 billion expected to convert to revenues in the next twelve months[117] - The constant currency revenue growth was primarily the result of volume-related increases in clinical services, though impacted by a decrease in COVID-19 related work[120] Contract Sales & Medical Solutions Key Financial Metrics | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Change ($) | 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] Liquidity and Capital Resources Overview - 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] - Cash and cash equivalents increased to $2,039 million as of June 30, 2025, from $1,702 million at December 31, 2024[134] - 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] Equity Repurchase Program - 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] - 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] - As of June 30, 2025, $1,981 million remained authorized for repurchase under the program[137] Debt - As of June 30, 2025, total indebtedness was $15,573 million, with $1,995 million of additional available borrowings under revolving credit facilities[138] - 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] - 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] Cash Flow from Operating Activities 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] Cash Flow from Investing Activities 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] Cash Flow from Financing Activities 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] Information about our Guarantors and the Issuer of our Guaranteed Securities - 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][149] 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 - The Company does not have any material off-balance sheet arrangements[154] Contractual Obligations and Commitments - 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] Application of Critical Accounting Policies - There have been no material changes to the Company's critical accounting policies as previously disclosed in its 2024 Form 10-K[157] Item 3. Quantitative and Qualitative Disclosures About Market Risk 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] Item 4. Controls and Procedures 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] - 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] PART II—OTHER INFORMATION Item 1. Legal Proceedings 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][163] - 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] Item 1A. Risk Factors 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] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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] - 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] - 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] Item 5. Other Information 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] Item 6. Exhibits 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] 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][179]