IQVIA Delivers Solid Q4 Growth Despite 'Choppy' Market Conditions

Core Insights - IQVIA Holdings Inc reported a fourth adjusted EPS of $3.12, an increase from $2.84, surpassing the consensus of $3.11 [1] - The company achieved sales of $3.96 billion, nearly matching the consensus of $3.94 billion, with a revenue increase of 2.3% on a reported basis and 3.0% at constant currency [1] - The Technology & Analytics Solutions (TAS) segment generated revenue of $1.66 billion, reflecting an 8.3% growth on a reported basis and 9.5% at constant currency [1] Revenue Breakdown - Research & Development Solutions (R&DS) revenue was $2.123 billion, showing a decrease of 1.3% on a reported basis and 1.0% at constant currency [2] - The R&DS contracted backlog, including reimbursed expenses, reached $31.1 billion, growing 4.4% year-over-year and 5.5% at constant currency [2] - Approximately $7.9 billion of the backlog is expected to convert to revenue in the next twelve months, with a fourth-quarter book-to-bill ratio of 1.20x [2] Management Commentary - The CEO of IQVIA stated that the company delivered excellent fourth-quarter performance and that R&DS revenue was on target, with bookings exceeding expectations despite a challenging CRO market [2] - The TAS segment showed strong momentum, suggesting that the company's growth target for 2025 may be conservative [4] Guidance and Outlook - IQVIA reaffirms its 2025 sales outlook of $15.725 billion to $16.125 billion, compared to a consensus of $16.03 billion [2] - The company anticipates adjusted EPS of $11.70-$12.10, against a consensus of $11.88, and adjusted EBITDA of $3.765 billion to $3.885 billion [3] - Stronger-than-expected bookings in the R&DS segment enhance confidence in achieving mid-single-digit revenue growth for 2025, excluding COVID-related revenue [3] Market Reaction - Following the earnings report, IQV stock increased by 2.8%, reaching $211.36 [4]