IQVIA's third quarter results reflected stable operational execution, with revenue and profit slightly ahead of Wall Street expectations. Management identified robust free cash flow generation and a healthy pipeline of clinical trial bookings as primary contributors to the quarter’s performance. CEO Ari Bousbib emphasized improvements in industry demand, noting that net bookings in the clinical segment grew 13% year over year, while the company’s backlog reached $32.4 billion. Bousbib credited disciplined working capital management and a more stable industry environment as key drivers behind the results.
Is now the time to buy IQV? Find out in our full research report (it’s free for active Edge members).
IQVIA (IQV) Q3 CY2025 Highlights:
- Revenue: $4.1 billion vs analyst estimates of $4.08 billion (5.2% year-on-year growth, 0.5% beat)
- EPS (GAAP): $1.93 vs analyst estimates of $1.84 (4.8% beat)
- Adjusted EBITDA: $949 million vs analyst estimates of $946.5 million (23.1% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $16.2 billion at the midpoint
- EBITDA guidance for the full year is $3.79 billion at the midpoint, in line with analyst expectations
- Operating Margin: 13.5%, in line with the same quarter last year
- Constant Currency Revenue rose 3.9% year on year, in line with the same quarter last year
- Market Capitalization: $36.42 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From IQVIA’s Q3 Earnings Call
- David Windley (Jefferies) asked about the 'see more, win more' strategy’s impact on improving RFP flow and whether pricing discounts affected profitability. CEO Ari Bousbib explained that most pricing pressure was isolated to earlier in the year and is not expected to impact margins going forward.
- Justin Bowers (Deutsche Bank) inquired if the improved demand trends in clinical and technology businesses are sustainable into 2026. Bousbib declined to provide specific 2026 guidance but expressed confidence that revenue growth should at least match current year levels.
- Elizabeth Anderson (Evercore ISI) questioned the differences in demand between large pharma and biotech clients. Bousbib described pharma pipelines as “fully sanitized” after recent reprioritizations, while biotech activity is improving due to better funding conditions.
- Michael Cherny (Leerink Partners) requested more detail on inorganic contributions and AI initiatives in Technology & Analytics Solutions. Bousbib indicated most acquisition impact came from R&D and CSMS, with ongoing focus on expanding AI and analytics capabilities.
- Eric Coldwell (Baird) sought clarification on TAS segment guidance and mega trial status. CFO Ronald Bruehlman confirmed TAS growth targets remain unchanged and that delayed mega trials are not factored into current guidance.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be monitoring (1) the pace of AI agent deployment and its effect on operational efficiency and margins, (2) the persistence of strong clinical trial bookings and whether the qualified pipeline continues to expand, and (3) the integration and performance of recent acquisitions within CSMS. Progress on digital infrastructure upgrades and evolving customer outsourcing trends will also be important factors shaping future performance.
IQVIA currently trades at $208, down from $217.44 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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