IQVIA Holdings’ Earnings Call: Mixed Sentiment Amid Growth

IQVIA Holdings ((IQV)) has held its Q1 earnings call. Read on for the main highlights of the call.

IQVIA Holdings’ Latest Earnings Call Reflects Mixed Sentiment Amid Growth and Challenges

The recent earnings call of IQVIA Holdings presented a mixed sentiment. The company reported strong revenue and profit growth, particularly in the Technology & Analytics Solutions (TAS) segment, and maintained a robust backlog. However, challenges were noted in the Research & Development Solutions (R&DS) segment, with delayed decision-making and funding issues affecting emerging biotech. Macroeconomic uncertainties continue to impact customer decisions in R&DS, adding to the concerns.

Revenue and Profit Growth

IQVIA’s total revenue for the first quarter of 2025 surpassed expectations, showing a 2.5% growth on a reported basis and a 3.5% increase at constant currency. The company’s adjusted EBITDA rose by 2.4%, while adjusted diluted EPS saw a year-over-year growth of 6.3%. These figures highlight the company’s solid financial performance despite prevailing challenges.

TAS Segment Outperformance

The Technology & Analytics Solutions (TAS) segment was a standout performer, with revenue growing 6.4% on a reported basis and 7.6% at constant currency. This growth was primarily driven by double-digit increases in real-world evidence, showcasing the segment’s strength and potential.

Strong Backlog and Pipeline

IQVIA’s R&DS backlog reached a record $31.5 billion by the end of the quarter, marking a 4.8% year-over-year increase. The qualified pipeline also saw growth, albeit in low single digits, indicating a steady stream of future projects and opportunities for the company.

AI Deployment Progress

The company has made significant strides in deploying artificial intelligence (AI) agents, with over 20 agents currently in production. IQVIA plans to expand this to 40 use cases by year’s end, aiming for enhanced productivity gains and operational efficiency.

Delayed Decision-Making in R&DS

The R&D Solutions (R&DS) segment is experiencing delays in customer decision-making due to macroeconomic and industry uncertainties. This has led to an approximate 10% increase in the average time from RFP issuance to award, affecting the segment’s performance.

Emerging Biotech Funding Challenges

The funding environment for emerging biotechs has worsened, resulting in a high number of EBP awards not being included in bookings due to unsecured funding. This situation poses a significant challenge for IQVIA as it navigates the complexities of the biotech sector.

Mega Trials Postponement

IQVIA confirmed that one mega trial is set to commence towards the end of the year, while another has been postponed due to client-specific logistical issues. These delays highlight the operational challenges faced by the company in executing large-scale projects.

Forward-Looking Guidance

IQVIA has raised its full-year revenue guidance by $275 million, now projecting between $16.0 billion and $16.4 billion. The company reaffirmed its adjusted EBITDA guidance at $3.765 to $3.885 billion and maintained its adjusted diluted EPS guidance at $11.70 to $12.10. Despite some near-term challenges, IQVIA remains optimistic about the resilience of the life sciences industry and its ability to navigate the current market environment.

In summary, IQVIA Holdings’ earnings call highlighted a mixed sentiment, with strong growth in key segments and a robust backlog, counterbalanced by challenges in R&DS decision-making and funding for emerging biotechs. The company’s forward-looking guidance reflects confidence in its strategic positioning and the resilience of the life sciences sector.