IQVIA Holdings (IQV) AI Stock Analysis

• Market Cap: $31.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.93
• Revenue Growth: 3.53%
• EPS Growth: -10.72%
• Country: US
• Employees: 89,000
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.81
• Shares Outstanding: 170,000,000
• 10 Day Avg. Volume: 1,215,858
• 30 Day Avg. Volume: 1,986,539
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 12.15
• 1Y Price Target: $212.54
• Price Target Upside: 12.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 79 Outperform
• Price Target: $221.00 ▲(17.06% Upside)

IQVIA's strong financial performance and positive earnings call insights are the most significant contributors to its overall score. The company's strategic focus on AI and robust revenue growth in key segments bolster its position. While the valuation is relatively high, it reflects confidence in future growth. Technical indicators support a bullish outlook, although the lack of a dividend yield is a minor drawback.

Positive Factors

Financial Performance

IQV posted a net B2B of 1.12x within its R&DS segment, exceeding expectations.

Revenue Growth

Total revenue growth in the quarter exceeded expectations, showing strong performance in TAS and R&DS segments.

Strategic Partnerships

IQV and VEEV announced a clinical and commercial partnership and the resolution of all pending legal disputes.

Negative Factors

Biopharma Policy Dynamics

Biopharma policy dynamics bear monitoring and remain the biggest swing factor.

Margin Compression

Despite topline results being ahead, margins compressed yoy, largely due to increase in FSP services and PTs in R&DS as well as revenue mix.

Pricing Pressure

IQV's willingness to bid on more business has come with an acceptance of lower pricing.

IQVIA Holdings Business Overview & Revenue Model

Company Description

IQVIA Holdings Inc. provides advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients' outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; virtual trials; and strategic planning and design services, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company has a strategic collaboration with HealthCore, Inc. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was founded in 1982 and is headquartered in Durham, North Carolina.

How the Company Makes Money

IQVIA generates revenue through a combination of service-based contracts and subscription-based solutions. Its key revenue streams include fees from clinical trial management and support services, which involve designing and conducting clinical trials for pharmaceutical and biotechnology companies. Additionally, IQVIA earns revenue from its technology solutions, including data analytics and software platforms that offer insights into healthcare trends and patient populations. Significant partnerships with pharmaceutical companies and healthcare organizations enhance its credibility and market reach, contributing to steady revenue growth. Furthermore, IQVIA's ability to provide integrated solutions across the drug development lifecycle allows it to capture a larger share of the market, driving further earnings.

IQVIA Holdings Financial Statement Overview

Summary

IQVIA Holdings demonstrates strong financial health with consistent revenue and profit growth, efficient operational margins, and solid cash flow generation. The low debt-to-equity ratio and high ROE mitigate leverage risks, despite substantial liabilities.

Income Statement

IQVIA Holdings exhibits strong profitability with a consistent upward trend in revenue and net income. The recent TTM data shows a net profit margin of 7.88% and a gross profit margin of 34.24%, indicating efficient cost management. The revenue growth rate from 2024 to TTM is 1.91%, reflecting steady growth. EBIT and EBITDA margins are robust at 13.87% and 21.39%, respectively, showcasing solid operational performance.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.26, indicating a low reliance on debt. The equity ratio of 20.17% suggests a moderate level of equity financing. Return on equity (ROE) is strong at 21.41%, highlighting efficient use of shareholder funds. However, the overall leverage remains a potential risk with total liabilities significantly outweighing equity.

Cash Flow

The cash flow statements indicate a healthy cash generation capacity with a free cash flow of $2.303 billion in TTM, showing a growth rate of 8.93% from the previous year. The operating cash flow to net income ratio is 2.12, and the free cash flow to net income ratio is 1.86, both suggesting strong cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.70B	15.40B	14.98B	14.41B	13.87B	11.36B
Gross Profit	5.38B	5.38B	5.24B	5.03B	4.64B	3.86B
EBITDA	3.36B	3.49B	3.26B	2.91B	2.75B	2.06B
Net Income	1.24B	1.37B	1.36B	1.09B	966.00M	279.00M
Balance Sheet
Total Assets	28.63B	26.90B	26.68B	25.34B	24.69B	24.56B
Cash, Cash Equivalents and Short-Term Investments	2.19B	1.84B	1.50B	1.31B	1.48B	1.90B
Total Debt	15.70B	14.16B	13.90B	13.01B	12.44B	12.90B
Total Liabilities	22.85B	20.83B	20.57B	19.57B	18.65B	18.28B
Stockholders Equity	5.78B	6.07B	6.11B	5.76B	6.04B	6.00B
Cash Flow
Free Cash Flow	2.01B	2.11B	1.50B	1.59B	2.30B	1.34B
Operating Cash Flow	2.62B	2.72B	2.15B	2.26B	2.94B	1.96B
Investing Cash Flow	-1.56B	-1.44B	-1.60B	-2.01B	-2.10B	-796.00M
Financing Cash Flow	-625.00M	-878.00M	-382.00M	-329.00M	-1.24B	-217.00M

IQVIA Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 188.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQV, the sentiment is Positive. The current price of 188.8 is above the 20-day moving average (MA) of 186.30, above the 50-day MA of 175.37, and above the 200-day MA of 178.88, indicating a bullish trend. The MACD of 3.65 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 27.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IQV.

IQVIA Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	80 Outperform	$13.18B	34.90	89.38%	―	9.94%	25.30%
IQV	79 Outperform	$31.92B	27.20	19.80%	―	3.53%	-10.72%
TMO	79 Outperform	$184.46B	28.40	13.44%	0.34%	2.05%	7.03%
ICLR	77 Outperform	$13.36B	17.65	8.30%	―	-2.91%	12.92%
DGX	70 Neutral	$20.17B	21.36	13.65%	1.72%	12.58%	13.00%
DHR	69 Neutral	$147.69B	44.12	6.68%	0.57%	-3.24%	-16.60%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%

IQVIA Holdings Corporate Events

IQVIA Holdings Issues $2 Billion in Senior Notes

On June 4, 2025, IQVIA Inc., a subsidiary of IQVIA Holdings Inc., successfully issued and sold $2 billion in 6.250% senior notes due 2032. The proceeds from this offering will be used to repay existing borrowings under the company’s revolving credit facility and cover related fees and expenses, with any remaining funds allocated for general corporate purposes. This financial maneuver is expected to impact the company’s operations by optimizing its debt structure and potentially enhancing its market positioning.

IQVIA Holdings Announces $2 Billion Senior Notes Offering

On June 2, 2025, IQVIA Holdings Inc. announced that its subsidiary, IQVIA Inc., plans to raise $2 billion through a senior notes offering due in 2032. The proceeds will be used to repay existing borrowings and cover related fees, with any excess allocated for general corporate purposes. This move is expected to impact the company’s financial structure and market positioning, subject to customary closing conditions.