IQVIA Holdings (IQV) AI Stock Analysis

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IQVIA Holdings

(NYSE:IQV)

Rating:76Outperform

Price Target:

$173.00

▲(12.26%Upside)

IQVIA Holdings presents a strong financial foundation with consistent income growth and effective cash flow management. The company faces challenges in the R&DS segment due to external uncertainties, but its solid earnings and strategic focus on technology and analytics are positives. The technical indicators point to a neutral market sentiment, and the valuation is reasonable, making IQVIA a stable investment choice with potential for growth.

Positive Factors

Capital Deployment Strategy

The recent $2 billion senior notes offering will support share buybacks and M&A, with management leaning towards share repurchase due to the stock's low valuation.

Competitive Position

IQVIA continues to execute and demonstrates a strong competitive position despite a challenging macro environment.

TAS Segment Performance

The TAS segment is experiencing a resumption of growth with management confident in its continued performance, supported by over 100 FDA approvals.

Negative Factors

Policy Changes Impact

The announced policy changes by the new US administration have led to uncertainty and delays in decision-making by Pharma and Biotech customers.

Policy Uncertainty

Policy uncertainty is slowing decision-making in the R&DS segment, with elongated decision cycles and impacted study starts.

R&DS Revenue Growth

Despite satisfactory RFP flows, R&DS bookings still lag below targets, contributing to depressed revenue growth in the segment.

IQVIA Holdings (IQV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.55B

Dividend YieldN/A

Average Volume (3M)2.59M

Price to Earnings (P/E)21.7

Beta (1Y)0.89

Revenue Growth2.84%

EPS Growth-0.16%

CountryUS

Employees89,000

SectorHealthcare

Sector Strength53

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)2.70

Shares Outstanding173,000,000

10 Day Avg. Volume2,465,491

30 Day Avg. Volume2,594,302

Financial Highlights & Ratios

PEG Ratio2.31

Price to Book (P/B)6.67

Price to Sales (P/S)0.00

P/FCF Ratio24.24

Enterprise Value/Market Cap1.82

Enterprise Value/Revenue0.82

Enterprise Value/Gross Profit9.34

Enterprise Value/Ebitda3.75

Forecast

1Y Price Target

$181.00

Price Target Upside17.46% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

IQVIA Holdings Business Overview & Revenue Model

Company DescriptionIQVIA Holdings Inc. is a leading global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry. The company operates across three main sectors: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. IQVIA leverages its extensive domain expertise, advanced data analytics, and innovative technology platforms to support healthcare and pharmaceutical companies in enhancing their productivity, accelerating innovation, and improving patient outcomes.

How the Company Makes MoneyIQVIA Holdings generates revenue through a diversified model primarily comprising three key streams: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment provides data analytics, consulting, and technology solutions that help clients optimize their commercial operations and research activities. Research & Development Solutions offer contract research services that encompass clinical trial management, regulatory affairs, and laboratory services, aiding pharmaceutical companies in the drug development process. The Contract Sales & Medical Solutions segment involves sales force management and healthcare provider education services, assisting clients in effectively engaging with healthcare professionals. Additionally, IQVIA benefits from strategic partnerships with pharmaceutical companies and healthcare providers, which further bolster its revenue streams.

IQVIA Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 1.18%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While IQVIA reported strong revenue and profit growth, particularly in the TAS segment and maintained a strong backlog, the R&DS segment faced challenges with delayed decision-making and funding issues in emerging biotech. The macroeconomic uncertainty and its impact on customer decisions in R&DS remain concerns.

Q1-2025 Updates

Positive Updates

Revenue and Profit Growth

IQVIA's total revenue for the first quarter of 2025 exceeded expectations, growing 2.5% on a reported basis and 3.5% at constant currency. Adjusted EBITDA increased by 2.4%, and adjusted diluted EPS grew 6.3% year-over-year.

TAS Segment Outperformance

The Technology & Analytics Solutions (TAS) segment revenue grew 6.4% reported and 7.6% at constant currency, driven by double-digit growth in real-world evidence.

Strong Backlog and Pipeline

IQVIA's R&DS backlog reached a new record of $31.5 billion at the end of the quarter, growing 4.8% year-over-year, with a qualified pipeline up low-single-digits year-over-year.

AI Deployment Progress

IQVIA has progressed in deploying AI agents, with over 20 agents in production. The company plans to scale up to 40 use cases by the end of the year, seeing positive productivity gains.

Negative Updates

Delayed Decision-Making in R&DS

The R&D Solutions (R&DS) segment faced delays in customer decision-making due to macroeconomic and industry uncertainty, impacting the average time from RFP issuance to award, which increased by approximately 10%.

Emerging Biotech Funding Challenges

The funding environment for emerging biotechs (EBTs) has deteriorated, leading to an unusually high number of EBP awards not being included in bookings due to unsecured funding.

Mega Trials Postponement

One mega trial has been confirmed to start towards the end of the year, but another has been pushed out of the current period due to client-specific logistical reasons.

Company Guidance

During IQVIA's First Quarter 2025 Earnings Conference Call, the company reported strong financial performance, achieving revenue of $3.829 billion, a 2.5% increase on a reported basis and a 3.5% increase at constant currency. Adjusted EBITDA rose by 2.4% to $883 million, and adjusted diluted EPS grew 6.3% year-over-year to $2.70. The Technology & Analytics Solutions (TAS) segment demonstrated robust growth, with revenue increasing by 6.4% reported and 7.6% at constant currency, driven by double-digit growth in real-world evidence. R&D Solutions' revenue was up slightly at 0.3% reported and 1.1% at constant currency, while Contract Sales & Medical Solutions saw a decline of 4.2% reported and 2.1% at constant currency. The company's R&DS backlog reached a new record of $31.5 billion, growing 4.8% compared to the previous year. IQVIA raised its full-year revenue guidance by $275 million, now expecting between $16.0 billion and $16.4 billion, with adjusted EBITDA reaffirmed at $3.765 to $3.885 billion and adjusted diluted EPS guidance maintained at $11.70 to $12.10. Despite some near-term challenges, including delayed decision-making by customers and deteriorating funding for early-stage ventures, IQVIA remains confident in the resilience of the life sciences industry and is well-positioned to navigate the current market environment.

IQVIA Holdings Financial Statement Overview

Summary

IQVIA Holdings demonstrates robust financial performance with consistent revenue growth, effective cost management, and strong cash flow generation. The company's financial metrics are solid, but attention to managing total liabilities is important for sustained financial health.

Income Statement

Very Positive

IQVIA Holdings has demonstrated a consistent revenue growth trajectory over the past years, with a revenue increase from $13.87 billion in 2021 to $15.49 billion in TTM 2025, reflecting steady demand in its sector. The gross profit margin remains robust, showcasing effective cost management. The net profit margin has also shown resilience, indicating strong bottom-line performance. EBIT and EBITDA margins highlight operational efficiency and a solid earnings base.

Balance Sheet

Positive

The company maintains a healthy equity position with an equity ratio of approximately 21.87% as of TTM 2025, reflecting a stable financial structure. The debt-to-equity ratio has improved notably, indicating effective leverage management. Return on Equity (ROE) is strong, underscoring efficient use of shareholder equity to generate profits. However, attention to managing total liabilities is advised to maintain financial stability.

Cash Flow

Very Positive

IQVIA Holdings exhibits strong cash flow generation with a consistent increase in operating cash flows, reflecting the company's capacity to generate cash from core operations. The free cash flow has grown significantly, supporting the company's ability to fund growth opportunities and return value to shareholders. The cash flow to net income ratios illustrates efficient conversion of earnings into cash flows.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
15.50B	15.40B	14.98B	14.41B	13.87B	11.36B
	Gross Profit
5.38B	5.38B	5.24B	5.03B	4.64B	3.86B
	EBIT
2.15B	2.20B	1.98B	1.80B	1.39B	731.00M
	EBITDA
3.40B	3.49B	3.26B	2.91B	2.75B	2.06B
	Net Income Common Stockholders
1.33B	1.37B	1.36B	1.09B	966.00M	279.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.88B	1.84B	1.50B	1.31B	1.48B	1.90B
	Total Assets
27.32B	26.90B	26.68B	25.34B	24.69B	24.56B
	Total Debt
14.51B	14.16B	14.23B	13.01B	12.44B	12.90B
	Net Debt
12.77B	12.45B	12.86B	11.79B	11.07B	11.09B
	Total Liabilities
21.34B	20.83B	20.57B	19.57B	18.65B	18.28B
	Stockholders Equity
5.98B	6.07B	6.11B	5.76B	6.04B	6.00B
Cash Flow		Free Cash Flow
2.16B	2.11B	1.50B	1.59B	2.30B	1.34B
	Operating Cash Flow
2.76B	2.72B	2.15B	2.26B	2.94B	1.96B
	Investing Cash Flow
-1.44B	-1.44B	-1.60B	-2.01B	-2.10B	-796.00M
	Financing Cash Flow
-1.03B	-878.00M	-382.00M	-329.00M	-1.24B	-217.00M

IQVIA Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price154.10

Price Trends

50DMA

148.22

Positive

100DMA

169.06

Negative

200DMA

192.63

Negative

Market Momentum

MACD

2.54

Negative

RSI

54.30

Neutral

STOCH

65.70

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQV, the sentiment is Neutral. The current price of 154.1 is above the 20-day moving average (MA) of 147.48, above the 50-day MA of 148.22, and below the 200-day MA of 192.63, indicating a neutral trend. The MACD of 2.54 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 65.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IQV.

IQVIA Holdings Risk Analysis

IQVIA Holdings disclosed 51 risk factors in its most recent earnings report. IQVIA Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

IQVIA Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	79 Outperform	$20.33B	23.01	13.35%	1.77%	9.38%	6.43%
IQV	76 Outperform	$27.55B	21.70	21.65%	―	2.84%	-0.16%
DHR	72 Outperform	$143.93B	38.99	7.22%	0.64%	-9.19%	-12.75%
MEDP	71 Outperform	$8.65B	22.97	65.82%	―	9.87%	32.81%
RVTY	68 Neutral	$11.36B	38.10	3.82%	0.30%	1.62%	78.53%
ICLR	64 Neutral	$11.87B	15.43	8.01%	―	-0.48%	11.47%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%

* Healthcare Sector Average

Performance Comparison

IQV

IQVIA Holdings

154.10

-58.73

-27.59%

DHR

Danaher

195.75

-60.54

-23.62%

ICLR

Icon

141.86

-176.77

-55.48%

RVTY

Revvity

94.16

-12.86

-12.02%

DGX

Quest Diagnostics

178.95

44.38

32.98%

MEDP

Medpace Holdings

297.92

-105.07

-26.07%

IQVIA Holdings Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

IQVIA Holdings Issues $2 Billion in Senior Notes

Neutral

Jun 4, 2025

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.

The most recent analyst rating on (IQV) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on IQVIA Holdings stock, see the IQV Stock Forecast page.

Private Placements and Financing

IQVIA Holdings Announces $2 Billion Senior Notes Offering

Neutral

Jun 2, 2025

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.

The most recent analyst rating on (IQV) stock is a Hold with a $242.00 price target. To see the full list of analyst forecasts on IQVIA Holdings stock, see the IQV Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.