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IQVIA Holdings Inc (IQV)
NYSE:IQV

IQVIA Holdings (IQV) AI Stock Analysis

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IQVIA Holdings

(NYSE:IQV)

Rating:76Outperform
Price Target:
$173.00
▲(17.39%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)

IQVIA Holdings Business Overview & Revenue Model

Company DescriptionIQVIA 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 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: -3.24%|
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
85
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
78
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
82
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.50B15.40B14.98B14.41B13.87B11.36B
Gross Profit
5.11B5.38B5.24B5.03B4.64B3.86B
EBIT
2.22B2.20B1.98B1.80B1.39B731.00M
EBITDA
3.38B3.46B3.30B2.89B2.75B2.06B
Net Income Common Stockholders
1.33B1.37B1.36B1.09B966.00M279.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.74B1.84B1.50B1.31B1.48B1.90B
Total Assets
27.32B26.90B26.68B25.34B24.69B24.56B
Total Debt
1.40B14.16B14.23B13.01B12.44B12.90B
Net Debt
-341.00M12.45B12.86B11.79B11.07B11.09B
Total Liabilities
21.34B20.83B20.57B19.57B18.65B18.28B
Stockholders Equity
5.98B6.07B6.11B5.76B6.04B6.00B
Cash FlowFree Cash Flow
2.31B2.11B1.50B1.59B2.30B1.34B
Operating Cash Flow
2.76B2.72B2.15B2.26B2.94B1.96B
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 Price147.37
Price Trends
50DMA
150.75
Negative
100DMA
172.63
Negative
200DMA
196.23
Negative
Market Momentum
MACD
-2.39
Negative
RSI
51.92
Neutral
STOCH
85.55
Negative
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 147.37 is above the 20-day moving average (MA) of 143.64, below the 50-day MA of 150.75, and below the 200-day MA of 196.23, indicating a neutral trend. The MACD of -2.39 indicates Negative momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 is Negative, 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
DGDGX
79
Outperform
$19.38B21.9413.35%1.75%9.38%6.43%
IQIQV
76
Outperform
$24.70B20.1621.65%2.84%-0.16%
DHDHR
72
Outperform
$137.45B37.237.22%0.59%-9.19%-12.75%
65
Neutral
$10.73B35.993.82%0.30%1.62%78.53%
64
Neutral
$10.80B15.198.01%-0.48%11.47%
63
Neutral
$8.99B22.4165.82%9.87%32.81%
54
Neutral
$5.28B3.29-45.38%2.80%16.77%-0.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IQV
IQVIA Holdings
147.37
-73.12
-33.16%
DHR
Danaher
192.15
-74.56
-27.96%
ICLR
Icon
134.82
-187.20
-58.13%
RVTY
Revvity
90.50
-20.24
-18.28%
DGX
Quest Diagnostics
173.65
33.84
24.20%
MEDP
Medpace Holdings
293.58
-109.51
-27.17%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.