IQVIA HOLDINGS INC. (IQV) Q2 2025 Earnings Summary

Executive Summary

Solid quarter with revenue above the high end of internal targets and modest beats vs S&P Global consensus on revenue and EPS; record backlog and improving RFP flow underpin 2H setup . Results: Revenue $4.017B (+5.3% y/y), Adj. EPS $2.81 (+6.4% y/y), bookings $2.5B (1.12x b2b), backlog $32.1B (+5.1% y/y) .
TAS led growth (+8.9% y/y), while R&DS improved bookings and pipeline despite an “unsettled” environment; management is leaning in with “see more, win more” to drive share gains amid some pricing pressure .
Gross margin pressure driven two-thirds by mix (RWE within TAS, pass‑throughs/FSP in R&DS) and one‑third by FX; SG&A control offset ~one‑third of the compression .
FY25 guidance narrowed: Revenue $16.1–$16.3B, Adj. EBITDA $3.75–$3.825B, Adj. EPS $11.75–$12.05; Q3 guide: revenue ~$4.10–$4.25B, Adj. EPS $2.93–$3.02; tailwinds include ~100 bps FX and ~150 bps M&A contribution, offset by ~$100M COVID step‑down in R&DS .

What Went Well and What Went Wrong

What Went Well
- Revenue and profit came in above/towards the high end of expectations; first-ever $4B+ quarter; TAS outperformed with RWE strength. “Revenue exceeded the high end of our guidance range...” and TAS +8.9% y/y .
- Forward indicators improved: bookings $2.5B (1.12x), RFP flow up low‑teens y/y and high single digits q/q; backlog a record $32.1B, NTM revenue $8.1B (+4.8% y/y) .
- Strategic AI progress and industry recognition; NVIDIA collaboration and agentic AI use cases highlighted; Everest named IQVIA a gen‑AI front‑runner in life sciences .
What Went Wrong
- Gross margin compressed, ~2/3 from mix (RWE in TAS; pass‑throughs/FSP in R&DS) and ~1/3 from FX; price competition remains elevated .
- Decision timelines remain elongated and the macro/industry policy environment “unsettled,” pressuring near‑term conversion despite stronger bookings .
- GAAP net income declined y/y ($266M vs $363M in Q2’24) amid higher interest expense and other below‑the‑line items .

Financial Results

Actuals by period (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$3.958	$3.829	$4.017
GAAP Diluted EPS ($)	$2.42	$1.40	$1.54
Adjusted Diluted EPS ($)	$3.12	$2.70	$2.81
Adjusted EBITDA ($USD Millions)	$996	$883	$910
Adjusted EBITDA Margin (%)	25.2% (calc from $996/$3,958)	23.1% (calc from $883/$3,829)	22.6% (calc from $910/$4,017)

Q2 2025 actual vs S&P Global consensus

Metric	Actual	Consensus	Δ
Revenue ($USD Billions)	$4.017	$3.961*	+$0.056B / +1.4%*
Primary EPS ($)	$2.81	$2.77*	+$0.04 / +1.4%*

Segment breakdown (Q2 2025)

Segment	Revenue ($USD Millions)	YoY Growth
Technology & Analytics Solutions (TAS)	$1,628	+8.9%
Research & Development Solutions (R&DS)	$2,201	+2.5%
Contract Sales & Medical Solutions (CSMS)	$188	+9.3%

KPIs and cash/returns (oldest → newest)

KPI	Q4 2024	Q1 2025	Q2 2025
R&DS Net Bookings ($B)	>$2.5	$2.1	$2.5
Book‑to‑Bill (TTM)	1.19x	1.14x	1.10x
Backlog ($B)	$31.1	$31.5	$32.1
NTM Revenue from Backlog ($B)	~$7.9	~$7.9	~$8.1
Operating Cash Flow ($M)	$885	$568	$443
Free Cash Flow ($M)	$721	$426	$292
Net Leverage (x LTM Adj. EBITDA)	3.33x	3.40x	3.61x
Share Repurchases ($M)	$1,150 (Q4)	$425	$607

Note: Adjusted metrics are non‑GAAP; see company reconciliations and explanations of adjustments .

Guidance Changes

Metric	Period	Previous Guidance (as of 5/6/25)	Current Guidance (as of 7/22/25)	Change
Revenue	FY 2025	$16.0B–$16.4B (raised on FX)	$16.1B–$16.3B	Narrowed, midpoint slightly higher
Adjusted EBITDA	FY 2025	$3.765B–$3.885B	$3.75B–$3.825B	Narrowed, lower top/bottom
Adjusted Diluted EPS	FY 2025	$11.70–$12.10	$11.75–$12.05	Narrowed, midpoint ~flat
Revenue	Q3 2025	—	~$4.10B–$4.25B	New quarterly guide
Adjusted EBITDA	Q3 2025	—	$935M–$955M	New quarterly guide
Adjusted Diluted EPS	Q3 2025	—	$2.93–$3.02	New quarterly guide
Assumptions	FY 2025	Raised revenue on FX; reaffirmed profit	~$100M COVID step‑down (R&DS), ~100 bps FX tailwind, ~150 bps M&A contribution	Updated FX from tailwind; reiterated COVID/M&A

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
AI/Technology	Building momentum; reaffirmed 2025 outlook; TAS above target . In Q1, TAS above target; strategy resilient .	“All‑in” on AI; NVIDIA agentic AI collaboration; 20+ agents in production; agents cut delivery time materially .	Accelerating execution and customer interest.
Macro/Policy	Choppy CRO market; reaffirmed 2025 guidance .	Environment “unsettled”; decision timelines elongated; some large programs restarting .	Still cautious, slight improvement in activity.
TAS performance	Q4 TAS +9.5% cc; momentum into 2025 . Q1 TAS +7.6% cc .	+8.9% reported y/y; RWE leading; shorter time‑to‑close, better win rates .	Sustained outperformance.
R&DS demand/bookings	Q4 book‑to‑bill 1.20x, backlog +5.5% cc . Q1 bookings $2.1B, TTM b2b 1.14x .	Bookings $2.5B (1.12x), backlog $32.1B; RFP flow up; “see more, win more” strategy .	Improving bookings; share gains.
Margins	FY25 plan: up to 20 bps Adj. EBITDA margin expansion .	Gross margin pressure: ~2/3 mix, ~1/3 FX; SG&A offsets ~1/3 .	Near‑term compression; medium‑term AI/productivity to help.
Pricing	—	More CROs at the table; pricing pressure; willing to accept near‑term margin pressure to build backlog .	Competitive; IQV prioritizing share.
Cancellations	—	Cancellations in normal historical range; no mega cancellations .	Normalizing.

Management Commentary

“Revenue exceeded the high end of our guidance range… Adjusted EBITDA and adjusted EPS came in towards the high end of our guidance range. TAS… 8.9%, led by double‑digit growth in real‑world evidence.” — Ari Bousbib, CEO .
“Our qualified pipeline was up high single digits sequentially and year‑over‑year… RFP flow grew low teens year‑over‑year and high single digits sequentially… backlog reached a new record of over $32 billion.” — CEO .
“We are all in [on AI]… developing AI agents… showcased by NVIDIA… use cases include target identification, clinical data review, literature review, market assessment, and HCP engagement.” — CEO .
“Pressure on gross margin is mix‑driven for two‑thirds and FX‑driven for one‑third… at the SG&A level, we offset about a third of that margin compression.” — Management .
“We will… accept some short‑medium‑term margin pressure in order to… build our backlog.” — CEO on pricing strategy .

Q&A Highlights

TAS resilience and RWE strength: Decision timelines back to normal or better vs 2023; RWE was the strongest contributor; win rates and time‑to‑close improved .
R&DS environment and strategy: Market still unsettled; clients moving forward on critical Phase 3s; IQV intensifying go‑to‑market (“see more, win more”), boosting win rates, especially in EBP .
Margins: Gross margin compression from mix and FX; SG&A discipline offset a portion; near‑term mix headwinds (FSP/pass‑throughs, RWE) expected to persist a couple of quarters .
Pricing: More CROs in bids; pricing pressure noted; IQV is prioritizing share capture with pricing flexibility, planning to recoup via efficiencies .
Cadence: Large delayed trial expected to resume in late 2025, supporting a stronger Q4; TAS comps tough in 2H given strong Q4’24, but fundamentals remain solid .
Cancellations and timelines: Cancellations normal; decision timelines remain elongated, though some large programs are moving ahead .

Estimates Context

Q2 2025 beats: Revenue $4.017B vs $3.961B consensus; Primary EPS $2.81 vs $2.77 consensus . Values with asterisk below from S&P Global.
Trajectory of beats: Q4 2024 revenue $3.958B vs $3.928B*; EPS $3.12 vs $3.11*; Q1 2025 revenue $3.829B vs $3.771B*; EPS $2.70 vs $2.63* .

Estimates comparison (S&P Global)

Period	Revenue Actual ($B)	Revenue Cons ($B)	EPS Actual ($)	EPS Cons ($)
Q4 2024	3.958	3.928*	3.12	3.11*
Q1 2025	3.829	3.771*	2.70	2.63*
Q2 2025	4.017	3.961*	2.81	2.77*

S&P Global disclaimer: Values marked with * are retrieved from S&P Global consensus via GetEstimates.

Key Takeaways for Investors

Quality beat and constructive 2H setup: modest revenue/EPS beats, improving bookings, and a record backlog support confidence into Q4 (boosted by a large trial restart) .
Mix and FX headwinds compress margins near term; management is willing to trade some margin for share while investing in AI/process efficiency to re‑expand margins over time .
TAS momentum likely durable, with RWE a structural growth pillar; watch for sustainability of consulting/tech sub‑segments recovery into 2026 .
R&DS turning the corner on demand: higher RFP flow and win rates, especially in EBP, suggest share gains despite elongated decision cycles .
Guidance is tighter: FY25 revenue narrowed to $16.1–$16.3B; profit ranges narrowed; Q3 set up implies steady sequential progress; monitor FX, pricing, and mix .
Capital allocation remains active: $607M repurchases in Q2; net leverage at 3.61x post $2B notes issuance; balance sheet flexibility maintained .
Near‑term trading: Stock may respond to backlog and bookings momentum, AI narrative, and Q3 guide; medium‑term thesis hinges on mix normalization, AI‑driven efficiencies, and sustained TAS/RWE growth .

Additional Details

Press release highlights: Q2 revenue $4.017B (+5.3% y/y), Adj. EBITDA $910M (+2.6% y/y), GAAP EPS $1.54, Adj. EPS $2.81; OCF $443M; FCF $292M; backlog $32.1B; NTM backlog $8.1B; repurchases $607M .
Q1 context: Revenue $3.829B; Adj. EBITDA $883M; Adj. EPS $2.70; bookings $2.1B; backlog $31.5B; FY25 revenue guidance raised on FX .
Q4 2024 context: Revenue $3.958B; Adj. EBITDA $996M; Adj. EPS $3.12; bookings >$2.5B; backlog $31.1B; FCF $721M .
Non‑GAAP: Company provides reconciliations and notes drivers of adjustments (e.g., purchase accounting amortization, restructuring, stock comp) .

S&P Global disclaimer: All consensus figures (marked with *) are retrieved from S&P Global via GetEstimates.