IQVIA’s first quarter performance reflected steady execution against a complex industry backdrop, with revenue and adjusted earnings per share both coming in ahead of Wall Street’s expectations. Management credited the quarter’s results to robust demand in its Technology & Analytics Solutions segment, particularly double-digit growth in real-world evidence services. CEO Ari Bousbib emphasized that pent-up demand from previously delayed projects and the need to support new drug launches drove this segment’s outperformance. Despite a slower pace of decision-making among clinical research customers, IQVIA’s backlog reached a new high, signaling sustained underlying demand.
Is now the time to buy IQV? Find out in our full research report (it’s free).
IQVIA (IQV) Q1 CY2025 Highlights:
- Revenue: $3.83 billion vs analyst estimates of $3.77 billion (2.5% year-on-year growth, 1.5% beat)
- Adjusted EPS: $2.70 vs analyst estimates of $2.63 (2.6% beat)
- Adjusted EBITDA: $883 million vs analyst estimates of $880.3 million (23.1% margin, in line)
- The company lifted its revenue guidance for the full year to $16.2 billion at the midpoint from $15.93 billion, a 1.7% increase
- Management reiterated its full-year Adjusted EPS guidance of $11.90 at the midpoint
- EBITDA guidance for the full year is $3.83 billion at the midpoint, in line with analyst expectations
- Operating Margin: 13%, in line with the same quarter last year
- Constant Currency Revenue rose 3.5% year on year, in line with the same quarter last year
- Market Capitalization: $27.46 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions IQVIA’s Q1 Earnings Call
- Justin Bowers (Deutsche Bank) asked about the durability of real-world evidence growth; CEO Ari Bousbib explained that both discretionary and essential RWE work had rebounded, citing pent-up demand and an improved bookings outlook.
- Matthew Sykes (Goldman Sachs) pressed CFO Ron Bruehlman on margin expansion opportunities; Bruehlman said foreign exchange impacted margins but that ongoing cost reduction and AI initiatives could support future improvements.
- Shlomo Rosenbaum (Stifel) questioned if macro uncertainty in clinical research could spill over into commercial analytics; Bousbib replied that pent-up demand and necessary commercial activities have kept the TAS pipeline strong, though purely discretionary consulting remains subdued.
- Michael Ryskin (Bank of America) inquired about the lower book-to-bill ratio in R&DS; Bousbib attributed it to contract award delays and funding uncertainties, emphasizing the limited predictive value of quarterly ratios for long-term growth.
- Jailendra Singh (Truist Securities) asked about shifts in clinical outsourcing models and large trial delays; Bousbib noted a recent move back toward full-service contracts and provided updates on the timing of two postponed mega trials.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will focus on (1) the pace of recovery in clinical trial bookings and whether delays in decision-making begin to ease, (2) continued traction and productivity improvements from the rollout of new AI agents across business lines, and (3) sustained strength in real-world evidence and commercial analytics as regulatory expectations evolve. We will also watch for any material impact from potential policy changes and macroeconomic developments on customer funding and project pipelines.
IQVIA currently trades at $158.16, up from $152.45 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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