IQVIA Holdings (IQV) AI Stock Analysis

922 Followers

Top Page

IQVIA Holdings

(NYSE:IQV)

76Outperform

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

Financial Performance

IQVIA reported first-quarter results that included better-than-expected revenue and adjusted EBITDA.

Sales Outlook

IQVIA raised its sales outlook to reflect favorable changes in FX rates.

TAS Segment Growth

TAS continues to be a bright spot for the company, growing ahead of expectations and supported by double-digit growth in real-world evidence.

Negative Factors

B2B Segment Decline

There was a notable decline in the B2B segment, which was largely anticipated due to pharma headwinds.

Conversion Challenges

IQV just became the latest CRO to see meaningful conversion challenges despite an active RFP pipeline.

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.

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

Market Cap

$27.01B

Dividend YieldN/A

Average Volume (3M)2.39M

Price to Earnings (P/E)20.5

Beta (1Y)0.97

Revenue Growth2.84%

EPS Growth-0.16%

CountryUS

Employees89,000

SectorHealthcare

Sector Strength48

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)2.70

Shares Outstanding173,000,000

10 Day Avg. Volume2,460,853

30 Day Avg. Volume2,387,121

Financial Highlights & Ratios

PEG Ratio-9.30

Price to Book (P/B)4.38

Price to Sales (P/S)0.00

P/FCF Ratio11.18

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue0.41

Enterprise Value/Gross Profit4.98

Enterprise Value/Ebitda1.92

Forecast

1Y Price Target

$188.40

Price Target Upside32.84% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering16

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 makes money primarily through a diversified revenue model that includes the provision of technology solutions, data analytics, and contract research services. Key revenue streams include clinical development services, which involve managing and conducting clinical trials for pharmaceutical and biotech companies. Another significant source of revenue is their technology and analytics solutions, which provide clients with data-driven insights and software to optimize their operations. Additionally, IQVIA earns revenue from real-world insights services, which use healthcare data to inform business and clinical decisions. The company's strategic partnerships with life sciences companies and healthcare providers further bolster its revenue by expanding its service offerings and market reach.

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
5.11B	5.38B	5.24B	5.03B	4.64B	3.86B
	EBIT
2.22B	2.20B	1.98B	1.80B	1.39B	731.00M
	EBITDA
3.38B	3.46B	3.30B	2.89B	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
1.74B	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
1.40B	14.16B	14.23B	13.01B	12.44B	12.90B
	Net Debt
-341.00M	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
2.31B	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

Negative

Last Price141.82

Price Trends

50DMA

164.02

Negative

100DMA

181.15

Negative

200DMA

203.52

Negative

Market Momentum

MACD

-3.53

Negative

RSI

38.83

Neutral

STOCH

50.83

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQV, the sentiment is Negative. The current price of 141.82 is below the 20-day moving average (MA) of 149.56, below the 50-day MA of 164.02, and below the 200-day MA of 203.52, indicating a bearish trend. The MACD of -3.53 indicates Negative momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	79 Outperform	$19.64B	22.23	13.35%	1.75%	9.38%	6.43%
IQV	76 Outperform	$27.01B	20.54	21.65%	―	2.84%	-0.16%
DHR	72 Outperform	$140.71B	38.12	7.22%	0.57%	-9.19%	-12.75%
MEDP	69 Neutral	$9.02B	23.67	65.82%	―	9.87%	32.81%
RVTY	65 Neutral	$11.61B	38.95	3.82%	0.29%	1.62%	78.53%
ICLR	64 Neutral	$11.32B	15.29	8.01%	―	-0.48%	11.47%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%

* Healthcare Sector Average

Performance Comparison

IQV

IQVIA Holdings

141.82

-91.87

-39.31%

DHR

Danaher

187.82

-74.39

-28.37%

ICLR

Icon

132.23

-189.57

-58.91%

RVTY

Revvity

91.02

-16.02

-14.97%

DGX

Quest Diagnostics

172.48

34.50

25.00%

MEDP

Medpace Holdings

291.73

-114.15

-28.12%

IQVIA Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -6.88%|

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.

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.