IQVIA’s second quarter results were met with a notably positive market reaction, as the company’s revenue and non-GAAP profit surpassed Wall Street expectations. Management attributed the quarter’s performance to robust growth in its Technology & Analytics Solutions segment, particularly real-world evidence solutions, and an improved win rate in research and development contracts. CEO Ari Bousbib emphasized that clients are resuming drug launches despite a mixed industry backdrop, highlighting, “Clients are continuing to execute in a regular way. They have commercial road maps and those require services.”
Is now the time to buy IQV? Find out in our full research report (it’s free).
IQVIA (IQV) Q2 CY2025 Highlights:
- Revenue: $4.02 billion vs analyst estimates of $3.97 billion (5.3% year-on-year growth, 1.2% beat)
- Adjusted EPS: $2.81 vs analyst estimates of $2.77 (1.4% beat)
- Adjusted EBITDA: $910 million vs analyst estimates of $905.4 million (22.7% margin, 0.5% beat)
- The company reconfirmed its revenue guidance for the full year of $16.2 billion at the midpoint
- Management slightly raised its full-year Adjusted EPS guidance to $11.90 at the midpoint
- EBITDA guidance for the full year is $3.79 billion at the midpoint, in line with analyst expectations
- Operating Margin: 12.6%, down from 13.6% in the same quarter last year
- Constant Currency Revenue rose 3.6% year on year, in line with the same quarter last year
- Market Capitalization: $33.62 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 Q2 Earnings Call
- Sam (Barclays) asked how Technology & Analytics Solutions is outperforming despite industry headwinds. CEO Ari Bousbib explained that real-world evidence strength and improved client decision timelines have supported recovery, with clients proceeding on commercial road maps even amid uncertainty.
- Shlomo Rosenbaum (Stifel) inquired about the underlying environment for R&D Solutions and whether share gains are sustainable. Bousbib responded that while broad uncertainty persists, clients are resuming key programs, and proactive go-to-market strategies have improved win rates, especially in emerging biotech.
- Elizabeth Anderson (Evercore ISI) questioned the cadence of growth and margin trends for the back half of the year. Bousbib and Bruehlman noted normal seasonality, a large delayed trial set to resume, and that margin compression is mainly due to business mix and currency effects, with cost controls offsetting some pressure.
- Daniel Clark (Leerink Partners) asked about competition and pricing dynamics in R&D contracts. Bousbib acknowledged increased pricing pressure as more contract research organizations bid for projects, but said IQVIA is prioritizing backlog growth, even if it means accepting lower short-term margins.
- Jeff Garro (Stephens) sought updates on AI solution adoption and internal efficiency gains. Bousbib highlighted positive client demand for AI agents, with early deployments already reducing project timelines and costs, and stated that broader efficiency benefits are expected to emerge over time.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) execution and client uptake of new AI-driven solutions, (2) growth in the R&D Solutions backlog and actual conversion of pipeline into revenue, and (3) the trend of operating margins as IQVIA balances pricing, business mix, and continued investment in technology. Progress in high-growth therapeutic areas such as oncology and obesity trials will also be crucial markers.
IQVIA currently trades at $197.07, up from $158.91 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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