IQVIA’s fourth quarter was marked by solid top-line growth, surpassing Wall Street’s revenue expectations. However, the market reacted negatively, focusing on margin compression and concerns about the sustainability of recent gains. Management attributed the quarter’s performance to continued investments in clinical and commercial offerings, expansion of Phase I trial capabilities, and strong demand for its data-as-a-service solutions. CEO Ari Bousbib acknowledged that a challenging macroeconomic environment and slower customer decision-making, particularly in biotech, weighed on earlier results, while improved demand indicators became evident as the year progressed.
Is now the time to buy IQV? Find out in our full research report (it’s free for active Edge members).
IQVIA (IQV) Q4 CY2025 Highlights:
- Revenue: $4.36 billion vs analyst estimates of $4.24 billion (10.3% year-on-year growth, 2.9% beat)
- Adjusted EPS: $3.42 vs analyst estimates of $3.40 (0.7% beat)
- Adjusted EBITDA: $1.05 billion vs analyst estimates of $1.04 billion (24% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $12.70 at the midpoint, missing analyst estimates by 2%
- EBITDA guidance for the upcoming financial year 2026 is $4 billion at the midpoint, in line with analyst expectations
- Operating Margin: 14.4%, down from 15.8% in the same quarter last year
- Constant Currency Revenue rose 8.1% year on year (3% in the same quarter last year)
- Market Capitalization: $30.05 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 From IQVIA’s Q4 Earnings Call
- Shlomo Rosenbaum (Stifel) asked if AI poses a threat or opportunity for IQVIA’s business model. CEO Ari Bousbib responded at length, emphasizing proprietary data, regulatory complexity, and health care-grade AI as key differentiators, concluding that AI is a positive for IQVIA.
- Eric Coldwell (Baird) inquired about the Cedar Gate acquisition’s strategic fit and financial profile. Bousbib detailed its role in expanding payer analytics, stating it adds scale in the U.S. and noting its accretive margin profile.
- Justin Bowers (Deutsche Bank) sought clarification on whether AI is accretive or a risk to long-term growth and asked about R&D Solutions’ pipeline strength. Bousbib reiterated that AI integration supports growth and cited continued strong demand indicators in R&D.
- Elizabeth Anderson (Evercore ISI) asked about the impact of pharma clients’ internal AI efforts on IQVIA’s services and profitability cadence. Bousbib reported no material change in client demand and said AI-driven efficiencies are a shared opportunity.
- David Windley (Jefferies) questioned margin pressures from pass-through revenue and how productivity gains are shared with clients. CFO Bruehlman explained that strong pass-through growth drove margin contraction, and productivity improvements are partially shared with clients through procurement processes.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) progress in integrating recent acquisitions and the new segment reporting structure, (2) uptake of AI-enabled offerings and partnerships with AWS and NVIDIA, and (3) the sustainability of clinical bookings momentum as biotech funding stabilizes. Execution on margin improvement initiatives and productivity gains will also be key indicators of effective strategy implementation.
IQVIA currently trades at $177.01, down from $202.54 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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