IQVIA Beats Q1 Earnings Expectations Despite Sector Uncertainty, Company Navigating Market Conditions 'Effectively' Says CEO

IQVIA Holdings Inc IQV reported a first-quarter 2025 adjusted EPS of $2.70, up from $2.54, beating the consensus of $2.63.

Provider of advanced analytics reported sales of $3.83 billion, beating the consensus of $3.77 billion.

Revenue increased 2.3% on a reported basis and 3.0% at constant currency.

• Technology & Analytics Solutions (TAS) revenue of $1.55 billion grew 6.4% on a reported basis and 7.6% at constant currency.
• Research & Development Solutions (R&DS) revenue of $2.10 billion increased 0.3% on a reported basis and 1.1% at constant currency. Excluding reimbursed expenses, R&DS revenue grew 1.2% on a reported basis.
• Contract Sales & Medical Solutions (CSMS) revenue of $181 million, down 4.2% on a reported basis and 2.1% at constant currency.

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As of March 31, 2025, R&DS contracted backlog, including reimbursed expenses, was $31.5 billion, growing 4.8 percent year-over-year and 4.6 percent at constant currency. The company expects approximately $7.9 billion of this backlog to convert to revenue in the next twelve months. First quarter net new bookings were $2.1 billion, representing a book-to-bill ratio of 1.02x and resulting in a trailing twelve-month book-to-bill ratio of 1.14x.

“IQVIA delivered strong revenue and profit performance, at the high-end of our expectations,” said Ari Bousbib, chairman and CEO of IQVIA. “In the clinical trial business, we experienced delayed decision-making by customers on new programs, reflecting incremental macroeconomic and industry sector uncertainty. Despite the environment, our R&DS forward-looking indicators such as qualified pipeline, RFP flow, and backlog continued to grow. On the commercial side, the TAS business delivered above target performance, with revenue growth of 7.6 percent at constant currency. Our strong financial results demonstrate that we are navigating the current market conditions more effectively than our sector, reflecting the scale and strength of our differentiated portfolio and the resilience of our operational execution.”

Guidance: IQVIA Holdings raises its 2025 outlook for sales from $15.725 billion—$16.125 billion to $16 billion—$16.40 billion versus a consensus of $16.03 billion.

The company affirms adjusted EPS of $11.70-$12.10 versus the consensus of $11.83 and adjusted EBITDA of $3.765 billion—$3.885 billion.

Price Action: IQV stock is down 1.87% at $149.46 at the last check on Tuesday.

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