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IQVIA Holdings Inc (NYSE:IQV) shares surged over 15% on Tuesday after the healthcare data and analytics company reported solid second-quarter results, showing growth across all business segments and continued momentum in its artificial intelligence initiatives.
Quarterly Performance Highlights
IQVIA reported Q2 2025 revenue of $4,017 million, representing a 5.3% increase at actual foreign exchange rates (AFx) and 3.6% at constant currency (CFx) compared to the same period last year. Adjusted EBITDA reached $910 million, up 2.6% year-over-year, while adjusted diluted earnings per share grew 6.4% to $2.81.
As shown in the following chart of IQVIA’s Q2 2025 performance:
The company’s Technology & Analytics Solutions segment led growth with an 8.9% revenue increase to $1,628 million, while Contract Sales & Medical (TASE:BLWV) Solutions grew 9.3% to $188 million. Research & Development Solutions, the company’s largest segment, posted more modest growth of 2.5% to $2,201 million.
The following breakdown illustrates performance across all business segments:
IQVIA’s R&D Solutions backlog continued to expand, reaching $32.1 billion, a 5.1% increase from Q2 2024. This growth suggests strong future revenue potential, with management forecasting $8.1 billion to be recognized over the next twelve months, representing a 4.8% increase from the previous year.
As shown in the R&D Solutions backlog and revenue forecast:
Strategic Initiatives
IQVIA has been aggressively expanding its AI capabilities, launching new AI agents for life sciences and healthcare during the quarter. The company was also recognized as a front-runner in generative AI innovation by a global industry research and analysis firm in April.
The company’s AI ecosystem includes various specialized agents connected to different data sources and AI models:
Other strategic developments during the quarter included a collaboration with SCRI to accelerate global oncology trials and recognition for the IQVIA Health Research Space, which won the 2025 Medtech Breakthrough Award for ’Best Mobile App for Patient Engagement.’
"Our investments in AI innovation are delivering tangible results across our business segments," said Ari Bousvi, CEO of IQVIA, during the earnings call. "The recognition we’ve received validates our leadership position in applying advanced technologies to solve complex healthcare challenges."
Forward-Looking Statements
IQVIA maintained a positive outlook for the remainder of 2025, providing Q3 guidance with revenue expected between $4,025 million and $4,100 million, adjusted EBITDA between $935 million and $955 million, and adjusted diluted EPS between $2.92 and $3.02.
The Q3 2025 guidance details are shown below:
For the full year 2025, IQVIA expects:
These projections reflect management’s confidence in continued execution across all business segments, with particular strength expected in the Technology & Analytics Solutions division.
Financial Position
IQVIA reported a solid balance sheet with $2,039 million in cash and cash equivalents as of June 30, 2025. The company’s gross debt stood at $15,490 million, resulting in net debt of $13,451 million. The gross leverage ratio was 4.16x, while the net leverage ratio was 3.61x.
The company’s key balance sheet and cash flow metrics are illustrated below:
Free cash flow for the quarter was $292 million, derived from $443 million in net cash provided by operating activities, less $151 million in capital expenditures.
Market Context
IQVIA’s strong Q2 performance represents a significant improvement from Q1 2025, when the company reported revenue of $3.83 billion and adjusted EPS of $2.70. The stock’s 15.66% surge on Tuesday marks a dramatic shift from the slight 0.82% decline following the Q1 earnings report.
The company’s continued investment in AI capabilities appears to be resonating with investors, particularly as IQVIA establishes itself as an industry leader in applying these technologies to healthcare data analytics and clinical research.
With a current stock price well above its 52-week low of $134.65 but still below its high of $252.88, IQVIA appears to be regaining momentum after a challenging period. The company’s ability to maintain growth across all business segments while advancing its technological capabilities positions it well for continued success in the evolving healthcare landscape.
Full presentation:
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