Is the increasing outsourcing penetration broad-based, or more focused on specific customer segments like large and mid-sized pharma?

Ari explained that Emerging Biopharma (EBP) is 100% outsourced. For large pharma, clients are predicting increased outsourcing due to AI-driven molecule development, the need for additional capacity, and IQVIA's therapeutic expertise, global footprint, and data. Some large pharma clients are asking IQVIA to prepare for thousands of additional FCEs. “Some of our large pharma clients are predicting that will double their study portfolio and so they're asking us literally to ask thousands of FCEs in anticipation of those studies.”

How does IQVIA see the development of AI solutions over time, focusing on internal development versus external partnerships or M&A?

Ari reiterated IQVIA's three necessary requirements for effective AI deployment: proprietary expert content, deep domain knowledge, and regulatory compliance. He noted 294 AI agents deployed across 90 use cases, built with NVIDIA. Four of the top 10 pharma companies are partnering with IQVIA to co-develop AI solutions, and 19 of the top 20 have deployed IQVIA solutions. “In fact, we now have 294 agents deployed across 90 use cases.”

When displacing other CROs, what is the balance between price, capabilities, technology, and AI functionality in competitive RFPs?

Ari stated that large pharma clients renegotiated partnerships in 2024-2025, increasing IQVIA's scope and number of relationships. In specific RFPs within these partnerships, price is less of a factor as rates are typically pre-negotiated. The focus shifts to delivery timelines, capabilities, technology, site networks, therapeutic experience, and AI capabilities. “by the way, the rates have been typically negotiated during those relationships. So I would say it's less on price on a specific RFP and more on delivery timelines capabilities, technology, site networks relationships, experience with that particular therapeutic area, the skill sets of the individuals involved, et cetera, and of course, our AI capabilities.”

IQV

IQVIA (IQV) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Jul 28, 2026

Source: earnings call transcript

Executive summary

IQVIA Q2 FY26 — Strong Operational Performance and Raised Full-Year Guidance

IQVIA delivered an outstanding Q2 FY26, exceeding guidance across key financial metrics driven by strong operational execution and improving market conditions. The company saw accelerated organic growth and robust R&D bookings, fueled by increasing demand in both clinical and commercial segments, particularly from emerging biopharma and strategic large pharma partnerships. Management raised full-year guidance, highlighting the continued momentum and the differentiating impact of its AI-enabled solutions.

Highlights

Q2 revenue exceeded the high end of guidance, growing 8.7% reported and 8.5% constant currency.
Q2 adjusted diluted EPS of $3.15 exceeded the high end of guidance, increasing 12.1% year-over-year.
Organic growth accelerated to 6% year-over-year, three times the rate delivered a year ago.
R&D Solutions net new bookings reached $3.15 billion, representing 19% growth year-over-year, with a 1.22 book-to-bill ratio.
Last 12 months net new bookings were $11.3 billion as of June 30, up 13% year-over-year.

Concerns

Foreign exchange impact on revenue guidance
Pass-throughs as a margin headwind

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$17.275 billion - $17.475 billion high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$4.0 billion - $4.05 billion high materiality	FY26	High
Full-year 2026 Adjusted Diluted EPS	$12.80 - $13.00 high materiality	FY26	High
Q3 2026 Revenue	$4.350 billion - $4.390 billion medium materiality	Q3 · FY26	High
Q3 2026 Adjusted EBITDA	$1.0 billion - $1.020 billion medium materiality	Q3 · FY26	High
Q3 2026 Adjusted Diluted EPS	$3.19 - $3.29 medium materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Commercial Solutions Organic revenue growth accelerated year-over-year. AI offerings gained further traction with increased customer adoption. Pipeline continues to grow strong double digits year-to-date. Organic revenue growth: 5% year-over-yearAnalytics and consulting organic growth: high single digits year-over-yearCommercial engagement services growth: double digits year-over-yearPatient solutions growth: double digits year-over-year	$1.793 billion	8.6% reported, 8.4% constant currency	—	—
R&D Solutions Delivered great results with strong net new bookings and improving win rates. Momentum in last 12 months net new bookings has increased in each of the past 4 quarters. RSP flow growth remains strong with double-digit growth. Organic revenue growth: 7%Net new bookings: $3.15 billionBook-to-bill ratio: 1.22Last 12 months net new bookings: $11.25 billionR&DS backlog: $34.2 billionNext 12-month revenue from backlog: $9.23 billion	$2.575 billion	8.8% reported, 8.6% constant currency	—	—

IQV operating KPIs by quarter

IQV operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Net new bookings R&D Solutions	$2.5B+ On the clinical side, net new bookings for the quarter were over $2.5 billion, and this all highlights the great work that was done by our R&DS team in securing new business contracts. Source: earnings call transcript	—	—	—	—	$2.5B On this new basis, R&D Solutions net new bookings in Q1 2026 was $2.5 billion, a double-digit increase year-over-year. Source: earnings call transcript	—	—
Backlog R&D Solutions	$31.1B R&DS backlog at December 31 was $31.1 billion, an increase of 4.4% year-over-year and 5.5% at constant currency. Source: earnings call transcript	$31.5B R&DS backlog at March 31 was $31.5 billion, an increase of 4.8% year-over-year and 4.6% at constant currency. Source: earnings call transcript	$32.1B R&DS backlog at June 30 was $32.1 billion, an increase of 5.1% year-over-year. Source: earnings call transcript	$32.4B Finally, our backlog reached a new record of $32.4 billion at the end of the quarter showing growth of 4.1% compared to the prior year. Source: earnings call transcript	$32.7B Backlog reached a new record of $32.7 billion at the end of the quarter, growing 5.3% compared to the prior year. Source: earnings call transcript	$34.2B RDS backlog at March 31 was $34.2 billion, which is an increase of mid-single digit year-over-year. Source: earnings call transcript	$34.2B As of June 30, R&DS backlog was $34.2 billion and the next 12-month revenue from this backlog was $9.230 billion which is up 7.5% versus last year. Source: earnings call transcript	0%
Book-to-bill ratio	—	—	—	—	—	1.04 ratio While our book-to-bill ratio 1.04 in the quarter despite solid service fee bookings growth and normal cancellations. Source: earnings call transcript	1.22 ratio If I may add, this 1.22 was in a quarter where our revenue was up almost 9% year-over-year, stronger than anticipated. Source: earnings call transcript	+17.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Charles Miller Acquisition of assets to build discovery capabilities.

Completed the acquisition of Charles Miller assets in the quarter, expanding capabilities in the early part of the development supply chain.

Risks & headwinds

Foreign exchange impact on revenue guidance FY26

80 basis points less of a tailwind

Mitigation:Offset by higher organic revenue growth and M&A contribution.

Pass-throughs as a margin headwind Q2 FY26

80 basis points of drag

Mitigation:Offset by 90 basis points of operational and productivity programs.

What to watch in Q3 FY26

R&DS Backlog Inactive Trials Adjustment

Q3 2026

Current Expected around 5% of $34.2B backlog

Target Finalized adjustment amount

Why it matters

Clarifies the true quality and convertibility of the R&DS backlog, impacting future revenue visibility.

The team is looking at it, and we'll finalize it in the third quarter. But if there is an adjustment to our backlog for enacted trials, it's in the ballpark of 5%, not that 15% metric that was out there by competitor.

Find out whether IQV delivers this. Inve re-checks your case every morning.

Q&A highlights

Were there any chunky awards or specific mix changes (FSP, pass-throughs) within the strong bookings reported this quarter?

Ari stated there was "absolutely nothing salient unusual abnormal odd awkward" in the numbers, with strong bookings across the board, normal pass-throughs and cancellations, and a good mix of large and mid-sized clients. FSP was strong, representing low to mid-double digits of total bookings.

“I must tell you, there is absolutely nothing salient unusual abnormal odd awkward in our numbers anyway.”

asked by Eric Coldwell · answered by Ari Bousbib

2 min read 6 chapters

Detailed narrative

Strong Q2 Performance and Market Momentum

IQVIA reported an outstanding second quarter, with revenue, adjusted EBITDA, and adjusted diluted EPS all exceeding the high end of guidance. The company achieved 6% organic growth year-over-year, three times the rate from a year ago, driven by improving market conditions and strong operational execution.

This momentum is evident across both clinical and commercial segments, with R&D Solutions seeing robust bookings and Commercial Solutions experiencing accelerated growth.

R&D Solutions Strength and EBP Focus

R&D Solutions revenue grew nearly 9% (7% organically), supported by $3.15 billion in net new bookings, a 19% YoY increase, and a book-to-bill ratio of 1.22. The company highlighted its strong position in the Emerging Biopharma (EBP) segment, which represents 35% of R&DS revenue and accounts for 70% of global clinical trial starts.

IQVIA is benefiting from strategic outsourcing partnerships with large pharma, leading to improved win rates and expanded share of wallet.

Commercial Solutions Acceleration and AI Traction

Commercial Solutions organic revenue growth accelerated to 5% YoY, driven by a 45% increase in new drug launches in H1 2026. Analytics and Consulting grew high single digits, while Commercial Engagement Services and Patient Solutions saw double-digit growth. AI offerings are gaining traction, with increased customer adoption and a strong double-digit pipeline growth year-to-date.

AI as a Differentiator and Growth Driver

IQVIA emphasized its long-standing investment in AI, now deploying 294 agents across 90 use cases. AI-enabled capabilities are improving study design, accelerating timelines, and reducing operational risk in clinical trials, leading to significant wins with both large pharma and EBP clients.

In commercial, AI is contributing directly to top-line growth as clients move beyond pilots to broader deployment of IQVIA AI agents for market dynamics and enterprise analytics.

Backlog Quality and Disclosure

Management addressed concerns about backlog quality, stating that while a review is ongoing, any adjustment for inactive trials is expected to be around 5% of the $34.2 billion backlog, significantly lower than a competitor's reported 15%. This adjustment would have no impact on historical financial results, guidance, or next 12-month revenue from backlog.

The company also reaffirmed its "best-in-class" policy of only recognizing contracted bookings requiring signatures.

Operational Efficiency and Margin Expansion

Adjusted EBITDA margin began improving earlier than anticipated, expanding 10 basis points in Q2. This was driven by 90 basis points of operational and productivity programs, including AI, which offset 80 basis points of non-operational headwinds from pass-throughs. The company expects to maintain flat margins for the full year, balancing M&A impact with productivity gains.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.