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    IQV
    Earnings call· Jun 2026(Q2 FY26)

    IQVIA HOLDINGS Q2 FY26 earnings call IQV

    Jul 28, 2026 Source

    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

    5

    • 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

    2

    • Foreign exchange impact on revenue guidance

    • Pass-throughs as a margin headwind

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $17.275 billion - $17.475 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $4.0 billion - $4.05 billion
    high materiality
    High
    Full-year 2026 Adjusted Diluted EPS
    $12.80 - $13.00
    high materiality
    High
    Q3 2026 Revenue
    $4.350 billion - $4.390 billion
    medium materiality
    High
    Q3 2026 Adjusted EBITDA
    $1.0 billion - $1.020 billion
    medium materiality
    High
    Q3 2026 Adjusted Diluted EPS
    $3.19 - $3.29
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 billion8.6% 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 billion8.8% reported, 8.6% constant currency——

    Operational metrics

    25
    Total Revenue
    $4.368 billion8.7% reported growth, 8.5% constant currency growth
    Q2 FY26

    Exceeded high end of guidance range.

    Total Revenue
    $8.519 billion8.6% reported growth, 7.3% constant currency growth
    H1 FY26

    First half total company revenue.

    Organic Growth
    6%3x the rate a year ago
    Q2 FY26

    Company-wide organic growth acceleration.

    Adjusted EBITDA
    $994 million9.2% year-over-year growth
    Q2 FY26

    Above the high end of guidance.

    Adjusted EBITDA
    $1.926 billion
    H1 FY26

    First half adjusted EBITDA.

    Adjusted Net Income
    $527 million
    Q2 FY26

    Second quarter adjusted net income.

    Adjusted Net Income
    $1.019 billion
    H1 FY26

    First half adjusted net income.

    Adjusted Diluted EPS
    $6.049.8% up
    H1 FY26

    First half adjusted diluted EPS.

    Capital expenditures
    $198 million
    Q2 FY26

    Second quarter capital expenditures.

    Share repurchases
    $398 million
    Q2 FY26

    Amount of shares repurchased in the quarter.

    Share repurchases
    $950 million
    H1 FY26

    First half share repurchases.

    Share repurchase authorization remaining
    $2.8 billion
    as of Q2 FY26

    Remaining authorization under the current program.

    Cash and cash equivalents
    $1.909 billion
    as of June 30

    Balance at quarter end.

    Gross debt
    $15.999 billion
    as of June 30

    Balance at quarter end.

    Net debt
    $14.090 billion
    as of June 30

    Balance at quarter end.

    Net leverage ratio
    3.59x
    Q2 FY26

    Ended the quarter at 3.59x trailing 12 months adjusted EBITDA.

    Acquisition contribution to revenue growth
    2.5 points
    Q2 FY26

    Contribution to revenue growth within the quarter.

    Operational margin expansion
    90 basis points
    Q2 FY26

    Driven by operational and productivity programs, including AI.

    Non-operational margin drag
    80 basis points
    Q2 FY26

    Headwind to margins from non-operational items like pass-throughs.

    R&DS revenue by customer segment
    Large pharma ~50%, Mid-sized ~15%, EBP ~35%
    Q2 FY26

    Breakdown of R&DS revenue by customer segments as newly defined.

    EBP share of clinical trial starts
    70%Up from 45% a decade ago
    Today

    Emerging Biopharma's increasing contribution to global clinical trial starts.

    New drug launches
    45% increase
    H1 2026 vs H1 2025

    Significant driver of demand across the commercial portfolio.

    AI agents deployed
    294
    Q2 FY26

    Number of AI agents deployed across various use cases.

    AI use cases
    90
    Q2 FY26

    Number of use cases for AI agents.

    Backlog inactive trials adjustment
    ~5%Not 15% as reported by competitor
    Q2 FY26

    Expected adjustment to backlog for inactive trials, with no impact on historical financials or next 12-month revenue.

    Industry KPIs

    6
    MetricValueDetails
    Revenue EPS guidanceFY26 Revenue: $17.275B-$17.475B; FY26 Adjusted Diluted EPS: $12.80-$13.00USD
    M a contribution synergies2.5 pointspoints
    Clinical research cro bookings$3.15 billionUSD
    Segment organic revenue growthR&D Solutions: 7%; Commercial Solutions: 5%%
    Bioprocessing orders book to bill1.22ratio
    Organic core revenue growth by end market6%%

    Deals & partnerships

    1
    Charles MillerAcquisition 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

    2
    Foreign exchange impact on revenue guidanceFY26

    80 basis points less of a tailwind

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

    Pass-throughs as a margin headwindQ2 FY26

    80 basis points of drag

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

    What to watch in Q3 FY26

    3

    R&DS Backlog Inactive Trials Adjustment

    Q3 2026
    CurrentExpected around 5% of $34.2B backlog
    TargetFinalized 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.