IQVIA — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $4,428 million, an 8.0% year-over-year increase (8.6% at constant currency).
• GAAP net income was $350 million; GAAP diluted EPS was $2.10.
• Adjusted EBITDA was $1,032 million, up 8.7% year-over-year.
• Adjusted net income was $557 million; adjusted diluted EPS was $3.34, up 11.3% year-over-year.
• Operating cash flow was $825 million and free cash flow was $667 million, representing 120% of adjusted net income.
• Cash and cash equivalents were $2,249 million; total debt was $16,067 million, resulting in net debt of $13,818 million.
• Net leverage ratio was 3.45x trailing twelve-month adjusted EBITDA.
• Year-to-date 2026 revenue was $12,947 million (up 8.4% reported, 7.7% constant currency).
• Year-to-date 2026 GAAP net income was $880 million; adjusted EBITDA was $2,958 million (up 7.9%); adjusted diluted EPS was $9.38 (up 10.4%).

Guidance and Future Outlook:

• Full-year 2026 revenue guidance raised to $17,350 million – $17,500 million.
• Full-year 2026 adjusted EBITDA guidance raised to $4,025 million – $4,055 million.
• Full-year 2026 adjusted diluted EPS guidance raised to $12.90 – $13.00.
• New guidance anticipates 250 basis points of contribution from acquisitions and approximately 20 basis points of tailwind from foreign exchange.
• R&D Solutions contracted backlog was $32.6 billion as of September 30, 2026; approximately $9.4 billion is expected to convert to revenue in the next twelve months (10% growth year-over-year).
• Last-twelve-month net new bookings were $11.7 billion, up 14% year-over-year.

Business Segments and Product Lines:

• Commercial Solutions revenue was $1,789 million, up 6.9% year-over-year (7.9% at constant currency).
• Research & Development Solutions (R&DS) revenue was $2,639 million, up 8.7% year-over-year (9.1% at constant currency).
• Excluding reimbursed expenses, R&DS revenue grew 6.8% on a reported basis.
• R&D Solutions net new bookings were $3.2 billion, up 15% year-over-year, with a book-to-bill ratio of 1.2x.
• Over 400 AI agents have been deployed to date.
• Organic growth acceleration doubled the rate for commercial and nearly tripled the rate for clinical year-over-year.

Market and Competitive Landscape:

• Demand indicators validating a strengthening market environment include EBP funding, RFP flow, clinical trial starts, FDA approvals, outsourcing trends, and pipeline growth.
• The company reported its strongest clinical quarterly bookings since 2022.
• Increased penetration of AI-powered solutions is noted as a key market driver.

Risks and Challenges:

• A detailed review of inactive trials resulted in a backlog adjustment of approximately $2.1 billion; this has no impact on historical results, 2026 guidance, book-to-bill, or next-twelve-month revenue estimates.
• Forward-looking statements note risks including business disruptions, contract terminations, market growth uncertainty, data restrictions, regulatory changes, and integration risks from acquisitions.

Management Commentary and Tone:

• CEO Ari Bousbib described the quarter as "another record quarter" with results exceeding the high end of expectations.
• Management highlighted "ongoing excellent execution" delivering margin expansion, strong free cash flow, and higher win rates.
• The tone reflects confidence in the strengthening market environment and the effectiveness of the simplified organizational model implemented January 1, 2026.

Other Key Points:

• IQVIA will host an Investor Day on December 1, 2026.
• The company implemented a new, simplified organizational model effective January 1, 2026, resulting in two segments: Commercial Solutions and R&DS.
• Year-to-date 2026 cash flow from financing activities included $950 million in repurchases of common stock.
• Acquisitions are expected to contribute to revenue growth, with some anticipated to be completed by the end of the year.