IQVIA Holdings Inc.

The last quarter proved to be yet another successful period for IQVIA as they delivered an all-around beat. With an 11% organic growth in revenue, IQVIA demonstrated the strength and diversification of their short- and long-cycle businesses, enabling them to navigate the macroeconomic dynamics effectively. The demand environment for the industry remained robust, with global clinical trial activity showing resilience and positive prospects for their commercial business. Encouraging signs such as record-setting R&D spending by major pharmaceutical companies, increased FDA approvals, and significant M&A activity further emphasized the ongoing demand for IQVIA’s services. Internally, the company experienced a decent growth in net new bookings, a significant RFP flow, and operational improvements in attrition levels and site selection. With strong performance in R&DS and TAS segments, the company exceeded expectations in organic revenue growth and secured major contracts and partnerships in areas such as omnichannel marketing, in-home patient services, and real-world safety and intervention studies. Furthermore, IQVIA collaborated with CENTOGENE to enhance the well-being of individuals affected by rare diseases. The company’s commitment to sustainability and recognition for its contributions to fighting COVID-19 were additional highlights, solidifying IQVIA’s position as a trusted and innovative leader in the industry. We give IQVIA Holdings Inc. an ‘Outperform’ rating with a revised target price.