Clinical research company IQVIA (NYSE: IQV) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 2.5% year on year to $3.83 billion. The company’s full-year revenue guidance of $16.2 billion at the midpoint came in 2.1% above analysts’ estimates. Its non-GAAP profit of $2.70 per share was 2.6% above analysts’ consensus estimates.
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IQVIA (IQV) Q1 CY2025 Highlights:
StockStory’s Take
IQVIA began 2025 with a quarter that saw revenue and profits exceed Wall Street’s expectations, as management emphasized the strong performance of its Technology & Analytics Solutions (TAS) segment—especially in real-world evidence offerings. CEO Ari Bousbib highlighted that pent-up demand and the launch of new drugs were central to TAS growth, while noting delayed decision-making in Research & Development Solutions (R&DS) due to ongoing sector uncertainty. Bousbib explained, “Our clients are launching new drugs and are executing on their commercial roadmaps,” attributing above-expected TAS revenue growth to both discretionary and mission-critical projects resuming momentum.
Looking ahead, management lifted its revenue guidance for the year, citing favorable foreign currency movements but maintained a cautious tone regarding R&DS activity. Bousbib acknowledged that uncertainty from new U.S. government policies and a weaker funding environment for emerging biopharma (EBP) clients has led to longer decision cycles on new programs. Still, he reiterated confidence in the industry’s resilience, stating, “The life sciences industry has consistently demonstrated its resilience, overcoming macroeconomic obstacles, and thriving in changing environments.” He also pointed to an expanding AI initiative as a potential future driver of efficiency.
Key Insights from Management’s Remarks
IQVIA’s management attributed the quarter’s revenue outperformance to robust activity in its real-world evidence and commercial technology businesses, while acknowledging external headwinds in the clinical research landscape. The company’s updated guidance reflected improved currency conditions rather than a change in underlying demand.
Drivers of Future Performance
Management’s outlook for the rest of the year is shaped by ongoing strength in TAS, growing AI-driven efficiencies, and gradual recovery in clinical research demand, offset by persistent sector uncertainty and cautious client spending.
Top Analyst Questions
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) whether real-world evidence and commercial technology solutions sustain their growth trajectory, (2) signs of improvement in clinical research bookings as sector uncertainty potentially abates, and (3) measurable impacts of AI-driven efficiencies on both revenue mix and margins. Updates on key regulatory and funding environments, as well as the timing of delayed clinical programs, will also be important indicators of execution.
IQVIA currently trades at a forward P/E ratio of 11.7×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report .
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