01—Abstract
Summary
Summary of the 10-Q filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
IQVIA Holdings Inc. (IQV) reported first-quarter 2025 revenues of $3.83 billiona, up from $3.74 billion a year earlier, with constant currency revenue growth of approximately $129 million, or 3.5%.
Net income fell to $249 millionb from $288 million, and diluted earnings per share were $1.40 versus $1.56. Income from operations declined to $496 million from $506 million, driven mainly by higher restructuring costs of $29 million versus $15 million, and cost of revenues rose to 66.1% of revenues from 65.4%. Segment results were mixed.
Technology & Analytics Solutions revenues rose 6.4% to $1.55 billionc with segment profit up 7.5% to $360 million, while Research & Development Solutions revenues were essentially flat at $2.10 billion and segment profit fell 4.0% to $460 million. Contract Sales & Medical Solutions revenues declined 4.2% to $181 million. Total backlog for Research & Development Solutions rose to $31.5 billion from $31.1 billion, with approximately $7.9 billion expected to convert to revenue in the next twelve months.
On the balance sheet, total debt principal rose to $14.39 billiond from $14.05 billion, and cash rose to $1.74 billion. In March 2025 the company refinanced term loans with a new $1.985 billion Term B-5 dollar facility and recognized a $4 million loss on extinguishment of debt.
The company repurchased 2.3 million shares for $425 million under its repurchase program, leaving $2.59 billion of remaining authorization after the Board increased the program by $2.0 billion in February 2025. Operating cash flow increased to $568 million from $522 million.
02—Key points
Key Highlights
- Revenues of $3.83 billion, up from $3.74 billion, including constant currency growth of approximately $129 million, or 3.5%.
- Net income of $249 million, down from $288 million; diluted EPS of $1.40 versus $1.56.
- Restructuring costs rose to $29 million from $15 million, and income from operations fell to $496 million from $506 million.
- Technology & Analytics Solutions segment profit rose 7.5% to $360 million, while Research & Development Solutions segment profit fell 4.0% to $460 million.
- Research & Development Solutions contracted backlog increased to $31.5 billion from $31.1 billion at year-end 2024.
- Operating cash flow of $568 million, up from $522 million, aided by a $42 million cash receipt from terminating prior cross-currency swaps.
- Repurchased $425 million of common stock under the Repurchase Program; remaining authorization was $2.59 billion as of March 31, 2025, after a $2.0 billion increase approved February 5, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 6, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.83B$3.74B | +2.5% |
| SG&A Expenses | $508.00M$508.00M | 0.0% |
| Operating Income | $496.00M$506.00M | −2.0% |
| Interest Expense | $165.00M$166.00M | −0.6% |
| Net Income | $249.00M$288.00M | −13.5% |
| EPS (Basic) | $1.42$1.58 | −10.1% |
| EPS (Diluted) | $1.40$1.56 | −10.3% |
| Shares Outstanding (Basic) | 175.70M181.90M | −3.4% |
| Shares Outstanding (Diluted) | 177.40M184.30M | −3.7% |
05—Questions
Frequently Asked Questions
How did IQVIA's revenue and profitability trend in the first quarter of 2025?
Revenues increased 2.5% to $3.83 billion, but net income declined to $249 million from $288 million. Higher restructuring costs and an increase in cost of revenues, which rose to 66.1% of revenues from 65.4%, contributed to lower profitability.
What is the status of IQVIA's debt and refinancing activity?
Total indebtedness was $14.39 billion as of March 31, 2025, with $895 million of additional revolving credit capacity available. In March 2025 the company used a new $1.985 billion Term B-5 dollar facility to refinance Term B-4 loans and repay Term B-2 Euro loans, recognizing a $4 million loss on extinguishment of debt.
How much did IQVIA return to shareholders through buybacks this quarter?
During the first quarter, the company repurchased 2.3 million shares for $425 million under its Repurchase Program. As of March 31, 2025, it had $2.59 billion of remaining authorization, following a $2.0 billion increase approved by the Board on February 5, 2025.
Which segments drove performance in the quarter?
Technology & Analytics Solutions grew revenues 6.4% to $1.55 billion and segment profit 7.5% to $360 million. Research & Development Solutions revenues were nearly flat at $2.10 billion, with segment profit down 4.0% to $460 million, while Contract Sales & Medical Solutions revenues declined 4.2% to $181 million.
What does the R&D Solutions backlog suggest about future revenue?
Research & Development Solutions contracted backlog rose to $31.5 billion as of March 31, 2025, from $31.1 billion at December 31, 2024. The company expects approximately $7.9 billion of this backlog to convert to revenues in the next twelve months. Total remaining performance obligations were approximately $34.9 billion.
06—Continue