Shares of IQVIA Holdings Inc. IQV have risen 15.3% over the past year against the industry’s 7.1% fall.
IQV’s revenues are expected to increase 5.7% and 5.9% year over year in 2026 and 2027, respectively. Earnings are anticipated to rise 7.2% in 2026 and 11.1% in 2027.
Factors That Augur Well for IQV’s Success
Record Backlog: During the first quarter of 2026 earnings call, Ari Bousbib, the CEO, stated that IQV’s backlog reached a new record of $34.2 billion. Out of the total backlog, $8.9 billion is anticipated to convert to revenues over the upcoming 12 months. It represents approximately 8% year-over-year growth compared with the recast numbers from the preceding year.
AI Fueling Demand: Rapid AI adoption by IQVIA’s clients has increased demand for the company’s differentiated, health-grade capabilities. The company has deployed 192 specialized AI agents across 64 distinct use cases. Importantly, 19 out of the top 20 pharma companies are leveraging these agents within their workflows. IQV successfully managed to secure multi-year partnerships utilizing AI-led data foundations and Data-as-a-Service platforms with Pfizer, Boehringer Ingelheim and many more.
Active Share Repurchase: IQVIA has demonstrated a strong commitment to returning value to its shareholders through an active share repurchase program. In 2025, the company repurchased shares worth $1.24 billion. This substantial buyback not only lowers the total outstanding share count, thereby increasing earnings per share, but also signals management's confidence in the intrinsic value of the stock.
Risks Faced by IQVIA
Weak Liquidity Profile: IQVIA’s current ratio at the end of the first quarter of 2026 was 0.75, lower than the industry’s 1.79. A current ratio of less than 1 highlights the fact that the company may have problems paying off its short-term obligations.
No Dividends: The company neither pays dividends nor currently has any plans to do so in the future. Payment of dividends in the future depends on factors such as its financial condition, cash requirements and contractual restrictions. Investors seeking cash dividends should avoid buying IQVIA stock.
IQV’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
Some top-ranked stocks from the broader Zacks Medical sector are Bayer BAYRY and Alignment Healthcare ALHC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bayer has a long-term earnings growth expectation of 2.5%. BAYRY delivered a trailing four-quarter earnings surprise of 23.6%, on average.
Alignment Healthcare has a long-term earnings growth expectation of 38%. ALHC delivered a trailing four-quarter earnings surprise of 198.8%, on average.
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This article originally published on Zacks Investment Research (zacks.com).