It has been about a month since the last earnings report for IQVIA Holdings (IQV). Shares have added about 5.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for IQVIA Holdings Inc. before we dive into how investors and analysts have reacted as of late.
IQVIA Surpasses Q2 Earnings Estimates
IQVIA Holdings Inc. has reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%.
The quarter benefited from broad-based segment growth and strengthening demand indicators. R&D Solutions generated record net new bookings of $3.15 billion, up 19% year over year, producing a 1.22X book-to-bill ratio.
IQV's Commercial Solutions Gains Momentum
Commercial Solutions revenues were $1.79 billion, increasing 8.6% on a reported basis and 8.4% at constant currency. The business contributed roughly 41% to the total quarterly revenues.
Growth reflected double-digit gains in patient solutions and commercial engagement services. Analytics and consulting delivered high-single-digit organic growth, while increased adoption of IQVIA’s artificial intelligence solutions also contributed to the segment’s accelerating organic growth.
IQVIA's R&D Bookings Signal Strong Demand
Research & Development Solutions revenues reached $2.58 billion, up 8.8% as reported and 8.6% at constant currency. Excluding reimbursed expenses, revenues advanced 6.7% on a reported basis.
Demand indicators strengthened considerably. Trailing-12-month net new bookings rose 13% to $11.3 billion, while contracted backlog stood at $34.2 billion. IQVIA expects $9.2 billion of that backlog to convert into revenues over the next 12 months, representing 7.5% year-over-year growth.
The strong bookings performance provides improved visibility into future clinical research revenues. It also supports management’s expectation for sustained business momentum through the remainder of 2026 and into 2027.
IQV's Adjusted Profitability Holds Firm
Adjusted EBITDA increased 9.2% year over year to $994 million. The adjusted EBITDA margin was 22.8%, modestly above the prior-year level, as profit growth slightly outpaced revenue growth.
Adjusted net income increased to $527 million from $486 million. The improvement reflected stronger operating performance despite higher stock-based compensation, restructuring-related expenses and acquisition-related costs included in the company’s reconciliation.
GAAP net income attributable to IQVIA was $256 million, down from $266 million a year earlier. GAAP diluted earnings were $1.53 per share compared with $1.54 in the prior-year quarter.
IQVIA's Operating Costs Reflect Investment
Cost of revenues increased to $2.93 billion from $2.69 billion in the year-ago quarter. Selling, general and administrative expenses rose to $574 million from $509 million, while depreciation and amortization increased to $292 million.
Restructuring costs nearly doubled to $63 million from $32 million. As a result, GAAP income from operations remained unchanged at $506 million despite the higher revenue base.
Interest expenses increased to $197 million from $182 million. These cost pressures explain the contrast between the decline in GAAP net income and stronger growth in adjusted earnings and EBITDA.
IQVIA's Cash Flow Supports Share Repurchases
The second-quarter operating cash flow climbed 26% year over year to $558 million. The free cash flow rose 23.3% to $360 million after $198 million of property, equipment and software spending.
For the first half, the operating cash flow totaled $1.18 billion and the free cash flow reached $851 million. IQVIA repurchased $398 million of common stock during the quarter, bringing first-half repurchases to $950 million.
IQV's Balance Sheet Remains Leveraged
IQVIA ended June with $1.91 billion in cash and cash equivalents, and $16 billion in debt. Net debt was $14.09 billion, while the net leverage ratio stood at 3.59X trailing-12-month adjusted EBITDA.
The company had $2.82 billion remaining under its share-repurchase authorization. Its current portion of long-term debt was $2.29 billion compared with $1.84 billion at the end of 2025.
IQV Raises Its 2026 Financial Outlook
IQVIA raised its 2026 revenue guidance to $17.28-$17.48 billion from $17.15-$17.35 billion.
The updated forecast assumes 200 basis points of contribution from acquisitions, up from 150 basis points previously. It also incorporates a foreign-exchange tailwind of approximately 20 basis points, down from the prior assumption of 100 basis points.
Adjusted EBITDA guidance increased to $4-$4.05 billion from $3.98-$4.03 billion. IQVIA also lifted adjusted diluted earnings guidance to $12.80-$13 from $12.65-$12.95, reflecting stronger expected organic revenue growth and revised acquisition and currency impacts.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, IQVIA has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
IQVIA is part of the Zacks Medical - Instruments industry. Over the past month, Edwards Lifesciences (EW), a stock from the same industry, has gained 5.9%. The company reported its results for the quarter ended June 2026 more than a month ago.
Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago.
For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Edwards Lifesciences has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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This article originally published on Zacks Investment Research (zacks.com).