A month has gone by since the last earnings report for IQVIA Holdings (IQV). Shares have added about 6.4% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
IQVIA Surpasses Q3 Earnings Estimates
IQVIA has reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings were $3 per share, outpacing the Zacks Consensus Estimate by 1.4% and rising 5.6% on a year-over-year basis. Total revenues of $4.1 billion surpassed the consensus estimate by a slight margin and grew 5.2% from the year-ago quarter.
IQVIA’s Quarterly Details
The Research and Development segment’s revenues were $2.3 billion, increasing 4.5% from the year-ago quarter and 3.4% on a constant-currency basis. The metric surpassed our estimate of $2.2 billion. Revenues from the Technology and Analytics segment were $1.6 billion, growing 5% from the year-ago quarter and 3.3% on a constant-currency basis. The metric missed our projection of $1.7 billion. Contract Sales and Medical Solutions revenues increased 16.1% on a year-over-year basis to $209 million and increased 13.9% on a constant-currency basis. The metric beat our estimation of $181.7 million.
Adjusted EBITDA for the third quarter of 2025 was $949 million, a 1.1% rise from the year-ago quarter and outpaced our anticipation of $945.3 million. The company exited the quarter with cash and cash equivalents of $1.8 billion compared with $2 billion in the preceding quarter. Long-term debt (less current portion) was $15 billion compared with $15.4 billion at the end of the second quarter of 2025. Net cash generated from operating activities was $908 million, and capital expenditures for the quarter were $136 million. The company generated a free cash flow of $772 million in the quarter.
IQV’s 2025 Guidance
For 2025, IQVIA updated its revenue guidance to $16.15-$16.25 billion from the preceding quarter’s view of $16.10-$16.30 billion. IQV updated its earnings per share outlook to $11.85-$11.95 from the prior quarter’s view of $11.75-$12.05. IQVIA’s adjusted EBITDA view was updated to $3.775-$3.800 billion from the preceding quarter’s view of $3.750-$3.825 billion.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, IQVIA has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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, Intuitive Surgical, Inc. (ISRG), a stock from the same industry, has gained 6.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Intuitive Surgical reported revenues of $2.51 billion in the last reported quarter, representing a year-over-year change of +22.9%. EPS of $2.40 for the same period compares with $1.84 a year ago.
Intuitive Surgical is expected to post earnings of $2.25 per share for the current quarter, representing a year-over-year change of +1.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Intuitive Surgical. Also, the stock has a VGM Score of F.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
