IQVIA Holdings Inc.

07/28/2026 | Press release | Distributed by Public on 07/28/2026 14:38

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement for Forward-Looking Information
You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (our "2025 Form 10-K").
In addition to historical condensed consolidated financial information, the following discussion contains or incorporates by reference forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are not historical facts but reflect, among other things, our current expectations, our forecasts and our anticipated results of operations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. Therefore, any statements contained herein that are not statements of historical fact may be forward-looking statements and should be evaluated as such. Without limiting the foregoing, the words "assumes," "anticipates," "believes," "estimates," "expects," "intends," "may," "forecasts," "plans," "projects," "should," "seeks," "sees," "targets," "will," "would" and similar words and expressions, and variations and negatives of these words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We assume no obligation to update any such forward-looking information to reflect actual results or changes in our outlook or the factors affecting such forward-looking information.
We caution you that any such forward-looking statements are further qualified by important factors that could cause our actual operating results to differ materially from those in the forward-looking statements, including without limitation, that business disruptions caused by natural disasters, pandemics, and the public health policy responses to the outbreak, international conflict or other disruptions outside of our control; most of our contracts may be terminated on short notice, and we may lose or experience delays with large client contracts or be unable to enter into new contracts; the market for our services may not grow as we expect; we may be unable to successfully develop and market new services or enter new markets; imposition of restrictions on our use of data by data suppliers or their refusal to license data to us; any failure by us to comply with contractual, regulatory or ethical requirements under our contracts, including current or future changes to data protection and privacy laws; breaches or misuse of our or our outsourcing partners' security or communications systems; failure to meet our productivity or business transformation objectives; failure to successfully invest in growth opportunities; our ability to protect our intellectual property rights and our susceptibility to claims by others that we are infringing on their intellectual property rights; the expiration or inability to acquire third party licenses for technology or intellectual property; any failure by us to accurately and timely price and formulate cost estimates for contracts, or to document change orders; hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements; the rate at which our backlog converts to revenues; our ability to acquire, develop and implement technology necessary for our business; consolidation in the industries in which our clients operate; risks related to client or therapeutic concentration; government regulators or our customers may limit the number or scope of indications for medicines and treatments or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; the risks associated with operating on a global basis, including currency or exchange rate fluctuations and legal compliance, including anti-corruption laws; risks related to the enactment of legislation or the imposition of regulations or other restrictions or actions by governments that create business uncertainty and have the potential to limit trade; changes in accounting standards; general economic conditions in the markets in which we operate, including financial market conditions, inflation and risks related to sales to government entities; the impact of changes in tax laws and regulations; and our ability to successfully integrate, and achieve expected benefits from, our acquired businesses. In addition, we may not achieve the expected benefits of our reorganized business segment structure. For a further discussion of the risks relating to our business, see Part I-Item 1A-"Risk Factors" in our 2025 Form 10-K, as updated in our subsequently filed Quarterly Reports on Form 10-Q.
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Overview
IQVIA is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries. IQVIA's portfolio of solutions are powered by IQVIA Connected Intelligence™ to deliver actionable insights and services built on high-quality health data, Healthcare-grade AI®, advanced analytics, the latest technologies and extensive domain expertise. We are committed to using artificial intelligence responsibly, with AI-powered capabilities built on best-in-class approaches to privacy, regulatory compliance and patient safety, and delivering AI to the high standards of trust, scalability and precision demanded by the industry. With approximately 94,000 employees in over 100 countries, including experts in healthcare, life sciences, data science, technology and operational excellence, we are dedicated to accelerating the development and commercialization of innovative medical treatments to help improve patient outcomes and population health worldwide.
We are a global leader in protecting individual patient privacy. We use a wide variety of privacy-enhancing technologies and safeguards to protect individual privacy while generating and analyzing information on a scale that helps healthcare stakeholders identify disease patterns and correlate with the precise treatment path and therapy needed for better outcomes. Our insights and execution capabilities help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviors and scientific advances, in an effort to advance their path toward cures.
We were previously managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Effective January 1, 2026, we updated our segment reporting to align with industry evolution, our updated operating model, and how internal reporting is provided to the chief operating decision maker ("CODM"). As a result, the Contract Sales & Medical Solutions segment, which had become more closely related operationally to the Technology & Analytics Solutions segment commercial offerings, was incorporated into the Technology & Analytics Solutions segment, which was renamed Commercial Solutions. Additionally, Real-World Late Phase and certain other Real-World offerings that had become more closely related operationally to the clinical research business, were moved from the Technology & Analytics Solutions segment to the Research & Development Solutions segment.
We are now managed through two reportable segments: Commercial Solutions and Research & Development Solutions. Commercial Solutions provides mission critical information, advanced analytics, technology solutions, health care provider services (including contract sales), and patient engagement services to the Company's life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research, clinical trial and real-world research related services.
Sources of Revenue
Total revenues are comprised of revenues from the provision of our services. We do not have any material product revenues.
Costs and Expenses
Our costs and expenses are comprised primarily of our cost of revenues including reimbursed expenses and selling, general and administrative expenses. Cost of revenues includes compensation and benefits for billable employees and personnel involved in production, trial monitoring, data management and delivery, and the costs of acquiring and processing data for our information offerings; costs of staff directly involved with delivering technology-related services offerings and engagements, related accommodations and the costs of data purchased specifically for technology services engagements; and other expenses directly related to service contracts such as courier fees, laboratory supplies, professional services and travel expenses. Reimbursed expenses, which are included in cost of revenues, are comprised principally of payments to investigators who oversee clinical trials and travel expenses for our clinical monitors and sales representatives. Selling, general and administrative expenses include costs related to sales, marketing and administrative functions (including human resources, legal, finance, quality assurance, compliance and general management) for compensation and benefits, travel, professional services, training and expenses for information technology and facilities. We also incur costs and expenses associated with depreciation and amortization.
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Foreign Currency Translation
In the first six months of 2026, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies. Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information are wholly attributable to the effects of foreign currency rate fluctuations. For the three and six months ended June 30, 2026, foreign currency exchange rate fluctuations had an immaterial impact on our income from operations.
Consolidated Results of Operations
For information regarding our results of operations for Commercial Solutions and Research & Development Solutions, refer to "Segment Results of Operations" later in this section.
Revenues
Three Months Ended June 30,
Change
(in millions)
2026 2025
$
%
Revenues $ 4,368 $ 4,017 $ 351 8.7 %
For the second quarter of 2026, our revenues increased $351 million, or 8.7%, as compared to the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $343 million, or 8.5%, reflecting a $139 million increase in Commercial Solutions and a $204 million increase in Research & Development Solutions.
Six Months Ended June 30,
Change
(in millions)
2026 2025
$
%
Revenues $ 8,519 $ 7,846 $ 673 8.6 %
For the first six months of 2026, our revenues increased $673 million, or 8.6%, as compared to the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $571 million, or 7.3%, reflecting a $273 million increase in Commercial Solutions and a $298 million increase in Research & Development Solutions.
Cost of Revenues, exclusive of Depreciation and Amortization
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Cost of revenues, exclusive of depreciation and amortization $ 2,933 $ 2,694 $ 5,729 $ 5,225
% of revenues 67.1 % 67.1 % 67.2 % 66.6 %
For the second quarter of 2026, our cost of revenues, exclusive of depreciation and amortization increased $239 million, or 8.9%, as compared to the same period in 2025. For the first six months of 2026, our cost of revenues, exclusive of depreciation and amortization increased $504 million, or 9.6%, as compared to the same period in 2025. The increase for both periods is primarily due to increases in compensation and related expenses, and reimbursed expenses to support revenue growth.
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Selling, General and Administrative Expenses
Three Months Ended June 30, Six Months Ended June 30,
(in millions)
2026 2025 2026 2025
Selling, general and administrative expenses $ 574 $ 509 $ 1,076 $ 1,017
% of revenues
13.1 % 12.7 % 12.6 % 13.0 %
For the second quarter of 2026 our selling, general and administrative expenses increased $65 million, or 12.8%, as compared to the same period in 2025. For the first six months of 2026 our selling, general and administrative expenses increased $59 million, or 5.8%, as compared to the same period in 2025. The increase for both periods is primarily due to increases in compensation and related expenses, including stock-based compensation.
Depreciation and Amortization
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Depreciation and amortization $ 292 $ 276 $ 580 $ 541
% of revenues
6.7 % 6.9 % 6.8 % 6.9 %
The $16 million and $39 million increase in depreciation and amortization for the three and six months ended June 30, 2026 compared to the same periods in 2025 is mainly related to an increase in amortization of capitalized software costs and intangible assets from acquisitions occurring in 2025 and 2026.
Restructuring Costs
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Restructuring costs $ 63 $ 32 $ 114 $ 61
The restructuring costs incurred during 2026 and 2025 were due to ongoing efforts to streamline our global operations and reduce overcapacity to adapt to changing market conditions and integrate acquisitions. These restructuring actions are expected to occur throughout 2026 and into 2027 and are expected to consist of consolidating functional activities, eliminating redundant positions and aligning resources with customer requirements.
Interest Income and Interest Expense
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Interest income $ (7) $ (10) $ (17) $ (21)
Interest expense $ 197 $ 182 $ 389 $ 347
Interest income includes interest received primarily from bank balances and investments. Interest income during the three and six months ended June 30, 2026 decreased as compared to the same periods in 2025, primarily as a result of lower deposit rates and balances.
Interest expense during the three and six months ended June 30, 2026 increased compared to the same periods in 2025 as a result of higher outstanding debt balances.
Other Expense, Net
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Other expense, net $ 12 $ 11 $ 16 $ 26
Other expense, net for the three months ended June 30, 2026 increased compared to the same period in 2025 primarily due to fair value investments adjustments, offset by less foreign currency loss on transactions.
Other expense, net for the six months ended June 30, 2026 decreased compared to the same period in 2025 primarily due to less foreign currency loss on transactions, offset by fair value investments adjustments.
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Income Tax Expense
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2026 2025
Income tax expense $ 60 $ 56 $ 119 $ 117
Our effective income tax rate was 19.9% and 17.3% in the second quarter of 2026 and 2025, respectively. Our effective income tax rate was 18.9% and 18.1% in the first six months of 2026 and 2025. Our effective income tax rate in the second quarter and in the first six months of 2026 and 2025 was impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.
On December 12, 2022, the European Union member states agreed to implement the Organization for Economic Cooperation and Development's ("OECD") Pillar Two global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2025. In January 2026, the OECD released Administrative Guidance establishing a "side-by-side" system that is intended to reduce the compliance burden of calculating the Pillar two top-up-tax amounts for jurisdictions with similar regimes with minimum tax requirements for fiscal years beginning on or after January 1, 2026, subject to adoption by relevant jurisdictions. This is achieved by deeming a top-up tax amount of zero as it relates to Income Inclusion Rules and Undertaxed Profits Rules for Multinational Enterprise groups with an ultimate parent entity in such jurisdictions; however, this guidance does not affect the application of local minimum or qualified domestic top-up taxes in foreign jurisdictions. During the six months ended June 30, 2026, we evaluated enacted and substantively enacted Pillar Two legislation and performed calculations under applicable safe harbor frameworks to identify jurisdictions with effective tax rates below 15%, and any resulting top-up tax was recorded as a period cost in the annual effective tax rate. We continue to monitor global developments and are assessing the potential impact of these rules on our income tax provision.
Equity in Earnings (Losses) of Unconsolidated Affiliates
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2026 2025 2025 2024
Equity in earnings (losses) of unconsolidated affiliates $ 17 $ (1) $ 23 $ (14)
Equity in earnings (losses) of unconsolidated affiliates for the three and six months ended June 30, 2026, increased compared to the same periods in 2025 due to the results in the operations of our unconsolidated affiliates.
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Segment Results of Operations
In the tables below, the Company is reflecting the recast of segment information for the three and six months ended June 30, 2025 based on the changes described in Note 14 included elsewhere in this Quarterly Report on Form 10-Q. Revenues and profit by segment are as follows:
Three Months Ended June 30, 2026 and 2025
Segment Revenues Segment Profit
(in millions) 2026 2025 2026 2025
Commercial Solutions $ 1,793 $ 1,651 $ 419 $ 379
Research & Development Solutions 2,575 2,366 526 473
Total 4,368 4,017 945 852
General corporate and unallocated expenses (84) (38)
Depreciation and amortization (292) (276)
Restructuring costs (63) (32)
Consolidated $ 4,368 $ 4,017 $ 506 $ 506
Six Months Ended June 30, 2026 and 2025
Segment Revenues Segment Profit
(in millions) 2026 2025 2026 2025
Commercial Solutions $ 3,547 $ 3,223 $ 800 $ 734
Research & Development Solutions 4,972 4,623 998 949
Total 8,519 7,846 1,798 1,683
General corporate and unallocated expenses (84) (79)
Depreciation and amortization (580) (541)
Restructuring costs (114) (61)
Consolidated $ 8,519 $ 7,846 $ 1,020 $ 1,002
Certain costs are not allocated to our segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation, expenses related to integration activities and acquisitions, as well as certain general corporate and unallocated expenses. We also do not allocate restructuring costs, depreciation and amortization, or impairment charges, if any, to our segments.
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Commercial Solutions
Three Months Ended June 30, Change
(in millions) 2026 2025 $ %
Revenues $ 1,793 $ 1,651 $ 142 8.6 %
Cost of revenues, exclusive of depreciation and amortization 1,132 1,042 90 8.6
Selling, general and administrative expenses 242 230 12 5.2
Segment profit $ 419 $ 379 $ 40 10.6 %
Six Months Ended June 30, Change
(in millions) 2026 2025 $ %
Revenues $ 3,547 $ 3,223 $ 324 10.1 %
Cost of revenues, exclusive of depreciation and amortization 2,253 2,022 231 11.4
Selling, general and administrative expenses 494 467 27 5.8
Segment profit $ 800 $ 734 $ 66 9.0 %
Revenues
Commercial Solutions' revenues were $1,793 million for the second quarter of 2026, an increase of $142 million, or 8.6%, over the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $139 million, or 8.4%, reflecting revenue growth primarily in the Americas region and to a lesser extent in the Europe and Africa region.
Commercial Solutions' revenues were $3,547 million for the first six months of 2026, an increase of $324 million, or 10.1%, over the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $273 million, or 8.5%, reflecting revenue growth primarily in the Americas region and to a lesser extent in the Europe and Africa region.
The constant currency revenue growth for the three and six months ended June 30, 2026 was primarily driven by an increase in patient solutions (formerly included in real-world solutions), and to a lesser extent by commercial engagement services (formerly included in contract sales and medical solutions).
Cost of Revenues, exclusive of Depreciation and Amortization
Commercial Solutions' cost of revenues, exclusive of depreciation and amortization, increased $90 million, or 8.6%, in the second quarter of 2026, over the same period in 2025, and increased $231 million, or 11.4%, in the first six months of 2026, over the same period in 2025. The increase for the three and six months ended June 30, 2026 was primarily related to increases in reimbursed expenses, compensation and related expenses, and costs of acquiring and processing data to support revenue growth.
Selling, General and Administrative Expenses
Commercial Solutions' selling, general and administrative expenses increased $12 million, or 5.2%, in the second quarter of 2026, as compared to the same period in 2025, and increased $27 million, or 5.8%, in the first six months of 2026, as compared to the same period in 2025. The increase for the three and six months ended June 30, 2026 was primarily related to an increase in compensation and related expenses.
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Research & Development Solutions
Three Months Ended June 30, Change
(in millions)
2026 2025
$
%
Revenues $ 2,575 $ 2,366 $ 209 8.8 %
Cost of revenues, exclusive of depreciation and amortization 1,801 1,652 149 9.0
Selling, general and administrative expenses 248 241 7 2.9
Segment profit $ 526 $ 473 $ 53 11.2 %
Six Months Ended June 30, Change
(in millions)
2026 2025
$
%
Revenues $ 4,972 $ 4,623 $ 349 7.5 %
Cost of revenues, exclusive of depreciation and amortization 3,476 3,203 273 8.5
Selling, general and administrative expenses 498 471 27 5.7
Segment profit $ 998 $ 949 $ 49 5.2 %
Backlog
Research & Development Solutions' contracted backlog increased from $34.0 billion (recast amount to reflect segment changes noted above) as of December 31, 2025 to $34.2 billion as of June 30, 2026, and we expect approximately $9.2 billion of this backlog to convert to revenues in the next twelve months.
Revenues
Research & Development Solutions' revenues were $2,575 million for the second quarter of 2026, an increase of $209 million, or 8.8%, over the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $204 million, or 8.6%, reflecting revenue growth primarily in the Europe and Africa region, and to a lesser extent in the Asia-Pacific and Americas regions.
Research & Development Solutions' revenues were $4,972 million for the first six months of 2026, an increase of $349 million, or 7.5%, over the same period in 2025. This increase was comprised of constant currency revenue growth of approximately $298 million, or 6.4%, reflecting revenue growth primarily in the Americas region, and to a lesser extent in the Europe and Africa and Asia-Pacific regions.
The constant currency revenue growth for the three and six months ended June 30, 2026 was primarily the result of volume-related increases in clinical services and lab testing.
Cost of Revenues, exclusive of Depreciation and Amortization
Research & Development Solutions' cost of revenues, exclusive of depreciation and amortization, increased $149 million, or 9.0%, in the second quarter of 2026, over the same period in 2025, and increased $273 million, or 8.5%, in the first six months of 2026, over the same period in 2025. The increase for the three and six months ended June 30, 2026 was primarily related to an increase in compensation and related expenses and reimbursed expenses as a result of volume-related increases in clinical services.
Selling, General and Administrative Expenses
Research & Development Solutions' selling, general and administrative expenses increased $7 million, or 2.9%, in the second quarter of 2026, as compared to the same period in 2025, and increased $27 million, or 5.7%, in the first six months of 2026, as compared to the same period in 2025. The increase for the three and six months ended June 30, 2026 was primarily related to an increase in compensation and related expenses.
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Liquidity and Capital Resources
Overview
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. Our principal source of liquidity is operating cash flows. In addition to operating cash flows, other significant factors that affect our overall management of liquidity include: capital expenditures, acquisitions, investments, debt service requirements, equity repurchases, adequacy of our revolving credit and receivables financing facilities, and access to the capital markets.
We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which those funds can be accessed on a cost-effective basis. The repatriation of cash balances from certain of our subsidiaries could have adverse tax consequences; however, those balances are generally available without legal restrictions to fund ordinary business operations. We have and expect to transfer cash from those subsidiaries to the United States and to other international subsidiaries when it is cost effective to do so.
We had a cash balance of $1,909 million as of June 30, 2026 ($627 million of which was in the United States), a decrease from $1,980 million as of December 31, 2025.
Based on our current operating plan, we believe that our available cash and cash equivalents, future cash flows from operations and our ability to access funds under our revolving credit and receivables financing facilities will enable us to fund our operating requirements, capital expenditures, contractual obligations, and meet debt obligations for at least the next 12 months. We regularly evaluate our debt arrangements, as well as market conditions, and from time to time we may explore opportunities to modify our existing debt arrangements or pursue additional financing arrangements that could result in the issuance of new debt securities by us or our affiliates. We may use our existing cash, cash generated from operations or dispositions of assets or businesses and/or proceeds from any new financing arrangements or issuances of debt or equity securities to repay or reduce some of our outstanding obligations, to repurchase shares from our stockholders or for other purposes. As part of our ongoing business strategy, we also continually evaluate new acquisition, expansion and investment possibilities or other strategic growth opportunities, as well as potential dispositions of assets or businesses, as appropriate, including dispositions that may cause us to recognize a loss on certain assets. Should we elect to pursue any such transaction, we may seek to obtain debt or equity financing to facilitate those activities. Our ability to enter into any such potential transactions and our use of cash or proceeds is limited to varying degrees by the terms and restrictions contained in our existing debt arrangements. We cannot provide assurances that we will be able to complete any such financing arrangements or other transactions on favorable terms or at all.
Equity Repurchase Program
On May 7, 2026, our Board of Directors increased the stock repurchase authorization under our equity repurchase program (the "Repurchase Program") with respect to the repurchase of our common stock by an additional $2,000 million, which increased the total amount that has been authorized under the Repurchase Program to $15,725 million. The Repurchase Program does not obligate us to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.
During the six months ended June 30, 2026, we repurchased 5.5 million shares of our common stock for $950 million under the Repurchase Program. As of June 30, 2026, we had remaining authorization to repurchase up to $2,819 million of our common stock under the Repurchase Program. In addition, from time to time, we have repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.
Debt
As of June 30, 2026, we had $16,081 million of total indebtedness, excluding $1,195 million of additional available borrowings under our revolving credit facility. Our long-term debt arrangements contain customary restrictive covenants and, as of June 30, 2026, we believe we were in compliance with our restrictive covenants in all material respects.
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Senior Secured Credit Facilities
As of June 30, 2026, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,333 million, which consisted of $5,138 million principal amounts of debt outstanding, and $1,195 million of available borrowing capacity on the revolving credit facility and standby letters of credit. See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.
Term Loan due 2027
On March 11, 2026, we entered into a 364-Day Term A Loan Agreement to borrow $650 million in U.S. Dollar denominated Term A loans due 2027 (the "Term Loan due 2027"). The Term Loan due 2027 bore interest based on the Secured Overnight Financing Rate term rates ("Term SOFR"), plus a margin ranging from 1.125% to 2.00%, with a Term SOFR floor of 0.00% per annum. The proceeds from the Term Loan due 2027 were used to repay approximately €550 million of the 1.750% senior notes due 2026 (the "1.750% Notes") at maturity, including the payment of fees and expenses related to the offering, and for general corporate purposes. The Term Loan due 2027 was repaid in full on June 11, 2026 with proceeds from the 4.625% senior notes due 2033 described below.
Senior Notes
On June 11, 2026, we completed the issuance and sale of €950 million in gross proceeds of 4.625% senior notes due 2033 (the "4.625% Notes"). The 4.625% Notes were issued pursuant to an Indenture, dated June 11, 2026, among us, U.S. Bank National Association, as trustee of the Notes, and certain of our subsidiaries as guarantors. The net proceeds from the 4.625% Notes offering were used to repay in full our outstanding Term Loan due 2027, to repay a portion of the existing borrowings under our revolving credit facility and to pay fees and expenses related to the offering. The 4.625% Notes are unsecured obligations of the Company, will mature on June 15, 2033, and bear interest at the rate of 4.625% per year, with interest payable semiannually on June 15 and December 15 of each year, beginning on December 15, 2026. We may redeem the 4.625% Notes prior to their final stated maturity, subject to a customary make-whole premium, at any time prior to June 15, 2029 (subject to a customary "equity claw" redemption right) and thereafter subject to a redemption premium declining from 1.02313% to 0.000%.
On March 16, 2026, the proceeds from the Term Loan due 2027 were used to repay all of our outstanding €550 million 1.750% Notes. Our obligations with respect to the 1.750% Notes were discharged on the same day as the notes were repaid in full.
Receivables Financing Facility
As of June 30, 2026, no additional amounts of revolving loans were available under the receivables financing facility.
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Six months ended June 30, 2026 and 2025
Cash Flow from Operating Activities
Six Months Ended June 30,
(in millions) 2026 2025
Net cash provided by operating activities $ 1,176 $ 1,011
Cash provided by operating activities increased $165 million during the first six months of 2026 as compared to the same period in 2025. The increase was primarily driven by increases in cash from other operating assets and liabilities ($106 million), cash-related net income ($89 million), and cash from accounts receivable and unbilled services ($40 million), offset by a decrease in cash from unearned income ($70 million).
Cash Flow from Investing Activities
Six Months Ended June 30,
(in millions) 2026 2025
Net cash used in investing activities $ (577) $ (651)
Cash used in investing activities decreased $74 million during the first six months of 2026 as compared to the same period in 2025, primarily driven by less cash used for acquisitions of businesses, net of cash acquired ($115 million), less cash used for investments in debt and equity securities ($19 million), more cash from other ($2 million), and more cash from sales of marketable securities, net ($1 million), offset by more cash used for acquisitions of property, equipment and software ($32 million) and cash used for investments in unconsolidated affiliates, net ($31 million).
Cash Flow from Financing Activities
Six Months Ended June 30,
(in millions) 2026 2025
Net cash used in financing activities $ (647) $ (113)
Cash used in financing activities increased $534 million during the first six months of 2026 as compared to the same period in 2025, primarily due to less proceeds from issuance of debt, net ($2,212 million) and more cash used for payments related to employee stock incentive plans ($6 million), offset by less repayments on the revolving credit facilities, net of proceeds ($825 million), less cash payments for debt and principal payments on finance leases ($770 million), less cash used for repurchase of common stock ($82 million), less cash payments for contingent consideration and deferred purchase price accruals ($5 million), and less cash used for other ($2 million).
Information about our Guarantors and the Issuer of our Guaranteed Securities
The accompanying summarized financial information has been prepared and presented pursuant to Rule 3-10 of Regulation S-X and Rule 13-01 of Regulation S-X. Each of our current direct and indirect material U.S. wholly owned restricted subsidiaries (excluding IQVIA Solutions Japan LLC and IQVIA Services Japan LLC) (the "Guarantor subsidiaries" and, together with IQVIA Holdings Inc., the "Guarantors"), have jointly and severally, irrevocably and unconditionally, on a senior secured basis, guaranteed the obligations under the 6.250% senior secured notes due 2029 and 5.700% senior secured notes due 2028 (collectively, the "Notes") issued by IQVIA Inc. (the "Issuer").
The following presents the summarized financial information on a combined basis for IQVIA Holdings Inc. (parent company), the Issuer and the Guarantor subsidiaries, which are collectively referred to as the "obligated group." Each Guarantor subsidiary is consolidated by IQVIA Holdings Inc. as of June 30, 2026 and December 31, 2025. Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of June 30, 2026.
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The guarantee of a Guarantor subsidiary with respect to the Notes will be automatically and unconditionally released and discharged and shall terminate and be of no further force and effect, and no further action by such Guarantor subsidiary, the Issuer, or U.S. Bank Trust Company, National Association, as trustee, be required upon the occurrence of any of the events described in Article IX of the indenture governing such Notes, including, subject to certain conditions and limitations contained in such indenture, (a) the sale, disposition or transfer of the capital stock of such Guarantor or all or substantially all of the assets of such Guarantor; (b) the release or discharge of the guarantee by such Guarantor under the senior secured term loan facilities and the senior secured revolving credit facilities; (c) the designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary (in each case, as such terms are defined in the indenture governing such Notes) in compliance with the applicable provisions of the indenture governing such Notes; (d) in accordance with Article VIII of the indenture governing such Notes or the discharge of the Issuer's obligations under such indenture in accordance with the terms of such indenture; or (e) the merger, amalgamation or consolidation of any Guarantor with and into the Issuer or a Guarantor.
Summarized Combined Financial Information of the Issuer and Guarantors:
Each entity in the summarized combined financial information follows the same accounting policies as previously disclosed in Note 1 of the consolidated financial statements of our 2025 Form 10-K. Information for the non-Guarantor subsidiaries has been excluded from the combined summarized financial information of the obligated group. The accompanying summarized combined financial information does not reflect investments of the obligated group in non-Guarantor subsidiaries. The financial information of the obligated group is presented on a combined basis; intercompany balances and transactions within the obligated group have been eliminated. The obligated group's amounts due from and amounts due to non-Guarantor subsidiaries and related parties have been presented in separate line items.
The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Financial Position of the obligated group as of:
(in millions) June 30, 2026 December 31, 2025
Total current assets (excluding amounts due from subsidiaries that are non-Guarantors) $ 891 $ 1,012
Total noncurrent assets $ 12,066 $ 11,876
Amounts due from subsidiaries that are non-Guarantors $ 4,391 $ 4,488
Total current liabilities $ 5,653 $ 5,053
Total noncurrent liabilities $ 13,089 $ 13,324
Amounts due to subsidiaries that are non-Guarantors $ 7,006 $ 6,672
The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Operations of the obligated group:
Six months ended Twelve months ended
(in millions) June 30, 2026 December 31, 2025
Net revenues $ 3,623 $ 7,137
Costs and expenses applicable to net revenues $ 2,383 $ 4,630
Income from operations $ 627 $ 1,276
Net (loss) income $ (116) $ 286
Off-Balance Sheet Arrangements
We do not have any material off-balance sheet arrangements.
Contractual Obligations and Commitments
We have various contractual obligations, which are recorded as liabilities in our consolidated financial statements.
There have been no material changes, outside of the ordinary course of business, to our contractual obligations as previously disclosed in our 2025 Form 10-K.
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Application of Critical Accounting Policies
There have been no material changes to our critical accounting policies as previously disclosed in our 2025 Form 10-K.
IQVIA Holdings Inc. published this content on July 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 28, 2026 at 20:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]