IQVIA's Q1 2025: Navigating Contradictory Signals on Growth, Partnerships, and Pricing

Revenue and Profit Growth:
- IQVIA reported revenue of $3,829 million for Q1 2025, growing 2.5% on a reported basis and 3.5% at constant currency.
- First quarter adjusted EBITDA increased 2.4%, and adjusted diluted EPS rose 6.3% year-over-year to $2.70.
- The growth was driven by strong performance in the TAS segment and the exclusion of $40 million in COVID-related revenue from the prior year.

TAS Segment Growth:
- Technology & Analytics Solutions (TAS) revenue was $1,546 million, up 6.4% reported and 7.6% at constant currency.
- TAS growth was primarily driven by double-digit growth in real-world evidence and strong revenue contributions from new drug launches and commercialization efforts.

R&D Solutions and Bookings:
- R&D Solutions revenue was $2,102 million, up 0.3% reported and 1.1% at constant currency.
- The R&D bookings were affected by delayed decision-making by customers and lower EBP funding, leading to higher-than-normal EBP awards without secured funding.
- The challenges were linked to uncertainty surrounding new U.S. government initiatives and delayed decision-making due to macroeconomic factors.

Impact of Macroeconomic Uncertainty:
- The company experienced delayed RFP-to-award decision-making, with an approximate 10% increase year-over-year and sequentially.
- The R&D backlog reached $31.5 billion, showing a 4.8% year-over-year growth.
- The macroeconomic uncertainty, particularly the pronouncements by the new U.S. administration, led to cautious customer decision-making and a deterioration in EBP funding.