Oct 27, 2026 earnings call — AI adoption and strong R&D bookings
Third quarter revenue was $4.43 billion, up 8% year over year.
Revenue $4.4B (est $4.4B) · EPS $3.34 (est $3.26) · Next-quarter revenue outlook $17.4B–$17.5B
Key quotes
"In fact, IQVIA has now deployed 415 agents to date."
"For the quarter, the last 12-month net new bookings were $11.7 billion an increase of 14% year over year."
"We are also raising adjusted EBITDA to be between 4.025 billion and $4.055 billion, growing 6.3 to 7% year over year reaffirming flat margins year over year at approximately 23.2%."
Analyst Q&A 7
Why IQVIA's data and AI are unique
Q (Shlomo Rosenbaum · Stifel): The analyst asked how IQVIA can deploy data and technology in an agent/AI world in ways competitors cannot, and whether clients pay more for that differentiation.
A: Management said successfully using AI requires proprietary, de-identified, curated, fit-for-purpose data plus deep life-sciences expertise and human oversight. They said those three pieces—content, context and comprehension—let IQVIA build AI agents and workflows that integrate into client operations.
"So stepping back to successfully deploy AI there is a prerequisite in knowing the business." — Ari Bousbib (CEO·CHAIR)
Why gross margin improved despite pass-throughs
Q (Elizabeth Anderson · Evercore): The analyst asked for detail on what drove gross margin improvement, how much pass-through mix hurt margins, and what levers drove upside.
A: Management said pass-throughs were a headwind of probably about 70 basis points. They added there was about 10 bps of currency impact and roughly 80 bps of operational improvement, so net nonoperational headwinds were offset by operational gains and adjusted EBITDA margin would have improved 80 bps without pass-throughs.
"The pass throughs across the enterprise were certainly a headwind on the gross margin line, probably about 70 basis points." — Michael J. Fedock (CFO)
Bookings strength and seasonality
Q (Jailendra Singh · Truist): The analyst asked whether the very strong bookings in Q3 were due to timing or mix, whether it was broad-based, and whether win rates improved.
A: Management said the strength was broad-based, with very strong full-service bookings and continued win rate upticks at large pharma. They pointed to LTM net new bookings of $11.7 billion and said the number has grown each of the past 5 quarters, up 14% year over year.
"Yeah, to your question, really, good strength across the board, and really that was true for large pharma where we see continued uptick in win rates." — Ari Bousbib (CEO·CHAIR)
Backlog cleanup and interest expense outlook
Q (Eric Coldwell · Baird): The analyst asked if the $210 million below-the-line number should be annualized for 2027 interest expense modeling and asked what criteria were used in the backlog scrub.
A: Management said the backlog review removed trials that had been inactive a long time—generally over 18 months—and that removals were made with customers when there was no reason to expect near-term resumption. On interest/other below-the-line items, management said to focus on the debt stack, refinancings and swaps and that there was nothing else notable on depreciation or tax.
"Long time means long time means over 18 months plus." — Ari Bousbib (CEO·CHAIR)
Commercial bookings, pipeline, and backlog rules
Q (Barclays): The analyst asked about a Q3 deceleration in commercial solutions and whether conversion times are shrinking, and asked if the company is being stricter about what goes into backlog after recent adjustments.
A: Management said commercial work is shorter cycle and much of it is not recorded as backlog; they track pipelines and see record pipelines, higher win rates, and shorter decision timelines. They also said they only include contracted work in backlog and are comfortable with their backlog criteria—no change to putting only signed contracts into backlog.
"We are very comfortable with what we put into our backlog." — Michael J. Fedock (CFO)
R&D outsourcing trends and biotech recovery
Q (David Windley · Jefferies): The analyst asked if biotech has led the recovery, whether large pharma is now catching up, whether reprocurement continues, and if there is wallet-share opportunity.
A: Management said the industry went through a 2- to 3-year period of uncertainty and reprocurement, but large providers emerged ahead and IQVIA gained share through broad capabilities. They said EBP funding has grown strongly and that 'we think there are, you know, almost 17 thousand EBPs around the world,' and that R&D and EBP trends create opportunities they are pursuing.
"We think there are, you know, almost 17 thousand EBPs around the world." — Ari Bousbib (CEO·CHAIR)
How AI changes contracting and margins
Q (Michael Cherny · Leerink Partners): The analyst asked whether AI is changing contracting dynamics, including value-based deals or pricing, and how AI will affect margins and how the company charges clients.
A: Management said on commercial AI is incremental revenue through new services, subscriptions or licenses and helps clients automate work. On R&D, AI is an enabler to cut timelines (an example given was cutting 9 months from a trial), improve accuracy and visibility, and also will help IQVIA's own productivity and margin expansion over time.
"On the commercial side, AI is essentially incremental revenue opportunity." — Ari Bousbib (CEO·CHAIR)