IQVIA Delivers Strong Q4 and Full-Year 2024 Results, Reaffirms 2025 Guidance Amid Continued Growth
IQVIA Reports Holdings a global leader in clinical research services, commercial insights, and healthcare intelligence for the life sciences and healthcare industries, has announced its financial results for the fourth quarter Reports and full year of 2024. The company reported robust performance across key metrics, reaffirming its guidance for 2025 and highlighting its ability to navigate challenging market conditions while delivering consistent growth.
“IQVIA Reports delivered excellent fourth-quarter performance, closing out a strong 2024,” said Ari Bousbib, Chairman and CEO of IQVIA. “R&DS revenue was on target, and bookings exceeded our expectations despite the choppy CRO market environment. TAS revenue was above target, and momentum continues to build into 2025. Reports For the full year, we delivered margin expansion, high single-digit growth in Adjusted EPS, and outstanding free cash flow. We also repurchased $1.35 billion of our shares while lowering our net leverage ratio year-over-year. We are reaffirming the 2025 guidance we provided at our December Investor Day.”
Fourth-Quarter 2024 Operating Results
IQVIA reported fourth-quarter revenue of $3,958 million, reflecting a 2.3 percent increase on a reported basis and a 3.0 percent increase at constant currency compared to the same period in 2023. This growth was driven by strong performance in Technology & Analytics Solutions (TAS) and solid contributions from Research & Development Solutions (R&DS).
- Technology & Analytics Solutions (TAS): Revenue reached $1,658 million, growing 8.3 percent on a reported basis and 9.5 percent at constant currency. TAS continued to demonstrate robust demand as clients increasingly sought advanced analytics and technology solutions to optimize their operations.
- Research & Development Solutions (R&DS): Revenue totaled $2,123 million, representing a decline of 1.3 percent on a reported basis and 1.0 percent at constant currency. However, excluding the impact of pass-throughs, R&DS revenue grew 2.5 percent year-over-year on a reported basis, underscoring the resilience of the core business despite a challenging CRO market environment.
- Contract Sales & Medical Solutions (CSMS): Revenue amounted to $177 million, reflecting a decrease of 4.8 percent on a reported basis and 3.2 percent at constant currency. While CSMS faced headwinds, the segment remains an integral part of IQVIA’s Reports diversified portfolio.
As of December 31, 2024, R&DS contracted backlog, including reimbursed expenses, stood at $31.1 billion, marking a 4.4 percent year-over-year increase and a 5.5 percent rise at constant currency. Approximately $7.9 billion of this backlog is expected to convert to revenue in the next twelve months. The company’s fourth-quarter book-to-bill ratio was 1.20x, resulting in a trailing-twelve-month book-to-bill ratio of 1.19x, signaling healthy demand for IQVIA’s Reports services.
Fourth-quarter GAAP Net Income was $437 million, down 6.8 percent year-over-year, with GAAP Diluted Earnings per Share (EPS) declining 4.7 percent to $2.42. However, Adjusted Net Income increased 7.8 percent year-over-year to $564 million, and Adjusted Diluted EPS rose 9.9 percent to $3.12. Adjusted EBITDA for the quarter was $996 million, up 3.1 percent year-over-year, reflecting the company’s focus on operational efficiency and cost management.
Full-Year 2024 Operating Results
For the full year of 2024, IQVIA Reports achieved revenue of $15,405 million, representing a 2.8 percent increase on a reported basis and a 3.4 percent rise at constant currency compared to 2023. Each segment contributed to this growth:
- Technology & Analytics Solutions (TAS): Revenue grew to $6,160 million, up 5.1 percent on a reported basis and 5.7 percent at constant currency. The segment’s performance underscores the increasing adoption of data-driven solutions in the life sciences industry.
- Research & Development Solutions (R&DS): Revenue reached $8,527 million, increasing 1.6 percent on a reported basis and 2.0 percent at constant currency. Excluding pass-throughs, R&DS demonstrated steady growth, driven by strong demand for clinical research services.
- Contract Sales & Medical Solutions (CSMS): Revenue totaled $718 million, declining 1.2 percent on a reported basis but rising 1.4 percent at constant currency. The segment’s performance reflects ongoing efforts to adapt to evolving client needs.
GAAP Net Income for the full year was $1,373 million, up 1.1 percent year-over-year, with GAAP Diluted EPS increasing 2.7 percent to $7.49. Adjusted Net Income rose 7.4 percent year-over-year to $2,042 million, and Adjusted Diluted EPS grew 9.1 percent to $11.13. Adjusted EBITDA for the full year was $3,684 million, up 3.2 percent year-over-year, highlighting IQVIA’s Reports ability to deliver consistent profitability.
Financial Position and Share Repurchase Program
IQVIA Reports maintained a strong financial position as of December 31, 2024. Cash and cash equivalents totaled $1,702 million, while debt stood at $13,983 million, resulting in net debt of $12,281 million. The company’s Net Leverage Ratio was 3.33x trailing twelve-month Adjusted EBITDA, reflecting disciplined capital management.
Operating Cash Flow for the fourth quarter was $885 million, with Free Cash Flow reaching $721 million. For the full year, Operating Cash Flow was $2,716 million, and Free Cash Flow was $2,114 million, representing year-over-year growth of 26 percent and 41 percent, respectively. This strong cash generation enabled IQVIA Reports to execute its strategic priorities, including share repurchases and debt reduction.
During the fourth quarter of 2024, IQVIA repurchased $1,150 million of its common stock, bringing full-year repurchases to $1,350 million. As of December 31, 2024, the company had $1,013 million of share repurchase authorization remaining. On February 5, 2025, the IQVIA board of directors increased the share repurchase authorization by $2,000 million, bringing the total remaining authorization to $3,013 million. This move underscores IQVIA’s commitment to returning value to shareholders while maintaining financial flexibility.
Full-Year 2025 Guidance
IQVIA reaffirmed its 2025 outlook, which includes the following key expectations:
- Revenue Growth: The company anticipates revenue growth of 4 to 7 percent at constant currency, excluding the impact of COVID-related revenues. This translates to full-year revenue guidance of $15,725 million to $16,125 million.
- Adjusted EBITDA Margin Expansion: IQVIA expects Adjusted EBITDA margin expansion of up to 20 basis points, reflecting continued operational efficiency and cost discipline.
- Adjusted Diluted EPS Growth: The company forecasts Adjusted Diluted EPS growth of 5 to 9 percent, with guidance ranging from $11.70 to $12.10.
These projections underscore IQVIA’s confidence in its ability to drive sustainable growth and deliver value to stakeholders in the coming year.
Navigating Challenges and Building Momentum
IQVIA’s performance in 2024 highlights its ability to navigate a dynamic and competitive market environment. Despite challenges in the CRO sector, the company achieved strong bookings and revenue growth, particularly in its TAS segment. The continued expansion of its backlog demonstrates sustained demand for IQVIA’s services, positioning the company for long-term success.
The integration of advanced analytics, artificial intelligence, and machine learning into its offerings has been a key driver of growth. Clients increasingly rely on IQVIA’s expertise to harness the power of data and technology, enabling them to make informed decisions and accelerate innovation. This trend is expected to continue as the life sciences industry embraces digital transformation.
IQVIA’s focus on operational excellence and disciplined capital allocation has also strengthened its financial position. By repurchasing shares and reducing leverage, the company has enhanced shareholder value while maintaining the flexibility to invest in future growth opportunities.
A Bright Future for IQVIA
As IQVIA enters 2025, the company is well-positioned to capitalize on favorable industry trends and expand its leadership in the life sciences and healthcare sectors. Its reaffirmed guidance reflects confidence in its ability to deliver consistent financial performance and execute its strategic priorities.
The company’s emphasis on innovation, coupled with its deep industry expertise, positions IQVIA to address the evolving needs of its clients. Whether through cutting-edge analytics, comprehensive clinical research services, or tailored commercial solutions, IQVIA remains committed to driving better outcomes for patients and stakeholders alike.
In conclusion, IQVIA’s strong fourth-quarter and full-year 2024 results underscore its resilience and growth potential. By leveraging its strengths in technology, analytics, and clinical research, the company is poised to continue delivering value to clients, shareholders, and the broader healthcare ecosystem. With a clear vision for the future and a robust pipeline of opportunities, IQVIA is set to remain a leader in transforming healthcare through data-driven insights and innovative solutions.
