IQVIA Holdings (IQV Quick QuoteIQV - Free Report)  reported strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimates. Adjusted earnings of $3.34 per share, increasing 11.3% year over year and beating the Zacks Consensus Estimate of $3.24 by 3.1%. Revenues of $4.43 billion rose 8% year over year and surpassed the consensus mark of $4.37 billion by 1.4%.

The quarter benefited from broad-based segment growth, stronger clinical demand and improved execution. Research & Development Solutions recorded net new bookings of $3.2 billion, up 15% year over year, while the company raised its 2026 guidance.

IQV's Commercial Solutions Revenues Grow

Commercial Solutions revenues were $1.79 billion, increasing 6.9% on a reported basis and 7.9% at constant currency. The segment accounted for 40.4% of the total quarterly revenues.

Management highlighted favorable demand indicators across commercial operations, including expanding pipelines and increased adoption of artificial intelligence solutions. IQVIA deployed more than 400 AI agents to date, reflecting continued integration of AI-powered capabilities across its operations.

IQVIA's R&D Bookings Reflect Strong Demand

Research & Development Solutions revenues totaled $2.64 billion, advancing 8.7% on a reported basis and 9.1% at constant currency. Excluding reimbursed expenses, revenues increased 6.8% on a reported basis.

The segment's quarterly bookings represented a book-to-bill ratio of 1.2X. Trailing-12-month net new bookings increased 14% year over year to $11.7 billion, marking the company's strongest quarterly clinical bookings performance since 2022.

Contracted backlog stood at $32.6 billion as of Sept. 30, 2026, following a $2.1-billion adjustment related to inactive trials. The adjustment did not affect historical results, guidance or expected near-term backlog conversion. IQVIA expects $9.4 billion in backlog to convert into revenues over the next 12 months, representing 10% year-over-year growth.

IQV's Adjusted Profitability Improves

Adjusted EBITDA increased 8.7% year over year to $1.03 billion from $949 million. The adjusted EBITDA margin was 23.3%, modestly above the year-ago level of 23.1%.

Adjusted net income increased to $557 million from $515 million. The improvement reflected stronger operating performance and continued margin expansion.

GAAP net income attributable to IQVIA rose to $350 million from $331 million. GAAP earnings increased to $2.10 per share from $1.93 in the prior-year quarter, contrasting with stronger growth in adjusted earnings.

IQVIA's Operating Costs Remain Elevated

Cost of revenues increased to $2.93 billion from $2.73 billion in the year-ago quarter. Selling, general and administrative expenses climbed to $569 million from $514 million, while depreciation and amortization rose to $321 million from $286 million.

Restructuring costs increased to $36 million from $20 million. Consequently, GAAP income from operations rose to $572 million from $553 million, representing growth of 3.4%, below the pace of revenue expansion.

Interest expenses increased to $203 million from $189 million. These higher operating and financing costs partially offset the benefits of revenue growth and improved adjusted profitability.

IQV's Cash Flow Remains Strong

The third-quarter operating cash flow totaled $825 million compared with $908 million in the year-ago quarter. The free cash flow declined to $667 million from $772 million, following $158 million in property, equipment and software expenditure.

For the first nine months of 2026, the operating cash flow was $2 billion compared with $1.92 billion a year earlier. The free cash flow increased to $1.52 billion from $1.49 billion, supporting continued financial flexibility.

IQVIA's Balance Sheet Shows Lower Leverage

IQV ended September with $2.25 billion in cash and cash equivalents, and $16.07 billion in debt. Net debt stood at $13.82 billion, while the net leverage ratio was 3.45X trailing-12-month adjusted EBITDA.

The current portion of long-term debt declined to $1.24 billion from $1.84 billion at the end of 2025. Long-term debt, excluding the current portion, stood at $14.82 billion compared with $13.88 billion at the end of 2025.

IQV Raises Its 2026 Financial Outlook

IQVIA hiked its 2026 revenue guidance to $17.35-$17.50 billion from the preceding quarter’s $17.27-$17.47 billion. The mid-point ($17.42 billion) of the guided range is higher than the Zacks Consensus Estimate of $17.4 billion. The updated outlook incorporates approximately 250 basis points of contributions from acquisitions, including transactions expected to close by year-end, and a foreign-exchange tailwind of about 20 basis points.

The adjusted EBITDA guidance increased to $4.03-$4.06 billion. The company also updated its adjusted earnings forecast to $12.9-$13 per share from the preceding quarter’s $12.8-$13, reflecting its stronger operating performance and improving business outlook. The mid-point ($12.95) of the outlook is higher than the Zacks Consensus Estimate of $12.92.

IQV carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Equifax’s (EFX Quick QuoteEFX - Free Report) third-quarter 2026 earnings beat the Zacks Consensus Estimate, while revenues met the same.

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