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Item 1. Financial Statements

2025-05-06 compared with 2024-10-31 · 131 added, 178 removed, 415 unchanged (43% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share data) 2025 2024

7 unchanged sentences

Interest expense 165 166

Other expense (income), net 44 ( 35 ) ( 12 ) ( 77 )

Income before income taxes and equity in earnings of unconsolidated affiliates 349 349 1,125 1,086

Loss on extinguishment of debt 4 —

Other expense, net 15 11

Income before income taxes and equity in losses of unconsolidated affiliates 323 340

Income tax expense 61 49

Income before equity in earnings of unconsolidated affiliates 284 298 936 883

Equity in earnings of unconsolidated affiliates 1 5 — 6

Income before equity in losses of unconsolidated affiliates 262 291

Equity in losses of unconsolidated affiliates ( 13 ) ( 3 )

Net income $ 249 $ 288

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

2 unchanged sentences

Unrealized (losses) gains on derivative instruments, net of income tax (benefit) expense of $( 5 ),$ 12

( 41 ) 2 8 34

Defined benefit plan adjustments, net of income tax expense of $ — , $ —

( 1 ) — ( 1 ) 1

Foreign currency translation, net of income tax (benefit) expense of $( 46 ),$ 37

173 ( 136 ) 62 ( 170 )

Reclassification adjustments:

Reclassifications on derivative instruments included in net income, net of income tax (expense) of $ — ,$( 3 )

( 8 ) ( 9 ) ( 28 ) ( 41 )

Comprehensive income $ 309 $ 244

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share data) September 30, 2024 December 31, 2023

(in millions, except per share data) March 31, 2025 December 31, 2024

Current assets:

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Stockholders’ equity:

Common stock and additional paid-in capital, 400.0 shares authorized as of September 30, 2024 and December 31, 2023, $ 0.01 par value, 258.1 shares issued and 181.6 shares outstanding as of September 30, 2024;

Common stock and additional paid-in capital, 400.0 shares authorized as of March 31, 2025 and December 31, 2024, $ 0.01 par value, 258.5 shares issued and 174.1 shares outstanding as of March 31, 2025;

258.2 shares issued and 176.1 shares outstanding as of December 31, 2024

1 unchanged sentence

Retained earnings 6,314 6,065

Treasury stock, at cost, 76.5 and 75.7 shares as of September 30, 2024 and December 31, 2023, respectively

Treasury stock, at cost, 84.4 and 82.1 shares as of March 31, 2025 and December 31, 2024, respectively

( 10,532 ) ( 10,103 )

Accumulated other comprehensive loss ( 978 ) ( 1,038 )

Equity attributable to IQVIA Holdings Inc.’s stockholders 5,977 6,067

Noncontrolling interests 8 —

Total stockholders’ equity 5,985 6,067

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

5 unchanged sentences

Stock-based compensation 72 56

Earnings from unconsolidated affiliates — ( 6 )

Gain on investments, net ( 29 ) ( 5 )

Losses from unconsolidated affiliates 13 3

Loss (gain) on investments, net 1 ( 12 )

Benefit from deferred income taxes ( 41 ) ( 66 )

6 unchanged sentences

Acquisition of businesses, net of cash acquired ( 134 ) ( 142 )

Purchases of marketable securities, net — ( 4 )

Sales (purchases) of marketable securities, net 2 ( 1 )

Investments in unconsolidated affiliates, net of payments received ( 13 ) ( 24 )

Investments in debt and equity securities ( 19 ) ( 2 )

Proceeds from sale of property, equipment and software 25 —

Other ( 2 ) 4

Net cash used in investing activities ( 305 ) ( 314 )

8 unchanged sentences

Contingent consideration and deferred purchase price payments ( 6 ) ( 3 )

Net cash (used in) provided by financing activities ( 503 ) 38

Net cash used in financing activities ( 258 ) ( 106 )

Effect of foreign currency exchange rate changes on cash 33 ( 34 )

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions) Common Stock Shares Treasury Stock Shares Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income Total

(in millions) Common Stock Shares Treasury Stock Shares Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income Noncontrolling

Interests Total

Balance, December 31, 2024 258.2 ( 82.1 ) $ 3 $ 11,140 $ 6,065 $ ( 10,103 ) $ ( 1,038 ) $ — $ 6,067

Issuance of common stock 0.3 — — ( 35 ) — — — — ( 35 )

Stock-based compensation — — — 49 — — — 49

Net income — — — — 288 — — 288

Unrealized gains on derivative instruments, net of tax — — — — — — 34 34

Foreign currency translation, net of tax — — — — — — ( 69 ) ( 69 )

Reclassification adjustments, net of tax — — — — — — ( 9 ) ( 9 )

Balance, March 31, 2024 257.9 ( 75.7 ) 3 11,013 4,980 ( 8,741 ) ( 911 ) 6,344

Issuance of common stock 0.1 — — 1 — — — 1

Stock-based compensation — — — 44 — — — 44

Net income — — — — 363 — — 363

Unrealized gains on derivative instruments, net of tax — — — — — — 15 15

Foreign currency translation, net of tax — — — — — — ( 42 ) ( 42 )

Reclassification adjustments, net of tax — — — — — — ( 11 ) ( 11 )

Balance, June 30, 2024 258.0 ( 75.7 ) 3 11,058 5,343 ( 8,741 ) ( 949 ) 6,714

Issuance of common stock 0.1 — — ( 1 ) — — — ( 1 )

Repurchase of common stock, net of tax — ( 2.3 ) — — — ( 429 ) — — ( 429 )

Stock-based compensation — — — 65 — — — — 65

Acquisitions related noncontrolling interests — — — — — — — 8 8

Net income — — — — 249 — — — 249

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Reclassification adjustments, net of tax — — — — — — 1 — 1

Balance, September 30, 2024 258.1 ( 76.5 ) $ 3 $ 11,103 $ 5,628 $ ( 8,941 ) $ ( 826 ) $ 6,967

The accompanying notes are an integral part of these condensed consolidated financial statements.

IQVIA HOLDINGS INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions) Common Stock Shares Treasury Stock Shares Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income Total

Balance, March 31, 2025 258.5 ( 84.4 ) $ 3 $ 11,170 $ 6,314 $ ( 10,532 ) $ ( 978 ) $ 8 $ 5,985

(in millions) Common Stock Shares Treasury Stock Shares Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income Noncontrolling

Interests Total

Balance, December 31, 2023 257.2 ( 75.7 ) $ 3 $ 11,025 $ 4,692 $ ( 8,741 ) $ ( 867 ) $ — $ 6,112

Issuance of common stock 0.7 — — ( 61 ) — — — — ( 61 )

Repurchase of common stock — ( 0.7 ) — — — ( 129 ) — ( 129 )

Stock-based compensation — — — 49 — — — — 49

1 unchanged sentence

Unrealized gains on derivative instruments, net of tax — — — — — — 34 — 34

Defined benefit plan adjustments, net of tax — — — — — — 1 1

Foreign currency translation, net of tax — — — — — — ( 69 ) — ( 69 )

1 unchanged sentence

Balance, March 31, 2024 257.9 ( 75.7 ) $ 3 $ 11,013 $ 4,980 $ ( 8,741 ) $ ( 911 ) $ — $ 6,344

Issuance of common stock 0.1 — — — — — — —

Repurchase of common stock, net of tax — ( 2.5 ) — — — ( 495 ) — ( 495 )

Stock-based compensation — — — 43 — — — 43

Net income — — — — 297 — — 297

Unrealized gains on derivative instruments, net of tax — — — — — — 22 22

Foreign currency translation, net of tax — — — — — — ( 44 ) ( 44 )

Reclassification adjustments, net of tax — — — — — — ( 7 ) ( 7 )

Balance, June 30, 2023 257.0 ( 73.9 ) 3 10,949 3,920 ( 8,364 ) ( 760 ) 5,748

Issuance of common stock 0.1 — — — — — — —

Repurchase of common stock, net of tax — ( 0.7 ) — — — ( 145 ) — ( 145 )

Stock-based compensation — — — 42 — — — 42

Net income — — — — 303 — — 303

Unrealized gains on derivative instruments, net of tax — — — — — — 2 2

Foreign currency translation, net of tax — — — — — — ( 136 ) ( 136 )

Reclassification adjustments, net of tax — — — — — — ( 9 ) ( 9 )

Balance, September 30, 2023 257.1 ( 74.6 ) $ 3 $ 10,991 $ 4,223 $ ( 8,509 ) $ ( 903 ) $ 5,805

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Recently Issued Accounting Standards

Accounting pronouncements issued but not adopted as of September 30, 2024

Accounting pronouncements recently adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

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It does not change the definition of a segment or the guidance for determining reportable segments.

The new guidance is effective for the Company in the annual period beginning January 1, 2024 and in 2025 for interim periods.

Adoption of this ASU will result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows.

The new guidance was effective for the Company in the annual period beginning January 1, 2024, and in 2025 for interim periods.

The adoption of this new accounting guidance for the annual period beginning January 1, 2024, and for the three months ended March 31, 2025, did not have a material effect on the Company's disclosures within the consolidated financial statements.

Accounting pronouncements issued but not adopted as of March 31, 2025

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

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The amendments in this ASU require additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table.

The new guidance will be effective for the Company in the annual period beginning January 1, 2025.

The new guidance is effective for the Company in the annual period beginning January 1, 2025.

The Company is assessing the impacts of this ASU on its disclosures within the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE) , to improve the disclosures about an entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions.

The new guidance requires additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, and will be effective for the Company in the annual period beginning January 1, 2027, and interim periods beginning January 1, 2028.

The Company is assessing the impacts of this ASU on its disclosures within the consolidated financial statements.

Revenues by Geography, Concentration of Credit Risk and Remaining Performance Obligations

The following tables represent revenues by geographic region and reportable segment for the three and nine months ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Total

Americas $ 797 $ 969 $ 72 $ 1,838

Europe and Africa 626 607 54 1,287

Asia-Pacific 131 586 54 771

Total revenues $ 1,554 $ 2,162 $ 180 $ 3,896

Three Months Ended September 30, 2023

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Total

Americas $ 761 $ 1,017 $ 78 $ 1,856

Europe and Africa 519 520 50 1,089

Asia-Pacific 151 585 55 791

Total revenues $ 1,431 $ 2,122 $ 183 $ 3,736

Nine Months Ended September 30, 2024

The following tables represent revenues by geographic region and reportable segment for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Total

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Total revenues $ 1,546 $ 2,102 $ 181 $ 3,829

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Total

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Total revenues $ 1,453 $ 2,095 $ 189 $ 3,737

No individual customer represented 10% or more of consolidated revenues for the three and nine months ended September 30, 2024 or 2023.

No individual customer represented 10% or more of consolidated revenues for the three months ended March 31, 2025 or 2024.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2024, approximately $ 33.3 billion of revenues are expected to be recognized in the future from remaining performance obligations.

As of March 31, 2025, approximately $ 34.9 billion of revenues are expected to be recognized in the future from remaining performance obligations.

The Company expects to recognize revenues on approximately 30 % of these remaining performance obligations over the next twelve months , on approximately 85 % over the next five years, with the balance recognized thereafter.

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Trade accounts receivables and unbilled services consist of the following:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Trade accounts receivable $ 1,409 $ 1,390

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Unbilled services and unearned income were as follows:

(in millions) September 30, 2024 December 31, 2023 Change

(in millions) March 31, 2025 December 31, 2024 Change

Unbilled services $ 1,896 $ 1,856 $ 40

1 unchanged sentence

Net balance $ ( 44 ) $ 77 $ ( 121 )

Unbilled services, which is comprised of approximately 67 % and 68 % of unbilled receivables and 33 % and 32 % of contract assets as of September 30, 2024 and December 31, 2023, respectively, increased by $ 119 million as compared to December 31, 2023.

Unbilled services, which is comprised of approximately 69 % of unbilled receivables and 31 % of contract assets as of March 31, 2025 and December 31, 2024, increased by $ 40 million as compared to December 31, 2024.

Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time.

Unearned income increased by $ 25 million over the same period resulting in an increase of $ 94 million in the net balance of unbilled services and unearned income between September 30, 2024 and December 31, 2023.

Unearned income increased by $ 161 million over the same period resulting in a decrease of $ 121 million in the net balance of unbilled services and unearned income between March 31, 2025 and December 31, 2024.

The change in the net balance is driven by the difference in timing of revenue recognition in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , primarily related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is based on certain milestones.

The majority of the unearned income balance as of the beginning of the year is expected to be recognized in revenues during the year ended December 31, 2025.

Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three and nine months ended September 30, 2024 and 2023.

Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three months ended March 31, 2025 and 2024.

Accounts Receivable Factoring Arrangements

The Company has accounts receivable factoring agreements to sell certain eligible unsecured trade accounts receivable, either based on automatic arrangements or at its option, without recourse, to unrelated third-party financial institutions for cash.

During the nine months ended September 30, 2024, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $ 531 million of customer invoices on a non-recourse basis and received approximately $ 520 million in cash proceeds from the sales.

During the three months ended March 31, 2025, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $ 167 million of customer invoices on a non-recourse basis and received approximately $ 166 million in cash proceeds from the sales.

During the three months ended March 31, 2024, through these same accounts receivable factoring arrangements, the Company factored approximately $ 211 million of customer invoices on a non-recourse basis and received approximately $ 206 million in cash proceeds from the sales.

The fees associated with these transactions were immaterial.

The Company has other accounts receivable arrangements for which the activity associated with them is immaterial.

The following is a summary of goodwill by reportable segment for the nine months ended September 30, 2024:

The following is a summary of goodwill by reportable segment for the three months ended March 31, 2025:

(in millions) Technology & Analytics Solutions Research & Development Solutions Contract Sales & Medical Solutions Consolidated

2 unchanged sentences

Impact of foreign currency fluctuations and other 210 7 2 219

Balance as of September 30, 2024 $ 12,314 $ 2,625 $ 152 $ 15,091

Balance as of March 31, 2025 $ 12,265 $ 2,615 $ 147 $ 15,027

The fair values of the Company’s derivative instruments and the line items on the accompanying condensed consolidated balance sheets to which they were recorded are summarized in the following table:

(in millions) Balance Sheet Classification September 30, 2024 December 31, 2023

(in millions) Balance Sheet Classification March 31, 2025 December 31, 2024

Assets Liabilities Notional Assets Liabilities Notional

Derivatives designated as hedging instruments:

Interest rate swaps Other current assets, other assets and other current liabilities $ — $ 70 $ 2,489 $ 13 $ 51 $ 3,300

Cross-currency swaps Other current liabilities — 102 2,739 — 108 2,750

Interest rate swaps Other current liabilities $ — $ 31 $ 2,481 $ — $ 5 $ 2,485

Cross-currency swaps Other assets and other current liabilities — 94 2,731 39 — 2,735

Foreign exchange forward contracts Other current assets and other current liabilities 3 — 132 — 2 108

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The pre-tax effect of the Company’s cash flow hedging instruments on other comprehensive income is summarized in the following table:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

2 unchanged sentences

Total $ ( 21 ) $ 34

The Company expects approximately $ 21 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of September 30, 2024 to be reclassified into earnings within the next twelve months.

For the three and nine months ended September 30, 2024 and 2023, the total amount, net of income taxes, of the cash flow hedge effect on the accompanying condensed consolidated statements of income was $ 8 million and $ 9 million, and $ 28 million and $ 41 million, respectively.

As of September 30, 2024, the Company's cross-currency swaps were designated as a hedge of its net investment in certain foreign subsidiaries.

For the three and nine months ended September 30, 2024, the Company recorded a $( 101 ) million loss and $ 6 million gain, respectively, within AOCI as a result of these cross-currency swaps.

The Company recognized approximately $ 8 million and $ 26 million related to the excluded component as a reduction of interest expense for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2024, the portion of the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled € 2,564 million ($ 2,862 million).

The amount of foreign exchange (losses) gains related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the three and nine months ended September 30, 2024 and 2023 was $( 114 ) million, $( 26 ) million, $ 161 million, and $ 69 million, respectively.

The Company expects approximately $ 7 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of March 31, 2025 to be reclassified into earnings within the next twelve months.

For the three months ended March 31, 2025 and 2024, the total amount, net of income taxes, of the cash flow hedge effect on the accompanying condensed consolidated statements of income was $( 1 ) million and $ 9 million, respectively.

During the three months ended March 31, 2025, the Company terminated its existing cross-currency swap agreements and entered into new cross-currency swap agreements for the same purpose and with substantially similar terms as the previous swaps.

The new $ 1,250 million swaps expire in February 2029 at the time of the senior secured notes to which they are related, and the Company will receive semiannual interest payments on February 1 and August 1 from the counterparties based on a fixed interest rate until maturity of these agreements.

The new $ 1,485 million swaps expire in January 2031 at the time of the term loans to which they are related, and the Company will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of these agreements.

The notional amount of these swaps will decrease over time in connection with the related term loans.

The Company designated these new swap agreements as a hedge of its net investment in certain foreign subsidiaries.

As of March 31, 2025 and 2024, the Company's cross-currency swaps were designated as a hedge of its net investment in certain foreign subsidiaries.

For the three months ended March 31, 2025 and 2024, the Company recorded a $( 133 ) million loss and $ 56 million gain, respectively, within AOCI as a result of these cross-currency swaps.

The Company recognized approximately $ 12 million and $ 9 million related to the excluded component as a reduction of interest expense for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, the portion of the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled € 2,554 million ($ 2,764 million).

The amount of foreign exchange (losses) gains related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the three months ended March 31, 2025 and 2024 was $( 144 ) million and $ 68 million, respectively.

Fair Value Measurements

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This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of September 30, 2024 and December 31, 2023 due to their short-term nature.

As of September 30, 2024 and December 31, 2023, the fair value of total debt was $ 13,547 million and $ 13,597 million, respectively, as determined under Level 2 measurements for these financial instruments.

The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of March 31, 2025 and December 31, 2024 due to their short-term nature.

As of March 31, 2025 and December 31, 2024, the fair value of total debt was $ 14,276 million and $ 13,966 million, respectively, as determined under Level 2 measurements for these financial instruments.

Recurring Fair Value Measurements

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of September 30, 2024:

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of March 31, 2025:

(in millions) Level 1 Level 2 Level 3 Total

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Assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenues performance targets and operating forecasts) and the probability of achieving the specific targets.

Based on the assessments of the probability of achieving specific targets, as of September 30, 2024, the Company has accrued approximately 29 % of the maximum contingent consideration payments that could potentially become payable.

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the nine months ended September 30, 2024:

Based on the assessments of the probability of achieving specific targets, as of March 31, 2025 the Company has accrued approximately 84 % of the maximum contingent consideration payments that could potentially become payable.

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the three months ended March 31, 2025:

(in millions) Contingent Consideration

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Revaluations included in earnings and foreign currency translation adjustments 1

Balance as of September 30, 2024 $ 94

Balance as of March 31, 2025 $ 106

The current portion of contingent consideration is included within accrued expenses and the long-term portion is included within other liabilities on the accompanying condensed consolidated balance sheets.

Revaluations of contingent consideration are recognized in other expense (income), net on the accompanying condensed consolidated statements of income.

Revaluations of contingent consideration are recognized in other expense, net on the accompanying condensed consolidated statements of income.

A change in significant unobservable inputs could result in a higher or lower fair value measurement of contingent consideration.

Non-recurring Fair Value Measurements

As of September 30, 2024, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $ 20,112 million and were identified as Level 3.

As of March 31, 2025, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $ 19,882 million and were identified as Level 3.

These assets are comprised of debt investments and cost and equity method investments of $ 352 million, goodwill of $ 15,027 million and other identifiable intangibles, net of $ 4,503 million.

Credit Arrangements

The following is a summary of the Company’s revolving credit facilities as of September 30, 2024:

The following is a summary of the Company’s revolving credit facilities as of March 31, 2025:

Interest Rates

$ 2,000 million (revolving credit facility)

Dollar Term SOFR plus a margin of 1.25 % plus a 10 basis credit spread adjustment as of September 30, 2024

Dollar Term SOFR plus a margin of 1.25 % plus a 10 basis credit spread adjustment as of March 31, 2025

$ 110 million (receivables financing facility)

Dollar Term SOFR plus a margin of 0.90 % plus a 11 basis credit spread adjustment as of September 30, 2024

Dollar Term SOFR plus a margin of 1.00 % plus a 10 basis credit spread adjustment as of March 31, 2025

The following table summarizes the Company’s debt at the dates indicated:

(dollars in millions) September 30, 2024 December 31, 2023

(dollars in millions) March 31, 2025 December 31, 2024

Revolving Credit Facility due 2026:

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Dollar Term SOFR at average floating rates of 5.67 %

$ 1,100 $ 825

Senior Secured Credit Facilities:

Term A Loan due 2026—U.S.

Dollar Term SOFR at average floating rates of 6.20 %

Term A Loan due 2026—Euribor at average floating rates of 4.60 %

Dollar Term SOFR at floating rates of 5.67 %

Term A Loan due 2026—Euribor at floating rates of 3.61 %

Term A Loan due 2027—U.S.

Dollar Term SOFR at average floating rates of 6.41 %

Term B Loan due 2025—Euribor at average floating rates of 5.35 %

Dollar Term SOFR at floating rates of 5.66 %

Term B Loan due 2025—Euribor at floating rates of — %

Term B Loan due 2031—U.S.

Dollar Term SOFR at average floating rates of 6.60 %

Dollar Term SOFR at floating rates of — %

Term B Loan due 2031—U.S.

Dollar Term SOFR at floating rates of 6.05 %

5.700 % Senior Secured Notes due 2028—U.S.

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Receivables financing facility due 2027—U.S.

Dollar Term SOFR at average floating rates of 6.22 %:

Dollar Term SOFR at floating rates of 5.43 %:

Revolving Loan Commitment 110 110

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Long-term debt $ 13,108 $ 12,838

Contractual maturities of long-term debt as of September 30, 2024 are as follows:

Contractual maturities of long-term debt as of March 31, 2025 are as follows:

(in millions)

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Senior Secured Credit Facilities

As of September 30, 2024, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $ 6,688 million, which consisted of $ 4,693 million principal amounts of debt outstanding (as detailed in the table above), and $ 1,995 million of available borrowing capacity on the $ 2,000 million revolving credit facility and standby letters of credit.

On March 10, 2025, the Company entered into an Amendment (the “Amendment”) to its Fifth Amended and Restated Credit Agreement among IQVIA Inc., a wholly owned subsidiary of the Company, the Company, IQVIA RDS Inc., a wholly owned subsidiary of the Company, the other guarantors party thereto, Bank of America, N.A., as administrative agent and as collateral agent, and the Lenders (as defined therein) party thereto.

The Amendment, among other changes, established a new incremental Term B-5 dollar loan facility in an aggregate principal amount equal to $ 1,985 million (the “Incremental Term B-5 Dollar Facility”).

Proceeds of the Incremental Term B-5 Dollar Facility were applied to (a) refinance the existing Term B-4 dollar loans and (b) repay in full the existing Term B-2 Euro loans.

The interest rates for borrowings under the Incremental Term B-5 Dollar Facility are based on the Secured Overnight Financing Rate plus an applicable margin of 1.75 % per annum.

In connection with this Amendment, we recognized a $ 4 million loss on extinguishment of debt, which includes fees and related expenses.

As of March 31, 2025, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $ 6,511 million, which consisted of $ 5,616 million principal amounts of debt outstanding (as detailed in the table above), and $ 895 million of available borrowing capacity on the $ 2,000 million revolving credit facility and standby letters of credit.

The revolving credit facility is comprised of a $ 1,175 million senior secured revolving facility available in U.S.

2 unchanged sentences

dollars and Yen.

Receivables Financing Facility

On October 1, 2024, the Company amended its receivables financing facility to extend the term of the $550 million facility to October 1, 2027.

Under the receivables financing facility, certain of the Company's accounts receivable are sold on a non-recourse basis by certain of its consolidated subsidiaries (each, an “Originator”) to another of its consolidated subsidiaries, a bankruptcy-remote special purpose entity (the “SPE”).

The SPE obtained a term loan and revolving loan commitment from third-party lenders, secured by liens on the assets of the SPE, to finance the purchase of the accounts receivable, which includes a $ 440 million term loan and a $ 110 million revolving loan commitment.

As of September 30, 2024, no additional amounts of revolving loans were available under the receivables financing facility.

Restrictive Covenants

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The Company’s long-term debt arrangements contain other usual and customary restrictive covenants that, among other things, place limitations on the Company’s ability to declare dividends.

As of September 30, 2024, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

As of March 31, 2025, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements .

Contingencies

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The following is a summary of certain legal matters involving the Company.

On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, the Korean Pharmaceutical Association (“KPA”) and the Korean Pharmaceutical Information Center (“KPIC”).

The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies.

On September 11, 2017, the District Court issued a final decision that the encryption in use by the defendants since June 2014 was adequate to meet the requirements of the Korean Personal Information Protection Act (“PIPA”) and the sharing of non-identified information for market research purposes was allowed under PIPA.

The District Court also found an earlier version of encryption was insufficient to meet PIPA requirements, but no personal data had been leaked or re-identified.

The District Court did not award any damages to plaintiffs.

Approximately 280 medical doctors and 200 private individuals appealed the District Court decision.

On May 3, 2019, the Appellate Court issued a final decision in which it concluded all of the non-identified information transferred by KPIC to IMS Korea for market research purposes violated PIPA, but did not award any damages to plaintiffs (affirming the District Court’s decision on this latter point).

On May 24, 2019, approximately 247 plaintiffs appealed the Appellate Court’s decision to the Supreme Court.

On July 11, 2024, the Supreme Court dismissed plaintiffs’ appeal.

The Supreme Court's decision in favor of IMS Korea is final and conclusive.

On July 23, 2015, indictments were issued by the Seoul Central District Prosecutors’ Office in South Korea against 24 individuals and companies alleging improper handling of sensitive health information in violation of, among others, South Korea’s PIPA.

IMS Korea and two of its employees were among the individuals and organizations indicted.

Although there is no assertion that IMS Korea used patient identified health information in any of its offerings, prosecutors allege that certain of IMS Korea’s data suppliers should have obtained patient consent when they converted sensitive patient information into non-identified data and that IMS Korea had not taken adequate precautions to reduce the risk of re-identification.

On February 14, 2020, the Seoul Central District Court acquitted IMS Korea and its two employees of the charges of improper handling of sensitive health information, and the Prosecutor's Office appealed.

On December 23, 2021, the appellate court affirmed the judgment of the Seoul Central District Court.

The Prosecutor's Office appealed to the Supreme Court.

On July 11, 2024, the Supreme Court dismissed the appeal by the Prosecutor’s Office.

The Supreme Court's decision in favor of IMS Korea is final and conclusive.

On January 10, 2017, Quintiles IMS Health Incorporated and IMS Software Services Ltd.

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Since the initial filings, the parties have filed additional litigations against each other, primarily concerning the use of IQVIA data with various other Veeva products.

Trial has been scheduled for early 2025.

Trial has been continued from an early 2025 setting to a date to be determined by the Court.

On May 7, 2021, the Court issued an order and opinion (the “Order”) in which it found significant evidence that Veeva had (1) misappropriated IQVIA data and unlawfully used it to improve Veeva data offerings, (2) engaged in a cover-up by deleting significant evidence of its theft of IQVIA’s trade secrets, and (3) improperly withheld certain evidence under privilege in furtherance of a crime and/or fraud against IQVIA.

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The Company is authorized to issue 1.0 million shares of preferred stock, $ 0.01 per share par value.

No shares of preferred stock were issued or outstanding as of September 30, 2024 or December 31, 2023.

No shares of preferred stock were issued or outstanding as of March 31, 2025 or December 31, 2024.

Equity Repurchase Program

As of September 30, 2024, the total stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") was $ 11,725 million.

On February 5, 2025, the Company's Board of Directors increased the stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") with respect to the repurchase of the Company's common stock by an additional $ 2,000 million, which increased the total amount that has been authorized under the Repurchase Program to $ 13,725 million.

The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.

During the nine months ended September 30, 2024, the Company repurchased 0.8 million shares of its common stock for $ 200 million under the Repurchase Program.

As of September 30, 2024, the Company had remaining authorization to repurchase up to $ 2,163 million of its common stock under the Repurchase Program.

During the three months ended March 31, 2025, the Company repurchased 2.3 million shares of its common stock for $ 425 million under the Repurchase Program.

These amounts include 0.3 million of shares valued at $ 50 million, which were accrued for as of March 31, 2025 based on when the trade and settlement dates occurred.

As of March 31, 2025, inclusive of the accrued amounts, the Company had remaining authorization to repurchase up to $ 2,588 million of its common stock under the Repurchase Program.

In addition, from time to time, the Company has repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

Business Combinations

The Company completed several individually immaterial acquisitions during the nine months ended September 30, 2024.

The Company completed individually and in the aggregate immaterial acquisitions during the three months ended March 31, 2025.

Additionally, during the quarter the Company gained a controlling interest in, and therefore consolidated, an entity in which it previously held an investment in an unconsolidated affiliate.

The fair value of the net assets acquired through this step acquisition are included in the totals presented below, and the related fair value of noncontrolling interests of $ 8 million is reflected within the accompanying condensed consolidated financial statements.

The Company’s assessment of fair value, including the valuation of certain identified intangibles, and the purchase price allocation related to these acquisitions is preliminary and subject to change upon completion.

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The following table provides certain preliminary financial information for these acquisitions:

(in millions) September 30, 2024

(in millions) March 31, 2025

Assets acquired:

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Net assets acquired (1)

(1) Net assets acquired includes contingent consideration and deferred purchase price of $ 62 million.

(1) Net assets acquired includes contingent consideration and deferred purchase price of $ 6 million, and $ 24 million related to the step acquisition disclosed above.

The portion of goodwill deductible for income tax purposes was preliminarily assessed as $ 16 million.

The following table provides a summary of the preliminary estimated fair value of certain intangible assets acquired:

(in millions) Amortization Period September 30, 2024

(in millions) Amortization Period March 31, 2025

Other identifiable intangibles:

Customer relationships 9 - 17 years $ 55

Backlog 1 - 4 years 27

Backlog 1 year 7

Trade names 3 - 5 years 3

Software and related assets 3 - 5 years 6

Non-compete agreements 5 years 1

Databases 5 years 2

Total Other identifiable intangibles $ 66

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Foreign currency translation and other 1

Balance as of September 30, 2024 $ 46

Balance as of March 31, 2025 $ 28

The reversals were due to changes in estimates primarily resulting from the redeployment of staff and higher than expected voluntary terminations.

Restructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management.

The Company expects that the majority of the restructuring accruals as of September 30, 2024 will be paid in 2024 and 2025.

The Company's effective income tax rate was 18.6 % and 14.6 % in the third quarter of 2024 and 2023, and 16.8% and 18.7% in the first nine months of 2024 and 2023, respectively.

The effective income tax rate in the third quarter and in the first nine months of 2024 was favorably impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.

The effective income tax rate in the third quarter and first nine months of 2023 was favorably impacted by a reversal of uncertain tax positions relating to tax credit carryforwards in the amount of $21 million.

The effective income tax rate in the third quarter and in the first nine months of 2024 and 2023 was also favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For both the third quarter of 2024 and 2023 this impact was $ 2 million, and for the first nine months of 2024 and 2023 this impact was $ 14 million and $ 12 million, respectively.

Numerous foreign jurisdictions have agreed to implement the Organization for Economic Co-operation and Development’s (“OECD”) Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024.

The Company has continued to evaluate the effect of this through the end of the third quarter of 2024 and does not expect any material impacts for 2024.

The Company will continue to monitor in future periods as additional jurisdictions enact Pillar 2 legislation.

The Company expects that the majority of the restructuring accruals as of March 31, 2025 will be paid in 2025 and 2026.

The Company's effective income tax rate was 18.9 % and 14.4 % in the first quarter of 2025 and 2024, respectively.

The effective income tax rate in the first quarter of 2025 and 2024 was favorably impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.

The effective income tax rate in the first quarter of 2024 was also favorably impacted by $ 9 million, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

The effective income tax rate in the first quarter of 2025 was unfavorably impacted by $ 3 million of tax expense recognized upon settlement of share-based compensation awards.

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 2024.

The Company has continued to evaluate the effect of this through the first quarter of 2025 and determined that it did not have any material impacts for the current year.

The Company will continue to assess the impact of this proposal as countries are actively considering changes to their tax laws to adopt certain parts of the OECD's proposal.

Accumulated Other Comprehensive (Loss) Income

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Reclassification adjustments — 1 — — 1

Balance as of September 30, 2024 $ ( 894 ) $ ( 62 ) $ 2 $ 128 $ ( 826 )

Balance as of March 31, 2025 $ ( 1,059 ) $ ( 26 ) $ 12 $ 95 $ ( 978 )

Below is a summary of the adjustments for amounts reclassified from AOCI into the condensed consolidated statements of income and the affected financial statement line item:

(in millions) Affected Financial Statement Line Item Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

(in millions) Affected Financial Statement Line Item Three Months Ended March 31,

Derivative instruments:

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Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services.

Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical clients and the broader healthcare market.

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 and expenses related to integration activities and acquisitions.

Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical customers and the broader healthcare market.

Certain costs are not allocated to the Company's segments and are reported as general corporate and unallocated expenses.

These costs primarily consist of stock-based compensation and expenses related to integration activities and acquisitions, as well as certain general corporate and unallocated expenses.

The Company also does not allocate restructuring costs, depreciation and amortization or impairment charges, if any, to its segments.

Asset information by segment is not presented, as this measure is not used by the chief operating decision maker to assess the Company’s performance.

Asset information by segment is not presented, as this measure is not used by the chief executive officer, who is the chief operating decision maker ("CODM"), to assess the Company’s performance.

For all segments, the CODM uses segment revenue and segment profit in the annual budgeting and forecasting process.

The CODM considers budget-to-actual variances on a monthly and quarterly basis for both segment revenue and profit when making decisions about allocating operating and capital resources to the segments.

The CODM also uses segment revenue and profit to assess the performance for each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

The Company’s reportable segment information is presented below:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

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Contract Sales & Medical Solutions 14 16

General corporate and unallocated 59 54 147 162

Total selling, general and administrative expenses 522 502 1,539 1,497

Total selling, general and administrative expenses reportable segments 467 466

Segment profit

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Total segment profit 831 827

General corporate and unallocated ( 59 ) ( 54 ) ( 147 ) ( 162 )

General corporate and unallocated expenses ( 41 ) ( 42 )

Depreciation and amortization ( 265 ) ( 264 )

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Total income from operations 496 506

Interest income ( 11 ) ( 11 )

Interest expense 165 166

Loss on extinguishment of debt 4 —

Other expense, net 15 11

Income before income taxes and equity in losses of unconsolidated affiliates $ 323 $ 340

Earnings Per Share

The following table presents the computation of basic and diluted earnings per share:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except per share data) 2025 2024

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Performance awards are included in diluted earnings per share based on if the performance targets have been met at the end of the reporting period.

For the three and nine months ended September 30, 2024 and 2023, the weighted average number of outstanding stock-based awards not included in the computation of diluted earnings per share because they are subject to performance conditions that have not been met at the end of the reporting period or the effect of including such stock-based awards in the computation would be anti-dilutive was 1.0 million and 0.9 million, and 1.0 million and 1.0 million, respectively.

For the three months ended March 31, 2025 and 2024, the weighted average number of outstanding stock-based awards not included in the computation of diluted earnings per share because they are subject to performance conditions that have not been met at the end of the reporting period or the effect of including such stock-based awards in the computation would be anti-dilutive was 2.2 million and 0.8 million, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements