What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-07-22 compared with 2025-05-06 · 139 added, 76 removed, 220 unchanged (49% of the section changed)

55 unchanged sentences

Foreign Currency Translation

In the first three months of 2025, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

In the first six months of 2025, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations.

6 unchanged sentences

For information regarding our results of operations for Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions, refer to “Segment Results of Operations” later in this section.

Three Months Ended March 31, Change

Three Months Ended June 30, Change

(in millions)

Revenues $ 4,017 $ 3,814 $ 203 5.3 %

For the first quarter of 2025, our revenues increased $92 million, or 2.5%, as compared to the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $129 million, or 3.5%, reflecting a $110 million increase in Technology & Analytics Solutions, a $23 million increase in Research & Development Solutions, and a $4 million decrease in Contract Sales & Medical Solutions.

For the second quarter of 2025, our revenues increased $203 million, or 5.3%, as compared to the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $139 million, or 3.6%, reflecting a $101 million increase in Technology & Analytics Solutions, a $27 million increase in Research & Development Solutions, and an $11 million increase in Contract Sales & Medical Solutions.

Six Months Ended June 30, Change

(in millions)

Revenues $ 7,846 $ 7,551 $ 295 3.9 %

For the first six months of 2025, our revenues increased $295 million, or 3.9%, as compared to the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $268 million, or 3.5%, reflecting a $211 million increase in Technology & Analytics Solutions, a $50 million increase in Research & Development Solutions, and a $7 million increase in Contract Sales & Medical Solutions.

Cost of Revenues, exclusive of Depreciation and Amortization

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

1 unchanged sentence

% of revenues 67.1 % 65.2 % 66.6 % 65.3 %

The $87 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended March 31, 2025 as compared to the same period in 2024 included a constant currency increase of approximately $137 million, or 5.6%, reflecting a $75 million increase in Technology & Analytics Solutions, a $63 million increase in Research & Development Solutions, and a $1 million decrease in Contract Sales & Medical Solutions.

The $206 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended June 30, 2025 as compared to the same period in 2024 included a constant currency increase of approximately $171 million, or 6.9%, reflecting an $84 million increase in Technology & Analytics Solutions, a $78 million increase in Research & Development Solutions, and a $9 million increase in Contract Sales & Medical Solutions.

The $293 million increase in cost of revenues, exclusive of depreciation and amortization, for the six months ended June 30, 2025 as compared to the same period in 2024 included a constant currency increase of approximately $308 million, or 6.2%, reflecting a $159 million increase in Technology & Analytics Solutions, a $141 million increase in Research & Development Solutions, and an $8 million increase in Contract Sales & Medical Solutions.

Selling, General and Administrative Expenses

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions)

2025 2024 2025 2024

Selling, general and administrative expenses $ 509 $ 509 $ 1,017 $ 1,017

1 unchanged sentence

12.7 % 13.3 % 13.0 % 13.5 %

Selling, general and administrative expenses for the three months ended March 31, 2025 were consistent with the same period in 2024.

At constant currency, selling, general and administrative expenses increased approximately $8 million, or 1.6%, reflecting a $12 million increase in Technology & Analytics Solutions, a $3 million decrease in Research & Development Solutions, a $2 million decrease in Contract Sales & Medical Solutions, and a $1 million increase in general corporate and unallocated expenses.

Selling, general and administrative expenses for the three months ended June 30, 2025 were consistent with the same period in 2024.

At constant currency, selling, general and administrative expenses decreased approximately $7 million, or 1.4%, reflecting a $1 million increase in Technology & Analytics Solutions, a $4 million increase in Research & Development Solutions, no change in Contract Sales & Medical Solutions, and a $12 million decrease in general corporate and unallocated expenses.

Selling, general and administrative expenses for the six months ended June 30, 2025 were consistent with the same period in 2024.

At constant currency, selling, general and administrative expense increased approximately $1 million, or 0.1%, reflecting a $13 million increase in Technology & Analytics Solutions, a $1 million increase in Research & Development Solutions, a $2 million decrease in Contract Sales & Medical Solutions, and an $11 million decrease in general corporate and unallocated expenses.

Depreciation and Amortization

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

1 unchanged sentence

% of revenues

Depreciation and amortization was relatively consistent for the three months ended March 31, 2025 compared to the same period in 2024.

6.9 % 7.1 % 6.9 % 7.1 %

The $7 million and $8 million increase in depreciation and amortization for the three and six months ended June 30, 2025 compared to the same periods in 2024 is mainly related to an increase in amortization of capitalized software costs.

Restructuring Costs

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

3 unchanged sentences

Interest Income and Interest Expense

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

2 unchanged sentences

Interest income includes interest received primarily from bank balances and investments.

Interest expense during the three months ended March 31, 2025, decreased compared to the same period in 2024 as a result of lower base rate interest costs across the floating rate debt portfolio.

Other Expense, Net

Three Months Ended March 31,

Interest income during the three and six months ended June 30, 2025 decreased compared to the same periods in 2024 primarily as a result of lower interest rates.

Interest expense during the three and six months ended June 30, 2025 increased compared to the same periods in 2024 as a result of higher outstanding debt balances.

Other Expense (Income), Net

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

Other expense, net $ 15 $ 11

Other expense, net for the three months ended March 31, 2025 was relatively consistent compared to the same period in 2024.

Other expense (income), net $ 11 $ (67) $ 26 $ (56)

Other expense (income), net for the three and six months ended June 30, 2025 increased compared to the same periods in 2024 primarily due to less revaluations of contingent consideration arrangements and to a lesser extent from foreign currency loss on transactions.

Income Tax Expense

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

Income tax expense $ 56 $ 75 $ 117 $ 124

Our effective income tax rate was 18.9% and 14.4% in the first quarter of 2025 and 2024, respectively.

Our 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.

Our 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.

Our 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.

Our effective income tax rate was 17.3% and 17.2% in the second quarter of 2025 and 2024, respectively.

Our effective income tax rate was 18.1% and 16.0% in the first six months of 2025 and 2024, respectively.

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

Our effective income tax rate in the second quarter and in the first six months of 2024 was also favorably impacted by $3 million and $12 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

Our effective income tax rate in the second quarter and in the first six months of 2025 was unfavorably impacted by $0 million and $3 million, respectively, of tax expense recognized upon settlement of share-based compensation awards.

On July 4, 2025, the U.S.

government enacted the One Big Beautiful Bill Act ("OBBBA"), which includes several changes to U.S.

federal income tax law, including the temporary and permanent extension, of expiring provisions of the Tax Cuts and Jobs Act of 2017.

We are assessing these impacts on our consolidated financial statements.

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.

We have 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.

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

We 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.

Equity in Losses of Unconsolidated Affiliates

Three Months Ended March 31,

Equity in (Losses) Earnings of Unconsolidated Affiliates

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2025 2024 2025 2024

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

Equity in losses of unconsolidated affiliates increased in 2025 compared to 2024 due to the results in the operations of our unconsolidated affiliates.

Equity in (losses) earnings of unconsolidated affiliates $ (1) $ 2 $ (14) $ (1)

Equity in (losses) earnings of unconsolidated affiliates for the three and six months ended June 30, 2025, increased compared to the same periods in 2024, due to the results in the operations of our unconsolidated affiliates.

Segment Results of Operations

Revenues and profit by segment are as follows:

Three Months Ended March 31, 2025 and 2024

Three Months Ended June 30, 2025 and 2024

Segment Revenues Segment Profit

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Consolidated $ 4,017 $ 3,814 $ 506 $ 520

Six Months Ended June 30, 2025 and 2024

Segment Revenues Segment Profit

(in millions) 2025 2024 2025 2024

Technology & Analytics Solutions $ 3,174 $ 2,948 $ 749 $ 696

Research & Development Solutions 4,303 4,242 911 972

Contract Sales & Medical Solutions 369 361 23 22

Total 7,846 7,551 1,683 1,690

General corporate and unallocated expenses (79) (88)

Depreciation and amortization (541) (533)

Restructuring costs (61) (43)

Consolidated $ 7,846 $ 7,551 $ 1,002 $ 1,026

Certain costs are not allocated to our segments and are reported as general corporate and unallocated expenses.

2 unchanged sentences

Technology & Analytics Solutions

Three Months Ended March 31, Change

Three Months Ended June 30, Change

(in millions) 2025 2024 $ %

3 unchanged sentences

Segment profit $ 389 $ 361 $ 28 7.8 %

Technology & Analytics Solutions’ revenues were $1,546 million for the first quarter of 2025, an increase of $93 million, or 6.4%, over the same period in 2024.

Six Months Ended June 30, Change

(in millions) 2025 2024 $ %

Revenues $ 3,174 $ 2,948 $ 226 7.7 %

Cost of revenues, exclusive of depreciation and amortization 1,958 1,798 160 8.9

Selling, general and administrative expenses 467 454 13 2.9

Segment profit $ 749 $ 696 $ 53 7.6 %

Technology & Analytics Solutions’ revenues were $1,628 million for the second quarter of 2025, an increase of $133 million, or 8.9%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $101 million, or 6.8%, reflecting revenue growth primarily in the Europe and Africa and Americas regions.

Technology & Analytics Solutions’ revenues were $3,174 million for the first six months of 2025, an increase of $226 million, or 7.7%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $211 million, or 7.2%, reflecting revenue growth primarily in the Europe and Africa region and to a lesser extent in the Americas region.

The constant currency revenue growth for the three months ended March 31, 2025 was primarily driven by an increase in information and technology services and to a lesser extent by real world services.

The constant currency revenue growth for the three and six months ended June 30, 2025 was primarily driven by an increase in real world services and to a lesser extent by information and technology services.

Cost of Revenues, exclusive of Depreciation and Amortization

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $60 million, or 6.7%, in the first quarter of 2025 over the same period in 2024.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $100 million, or 11.0%, in the second quarter of 2025 over the same period in 2024.

This increase included a constant currency increase of approximately $84 million, or 9.2%.

The constant currency increase for the three months ended March 31, 2025 was primarily related to an increase in compensation and related expenses, and in reimbursed expenses to support revenue growth.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $160 million, or 8.9%, in the first six months of 2025 over the same period in 2024.

This increase included a constant currency increase of approximately $159 million, or 8.8%.

The constant currency increase for the three and six months ended June 30, 2025 was primarily related to an increase in reimbursed expenses and to a lesser extent in compensation and related expenses to support revenue growth.

Selling, General and Administrative Expenses

Technology & Analytics Solutions’ selling, general and administrative expenses increased $8 million, or 3.5%, in the first quarter of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $12 million, or 5.2%.

The constant currency increase for the three months ended March 31, 2025 was primarily related to an increase in compensation and related expenses.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $5 million, or 2.2%, in the second quarter of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $1 million, or 0.4%.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $13 million, or 2.9%, in the first six months of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $13 million, or 2.9%.

The constant currency increase for the six months ended June 30, 2025 was primarily related to an increase in IT-related expenses.

Research & Development Solutions

Three Months Ended March 31, Change

Three Months Ended June 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 451 $ 493 $ (42) (8.5) %

Research & Development Solutions’ contracted backlog increased from $31.1 billion as of December 31, 2024 to $31.5 billion as of March 31, 2025, and we expect approximately $7.9 billion of this backlog to convert to revenues in the next twelve months.

Research & Development Solutions’ revenues were $2,102 million for the first quarter of 2025, an increase of $7 million, or 0.3%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $23 million, or 1.1%, reflecting revenue growth in the Asia-Pacific and Europe and Africa regions.

The constant currency revenue growth for the three months ended March 31, 2025 was primarily the result of volume-related increases in clinical services.

Six Months Ended June 30, Change

(in millions)

Revenues $ 4,303 $ 4,242 $ 61 1.4 %

Cost of revenues, exclusive of depreciation and amortization 2,949 2,826 123 4.4

Selling, general and administrative expenses 443 444 (1) (0.2)

Segment profit $ 911 $ 972 $ (61) (6.3) %

Research & Development Solutions’ contracted backlog increased from $31.1 billion as of December 31, 2024 to $32.1 billion as of June 30, 2025, and we expect approximately $8.1 billion of this backlog to convert to revenues in the next twelve months.

Research & Development Solutions’ revenues were $2,201 million for the second quarter of 2025, an increase of $54 million, or 2.5%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $27 million, or 1.3%, reflecting revenue growth primarily in the Asia-Pacific region and to a lesser extent in the Americas region.

Research & Development Solutions’ revenues were $4,303 million for the first six months of 2025, an increase of $61 million, or 1.4%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $50 million, or 1.2%, reflecting revenue growth in the Asia-Pacific region.

The constant currency revenue growth for the three and six months ended June 30, 2025 was primarily the result of volume-related increases in clinical services.

The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Cost of Revenues, exclusive of Depreciation and Amortization

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $31 million, or 2.2%, in the first quarter of 2025 over the same period in 2024.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $92 million, or 6.4%, in the second quarter of 2025 over the same period in 2024.

This increase included a constant currency increase of approximately $78 million, or 5.5%.

The constant currency increase for the three months ended March 31, 2025 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $123 million, or 4.4% in the first six months of 2025 over the same period in 2024.

This increase included a constant currency increase of approximately $141 million, or 5.0%.

The constant currency increase for the three and six months ended June 30, 2025 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services.

Selling, General and Administrative Expenses

Research & Development Solutions’ selling, general and administrative expenses decreased $5 million, or 2.3%, in the first quarter of 2025 as compared to the same period in 2024, which included a constant currency decrease of approximately $3 million, or 1.4%.

The constant currency decrease for the three months ended March 31, 2025 was primarily related to a decrease in compensation and related expenses.

Research & Development Solutions’ selling, general and administrative expenses increased $4 million, or 1.8%, in the second quarter of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $4 million, or 1.8%.

Research & Development Solutions’ selling, general and administrative expenses decreased $1 million, or 0.2% in the first six months of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $1 million, or 0.2%.

The constant currency increase for the three and six months ended June 30, 2025 was primarily related to an increase in compensation and related expenses.

Contract Sales & Medical Solutions

Three Months Ended March 31, Change

Three Months Ended June 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 12 $ 9 $ 3 33.3 %

Contract Sales & Medical Solutions’ revenues were $181 million for the first quarter of 2025, a decrease of $8 million, or 4.2%, over the same period in 2024.

This decrease was comprised of constant currency revenue decrease of approximately $4 million, or 2.1%.

The constant currency revenue decrease for the three months ended March 31, 2025 was primarily due to volume-related decreases in services performed.

Six Months Ended June 30, Change

(in millions)

Revenues $ 369 $ 361 $ 8 2.2 %

Cost of revenues, exclusive of depreciation and amortization 318 308 10 3.2

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, decreased $4 million, or 2.5%, in the first quarter of 2025 as compared to the same period in 2024.

This decrease included a constant currency decrease of approximately $1 million, or 0.6%.

The constant currency decrease for the three months ended March 31, 2025 was primarily related to a decrease in compensation and related expenses.

Selling, general and administrative expenses 28 31 (3) (9.7)

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $2 million, or 12.5% in the first quarter of 2025 as compared to the same period in 2024.

This decrease included a constant currency decrease of $2 million, or 12.5%.

The constant currency decrease for the three months ended March 31, 2025 was primarily related to a decrease in compensation and related expenses.

Segment profit $ 23 $ 22 $ 1 4.5 %

Contract Sales & Medical Solutions’ revenues were $188 million for the second quarter of 2025, an increase of $16 million, or 9.3%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $11 million, or 6.4%, reflecting revenue growth primarily in the Europe and Africa region.

Contract Sales & Medical Solutions’ revenues were $369 million in the first six months of 2025, an increase of $8 million, or 2.2%, over the same period in 2024.

This increase was comprised of constant currency revenue growth of approximately $7 million, or 1.9%, reflecting revenue growth primarily in the Asia-Pacific region.

The constant currency revenue growth for the three and six months ended June 30, 2025 was primarily due to volume-related increases in services performed.

Cost of Revenues, exclusive of Depreciation and Amortization

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $14 million, or 9.5%, in the second quarter of 2025 as compared to the same period in 2024.

This increase included a constant currency increase of approximately $9 million, or 6.1%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $10 million, or 3.2%, in the first six months of 2025 as compared to the same period in 2024.

This increase included a constant currency increase of approximately $8 million, or 2.6%.

The constant currency increase for the three and six months ended June 30, 2025 was primarily related to an increase in compensation and related expenses.

Selling, General and Administrative Expenses

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $1 million, or 6.7%, in the second quarter of 2025 as compared to the same period in 2024.

This decrease included no constant currency change.

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $3 million, or 9.7%, in the first six months of 2025 as compared to the same period in 2024.

This decrease included a constant currency decrease of approximately $2 million, or 6.5%.

The constant currency decrease for the six months ended June 30, 2025 was primarily related to a decrease in compensation and related expenses.

Liquidity and Capital Resources

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We have and expect to transfer cash from those subsidiaries to the United States and to other international subsidiaries when it is cost effective to do so.

We had a cash balance of $1,740 million as of March 31, 2025 ($617 million of which was in the United States), an increase from $1,702 million as of December 31, 2024.

We had a cash balance of $2,039 million as of June 30, 2025 ($911 million of which was in the United States), an increase from $1,702 million as of December 31, 2024.

Based on our current operating plan, we believe that our available cash and cash equivalents, future cash flows from operations and our ability to access funds under our revolving credit and receivables financing facilities will enable us to fund our operating requirements, capital expenditures, contractual obligations, and meet debt obligations for at least the next 12 months.

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

During the three months ended March 31, 2025, we repurchased 2.3 million shares of our 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, we had remaining authorization to repurchase up to $2,588 million of our common stock under the Repurchase Program.

During the six months ended June 30, 2025, we repurchased 6.4 million shares of our common stock for $1,032 million under the Repurchase Program.

As of June 30, 2025, we had remaining authorization to repurchase up to $1,981 million of our common stock under the Repurchase Program.

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

As of March 31, 2025, we had $14,389 million of total indebtedness, excluding $895 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of March 31, 2025, we believe we were in compliance with our restrictive covenants in all material respects.

As of June 30, 2025, we had $15,573 million of total indebtedness, excluding $1,995 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of June 30, 2025, we believe we were in compliance with our restrictive covenants in all material respects.

Senior Secured Credit Facilities

3 unchanged sentences

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, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,511 million, which consisted of $5,616 million principal amounts of debt outstanding, and $895 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

As of June 30, 2025, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,491 million, which consisted of $4,496 million principal amounts of debt outstanding, and $1,995 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

On June 4, 2025, we completed the issuance and sale of $2,000 million in gross proceeds of 6.250% senior notes due 2032 (the "Senior Notes").

The net proceeds from the notes offering were used to repay existing borrowings under our revolving credit facility and to pay fees and expenses related to the Senior Notes offering, with any excess proceeds used for general corporate purposes.

See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

Receivables Financing Facility

As of March 31, 2025, no additional amounts of revolving loans were available under the receivables financing facility.

Three months ended March 31, 2025 and 2024

As of June 30, 2025, no additional amounts of revolving loans were available under the receivables financing facility.

Six months ended June 30, 2025 and 2024

Cash Flow from Operating Activities

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2025 2024

Net cash provided by operating activities $ 1,011 $ 1,110

Cash provided by operating activities increased $46 million during the first three months of 2025 as compared to the same period in 2024.

The increase was due to an increase in cash from accounts receivable and unbilled services ($73 million) and from cash-related net income ($26 million), offset by a decrease in cash from other operating assets and liabilities ($43 million), which includes $42 million in cash received related to the termination of our previous cross-currency swaps during the first three months of 2025, and unearned income ($10 million).

Cash provided by operating activities decreased $99 million during the first six months of 2025 as compared to the same period in 2024.

The decrease was primarily driven by a decrease in cash from accounts receivable and unbilled services ($119 million), cash-related net income ($97 million), and cash from other operating assets and liabilities ($84 million), which includes $42 million in cash received related to the termination of our previous cross-currency swaps during the first six months of 2025, offset by an increase in cash from unearned income ($201 million).

Cash Flow from Investing Activities

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2025 2024

Net cash used in investing activities $ (651) $ (535)

Cash used in investing activities decreased $9 million during the first three months of 2025 as compared to the same period in 2024, primarily driven by less cash used for investments in unconsolidated affiliates, net ($11 million), acquisitions of businesses ($8 million), acquisitions of property, equipment and software ($3 million), sales (purchases) of marketable securities, net ($3 million), and cash from other ($1 million), offset by more cash used in investments in debt and equity securities ($17 million).

Cash used in investing activities increased $116 million during the first six months of 2025 as compared to the same period in 2024, primarily driven by more cash used for acquisitions of businesses ($94 million), cash used in investments in debt and equity securities ($17 million), and acquisitions of property, equipment and software ($5 million), and less proceeds from sale of property, equipment, and software ($25 million), offset by less cash used for investments in unconsolidated affiliates, net ($22 million), more cash from sales of marketable securities, net ($2 million), and cash from other ($1 million).

Cash Flow from Financing Activities

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2025 2024

Net cash used in financing activities $ (113) $ (366)

Cash used in financing activities increased $152 million during the first three months of 2025 as compared to the same period in 2024, primarily due to more cash payments on debt and principal payments on finance leases ($2,053 million), repurchase of common stock ($375 million), and payments for contingent consideration and deferred purchase price accruals ($3 million), offset by more proceeds from issuance of debt, net ($1,979 million), revolving credit facilities, net of repayments ($275 million), and less cash used for payments related to employee stock incentive plans ($25 million).

Cash used in financing activities decreased $253 million during the first six months of 2025 as compared to the same period in 2024, primarily due to more proceeds from issuance of debt, net ($3,950 million), and less cash used for payments related to employee stock incentive plans ($25 million), offset by more cash payments for debt and principal payments on finance leases ($2,054 million), repurchase of common stock ($1,032 million), revolving credit facilities, net of repayments ($615 million), other ($11 million) and contingent consideration and deferred purchase price accruals ($10 million).

Information about our Guarantors and the Issuer of our Guaranteed Securities

7 unchanged sentences

Each Guarantor subsidiary is consolidated by IQVIA Holdings Inc.

as of March 31, 2025 and December 31, 2024.

Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of March 31, 2025.

as of June 30, 2025 and December 31, 2024.

Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of June 30, 2025.

The guarantee of a Guarantor subsidiary with respect to the Notes will be automatically and unconditionally released and discharged and shall terminate and be of no further force and effect, and no further action by such Guarantor subsidiary, the Issuer, or U.S.

14 unchanged sentences

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Financial Position of the obligated group as of:

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

(in millions) June 30, 2025 December 31, 2024

Total current assets (excluding amounts due from subsidiaries that are non-Guarantors) $ 966 $ 935

5 unchanged sentences

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Operations of the obligated group:

Three months ended Twelve months ended

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

Six months ended Twelve months ended

(in millions) June 30, 2025 December 31, 2024

Net revenues $ 3,365 $ 6,661

12 unchanged sentences

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 2. Management’s Discussion and Analysis