IQVIA Warns Fiscal Profit to Fall Below Estimates on Rising Interest Costs
IQVIA Holdings forecast fiscal 2026 profit below Wall Street expectations, attributing the shortfall to significantly higher interest expenses. The company noted strong demand from pharmaceutical clients, with improving fourth-quarter performance offset by elevated borrowing costs.
1. Fourth-Quarter Results Exceed Estimates
IQVIA reported adjusted earnings of $3.42 per share for the fourth quarter of 2025, topping the Zacks Consensus Estimate of $3.40 and marking a 9.6% increase from $3.12 per share in the year-ago period. Revenue for the quarter rose 7.8% year-over-year, driven by a 12% increase in clinical research services and a 5% gain in technology-enabled solutions. Management highlighted strengthening demand from pharmaceutical clients, particularly in late-stage trials and real-world evidence studies, which contributed to robust margin expansion in the quarter.
2. Full-Year Profit Forecast Weighed Down by Rising Interest Costs
For fiscal 2026, IQVIA updated its full-year profit guidance to below Wall Street expectations, citing higher interest expenses. In 2025, interest costs climbed 24% to $285 million as a result of debt issued to fund recent acquisitions and platform investments. The company now projects adjusted EPS of $12.00 to $12.20, compared with the $12.50 consensus, but expects revenue growth of 8% to 10% supported by continued strength in its contract research and analytics businesses.