IQVIA HOLDINGS INC.

Previous wording

IQVIA is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries. IQVIA’s portfolio of solutions are powered by IQVIA Connected Intelligence™ to deliver actionable insights and services built on high-quality health data, Healthcare-grade AI®, advanced analytics, the latest technologies and extensive domain expertise. We are committed to using artificial intelligence ("AI") responsibly, with AI-powered capabilities built on best-in-class approaches to privacy, regulatory compliance and patient safety, and delivering AI to the high standards of trust, scalability and precision demanded by the industry. With approximately 90,000 employees in over 100 countries, including experts in healthcare, life sciences, data science, technology and operational excellence, we are dedicated to accelerating the development and commercialization of innovative medical treatments to help improve patient outcomes and population health worldwide.

Current wording

IQVIA is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries. IQVIA’s portfolio of solutions are powered by IQVIA Connected Intelligence™ to deliver actionable insights and services built on high-quality health data, Healthcare-grade AI®, advanced analytics, the latest technologies and extensive domain expertise. We are committed to using artificial intelligence ("AI") responsibly, with AI-powered capabilities built on best-in-class approaches to privacy, regulatory compliance and patient safety, and delivering AI to the high standards of trust, scalability and precision demanded by the industry. With approximately 91,000 employees in over 100 countries, including experts in healthcare, life sciences, data science, technology and operational excellence, we are dedicated to accelerating the development and commercialization of innovative medical treatments to help improve patient outcomes and population health worldwide.

Previous wording

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. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information is wholly attributable to the effects of foreign currency rate fluctuations.

Current wording

In the first nine 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. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information are wholly attributable to the effects of foreign currency rate fluctuations.

Previous wording

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.

Current wording

The $8 million decrease in selling, general and administrative expenses for the three months ended September 30, 2025 as compared to the same period in 2024 included a constant currency decrease of approximately $14 million, or 2.7%, reflecting a $14 million increase in Technology & Analytics Solutions, a $9 million increase in Research & Development Solutions, a $1 million increase in Contract Sales & Medical Solutions, and a $38 million decrease in general corporate and unallocated expenses.

Previous wording

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.

Current wording

The $8 million decrease in selling, general and administrative expenses for the nine months ended September 30, 2025 as compared to the same period in 2024 included a constant currency decrease of approximately $13 million, or 0.8%, reflecting a $27 million increase in Technology & Analytics Solutions, a $10 million increase in Research & Development Solutions, a $1 million decrease in Contract Sales & Medical Solutions, and a $49 million decrease in general corporate and unallocated expenses.

Previous wording

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.

Current wording

The $8 million and $16 million increases in depreciation and amortization for the three and nine months ended September 30, 2025 compared to the same periods in 2024 are mainly related to an increase in amortization of capitalized software costs.

Previous wording

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

Current wording

Interest income includes interest received primarily from bank balances and investments. Interest income during the three months ended September 30, 2025 remained consistent as compared to the same period in 2024, and for the nine months ended September 30, 2025 decreased compared to the same period in 2024 primarily as a result of lower interest rates.

Previous wording

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.

Current wording

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

Previous wording

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.

Current wording

Other (income) expense, net for the nine months ended September 30, 2025 decreased compared to the same period in 2024 primarily due to less revaluations of contingent consideration arrangements and adjustments in investment balances, offset by less foreign currency loss on transactions.

Previous wording

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.

Current wording

Our effective income tax rate was 18.6% and 18.6% in the third quarter of 2025 and 2024, respectively. Our effective income tax rate was 18.3% and 16.8% in the first nine months of 2025 and 2024, respectively. Our effective income tax rate in the third quarter and in the first nine 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 third quarter and in the first nine months of 2024 was also favorably impacted by $2 million and $14 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards. Our effective income tax rate in the third quarter and in the first nine months of 2025 was unfavorably impacted by $0 million and $3 million, respectively, of tax expense recognized upon settlement of share-based compensation awards.

Previous wording

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.

Current wording

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. The impacts of the OBBBA are not expected to be material to the 2025 consolidated financial statements, however we will continue to evaluate impacts to future periods.

Previous wording

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 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.

Current wording

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 third 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.

Previous wording

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.

Current wording

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

Previous wording

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, as well as certain general corporate and unallocated expenses. We also do not allocate restructuring costs, depreciation and amortization, or impairment charges, if any, to our segments.

Current wording

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, expenses related to integration activities and acquisitions, as well as certain general corporate and unallocated expenses. We also do not allocate restructuring costs, depreciation and amortization, or impairment charges, if any, to our segments.

Previous wording

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.

Current wording

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

Previous wording

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%.

Current wording

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $92 million, or 10.0%, in the third quarter of 2025 over the same period in 2024. This increase included a constant currency increase of approximately $77 million, or 8.4%.

Previous wording

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.

Current wording

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

Previous wording

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

Current wording

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

Previous wording

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.

Current wording

Research & Development Solutions’ contracted backlog increased from $31.1 billion as of December 31, 2024 to $32.4 billion as of September 30, 2025, and we expect approximately $8.1 billion of this backlog to convert to revenues in the next twelve months.

Previous wording

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.

Current wording

Research & Development Solutions’ revenues were $6,563 million for the first nine months of 2025, an increase of $159 million, or 2.5%, over the same period in 2024. This increase was comprised of constant currency revenue growth of approximately $123 million, or 1.9%, reflecting revenue growth primarily in the Asia-Pacific region and to a lesser extent in the Americas region.

Previous wording

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.

Current wording

The constant currency revenue growth for the three and nine months ended September 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.

Previous wording

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%.

Current wording

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $213 million, or 5.0% in the first nine months of 2025 over the same period in 2024. This increase included a constant currency increase of approximately $223 million, or 5.2%.

Previous wording

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.

Current wording

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

Previous wording

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%.

Current wording

Research & Development Solutions’ selling, general and administrative expenses increased $10 million, or 4.5%, in the third quarter of 2025 as compared to the same period in 2024, which included a constant currency increase of approximately $9 million, or 4.1%.

Previous wording

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.

Current wording

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

Previous wording

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%.

Current wording

Contract Sales & Medical Solutions’ selling, general and administrative expenses decreased $2 million, or 4.4%, in the first nine months of 2025 as compared to the same period in 2024. This decrease included a constant currency decrease of approximately $1 million, or 2.2%.

Previous wording

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.

Current wording

We had a cash balance of $1,814 million as of September 30, 2025 ($656 million of which was in the United States), an increase from $1,702 million as of December 31, 2024.

Previous wording

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.

Current wording

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

Previous wording

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.

Current wording

As of September 30, 2025, we had $15,034 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 September 30, 2025, we believe we were in compliance with our restrictive covenants in all material respects.

Previous wording

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.

Current wording

As of September 30, 2025, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,448 million, which consisted of $4,453 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.

Previous wording

Six months ended June 30, 2025 and 2024

Current wording

Nine months ended September 30, 2025 and 2024

Previous wording

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).

Current wording

Cash provided by operating activities increased $88 million during the first nine months of 2025 as compared to the same period in 2024. The increase was primarily driven by an increase in cash from unearned income ($294 million), offset by a decrease in cash from accounts receivable and unbilled services ($111 million), cash from other operating assets and liabilities ($57 million), which includes $42 million in cash received related to the termination of our previous cross-currency swaps during the first nine months of 2025, and cash-related net income ($38 million).

Previous wording

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).

Current wording

Cash used in investing activities increased $67 million during the first nine months of 2025 as compared to the same period in 2024, primarily driven by more cash used for acquisitions of businesses ($149 million), cash used for investments in debt and equity securities ($18 million), and cash used in other ($1 million), offset by more proceeds from sale of property, equipment, and software ($50 million), less cash used for investments in unconsolidated affiliates, net ($40 million), less cash used for acquisitions of property, equipment and software ($9 million), and more cash from sales of marketable securities, net ($2 million).

Previous wording

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).

Current wording

Cash used in financing activities increased $182 million during the first nine months of 2025 as compared to the same period in 2024, primarily due to more cash payments for debt and principal payments on finance leases ($2,546 million), repurchase of common stock ($832 million), revolving credit facilities, net of repayments ($725 million), contingent consideration and deferred purchase price accruals ($14 million), other ($11 million), and cash used for payments related to employee stock incentive plans ($5 million), offset by more proceeds from issuance of debt, net ($3,951 million).