Q3 2025 IQVIA Holdings Inc Earnings Call

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the pound key.

Ari Bousbib: This revenue guidance includes approximately $100 million of COVID-related revenue step-down entirely in RDS, approximately 100 basis points of tailwind from foreign exchange, and approximately 150 basis points of contribution from acquisitions. These assumptions are unchanged from the prior guide. We expect adjusted EBITDA to be between $3,775 million and 3,800 million, growing 2.5 to 3.1% year over year or 2.8% at the midpoint. We expect adjusted diluted EPS to be between $11.85 and 11.95, up 6.5 to 7.4% versus prior year, or about 7% at the midpoint. Now, turning to the fourth quarter, we're expecting revenue to be between $4,204 million and 4,304 million, which represents year-over-year growth of 6.2 to 8.7%. Adjusted EBITDA is expected to be between $1,033 million and 1,058 million, representing growth of 3.7% to 6.2% versus prior year.

This revenue guidance includes approximately $100 million of COVID-related revenue step-down entirely in RDS, approximately 100 basis points of tailwind from foreign exchange, and approximately 150 basis points of contribution from acquisitions. These assumptions are unchanged from the prior guide. We expect adjusted EBITDA to be between $3,775 million and 3,800 million, growing 2.5 to 3.1% year over year or 2.8% at the midpoint. We expect adjusted diluted EPS to be between $11.85 and 11.95, up 6.5 to 7.4% versus prior year, or about 7% at the midpoint. Now, turning to the fourth quarter, we're expecting revenue to be between $4,204 million and 4,304 million, which represents year-over-year growth of 6.2 to 8.7%. Adjusted EBITDA is expected to be between $1,033 million and 1,058 million, representing growth of 3.7% to 6.2% versus prior year.

Speaker #3: Ladies and gentlemen . Thank you for standing by . At this time , I would like to welcome everyone to the Iqvia Third Quarter 2020 Earnings Conference call .

Kerri Joseph: Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Holdings Inc. Third Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. As a reminder, this call is being recorded. Thank you. I would now like to turn the call over to Kerri Joseph, Senior Vice President, Investor Relations and Treasury. Mr. Joseph, please begin your conference.

As a reminder, this call is being recorded.

I would now like to turn the call over to Cary Joseph Senior Vice President Investor Relations and Treasury Mr. Joseph Please begin your conference.

Speaker #3: All lines have been placed on mute to prevent any background noise . After the speaker's remarks , there will be like to ask a question time , simply star , followed by the number one on your telephone keypad .

Thank you operator.

Good morning, everyone. Thank you for joining our third quarter 2025 earnings.

With me today are already Buzzi, Chairman and Chief Executive Officer, Ron <unk>.

Exactly Vice President and Chief Financial Officer, Eric Sherbet, Executive Vice President and General Counsel, Mike <unk> Senior Vice President.

The analysis.

Hello, Peroni senior director Investor Relations.

Today, we will be referencing a presentation that will be visible during this half of those who view on our webcast presentation will also be available. Following this call on the events and presentations section of our Investor Relations website at IR <unk> com.

Kerri Joseph: Thank you, Operator. Good morning, everyone. Thank you for joining our Third Quarter 2025 Earnings Call. With me today are Ari Bousbib, Chairman and Chief Executive Officer; Ron Bruehlman, Executive Vice President and Chief Financial Officer; Eric Sherbet, Executive Vice President and General Counsel; Mike Fiedoch, Senior Vice President, Managing Planning and Analysis; and Gustavo Verone, Senior Director, Investor Relations. Today, we will be referencing a presentation that will be visible during this call to those of you on our webcast. This presentation will also be available following this call in the Events and Presentation section of our IQVIA Investor Relations website at ir.iqvia.com. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements.

Before we begin I would like to call.

Austin This is certain information discussed by management. During this conference call will include forward looking statements.

Actual results could differ materially from those stated or implied by forward looking statements due to risks and uncertainties associated with company's business, which are discussed in the company's filings with the Securities and Exchange Commission, including our annual report on Form 10-K, and subsequent SEC filings.

Ari Bousbib: Adjusted diluted EPS is expected to be between $3.35 and $3.45, which represents year-over-year growth of 7.4% to 10.6%. This guidance assumes that foreign currency rates as of 27 October continue for the balance of the year. So, to summarize, in Q3, we delivered strong top and bottom-line results, as well as record-high free cash flow. R&DS net bookings were $2.6 billion, growing 13% year-over-year and resulting in a net book-to-bill ratio of 1.15 times. The forward-looking demand metrics in the clinical business continue to trend in the right direction, with 20% RFP flow growth year-over-year and sequential improvements in client decision-making timelines. TAZ performed well and delivered solid results, driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio. We reaffirmed our full-year 2025 guidance. With that, let me hand it back to the operator for Q&A.

Adjusted diluted EPS is expected to be between $3.35 and $3.45, which represents year-over-year growth of 7.4% to 10.6%. This guidance assumes that foreign currency rates as of 27 October continue for the balance of the year. So, to summarize, in Q3, we delivered strong top and bottom-line results, as well as record-high free cash flow. R&DS net bookings were $2.6 billion, growing 13% year-over-year and resulting in a net book-to-bill ratio of 1.15 times. The forward-looking demand metrics in the clinical business continue to trend in the right direction, with 20% RFP flow growth year-over-year and sequential improvements in client decision-making timelines. TAZ performed well and delivered solid results, driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio. We reaffirmed our full-year 2025 guidance. With that, let me hand it back to the operator for Q&A.

In addition.

We will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to and a substitute for financial measures prepared in accordance with GAAP.

Kerri Joseph: Actual results could differ materially from those stated or implied by forward-looking statements due to the risk and uncertainties associated with the company's business, which are discussed in the company's filings with the Securities and Exchange Commission, including our annual report on Form 10-K and subsequent SEC filings. In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the press release conference call presentation. I would now like to turn the call over to our Chairman and CEO, Ari Bousbib.

A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the press release accomplished fall presentation.

I would now like to turn the call over to our chairman and CEO Ari.

Thank you Gary and good morning, everyone. Thank you for joining us today to discuss our third quarter results. We delivered another strong quarterly revenue and profit were towards the high end of our guidance.

Reflecting solid operational performance.

Free cash flow was particularly impressive this quarter it was actually the highest quarterly free cash flow ever.

Even when you can see those are off advances, we gov Julian the Kobe.

Era for vaccine trials.

Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thank you for joining us today to discuss our third quarter results. We delivered another strong quarter, with profit towards the high end of our guidance, reflecting solid operational performance. Free cash flow was particularly impressive this quarter. It was actually the highest quarterly free cash flow ever, even when you consider the large advances we got during the COVID era for vaccine trials. This strong free cash flow, of course, reflects good and disciplined working capital management by the team, but also an improved overall industry backdrop. On the clinical side, net bookings in the quarter totaled exactly $2,600 million, which resulted in a net book-to-bill ratio of 115, also reflecting the improving trends in customer demand that we started seeing in the second quarter, as well as, of course, solid execution from our sales teams.

This strong free cash flow of course reflects a good and disciplined working capital management by the team.

Ari Bousbib: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of David Windley from Jefferies. Your line is now open. Hi, good morning. Thanks for taking my question.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of David Windley from Jefferies. Your line is now open. Hi, good morning. Thanks for taking my question.

But also an improved overall industry backdrop.

On the clinical side net bookings in the quarter totaled exactly two 2 billion and $600 million.

Which resulted in a net book to bill ratio of 115.

Also reflecting the improving trends in customer demand that we start to see in the second quarter.

Well of course solid execution from our sales teams.

Ari Bousbib: Ari, I wanted to ask you about what I think you call your see more, win more strategy and how that has played out through the middle of the year or through this year in terms of contributing to the RFP flows improvement that you're highlighting, as well as your win rate, and how we should think about an amount, if any, price competitiveness you're applying in that strategy and how that plays out through the P&L as that business converts to revenue. Thank you. Okay. Well, usually, we keep the best for the last, but you start with the big strategic question. So let's start with that. Okay.

David Windley: Ari, I wanted to ask you about what I think you call your see more, win more strategy and how that has played out through the middle of the year or through this year in terms of contributing to the RFP flows improvement that you're highlighting, as well as your win rate, and how we should think about an amount, if any, price competitiveness you're applying in that strategy and how that plays out through the P&L as that business converts to revenue.Thank you.

In fact, our third quarter net bookings were 5% higher sequentially.

13% higher than a year ago, and 21% higher than the trough that we experienced in Q1 this year.

Key demand metrics were also strong in the quarter.

<unk> funding momentum is building this year with each quarter delivering steady sequential growth.

Ari Bousbib: In fact, our third quarter net bookings were 5% higher sequentially, 13% higher than a year ago, and 21% higher than the trough that we experienced in Q1 this year. Key demand metrics were also strong in the quarter. The EDP funding momentum is building this year, with each quarter delivering steady sequential growth, reaching $18 billion in Q3, according to Buy World. Our qualified pipeline was up 6% year over year, driven by large pharma and EDP segments. You will recall that in the second quarter, we had high single-digit sequential RFP flow growth and low teens growth year over year. This quarter, we saw again high single-digit RFP flow growth sequentially and 20% growth year over year with growth across all segments. Importantly, client decision-making timelines have been improving sequentially.

Ari Bousbib: Okay. Well, usually, we keep the best for the last, but you start with the big strategic question. So let's start with that. Okay.

Reaching $18 billion in Q3, according to volume World.

Our core pipeline was up 6% year over year, driven by large pharma and edp segments.

Ari Bousbib: Well, look, the strength in bookings momentum and RFP flow, I think we have to say, and we can see it in the industry in general, I think reflects a reduction in the level of uncertainty in the market environment and the macro-political environment. I think there have been a few developments that have sort of helped tilt decision-making at large pharma on certain programs favorably. The climate overall has improved. That's undeniable in our sector. That certainly is a big driver of our growth. The specifics of our see more, win more strategy, which we started earlier this year, which, as you know now, has a lot of imitators, has borne fruits as well in the sense that we've been looking at markets that we previously hadn't been touching and had left some more marginal players essentially in a quasi-monopoly situation in those segments.

Well, look, the strength in bookings momentum and RFP flow, I think we have to say, and we can see it in the industry in general, I think reflects a reduction in the level of uncertainty in the market environment and the macro-political environment. I think there have been a few developments that have sort of helped tilt decision-making at large pharma on certain programs favorably. The climate overall has improved. That's undeniable in our sector. That certainly is a big driver of our growth. The specifics of our see more, win more strategy, which we started earlier this year, which, as you know now, has a lot of imitators, has borne fruits as well in the sense that we've been looking at markets that we previously hadn't been touching and had left some more marginal players essentially in a quasi-monopoly situation in those segments.

You will recall that in the second quarter, we had high single digit sequential RFP flow grew.

Growth and low teens growth year over year.

This quarter, we saw again high single digit RFP flow growth sequentially.

And 20% growth year over year with growth across all segments.

Importantly, client decision, making timelines.

The improving sequentially.

Finally, our backlog reached a new record of $32 $4 billion at the end of the quarter.

Showing growth of four 1% compared to the prior year.

On the commercial side <unk> continued to perform well in the third quarter and delivered strong results despite tougher year over year comparisons in fact.

If you look historically at sequential revenue growth.

Ari Bousbib: Finally, our backlog reached a new record of $32.4 billion at the end of the quarter, showing growth of 4.1% compared to the prior year. On the commercial side, TAS continued to perform well in the third quarter and delivered strong results despite tougher year-over-year comparisons. In fact, if you look historically at sequential revenue growth, Q3 is generally flat to down versus Q2, and we were slightly up this quarter. This was driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio. I do want to mention the good growth we had this quarter in CSMS, about a third of which was from an acquisition. We decided to increase our capabilities in this segment as we are seeing a developing trend of large pharma clients increasingly looking to outsource commercial operations for established brands in specific markets.

Q3 is generally flat to down versus Q2.

And we were slightly up this quarter.

This was driven by ongoing momentum from drug launches and the strength of our brand with the rest of the portfolio.

Ari Bousbib: We've decided to go after that. The pricing conversation is a little bit overdone, in my opinion. In a climate where market dynamics were unfavorable, with a lot of uncertainty and less deals to be had, there was more competition on pricing. All we did in the first part of the year was to align to those pricing discounts that were being offered as opposed to walk away in order to continue to build our book of business. We don't see that trend continuing. It hasn't been an issue at all, certainly this past quarter, and the opposite. We've walked away from deals. We think that the sector in general is a lot healthier in terms of market dynamics. The level of uncertainty has gone down, and pricing has returned to normal levels. You had a question and follow-up on P&L implications.

We've decided to go after that. The pricing conversation is a little bit overdone, in my opinion. In a climate where market dynamics were unfavorable, with a lot of uncertainty and less deals to be had, there was more competition on pricing. All we did in the first part of the year was to align to those pricing discounts that were being offered as opposed to walk away in order to continue to build our book of business. We don't see that trend continuing. It hasn't been an issue at all, certainly this past quarter, and the opposite. We've walked away from deals. We think that the sector in general is a lot healthier in terms of market dynamics. The level of uncertainty has gone down, and pricing has returned to normal levels. You had a question and follow-up on P&L implications.

I do want to mention the good growth we had this quarter in CSS.

About a third of which was from an acquisition.

We decided to increase our capabilities in this segment.

We are seeing a developing trend of large pharma clients increasingly looking to outsource commercial operations.

For established brands in specific markets.

These tend to be large multiyear engagements.

<unk> spanning across therapies and geographies and I can give you is uniquely positioned to capitalize on this trend by combining our information analytics and domain knowledge.

In local sales force footprint.

Let me turn to the.

The results of the quarter.

Again strong revenue and profit results revenue for the third quarter came in at the high end of our guidance range representing year over year growth of five 2% on a reported basis and just under 4% at constant terms.

Ari Bousbib: These tend to be large, multi-year engagements, typically spanning across therapies and geographies, and IQVIA is uniquely positioned to capitalize on this trend by combining our information and analytics and domain knowledge with a local sales force footprint. Let me turn to the results of the quarter. Again, strong revenue and profit results. Revenue for the third quarter came in at the high end of our guidance range, representing year-over-year growth of 5.2% on a reported basis and just under 4% at constant currency. Third quarter adjusted EBITDA was up 1.1%. Third quarter adjusted diluted EPS of $3 increased 5.6% year over year. Let me just now, as I usually do, share a few highlights of business activity. Let me start with TAS. New drug launches continue to be a key area of strength for IQVIA. A few examples.

Third quarter adjusted EBITDA was up one 1%.

Ari Bousbib: Look, we have a $32-plus billion backlog, and only a tiny portion of that was subject to a few discounts that we did earlier in the year. The revenue associated with those bookings is going to bleed over our P&L over the next five years. And we do not expect that to have any impact whatsoever on our P&L going forward. Great. Thanks, Ari. I'll stick to the one question. Thank you. Thank you. Your next question comes from the line of Justin Bowers from Deutsche Bank. Your line is now open. Hi, good morning, everyone. So, Ari, it sounds like the business environment is improving. Funding's up. Consumer confidence improving. And both of the segments, TAS and RDS, are strengthening, at least on a two-year stack basis. Is this momentum that we should expect to continue over the next few quarters and into 2026?

Look, we have a $32-plus billion backlog, and only a tiny portion of that was subject to a few discounts that we did earlier in the year. The revenue associated with those bookings is going to bleed over our P&L over the next five years. And we do not expect that to have any impact whatsoever on our P&L going forward. Great.

First quarter adjusted diluted EPS.

<unk> decreased five 6% year over year.

Let me just now as I, usually do share a few highlights of business activity, let me start with <unk>.

New drug launches continue to be a key area of strength for IQ you a few examples.

Biotech clients awarded Us a multiyear integrated partnership to support faster product launches. This.

David Windley: Thanks, Ari. I'll stick to the one question. Thank you. Thank you.

Operator: Your next question comes from the line of Justin Bowers from Deutsche Bank. Your line is now open.

This will include a full suite of information assets.

And analytics capabilities.

A top 10 pharma clients awarded a program to support the launch of a novel oncology therapy top 20 pharma clients awarded a contract to support the launch of a dual indication metabolic therapy utilizing AI capabilities to integrate advanced patient in.

Justin Bowers: Hi, good morning, everyone. So, Ari, it sounds like the business environment is improving. Funding's up. Consumer confidence improving. And both of the segments, TAS and RDS, are strengthening, at least on a two-year stack basis. Is this momentum that we should expect to continue over the next few quarters and into 2026?

Ari Bousbib: A biotech client awarded us a multi-year integrated partnership to support faster product launches. This win includes a full suite of information assets and analytics capabilities. A top 10 pharma client awarded IQVIA a program to support the launch of a novel oncology therapy. Top 20 pharma clients awarded IQVIA a contract to support the launch of a dual indication metabolic therapy utilizing AI capabilities to integrate advanced patient insights into product utilization and patient response. The top 10 pharma clients selected IQVIA to provide launch support for a new autoimmune disorder therapy. The engagement includes advanced AI-enabled patient-level solutions that enable performance tracking and analytics near real-time and integrate specialty pharmacy data and payer insights.

Sites into product utilization and patient response.

Top 10 pharma client selected <unk> to provide long support for our new ultra immune disorder therapy. The engagement includes advanced AI enabled patient level solutions that enable performance tracking and analytics near real time.

Ari Bousbib: And maybe if you just give us a glimpse at how you're thinking about those two. Yeah. Well, look, I don't know how to crystal ball here, and I'm not going to give you 2026. This was a clever way of asking me about 2026 guidance. We're not going to do that here. As you know, we usually provide guidance for the year concurrent with the release of our fourth quarter and full-year earnings early in the year, so end of January or early February. We're in the midst of our planning process, and it's still early. We're still in October.

And maybe if you just give us a glimpse at how you're thinking about those two.

Ari Bousbib: Yeah. Well, look, I don't know how to crystal ball here, and I'm not going to give you 2026. This was a clever way of asking me about 2026 guidance. We're not going to do that here. As you know, we usually provide guidance for the year concurrent with the release of our fourth quarter and full-year earnings early in the year, so end of January or early February. We're in the midst of our planning process, and it's still early. We're still in October.

And integrated specialty pharmacy data and insights.

A good example of the commercial outsourcing trend I mentioned earlier was a very large award from a top five pharma clients to manage end to end commercialization on promotion of an established brand portfolio.

Resource overseas market.

We are progressing as planned to deploy highly specialized industry AI agents.

Ari Bousbib: But look, what I can tell you is we are going to deliver this year over 5% in top-line revenue growth, which, frankly, given what we've been through and the environment we've been in in the past year and a half, two years, I think is a very, very strong performance. And you can see that compared to our larger, certainly the larger CRO peers, we are doing very, very well. So I cannot tell you yet what 2026 will be in the next few quarters. But I mean, look, I would be surprised if revenue growth in 2026 is not at least the same or better than the growth that we are seeing this year. So I see that with a certain amount of confidence. Thank you. Your next question comes from the line of Elizabeth Anderson from Evercore ISI. Your line is open. Hi, guys. Good morning.

But look, what I can tell you is we are going to deliver this year over 5% in top-line revenue growth, which, frankly, given what we've been through and the environment we've been in in the past year and a half, two years, I think is a very, very strong performance. And you can see that compared to our larger, certainly the larger CRO peers, we are doing very, very well. So I cannot tell you yet what 2026 will be in the next few quarters. But I mean, look, I would be surprised if revenue growth in 2026 is not at least the same or better than the growth that we are seeing this year. So I see that with a certain amount of confidence.

So far we have approximately 90 agents in development covering 25 use cases.

Ari Bousbib: A good example of the commercial outsourcing trend I mentioned earlier was a very large award from a top five pharma client to manage end-to-end commercialization and promotion of an established brand portfolio in a very large overseas market. We're progressing as planned to deploy highly specialized industry AI agents. So far, we have approximately 90 agents in development covering 25 use cases across commercial, real-world, and R&D Solutions. We're in fact now seeing growing demand to help our clients accelerate AI adoption. We are increasingly helping our clients build data infrastructures that are robust and AI-ready by leveraging IQVIA's healthcare-grade AI ecosystem, combining advanced information management, integrated platforms, security, safety, and privacy, along with domain expertise. Let me share a few examples of key wins in the quarter.

Across commercial and R&D.

When you talk now seeing growing demand to help our clients accelerate AI adoption.

We are increasingly helping our clients build data infrastructures that are robust.

AIA rig by leveraging a few get healthcare great AI ecosystem.

Combining advanced information management integrated platforms security safety and privacy, along with domain expertise, let me share a few examples of key wins in the quarter.

Top 20 pharma clients selected like you've yet to deliver next generation information management solution.

Streamlines hundreds of sales data feeds into an AI enabled centralized simplified global warehouse.

Another top 10 pharma clients awarded <unk>, a contract to deploy next generation.

Justin Bowers: Thank you.

Operator: Your next question comes from the line of Elizabeth Anderson from Evercore ISI. Your line is open.

Enabled SaaS platforms to optimize global compliance reporting.

Biotech clients shows like you've yet to deploy our new global Master data management program to enhance AI enabled omnichannel marketing and analytics operations.

Ari Bousbib: A top 20 pharma client selected IQVIA to deliver a next-generation information management solution that streamlines hundreds of sales data feeds into an AI-enabled, centralized, simplified global warehouse. Another top 10 pharma client awarded IQVIA a contract to deploy a next-generation AI-enabled SaaS platform to optimize global compliance reporting. A biotech client chose IQVIA to deploy a new global master data management program to enhance AI-enabled omnichannel marketing and analytics operations. Our real-world business continues to perform well. Here are some examples. Top 10 pharma clients selected IQVIA to lead a post-market commitment study evaluating treatment outcomes in African-American patients with lung cancer. A biotech client selected IQVIA to lead a prospective real-world study supporting a regulatory commitment to a rare oncology disease. A biotech client selected IQVIA to deliver a retrospective real-world study supporting post-marketing commitments for their newly approved drugs to fulfill regulatory requirements.

Elizabeth Anderson: Hi, guys. Good morning.

Ari Bousbib: Thanks so much for the question, and congrats, Ron, on your retirement. I was wondering if you could talk a little bit, Ari, about some of the differences between what you're seeing on the pharma side versus the biotech side. I think you covered the biotech side nicely in the see more, win more answer. But just sort of wanted to peel back the onion a little bit on the pharma side as well. You mean the large pharma side? Yes. Look, large pharma went through a lot of transformation internally in terms of their investment programs. Going back to the IRA, there was this whole phase of reprioritization of programs, and reviews of their pipelines, which led to an elevated level of cancellations due to this reprioritization activity. That lasted for a year, a year and a half, beginning mid-2023, and certainly continuing through 2024.

Thanks so much for the question, and congrats, Ron, on your retirement. I was wondering if you could talk a little bit, Ari, about some of the differences between what you're seeing on the pharma side versus the biotech side. I think you covered the biotech side nicely in the see more, win more answer. But just sort of wanted to peel back the onion a little bit on the pharma side as well.

Our business continues to perform well.

Here are some examples top 10 pharma client selected us to need a post market commitment study.

Evaluating treatment outcomes in African American patients with lung cancer.

Ari Bousbib: You mean the large pharma side? Yes. Look, large pharma went through a lot of transformation internally in terms of their investment programs. Going back to the IRA, there was this whole phase of reprioritization of programs, and reviews of their pipelines, which led to an elevated level of cancellations due to this reprioritization activity. That lasted for a year, a year and a half, beginning mid-2023, and certainly continuing through 2024.

Our biotech clients selected acute yet read the prospective real world studies supporting our regulatory commitments to array of oncology disease.

Biotech clients selected like you've yet to deliver original spec you real World study support the post marketing commitments for their newly approved drugs to fulfill regulatory requirements.

Turning to R&D solutions, the positive momentum that we saw in Q2 continued to build through Q3.

A few standout wins with our biotech customers first in oncology.

First time sponsors selected <unk> to be the phase one trial for our novel leukemia treatment.

Another biotech clients like that like you've yet to read a complex phase one and phase two trial in hematology oncology targeting multiple cohorts.

Ari Bousbib: We see that activity as having essentially been completed, and we haven't seen any further cancellations as a result of that type of activity. So we think that the pipelines are now fully sanitized. Of course, there continue to be cancellations. But they are all more business as usual due to futility or other reasons and nothing unusual. Large pharma, actually, the RFP flow for large pharma is very strong. I mentioned that our RFP flow growth year over year is 20%. And that applies to large pharma and to EBV equally. I mean, there's a strong, strong momentum. And again, that's helped by the more calming environment and perhaps more certainty around what's coming. And it's also helped by the fact that these reprioritizations have been largely completed.

We see that activity as having essentially been completed, and we haven't seen any further cancellations as a result of that type of activity. So we think that the pipelines are now fully sanitized. Of course, there continue to be cancellations. But they are all more business as usual due to futility or other reasons and nothing unusual. Large pharma, actually, the RFP flow for large pharma is very strong. I mentioned that our RFP flow growth year over year is 20%. And that applies to large pharma and to EBV equally. I mean, there's a strong, strong momentum. And again, that's helped by the more calming environment and perhaps more certainty around what's coming. And it's also helped by the fact that these reprioritizations have been largely completed.

Ari Bousbib: Turning to Research & Development Solutions, the positive momentum that we saw in Q2 continued to build through Q3. A few stand-up wins with our biotech customers first. In oncology, a first-time sponsor selected IQVIA to lead a phase one trial for a novel leukemia treatment. Another biotech client selected IQVIA to lead a complex phase one and phase two trial in hematologic oncology, targeting multiple cohorts across two indications. We were also selected as the exclusive CRO partner for a biotech's entire cardiovascular program. This recognizes our leadership in cell and gene therapy and cardiovascular research, as well as our ability to execute globally. Large pharma was also strong in the quarter. For example, we were selected to lead a phase two study in stroke therapy, demonstrating our deep neuroscience expertise and global trial capabilities.

Cross two indications.

We were also selected as the exclusive partner for Biotechs and tire charge your vascular program.

And of course this recognized our leadership to insert a gene therapy in cardiovascular research as well as our ability to execute globally.

Large pharma was also strong in the quarter. We will for example selected to lead the phase two study in stroke therapy.

Demonstrating our deep neuroscience expertise a global trial capabilities.

Our top 10 pharma clients selected iqs yet.

To manage a global phase III <unk> program, leveraging AI enabled pathology tools and the robust site network to accelerate execution.

We were also selected to be the phase III ovarian cancer study, highlighting our deep therapeutic expertise and the strength of the integrated delivery model.

She'd been described.

Now before I turn it to.

Ari Bousbib: Another top 10 large pharma client selected IQVIA to manage a global phase three MASH program, leveraging AI-enabled pathology tools and a robust site network to accelerate execution. We were also selected to lead a phase three ovarian cancer study, highlighting our deep therapeutic expertise and the strength of the integrated delivery model with real-time partnership with these clients. Now, before I turn to Ron for details on our financial performance in the quarter, I want to say a word about the CFO transition we've announced some time ago. As you know, Mike Fiedoch will step into the CFO role on February 28, 2026, succeeding Ron Bruehlman, who will retire after remarkable tenure. Ron, and that's the good news, Ron will stay on as a Senior Advisor to continue to help us on specific projects and to help ensure a smooth transition.

Wrong for details on our.

Actual performance in the quarter I want to say a word about the CFO transition we've announced.

Some time ago as you know, Mike Fiddled with step into the CFO role on February 28, 2026, succeeding <unk>, who retired after a remarkable tenure.

Ari Bousbib: The programs that are now on the table are programs that our clients want to engage in and want to go forward with. Our cancellations, I always say, in recent years were about $0.5 billion a quarter, ± a couple of hundred million dollars. They could range between $300 and 700 million dollars in a given quarter. A couple of billion dollars plus year in, year out. In 2024, we had more than 50% higher cancellations than that, right? Over $3 billion in 2024 because of these reprioritizations from large pharma. That essentially is behind us. Year to date, our cancellations follow the regular pattern. I think it's actually somewhere between 500, around, on average, about $550 million a quarter. I saw the numbers yesterday. I think nothing much to talk about.

The programs that are now on the table are programs that our clients want to engage in and want to go forward with. Our cancellations, I always say, in recent years were about $0.5 billion a quarter, ± a couple of hundred million dollars. They could range between $300 and 700 million dollars in a given quarter. A couple of billion dollars plus year in, year out. In 2024, we had more than 50% higher cancellations than that, right? Over $3 billion in 2024 because of these reprioritizations from large pharma. That essentially is behind us. Year to date, our cancellations follow the regular pattern. I think it's actually somewhere between 500, around, on average, about $550 million a quarter. I saw the numbers yesterday. I think nothing much to talk about.

Ron and Thats. The good news there Ron will stay on as a senior adviser to continue to help us on specific projects and will help ensure a smooth transition.

Ron has been a highly valued leader of this company for many years in fact, Brian and I have been working together for over a quarter century.

Ron has been instrumental in shaping and curious financial strategy strategy.

<unk> and its transformation into a leading global organization.

He was here for managing the IMS health IPO in 2014 through the Green merger in 2016 and of course your returns in 2020 to help us navigate dependent.

Ari Bousbib: Ron has been a highly valued leader of this company for many years. In fact, Ron and I have been working together for over a quarter century. Ron has been instrumental in shaping IQVIA's financial strategy, driving its transformation into a leading global organization. He was here from managing the IMS Health IPO in 2014 through the Quintiles merger in 2016. Of course, he returned in 2020 to help us navigate the pandemic. His steady leadership and strategic long-term vision have been essential in building a high-performance global finance organization and in helping IQVIA remain resilient during unprecedented times over the past few years. Mike brings deep industry experience, and he has held key financial leadership roles across IQVIA, including as CFO of our Research & Development Solutions business and prior to that, as CFO of our IQVIA laboratory business.

He said the leadership strategic long term vision has been essential in building a high performance Global Finance organization and he Hasnt got to remain resilient.

During unprecedented times over the past few years.

Mike brings deep industry experience and he has held key financial leadership roles across a UBS.

Ari Bousbib: This quarter, I think we were a little bit towards the higher end of our range. But again, not because of reprioritization. It's simply normal course of business. Our growth bookings were very strong, very, very strong this year. And you could see that also in our $2.6 billion of net bookings, which were up 13% year over year, up sequentially, mid-single digits. And the trough we experienced in Q1 probably was the trough. We don't see that in the details. So again, large pharma dynamics returning to normal business conditions, trending towards normal business conditions. And biotech funding improving, which, as you know, is the driver of EBV growth. And that, again, is reflected in our bookings and in our RFP flow as well. Very helpful. Thank you. Your next question comes from the line of Michael Cherny from Leerink Partners. Your line is open.

This quarter, I think we were a little bit towards the higher end of our range. But again, not because of reprioritization. It's simply normal course of business. Our growth bookings were very strong, very, very strong this year. And you could see that also in our $2.6 billion of net bookings, which were up 13% year over year, up sequentially, mid-single digits. And the trough we experienced in Q1 probably was the trough. We don't see that in the details. So again, large pharma dynamics returning to normal business conditions, trending towards normal business conditions. And biotech funding improving, which, as you know, is the driver of EBV growth. And that, again, is reflected in our bookings and in our RFP flow as well.

As CFO of our R&D solutions business.

And prior to that as CFO.

<unk> laboratory business.

Closely with me and the senior team for years now and he is very well positioned to lead our finance function into <unk> next phase of growth.

Let me now goes wrong for more details on our financial performance. Thanks, Ari and good morning, everyone, let's start by reviewing revenue.

Third quarter revenue of $4 billion $100 million grew five 2% on a reported basis and three 9% constant currency.

Ari Bousbib: He's worked closely with me and the senior team for years now, and he's very well positioned to lead our finance function into IQVIA's next phase of growth. Let me now turn to Ron for more details on our financial performance.

Excluding COVID-19 related work for Lithia and labs revenue reported 5% constant currency and this included a powerpoint map of contribution from acquisitions.

Ron Bruehlman: Thanks, Ari, and good morning to everyone. Let's start by reviewing revenue. Our third quarter revenue of $4,100 million grew 5.2% on a reported basis and 3.9% at constant currency. Excluding COVID-related work from this year and last, revenue grew 4.5% at constant currency. This included about a point and a half of contribution from acquisitions. Technology & Analytics Solutions revenue for the third quarter was $1,631 million, up 5% reported and 3.3% at constant currency. Research & Development Solutions third quarter revenue was $2,260 million, growing 4.5% reported and 3.4% at constant currency. Excluding the step-down in COVID-related revenues, R&D revenue grew 4.5% at constant currency. Lastly, our Contract Sales & Medical Solutions business, or CSMS, had revenue of $209 million, up 16.1% reported and 13.9% at constant currency. Year-to-date revenue for the company was $11,946 million, up 4.4% reported and 3.7% at constant currency.

Technology <unk> analytics solutions revenue for the third quarter was $1.631 billion that was up 5% reported three 3% at constant currency.

Elizabeth Anderson: Very helpful. Thank you.

Operator: Your next question comes from the line of Michael Cherny from Leerink Partners. Your line is open.

R&D solutions third quarter revenue was $2 billion to $260 million.

Growing four 5% reported three 4% at constant currency and excluding the step down in Covid related revenues R&D revenue.

Ari Bousbib: Good morning, and thanks for taking the question. Maybe if I can ask a little bit about TAS. Nice growth against, obviously, a tough comp. As you think about the pathway forward, what do you see as the contributions you're getting from some of your inorganic advancements? And where do you see the best opportunities to continue to expand that business above and beyond your own R&D? Talk AI, talk anything along that vein. That'd be great. Thanks. Thank you, Michael. Well, you spoke about inorganic. I think we said the 1.5 points of contribution to our research to the company as a whole. As you know, as always has been the case, the bulk of that is in TAS. Although I think in this past quarter, we did a large acquisition that was in R&D as an SMO.

Michael Cherny: Good morning, and thanks for taking the question. Maybe if I can ask a little bit about TAS. Nice growth against, obviously, a tough comp. As you think about the pathway forward, what do you see as the contributions you're getting from some of your inorganic advancements? And where do you see the best opportunities to continue to expand that business above and beyond your own R&D? Talk AI, talk anything along that vein. That

Four 5% at constant currency and lastly, our contract sales and medical solution.

Our C S and that group.

Revenue up $209 million of had revenue of $209 million and that was up 16, 1% reported and 13, 9% at constant currency.

Ari Bousbib: 'd be great. Thanks. Thank you, Michael. Well, you spoke about inorganic. I think we said the 1.5 points of contribution to our research to the company as a whole. As you know, as always has been the case, the bulk of that is in TAS. Although I think in this past quarter, we did a large acquisition that was in R&D as an SMO.

Year to date revenue after the company with $11 billion $946 million, that's up four 4% reported three 7% at constant currency and excluding all COVID-19 related work a year to date growth with approximately four 5% at constant currency.

<unk> analytics solutions revenue was $4.805 billion year to date, it's up six 7% reported five 8% constant currency.

Ari Bousbib: I think that we spent $485 million that we spent in total. And most of that is one acquisition called Next Oncology, which is an SMO specialty oncology, very attractive business. We acquired this end of Q3, so not much contribution in Q3. And the inorganic contribution to R&DS will be a few million dollars, I guess, in the double digits, like $50 million or thereabouts of revenue to R&DS in Q4. With respect to TAZ, we didn't do much in Q3. And so I guess the acquisition is contribution for the year. Well, we did a CSMS deal as well, right? Which is small, obviously. But since CSMS is a small segment, it was a large piece of it. So not much in TAZ in Q3. In general, we try to buy technology companies, companies that can add capabilities to our suite of products, and analytics companies.

I think that we spent $485 million that we spent in total. And most of that is one acquisition called Next Oncology, which is an SMO specialty oncology, very attractive business. We acquired this end of Q3, so not much contribution in Q3. And the inorganic contribution to R&DS will be a few million dollars, I guess, in the double digits, like $50 million or thereabouts of revenue to R&DS in Q4. With respect to TAZ, we didn't do much in Q3. And so I guess the acquisition is contribution for the year. Well, we did a CSMS deal as well, right? Which is small, obviously. But since CSMS is a small segment, it was a large piece of it. So not much in TAZ in Q3. In general, we try to buy technology companies, companies that can add capabilities to our suite of products, and analytics companies.

R&D solutions year to date revenue of $6 billion $563 million was up two 5% at actual FX rates and.

And one 9% at constant currency, excluding COVID-19 related work from both periods revenue grew approximately three 5% at constant currency and I say CX MF year to date revenue of $578 million was up six 8% reported five 9% constant currency.

Ron Bruehlman: Excluding all COVID-related work, our year-to-date growth was approximately 4.5% at constant currency. Technology & Analytics Solutions revenue was $4,805 million year-to-date, up 6.7% reported and 5.8% at constant currency. Research & Development Solutions year-to-date revenue of $6,563 million was up 2.5% at actual FX rates and 1.9% at constant currency. Excluding COVID-related work from both periods, revenue grew approximately 3.5% at constant currency. CSMS year-to-date revenue of $578 million was up 6.8% reported and 5.9% at constant currency. Let's move down to P&L now. Adjusted EBITDA for the quarter was $949 million, representing growth of 1.1%, while year-to-date adjusted EBITDA was $2,742 million, up an even 2% year over year. Our third quarter GAAP net income was $331 million, and GAAP diluted earnings per share was $1.93. Year-to-date GAAP net income was $846 million, or $4.86 of diluted earnings per share.

Let's move down the P&L now adjusted EBITDA for the quarter was $949 billion representing.

Representing growth of one 1% while year to date, adjusted EBITDA was $2 $742 million thats up and even 2% year over year.

Our third quarter GAAP net income was $331 million and GAAP diluted earnings per share was $1 93.

Year to date, GAAP net income was $846 million or $4 86.

Diluted earnings per share.

Adjusted net income was $515 million for the third quarter and adjusted diluted earnings per share with EBIT $3.

Year to date, adjusted net income was $1 billion partnered $80 million or $8.50 per share.

Ari Bousbib: There's a lot of innovation, as you know, in the AI space. Medical affairs. Yeah, medical affairs, real-world. Real-world is very strong. Real-world evidence was really very, very strong in the quarter. And we expect that to continue into the future. So yeah, I mean, yeah. I mean, for the year, again, a point and a half, I would say 50 to 60% of that will be TAZ and the rest for the year, right? So 25. And then the rest, R&DS, and then a little bit CSMS. Your next question comes from the line of Shlomo Rosenbaum, Stifel. Your line is open. Hi, thank you. Ari, before I ask you a question, I just want to also commend Ron. Though, Ron, I've seen you retire before, and I'm not fully convinced you're gone right now. Why not? The wrong word to apply to Ron, not retiring.

There's a lot of innovation, as you know, in the AI space. Medical affairs. Yeah, medical affairs, real-world. Real-world is very strong. Real-world evidence was really very, very strong in the quarter. And we expect that to continue into the future. So yeah, I mean, yeah. I mean, for the year, again, a point and a half, I would say 50 to 60% of that will be TAZ and the rest for the year, right? So 25. And then the rest, R&DS, and then a little bit CSMS.

Sure.

Now as already noted we had <unk>.

<unk> net new bookings this quarter confirming the improved demand environment would start we started to see in the second quarter.

Ron Bruehlman: Adjusted net income was $515 million for the third quarter, and adjusted diluted earnings per share was $3. Year-to-date adjusted net income was $1,480 million, or $8.50 per share. As Ari noted, we had strong net new bookings this quarter, confirming the improved demand environment we started to see in the second quarter. The R&D backlog at September 30 was $32.4 billion, up 4.1% year over year. Next 12-month revenue from backlog was $8.1 billion, up 4.0% year over year. Reviewing the balance sheet, as of September 30, cash and cash equivalents totaled $1,814 million, and gross debt was $14,957 million. That resulted in net debt of $13,143 million. Our net leverage ratio ended the quarter at 3.52 times trailing 12-month adjusted EBITDA.

<unk> backlog at September 30, with $32 4 billion up four 1% year over year and next 12 months revenue from backlog was $8 $1 billion that up 4.0% year over year.

Reviewing the balance sheet as of September 30, cash and cash equivalents totaled $1.814 billion and gross debt was <unk> $14 billion $957 million.

Operator: Your next question comes from the line of Shlomo Rosenbaum, Stifel. Your line is open.

It resulted in net debt of $13.143 billion.

Our net leverage ratio ended the quarter at 352 times trailing 12 month adjusted EBITDA.

Shlomo Rosenbaum: Hi, thank you. Ari, before I ask you a question, I just want to also commend Ron. Though, Ron, I've seen you retire before, and I'm not fully convinced you're gone right now. Why not? The wrong word to apply to Ron, not retiring.

And third quarter cash flow from operations was $908 million and capital expenditures were $136 million, which resulted in record free cash flow for the quarter of $772 million.

Ari Bousbib: Yeah, you've dragged him out of retirement in the past, Ari. So I don't know. Ari, I want to ask you to talk a little bit about the subcomponents in TAZ and how they're growing in terms of real-world evidence, consulting, and analytics. And just some of the trends that you're seeing there. I know consulting often kind of leads the trend in terms of if you see that picking up, that means that the environment is getting better. And maybe you could just talk a little bit about each of the components and what you're seeing and maybe what that says about the market. Yeah. So look, the growth rate in Q3, it's hard to derive big trends because, as you know, Q3 in general is the weakest quarter in the year. But specifically this year, we had a tough compare with last year.

Yeah, you've dragged him out of retirement in the past, Ari. So I don't know. Ari, I want to ask you to talk a little bit about the subcomponents in TAZ and how they're growing in terms of real-world evidence, consulting, and analytics. And just some of the trends that you're seeing there. I know consulting often kind of leads the trend in terms of if you see that picking up, that means that the environment is getting better. And maybe you could just talk a little bit about each of the components and what you're seeing and maybe what that says about the market.

Now I'll turn it over to Mike <unk>, who will share details on our guidance Mike.

Thanks, Ron and good morning, everyone, let's start with our full year guidance.

We are confirming our full year 2025 guidance and are narrowing the ranges for revenue adjusted EBITDA and adjusted diluted earnings per share and are maintaining the midpoint of our prior guidance.

Ron Bruehlman: Third quarter cash flow from operations was $908 million, and capital expenditures were $136 million, which resulted in record free cash flow for the quarter of $772 million. Now I'll turn it over to Mike Fiedoch, who will share details on our guidance. Mike?

reviewing the balance sheet uh as of September 30th cash and cash, equivalents total of 1,814 million in Gross, debt was 14 billion 9577 million, uh, that resulted in net debt of 13 billion, 143 million, our net, leverage ratio ended, the quarter of 3.52 times trailing 12-month adjustment even done,

We expect revenue to be between $16 billion, and $150 million and $16 billion $250 million representing year over year growth of four 8% to five 5% or five 2% at the midpoint.

Uh, and third quarter cash flow from operations was 908 million in capital expenditures were 136 million, which resulted in record free cash flow for the quarter of 772 million?

Ari Bousbib: Yeah. So look, the growth rate in Q3, it's hard to derive big trends because, as you know, Q3 in general is the weakest quarter in the year. But specifically this year, we had a tough compare with last year.

[Analyst]: Thanks, Ron, and good morning, everyone. Let's start with our full-year guidance. We are confirming our full-year 2025 guidance and are narrowing the ranges for revenue, adjusted EBITDA, and adjusted diluted earnings per share and are maintaining the midpoint of our prior guide. We expect revenue to be between $16,150 million and $16,250 million, representing year-over-year growth of 4.8% to 5.5% or 5.2% at the midpoint. This revenue guidance includes approximately $100 million of COVID-related revenue step-down entirely in RDS, approximately 100 basis points of tailwind from FX, and approximately 150 basis points of contribution from acquisitions. These assumptions are unchanged from the prior guide. We expect adjusted EBITDA to be between $3,775 million and $3,800 million, growing 2.5% to 3.1% year over year, or 2.8% at the midpoint.

Now I'll turn it over to Mike. Who will share details on our guidance? Mike?

This revenue guidance includes approximately $100 million of Covid related revenue step down entirely in Rds.

Thanks Ron and good morning everyone. Let's start with our full year of guidance.

Approximately 100 basis points of tailwind from foreign exchange and approximately 150 basis points of contribution from acquisition.

Ari Bousbib: What was the growth of TAZ Q3 last year? It was like 8.6%, I want to say. I remember. 8.6% growth last year. So we knew we had a tough compare this quarter. But as I mentioned in my introductory remarks, sequentially, we're slightly up. And usually, because Q3 is the toughest quarter, given nothing happens for six weeks in Europe. It used to be three weeks, then it's four, and now it's six, and it's going to eight. And it's working. So I think that the performance this quarter was very strong. It was led largely by the real-world evidence, which was very, very strong. And everything else was obviously, data is usually low single digits. And everything else was between low to kind of mid single digit growth. Again, against very tough compares. Same for consulting. Are you seeing a pickup in that consulting?

What was the growth of TAZ Q3 last year? It was like 8.6%, I want to say. I remember. 8.6% growth last year. So we knew we had a tough compare this quarter. But as I mentioned in my introductory remarks, sequentially, we're slightly up. And usually, because Q3 is the toughest quarter, given nothing happens for six weeks in Europe. It used to be three weeks, then it's four, and now it's six, and it's going to eight. And it's working. So I think that the performance this quarter was very strong. It was led largely by the real-world evidence, which was very, very strong. And everything else was obviously, data is usually low single digits. And everything else was between low to kind of mid single digit growth. Again, against very tough compares. Same for consulting.

We are confirming our full year 2025 guidance and our narrowing the ranges for revenue and just to keep it uh and adjusted diluted earnings per share and are maintaining the midpoint of our prior guys.

These assumptions are unchanged from the prior guide.

We expect adjusted EBITDA to be between $3 billion $775 million and $3.800 billion.

We expect Revenue to be between 16 billion, 150 million and 16 billion, 250 million representing year-over-year growth of 4.8 to 5.5% or 5.2% at the midpoint.

Growing two five to three 1% year over year or two 8% at the midpoint.

We expect adjusted diluted EPS to be between $11 85.

This Revenue guidance includes approximately 100 million of coid related Revenue, step down entirely in RDS.

And $11 95.

Six five to seven 4% versus prior year or about 7% at the midpoint.

Approximately 100 basis points of Tailwind from foreign exchange, and approximately 150 basis points of contribution from acquisitions.

These assumptions are unchanged from the prior guide.

Yes.

Now turning to the fourth quarter.

We're expecting revenue to be between $4.204 billion and $4.304 billion, which represents year over year growth of six 2% to eight 7%.

[Analyst]: We expect adjusted diluted EPS to be between $11.85 and $11.95, up 6.5% to 7.4% versus prior year, or about 7% at the midpoint. Now, turning to the fourth quarter, we're expecting revenue to be between $4,204 million and $4,304 million, which represents year-over-year growth of 6.2% to 8.7%. Adjusted EBITDA is expected to be between $1,033 million and $1,058 million, representing growth of 3.7% to 6.2% versus prior year. Adjusted diluted EPS is expected to be between $3.35 and $3.45, which represents year-over-year growth of 7.4% to 10.6%. This guidance assumes that foreign currency rates, as of October 27th, continue for the balance of the year. To summarize, in the third quarter, we delivered strong top and bottom line results, as well as record high free cash flow. RDS net bookings were $2.6 billion, growing 13% year over year and resulting in a net book-to-bill ratio of 1.15 times.

5 to 3.1% year-over-year for 2.8% at the midpoint.

Adjusted EBITDA is expected to be between $1.033 billion and $1.058 billion representing.

We expect adjusted to newly EPS to be between $11.85.

Shlomo Rosenbaum: Are you seeing a pickup in that consulting?

Representing growth of three 7% to six 2% versus prior year.

Ari Bousbib: You will recall that I know why you're asking consulting because it's kind of the most discreet. And it's positive in terms of leading indicator. When things were trending negative territory, consulting went down very rapidly. In the end of 2023, first part of 2024 timeframe, consulting was down, actually negative. One of the quarters, I think it was negative double digits. But it's positive this quarter. And again, everything outside real-world evidence in aggregate was mid single digits or thereabouts. Thank you. Thank you, John. Your next question comes from the line of Eric Caldwell from Baird. Your line is open. I'll stick on the TAZ question here just to make sure we're all level set for the fourth quarter. Back in February, you guided to $6.3 to 6.5 billion. That was quite a while ago. A lot of things changed.

Ari Bousbib: You will recall that I know why you're asking consulting because it's kind of the most discreet. And it's positive in terms of leading indicator. When things were trending negative territory, consulting went down very rapidly. In the end of 2023, first part of 2024 timeframe, consulting was down, actually negative. One of the quarters, I think it was negative double digits. But it's positive this quarter. And again, everything outside real-world evidence in aggregate was mid single digits or thereabouts. Thank you. Thank you, John.

and $11.95 of 6.5 to 7.4% versus prior year or about 7% at the midpoint

And adjusted diluted EPS is expected to be between $3 35.

Now, turning to the fourth quarter.

$3 45.

Which represents year over year growth of seven 4% to 10, 6%.

And this guidance assumes that foreign currency rates as of October 27th continue for the balance of the year.

We're expecting Revenue to be between 4 billion and 204 million and 4 billion 304 million, which represents year-over-year growth of 6.2 to 8.7%.

So to summarize in the third quarter, we delivered strong top and bottom line results as well as record high free cash flow.

Adjusted ibida is expected to be between 1 billion, 33 million and 1 billion 58 million representing growth of 3.7% to 6.2% burst prior year.

<unk> net bookings were $2 $6 billion growing 13% year over year and I think in a net book to Bill ratio of 115 times.

Forward looking demand metrics clinical business continued to trend in the right direction.

And adjusted to lose. EPS is expected to be between 3.35 and $3.45, which represents year-over-year growth of 7.4% to 10.6%.

Operator: Your next question comes from the line of Eric Caldwell from Baird. Your line is open.

20% <unk> growth year over year and sequential improvements in client decision, making timelines.

Eric Coldwell: I'll stick on the TAZ question here just to make sure we're all level set for the fourth quarter. Back in February, you guided to $6.3 to 6.5 billion. That was quite a while ago. A lot of things changed.

And this guidance assumes that foreign currency rates as of October 27th continue for the balance of the year.

Taz performed well and delivered solid results driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio.

So to summarize in the third quarter, we delivered, strong cogs and bottom line results as well as record high free cash flow.

And we reaffirmed our full year 2025 guidance.

With that let me hand, it back to the operator for Q&A.

[Analyst]: The forward-looking demand metrics in the clinical business continue to trend in the right direction, with 20% RFP flow growth year over year and sequential improvement in client decision-making timelines. TAS performed well and delivered solid results driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio. We reaffirmed our full-year 2025 guidance. With that, let me hand it back to the operator for Q&A.

Ari Bousbib: But if I use that original range and I take out what you've done year to date, that would put the implied fourth quarter revenue guidance about $100 to 300 million below the street on TAZ. That's a big range and obviously a lower number than where consensus lies today. So I'm just hoping you can give us a little specificity on what you're thinking for TAZ in the fourth quarter so we aren't ahead of our skates here. Yeah. I'm not sure. You're talking about our targets and then you talked about the street. I don't know. Yeah. You guided in February to $6.3 to 6.5 billion. And the year-to-date number through three quarters is $4.8 billion, a little over $4.8 billion. So that leaves less than $1.5 billion to less than $1.7 billion to get to the full year if I've done the math. Yeah.

But if I use that original range and I take out what you've done year to date, that would put the implied fourth quarter revenue guidance about $100 to 300 million below the street on TAZ. That's a big range and obviously a lower number than where consensus lies today. So I'm just hoping you can give us a little specificity on what you're thinking for TAZ in the fourth quarter so we aren't ahead of our skates here.

R&D estimates were 2.6 billion dollars, grown 13% year-over-year and there's nothing to the next book to Bill ratio of 1.15 times.

Okay.

At this time I would like to remind everyone in order to ask a question.

Star then the number one on your telephone keypad.

I request that you. Please limit yourself to just one question so that others in the queue may participate as well, we'll pause for just a moment to compile the Q&A roster.

The forward looking demand metrics in your clinical business continued to climb in the right direction. With 20% of our, we flow growth year-over-year, and sequential Improvement in client decision, making timelines.

Your first question comes from the line of David Windley from Jefferies. Your line is now open.

As performed well and delivered solid results driven by ongoing momentum from drug launches and strengths of our broader commercial portfolio.

Ari Bousbib: Yeah. I'm not sure. You're talking about our targets and then you talked about the street. I don't know. Yeah.

And we reaffirmed our full year 2025 guidance.

Hi, Good morning, Thanks for taking my question I wanted to ask you about what I think you call your C more win more strategy.

With that, let me hand it back to the operator for Q&A.

Kerri Joseph: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of David Windley from Jefferies. Your line is now open.

Eric Coldwell: You guided in February to $6.3 to 6.5 billion. And the year-to-date number through three quarters is $4.8 billion, a little over $4.8 billion. So that leaves less than $1.5 billion to less than $1.7 billion to get to the full year if I've done the math. Yeah.

And how that has played out through the middle of the year or through this year in terms of contributing to the RFP flows improvement that you're highlighting.

At this time, I would like to remind everyone that in order to ask a question, please press star, then the number 1 on your telephone keypad.

As well as your win rate.

And how we should think about.

we request that you please limit yourself to just 1 question, so that others in the queue May participate as well. We'll pause for just a moment to compile the Q&A roster.

And amount if any.

Ari Bousbib: I want to talk to the finance team here and ask him. I don't have the numbers in front of me. But you were suggesting that TAZ would be lower than our guidance. I don't see that. Well, I'm not really suggesting anything. I'm hoping you'll tell us. You can take that on the quarter number. Yeah. I'm hoping you'll tell us that things have changed since the February numbers, but it is possible that maybe the street's just a little high on the segment. I mean, it looks like you'll cover it with RDS and CSMS, but I just want to make sure we're. Again, Eric, I think we are delivering on guidance. Am I wrong? Yeah, Eric, we'll help you with some of the Q4 details.

Ari Bousbib: I want to talk to the finance team here and ask him. I don't have the numbers in front of me. But you were suggesting that TAZ would be lower than our guidance. I don't see that. Well, I'm not really suggesting anything. I'm hoping you'll tell us. You can take that on the quarter number.

Price competitiveness, you're applying in that strategy and how that plays out through the P&L as that business converts to revenue. Thank you.

The first question comes from the line of David Windley from Jeffries. Your line is now open.

David Windley: Hi. Good morning. Thanks for taking my question. Ari, I wanted to ask you about what I think you call your see more, win more strategy and how that has played out through the middle of the year or through this year in terms of contributing to the RFP flow improvement that you're highlighting, as well as your win rate and how we should think about, you know, an amount, if any, you know, price competitiveness you're applying in that strategy and how that plays out through the P&L as that business converts to revenue. Thank you.

Okay.

Okay.

Lola.

Usually we keep the best for the last what you start with the <unk>.

Strategic question, so, let's let's start with that okay, well look.

Eric Coldwell: Yeah. I'm hoping you'll tell us that things have changed since the February numbers, but it is possible that maybe the street's just a little high on the segment. I mean, it looks like you'll cover it with RDS and CSMS, but I just want to make sure we're.

The strike in.

Bookings momentum and RFP flow.

We have to say and we can see through the industry in general.

I think it reflects a reduction in the level of uncertainty.

Ari Bousbib: Again, Eric, I think we are delivering on guidance. Am I wrong? Yeah, Eric, we'll help you with some of the Q4 details.

Hi, good morning, thanks for taking my question. Um Ari I wanted to ask you about what I think you call your Seymour windmoor strategy and how that has played out through the middle of the year, or through this year, in terms of contributing to the RFP flows, um, Improvement that that you're, uh, highlighting, uh, as well as your win rate and how we should think about, you know, an amount if any, um, you know, price competitiveness, you're applying in that strategy and how that plays out through the p&l is that business converts to revenue. Thank you.

Ari Bousbib: Okay. Usually, we keep the best for the last, but you start with the victory dig equation, so let's start with that. Okay. Look, the strength in bookings momentum and RFP flow, I think we have to say, and we can see it in the industry in general, I think reflects a reduction in the level of uncertainty in the market environment and the macro political environment. I think there have been a few developments that have sort of helped tilt decision-making at large pharma on certain programs favorably. The climate overall has improved. That's undeniable in our sector. That certainly is a big driver of our growth.

In the market environment, and the macro political environment.

Ari Bousbib: But on a full-year basis, there's been no change all year with TAZ, that the full-year CFX growth rates were between sort of 5% and 6%. So there's no change there. So we can help you with. We always said 5% to 6% growth year over year, correct? CFX. CFX. Correct. And that's exactly what we said. I think you said 5% to 7% constant currency. And I believe it was 5% to 7% on 6 February was the range. But we narrowed our guides in the last call there. So we're still sticking with the 5% to 6%. There's no change from the prior guides and no change where TAZ is going to land in the full year. Okay. Yeah. I don't see any change. Well, there's no change, Eric. Yeah. We'll help you with that with the Q4, but there's been no change. Yeah. Perfect. Thanks.

But on a full-year basis, there's been no change all year with TAZ, that the full-year CFX growth rates were between sort of 5% and 6%. So there's no change there. So we can help you with. We always said 5% to 6% growth year over year, correct? CFX. CFX. Correct.

They have been a few developments that have sort of helps.

The decision, making at large pharma on certain programs favorably.

And the climate.

Overall has improved.

Eric Coldwell: And that's exactly what we said. I think you said 5% to 7% constant currency. And I believe it was 5% to 7% on 6 February was the range.

That's undeniable.

So thats certainly.

<unk> is a big driver of our growth.

Okay. Um, well no way we usually we we we we we we keep the best for the last, but you start with the Victor Digi question. So let's let's start with that. Okay, well look, um the strike in, um, bookings, momentum and RFP flow. I think we have to say and we can see in the industry in general. I think reflects a reduction in the level of uncertainty

Specifics of a C Moore when more strategy.

Ron Bruehlman: But we narrowed our guides in the last call there. So we're still sticking with the 5% to 6%. There's no change from the prior guides and no change where TAZ is going to land in the full year. Okay. Yeah. I don't see any change. Well, there's no change, Eric. Yeah. We'll help you with that with the Q4, but there's been no change.

Which we started earlier this year.

Uh, in the market environments and the macro political environments. I think there have been a few developments that have sort of helped.

Which as you know now has has a lot of.

Um,

Imitators.

Hi.

<unk> foods as well in the Senate.

<unk> bin.

Looking at markets that we previously had.

Eric Coldwell: Yeah. Perfect. Thanks.

Ari Bousbib: Just want to make sure we're not ahead of our skates. I appreciate that very much. Anything else you had other than this clarification? I had 42 questions, but you told us to stick to one. Let me get this. I am going to give you a special discount because that wasn't really a question, so. Well, look, I mean. That was like a commentary. You were trying to. I appreciate it. So I appreciate it. So I'll sneak two in. I'll take advantage and give an edge. I'll take a mile. Two things just quickly. One, do get some ongoing questions on those couple of mega trials that you mentioned earlier this year. I'm just curious if you can tell us what the status is.

Just want to make sure we're not ahead of our skates. I appreciate that very much.

The reduction and had left some more marginal players essentially.

uh, tilt decision making at large Farmer on certain programs favorably. Um, and the climate overall has improved that's undeniable in our, in our sector.

Ari Bousbib: Anything else you had other than this clarification?

Ari Bousbib: The specifics of our see more, win more strategy, which we started earlier this year, which, as you know, now has a lot of imitators, has borne fruits as well in the sense that we've been looking at markets that we previously hadn't been touching and had left some more marginal players essentially in a quasi-monopoly situation in those segments. We've decided to go after that. The pricing conversation is a little bit overdone, in my opinion. In a climate where market dynamics were unfavorable, with a lot of uncertainty and fewer deals to be had, there was more competition on pricing. All we did in the first part of the year was to align to those pricing discounts that were being offered as opposed to walk away in order to continue to build our book of business. We don't see that trend continuing.

Okay.

Was the monopoly situation in those segments and we've decided to go after that.

Eric Coldwell: I had 42 questions, but you told us to stick to one. Let me get this.

So that's so totally uh is a Big Driver of our growth, the specifics of our Seymour, win more strategy, which we started earlier this year.

Ari Bousbib: I am going to give you a special discount because that wasn't really a question, so.

The pricing conversation is a little bit overdone opinions.

Which as as you know, now has has a lot of Emmitt imitators.

Um,

Eric Coldwell: Well, look, I mean. That was like a commentary. You were trying to. I appreciate it. So I appreciate it. So I'll sneak two in. I'll take advantage and give an edge. I'll take a mile. Two things just quickly. One, do get some ongoing questions on those couple of mega trials that you mentioned earlier this year. I'm just curious if you can tell us what the status is.

Yes.

Alignment where markets.

Dynamics were unfavorable with a lot of uncertainty and less deals.

To be had there was more competition on pricing and all we did.

The first part of the year was through.

Allowing peoples pricing.

Had a, a bone fruits as well in the sense that we've been, um, looking at markets that we previously, you know, hadn't been touching and had left some more marginal players essentially, uh, you know, in a quasi, monopolies situation in those segments. And we've decided to go after that,

Discounts.

We're being offered as opposed to walk away.

Ari Bousbib: I think one was definitely ramping back up here in the back half, and I believe the other was still pushed out till next year if happening at all. So maybe just an update on the mega trials. Then secondarily, Ari, in your prepared commentary, you highlighted some interesting wins. And you mentioned phase I a couple of times. And my historic interpretation of past conversations was that you weren't really a big phase I shop. Maybe you partnered with some others. But I'm curious on what your involvement is these days in actually managing or even having phase I CRO units. Maybe give us a little more color on what you're doing there. Thanks so much. Yeah. It's a very good observation, Eric. We are seeing a lot of demand for phase I work. And we are the network partners.

I think one was definitely ramping back up here in the back half, and I believe the other was still pushed out till next year if happening at all. So maybe just an update on the mega trials. Then secondarily, Ari, in your prepared commentary, you highlighted some interesting wins. And you mentioned phase I a couple of times. And my historic interpretation of past conversations was that you weren't really a big phase I shop. Maybe you partnered with some others. But I'm curious on what your involvement is these days in actually managing or even having phase I CRO units. Maybe give us a little more color on what you're doing there. Thanks so much.

Continue to build our book of business.

We don't see that trend.

Trend continuing it hasnt been an issue at all.

This past quarter.

To walk away from deals.

Is a little bit overdone, in my opinion. Um, you know, it in a, in a climate where Market, uh, Dynamics were unfavorable with a lot of uncertainty and less deals.

And we think that the.

The sector in general.

Is a lot healthier in terms of market dynamics.

Aw of.

Certainty has gone down and pricing has returned to normal levels.

Uh to be had there was more competition on pricing and all we did, you know, in the first part of the year was to align to those pricing uh, discounts that that were being offered as opposed to walk away in order to continue to build a book of business.

Yes.

Ari Bousbib: It hasn't been an issue at all. Certainly, this past quarter, the opposite. We've walked away from deals. We think that the sector in general is a lot healthier in terms of market dynamics. The level of uncertainty has gone down and pricing has returned to normal levels. You have a question and follow-up on P&L implications. Look, we have a $32+ billion backlog, and only a tiny portion of that was subject to a few discounts that we did earlier in the year. The revenues associated with those bookings are going to bleed over our P&L over the next five years. We do not expect that to have any impact whatsoever on our P&L going forward.

Yes. Good question a follow up on the P&L implications.

Look we have the 32 plus billion dollar backlog and only a tiny portion of that was subject to.

Ari Bousbib: Yeah. It's a very good observation, Eric. We are seeing a lot of demand for phase I work. And we are the network partners.

Um we don't see that uh Trend continuing. It hasn't been an issue at all. Uh certainly this past quarter and the opposite. We've walked away from deals.

A few.

Discounts as well.

um, and we think that the the sector in general,

The year.

Those the revenue associated with those things that are going to bring overall P&L over the next five years.

Ari Bousbib: We don't have any significant presence in that segment, but we are expanding. This is why I chose to highlight a couple of examples. It's also, by the way, part of our Seymour Wilmore strategy. It happens to be that there is more demand. Things are getting sort of "restarted" again, and the pipelines are strong. So we are seeing more demand, and we are ourselves being more present in the segment. Yeah. Phase I in oncology is a little bit different. So if you're not dealing with healthy volunteers, it tends to feed your labor business better than other phase I trials. So there is some distinction there. That's what Next Oncology was, phase I oncology. Yeah. Perfect. That's super helpful. Thanks. Yeah. Then the two trials. Yeah. The two trials, no change there.

We don't have any significant presence in that segment, but we are expanding. This is why I chose to highlight a couple of examples. It's also, by the way, part of our Seymour Wilmore strategy. It happens to be that there is more demand. Things are getting sort of "restarted" again, and the pipelines are strong. So we are seeing more demand, and we are ourselves being more present in the segment. Yeah. Phase I in oncology is a little bit different. So if you're not dealing with healthy volunteers, it tends to feed your labor business better than other phase I trials. So there is some distinction there. That's what Next Oncology was, phase I oncology.

And we do not expect that to have any impact whatsoever.

Um is a lot healthier in terms of market dynamics, the level of uh uncertainty has gone down and pricing has returned to normal levels.

On our P&L going forward.

Okay great.

Great. Thanks, sorry, I'll stick to the one question. Thank you.

Hi, Thank you.

Your next question comes from the line of Justin <unk> from Deutsche Bank.

Your line is now open.

Hi, good morning, everyone. So our it sounds like the business environment is improving.

Fundings up consumer confidence improving.

You have a question and follow up on pnl implications. Look, we, we have a 32 plus billion dollar backlog, and only a tiny portion of that was subject to, um, you know, a few, you know, discounts that we did earlier in the year. Uh, those the revenue was associated with those things are going to bleed over our PN over the next 5 years.

Both of the segments Taz in Rds.

Um, and we do not expect that to have any impact whatsoever.

Our strengthening at least on a two year stack basis is this.

Uh, on our pnl going forward.

[Analyst]: Great. Thanks, Ari. I'll stick to the one question. Thank you.

Momentum that we should expect to continue over the next few quarters and into 2026 and maybe if you just give us a glimpse of how youre thinking about those two.

Ari Bousbib: Thank you.

Great. Thanks Ari. I'll stick to the 1 question. Thank you.

Kerri Joseph: Your next question comes from the line of Justin Bowers from Deutsche Bank. Your line is now open.

Thank you.

Eric Coldwell: Yeah. Perfect. That's super helpful. Thanks. Yeah.

Your next question comes from the line of Justin Bowers from Deutsche Bank.

Okay.

Your line is now open.

[Analyst]: Hi. Good morning, everyone. Ari, it sounds like the business environment is improving. Funding's up, consumer confidence improving, and both of the segments, TAS and RDS, are strengthening, at least on a two-year stack basis. Is this momentum that we should expect to continue over the next few quarters and into 2026? Maybe if you just give us a glimpse of how you're thinking about those two.

Yeah, well look.

Ron Bruehlman: Then the two trials. Yeah. The two trials, no change there.

I can't I don't have a crystal ball here and I'm not going to give your 2026 initiatives.

Ari Bousbib: We don't have anything factored into our fourth quarter guidance for revenue burn from either of them. So I suppose that's a slight change from what we said. Right. It's basically all pushed out of the year. And it's not contemplated in the guidance, right? Not confirmed. Yeah. Bear in mind that we mentioned this, what is it, like a year ago at this time, because it caused us at the time to change our guidance for RDS. These were fast-burning, and it had already gotten started, and they were interrupted. And so that caused us to change our guide for RDS for the fourth quarter of last year. And so we had to mention it. We only mention specific trials to the extent we can.

We don't have anything factored into our fourth quarter guidance for revenue burn from either of them. So I suppose that's a slight change from what we said. Right. It's basically all pushed out of the year. And it's not contemplated in the guidance, right? Not confirmed. Yeah. Bear in mind that we mentioned this, what is it, like a year ago at this time, because it caused us at the time to change our guidance for RDS. These were fast-burning, and it had already gotten started, and they were interrupted. And so that caused us to change our guide for RDS for the fourth quarter of last year. And so we had to mention it. We only mention specific trials to the extent we can.

A clever way of us may have upsides Lindsey guidance, we're not going to do that here as you know we usually.

Provide guidance for the year procurement.

Use of our fourth quarter and full year earnings early in the year. So end of January or early February.

Hi, good morning everyone. So our it sounds like uh the business environment is improving uh funding's up consumer confidence improving and uh both of the segments toss and RDS um are are strengthening at least on a 2 year stack basis is this momentum that we should expect to continue over the next few quarters and then to 2026 and maybe if you're just give us a glimpse of how you're thinking about those 2

Ari Bousbib: Yeah. Look, you know, I can't tell how to twist the ball here, and I'm not going to give you 2026. This was a clever way of asking me about 2026 guidance. We're not going to do that here. As you know, we usually provide guidance for the year concurrent with the release of our fourth quarter and full-year earnings early in the year. End of January or early February, we'll provide that. We are in the midst of our planning process, and it's still early. We're still in October. What I can tell you is we are going to deliver this year over 5% in top-line revenue growth, which, frankly, given what we've been through and the environment we've been in in the past year and a half, two years, I think is a very, very strong performance.

We are in the midst of our.

yeah, well look, you know

<unk> planning process and studio city in October.

And but if you look at what I can tell you <unk>.

We are going to deliver this year over 5% in topline revenue.

Growth, which frankly, given what we've been through.

And the environment will be.

In the past year and a half two years I think.

Ari Bousbib: And we try to be very careful because we are mindful of confidentiality for our clients and so on, so we cannot say very much. But we do mention it when there is a significant event attached to one trial. In this case, it was two. And that caused us to change anything in our numbers. But bear in mind, at any point in time, we're working on a couple of thousand trials. And we keep building backlog, as you saw. And thankfully, we have had very positive momentum in our bookings, and it's continuing. So we feel good about that. And it continued to stagger on our book of business. So yeah. But which again enabled us to continue to deliver and do even better on RDS even without those trials resuming this year. Thank you, Eric. Thank you. I'll give you one more question. Yes. One more.

And we try to be very careful because we are mindful of confidentiality for our clients and so on, so we cannot say very much. But we do mention it when there is a significant event attached to one trial. In this case, it was two. And that caused us to change anything in our numbers. But bear in mind, at any point in time, we're working on a couple of thousand trials. And we keep building backlog, as you saw. And thankfully, we have had very positive momentum in our bookings, and it's continuing. So we feel good about that. And it continued to stagger on our book of business. So yeah. But which again enabled us to continue to deliver and do even better on RDS even without those trials resuming this year. Thank you, Eric. Thank you. I'll give you one more question. Yes. One more.

Very very strong performance and you can see that compared to our larger.

Um, I can't, I don't know how to increase the Bowl here, and I'm not going to give you 2026. This was a, a clever way of asking me about 2026 guidance. We're not going to do that here. As you know, we usually uh, provide guidance for the year concurrent with the release of our 4, quarter and full year earnings early in the year. So end of January or early February, we'll provide that we are in the midst of our, um, uh, planning process and still, we still in October. Um, and

Certainly the larger CLO peers.

uh, but look what I can tell you is

We are doing very very well.

So.

I cannot tell you yet what 'twenty.

26 will be in the next few quarters for that.

Look I wouldn't be surprised if revenue.

Growth in <unk> is not at least the same or better than.

And then the growth that we're seeing this year, so I see that certainly most continents.

Ari Bousbib: You can see that compared to our larger, certainly the larger CRO peers, we are doing very, very well. I cannot tell you yet what 2026 will be in the next few quarters, but I mean, I would be surprised if revenue growth in 2026 is not at least the same or better than the growth that we are seeing this year. I see that with a certain amount of confidence.

we are going to deliver this year, over 5% in Topline Revenue growth, which frankly, given what we've been through and the environment, we've been um, in in the past year and a half 2 years, I think is a very, very strong performance and you can see that compared to our larger

Okay.

Thank you.

Your next question comes from the line of Elizabeth Anderson from Evercore Evercore ISI. Your line is open.

Hi, guys. Good morning, Thanks for the question and congrats Ron on your retirement.

I was wondering if you could talk a little bit about some of the differences between what youre seeing on the pharma side versus the biotech side I think you covered the biotechs that nicely in the chemo with my answer, but just sort of wanted to Peel back the onion, a little bit on the pharma side as well.

Uh, certainly the larger cro peers, uh, we are doing very, very well. Um, so I cannot tell you yet, uh, what 26 will be in the next 24 hours, but, I mean, look, I would be surprised if Revenue, uh, is growth in 26, is not at least the same or better than, um, than the growth that we are seeing this year. So, I, I, I see that with the certain amount of confidence,

[Analyst]: Thank you.

Ari Bousbib: Next question, operator. This will be our last question. Your last question comes from the line of Jeff Garro from Stephens. Your line is open. Yeah. Good morning. Thanks for taking the question. I want to ask more about AI and maybe try to make it a two-parter. First part being if you have any insights how AI is changing your customers' business models and specifically their appetite for outsourcing. And then the second part would be how is IQVIA using AI internally to deliver results for clients that may be a little bit more efficiently and whether you have any visibility into potential gross margin improvements from those internal use cases. Thank you. Yeah. So thank you, Jeff. We've spoken about this in the past. And so far, we have about 90 AI agents in development that cover 25 use cases, and we continue to progress that.

Ari Bousbib: Next question, operator. This will be our last question.

Thank you.

Kerri Joseph: Your next question comes from the line of Elizabeth Anderson from Evercore ISI. Your line is open.

Operator: Your last question comes from the line of Jeff Garro from Stephens. Your line is open.

In the large pharma side, yes look.

Jeff Garro: Yeah. Good morning. Thanks for taking the question. I want to ask more about AI and maybe try to make it a two-parter. First part being if you have any insights how AI is changing your customers' business models and specifically their appetite for outsourcing. And then the second part would be how is IQVIA using AI internally to deliver results for clients that may be a little bit more efficiently and whether you have any visibility into potential gross margin improvements from those internal use cases. Thank you.

Elizabeth Anderson: Hi, guys. Good morning. Thanks so much for the question and congrats, Ron, on your retirement. I was wondering if you could talk a little bit, Ari, about some of the differences between what you're seeing on the pharma side versus the biotech side. I think you covered the biotech side nicely in the see more, win more answer, but just sort of wanted to peel back the onion a little bit on the pharma side as well.

Large pharma went through.

A lot of transformation internally in terms of their investment programs.

You going back to the IRS.

Your next question comes from the line of Elizabeth Anderson from ever evercore. Isi, your line is open. Hi guys. Good morning. Thanks so much for the question and congrats Ron uh on your retirement. Um, I was wondering if you could talk a little bit Ari about some of the differences, um, between what you're seeing on the far side versus the biotech.

There was.

This hold phase of re prioritization of programs and reviews of their pipelines, which led to.

Side. I think you covered the biotech side nicely and the T more win, more answer. But, um, just sort of wanted to to peel back the onion a little bit on the the Pharma side as well.

Ari Bousbib: You mean the large pharma side?

Elizabeth Anderson: Yes, please.

Elevated level of cancellations due to this re prioritization activity.

Ari Bousbib: Look, large pharma went through a lot of transformation internally in terms of their investment programs. Going back to the IRA, there was this whole phase of reprioritization of programs and reviews of their pipelines, which led to an elevated level of cancellations due to this reprioritization activity. That lasted for a year, year and a half, beginning mid of 2023 and certainly continuing through 2024. We see that activity as having essentially been completed, and we haven't seen any further cancellations as a result of that type of activity. We think that the pipelines are now fully sanitized. Of course, there continue to be cancellations, but they are all more business as usual due to futility or other reasons and nothing unusual. Large pharma, actually, the RFP flow for large pharma is very strong. I mentioned that our RFP flow growth year over year is 20%.

Give me the large Pharma side. Yes. Um, look, um

Ari Bousbib: Yeah. So thank you, Jeff. We've spoken about this in the past. And so far, we have about 90 AI agents in development that cover 25 use cases, and we continue to progress that.

That lasted.

You know, large for went through.

For year year, and a half beginning.

Mid of 'twenty, three and certainly continued through 'twenty four.

We see that's a CVT as having essentially been completed.

Programs. Um, are you going back to the IRA?

And we haven't seen it.

Ari Bousbib: By early 2027, we plan to develop 500 highly specialized agents. And what these do is they essentially eliminate a lot of physical labor from the tasks that we perform for our clients. So internally, I think the second part of your question first, certainly that will help improve our margins longer term. Now, it takes time to deploy, obviously, and it takes time to translate that into margin improvements. We've had great examples on the commercial side. We use, for example, AI tools to compare patient cohorts to each other and highlight differences with natural language output, which leads to improvements in cycle times from several weeks to a couple of weeks. We really have a lot of examples, and it takes a long time to recite those. But we see significant value in continuing to do more with less through deploying agents within our internal processes.

By early 2027, we plan to develop 500 highly specialized agents. And what these do is they essentially eliminate a lot of physical labor from the tasks that we perform for our clients. So internally, I think the second part of your question first, certainly that will help improve our margins longer term. Now, it takes time to deploy, obviously, and it takes time to translate that into margin improvements. We've had great examples on the commercial side. We use, for example, AI tools to compare patient cohorts to each other and highlight differences with natural language output, which leads to improvements in cycle times from several weeks to a couple of weeks. We really have a lot of examples, and it takes a long time to recite those. But we see significant value in continuing to do more with less through deploying agents within our internal processes.

Any further cancellations as a result of that type of activity.

So we think that the <unk>.

Pipeline is on now.

There was this whole phase of reprioritization of programs and reviews of their pipelines, which led to an elevated level of cancellations due to this reprioritization activity.

40, sanitized of course, they will continue to be cancellations.

That's kind of a slow down there all that more business as usual due to futility or other reasons and nothing unusual.

that lasted um you know for year year and a half beginning uh mid of 23 and certainly continuing through 24

Um, we see that activity as having essentially, uh, being completed.

Large pharma.

Actually.

And we haven't seen uh any further cancellations as a result of that type of activity.

Good RFP flow for our pharma is very strong I mentioned that our RFP for growth year over year is 20%.

Uh, so we think that the pipelines are now, uh, you know, fully sanitized. Of course, they continue to be cancellations.

And that applies to large pharma and to EVP equally as strong strong momentum.

um,

And again Thats helped.

You know, that's kind, but they are. They are all more like business as usual due to futility or other reasons, and nothing unusual.

Call me.

Environment, and perhaps more certainty around what's coming.

um, you know, launched from

And it's also helped by decided that this reproach stations have been largely completed and.

And the programs that are now on the table our programs at our clients wants to.

Ari Bousbib: That applies to large pharma and to EDP equally. There is strong momentum. That is helped by the more calming environment and perhaps more certainty around what's coming. It is also helped by the fact that these reprioritizations have been largely completed. The programs that are now on the table are programs that our clients want to engage in and want to go forward with. Our cancellations, I always say, in recent years were about half a billion dollars a quarter, plus or minus a couple of hundred million dollars. They could range between $300 million and $700 million in a given quarter. A couple of billion dollars plus, year in, year out. In 2024, we had more than 50% higher cancellation than that, over $3 billion in 2024, because of these reprioritizations from large pharma. That essentially is behind us. Year to date, our cancellations follow the regular pattern.

a a actually, you know, the the RSP flow for our farmer is very strong, you know, I mentioned that our RFP growth year-over-year is 20%

To engaging and want to go forward with.

Our room.

Uh, and that applies to large farmer and to EBP equally, I mean, there's a strong strong momentum.

Cancellations I always say when.

Ari Bousbib: For our clients, I give a number of examples in my introductory remarks. Our clients are very interested, of course, in using AI. So early on, before we get involved in discovery, there's a lot of focus from our clients in the discovery space to try to use AI to sort out molecules and try to identify the most like, quote-unquote, the most likely to succeed trials to tackle a specific disease. We participate a little bit with some models and some tools that we have. But later on, look, the issue on the clinical side is that it's highly regulated, and you get to go through standard processes that are defined by regulations. And you have to use the intermediary spaces between those regulatory interactions to utilize and deploy AI. At the sites, it's very helpful.

For our clients, I give a number of examples in my introductory remarks. Our clients are very interested, of course, in using AI. So early on, before we get involved in discovery, there's a lot of focus from our clients in the discovery space to try to use AI to sort out molecules and try to identify the most like, quote-unquote, the most likely to succeed trials to tackle a specific disease. We participate a little bit with some models and some tools that we have. But later on, look, the issue on the clinical side is that it's highly regulated, and you get to go through standard processes that are defined by regulations. And you have to use the intermediary spaces between those regulatory interactions to utilize and deploy AI. At the sites, it's very helpful.

Recent years' worth about half a billion dollars.

um, and again, that's helped by the

A quarter plus or minus a couple of $100 million. So they could range between three and $700 million.

In a given quarter.

So a couple of billion dollars.

Russ.

Youre in Youre out in 'twenty, four we had more than 50% higher.

Cancellation does that by over $3 billion in 2004.

Most of these re prioritization from large pharma.

That's essentially behind us and year to date, our cancellations for the regular.

Popcorn is deemed inspection somewhere between 500 around on average about a filing $60 million.

More coming and environment and perhaps, more certainty around what's coming. And, uh, it's also helped by the fact that this will prioritization have been largely completed. And the programs are now on the table, our programs, that our clients want to, uh, to engage in and, and, and want to go forward with, um, our cancellations. I always say, you know, in recent years were about half a billion dollars, uh, a quarter plus, or minus a couple of hundred million dollars, so they could rent between 300 and 700 million dollars, uh, you know, in a given quarter.

I saw the numbers.

Yesterday.

I think.

Nothing much to talk about this quarter.

I think where you'd be towards the higher anecdote about a range, but again not because of reproach stations should be normal wholesale business are also.

Ari Bousbib: I think it's actually somewhere between, on average, about $550 million per quarter. I saw the numbers yesterday. Nothing much to talk about. This quarter, we were a little bit towards the higher end of our range, but again, not because of reprioritizations. It is simply normal course of business. Our gross bookings were very strong, very strong this year. You can see that also in our $2.6 billion of net bookings, which were up 13% year over year, up sequentially, missing the digits. The trough we experienced Q1 probably was the trough. We don't see that in the details. Large pharma dynamics returning to normal business conditions, trending towards normal business conditions. Biotech funding improving, which, as you know, is the driver of EDP growth. That is reflected in our bookings and in our RFP flow as well.

Bookings were very strong very very strong as Jerome.

As you can see that also in up to one 6 billion of net.

Ari Bousbib: And our clients are using, of course, AI with all the technology tools that some of which are our tools that they use commercially. They use AI, I gave a few examples, to manage their promotion campaigns, marketing campaigns. They use AI to get patient insights in the real world. Real world, I mean, is a big area for us. And one of the reasons we experience such great growth is we've got very advanced capabilities given our vast information assets in real world patient data. Using AI tools and try to evaluate how a drug behaves in the real world using AI becomes a great, great opportunity. So these are the areas.

And our clients are using, of course, AI with all the technology tools that some of which are our tools that they use commercially. They use AI, I gave a few examples, to manage their promotion campaigns, marketing campaigns. They use AI to get patient insights in the real world. Real world, I mean, is a big area for us. And one of the reasons we experience such great growth is we've got very advanced capabilities given our vast information assets in real world patient data. Using AI tools and try to evaluate how a drug behaves in the real world using AI becomes a great, great opportunity. So these are the areas.

Net.

Bookings, which were up 13% year over year up sequentially.

<unk> digits and.

Trough, we experienced Q1.

He was the trough, we don't see that.

In the near term so again large pharma.

Dynamics.

Um, so a couple of billion dollars plus, you know, uh, year in year, out in 24% higher cancellation than that right. Over 3 billion dollars in 24 as a because of this report prioritization is from uh that essentially is behind us and year to date our cancellations. Follow the regular pattern. I think it's actually somewhere between 500 around on average about 550 million or more reviews. I saw the numbers, uh, yesterday. I think, um, you know, nothing much to, uh, talk about this quarter. I think we were a little bit towards the higher end of our range but again, not not because of reference stations, the simply normal course of business are also, uh, bookings were very strong, very, very strong. Its

Returning to <unk>.

Normal business conditions.

Easier. And, um, you know, you can see that also in our $2.6 billion of net.

Trending towards normal business condition, and biotech funding is improving which is the driver of <unk> growth and that again is reflected in our bookings in the RFP flow as well.

Alright, thank you.

Your next question comes from the line of Michael Cherny from Leerink Partners. Your line is open.

Ari Bousbib: Now, with respect to the margin, as you know, we have some margin headwinds certainly this year because of more fast tools, largely because of the FX tailwind, which all comes without profits. A little bit of the mix. For example, Q3, CSMS was stronger, and CSMS is lower margin. So when you have margin headwinds like that, certainly we're counting on our usual cost reduction programs, offshoring, and so on. But longer term, AI, certainly, and AI enablement will help mitigate those headwinds and help us long-term improve margins. Thank you. And I think the team will be available for follow-up questions as always. Thank you. Thank you for taking the time today. Mr. Joseph, I turn the call back over to you. Thank you. Thanks for taking the time to join us today.

Now, with respect to the margin, as you know, we have some margin headwinds certainly this year because of more fast tools, largely because of the FX tailwind, which all comes without profits. A little bit of the mix. For example, Q3, CSMS was stronger, and CSMS is lower margin. So when you have margin headwinds like that, certainly we're counting on our usual cost reduction programs, offshoring, and so on. But longer term, AI, certainly, and AI enablement will help mitigate those headwinds and help us long-term improve margins. Thank you. And I think the team will be available for follow-up questions as always. Thank you.

Um, net bookings, which were up 13% year-over-year, are absent sequentially, uh, missing your digits. And you know, the trough we experienced in Q1, um, you know, probably was the 12th. We don't see that, uh, you know, in the details. So again, large Forma uh, Dynamics.

Good morning, and thanks for taking the question.

Returning to um, normal business conditions.

Maybe if I can ask a little bit about taz.

Nice growth against obviously, a tough comp as you think about the pathway forward what do you see as the contributions youre getting from some of your inorganic advancements and where are you.

Elizabeth Anderson: Very helpful. Thank you.

You see the best opportunities to continue to expand that business above and beyond your own R&D.

We are trending towards normal business conditions, and biotech funding is improving. As you know, this is the driver of EBP growth, which is again reflected in our bookings and in our RFP flow as well.

Kerri Joseph: Your next question comes from the line of Michael Cherny from Leerink Partners. Your line is open.

I talk to anything along that vein that'd be great. Thanks.

Okay.

Your next question comes from the line of Michael Journey from Ling Partners. Your line is open.

Thank you Michael.

[Analyst]: Good morning, and thanks for taking the question. Maybe if I can ask a little bit about TAS. You know, nice growth against, obviously, a tough comp. As you think about the pathway forward, what do you see as the contributions you're getting from some of your inorganic advancements, and where do you see the best opportunities to continue to expand that business above and beyond your own R&D? Talk AI, talk anything along that vein. That would be great. Thanks.

You spoke about inorganic I think we said the one in the house.

Our points of contribution from a research company as a whole as you know us.

Always has been the case.

Bulk of that is in.

Pause.

Yeah.

Although I think in this past quarter.

Operator: Thank you for taking the time today. Mr. Joseph, I turn the call back over to you. Thank you.

Deeds.

Uh, good morning and thanks for taking the question. Yeah. Maybe if I can ask a little bit about Taz you. Nice growth against, obviously, a tough comp. As you think about the pathway forward, what do you see as the contributions you're getting from some of your inorganic advancements? And where do you see the best opportunities to continue to expand that business above, and beyond your own R&D? Talk AI, talk, anything along that vein? That would be great. Thanks.

The large acquisition that was denied.

Ari Bousbib: Thank you, Michael. You spoke about inorganic. I think, you know, we said the 1.5 points of contributions on our creation to the company as a whole. As you know, as almost has been the case, the bulk of that is in TAS. Although I think in this past quarter, we did a large acquisition that was in R&D as an SMO. I think that what we spent $485 million that we spent in total, and most of that is one acquisition called Next Oncology, which is an SMO specialized in oncology, very attractive business. We acquired this end of Q3, so not much contribution in Q3. The inorganic contribution to RDS will be a few million dollars, I guess, in the double digits, like $15 million or thereabouts of revenue to RDS in Q4. With respect to TAS, we didn't do much in Q3.

In R&D isn't as simple I think that what we spent $485 million that we spent in total and the most most of that.

Kerri Joseph: Thanks for taking the time to join us today.

You spoke about inorganic growth, I think. You know, we said the 1.5.

Ari Bousbib: We look forward to speaking with you again on the Q4 2025 full-year earnings call. The team will be available the rest of the day to take any follow-up questions you might have. Thank you. This concludes today's conference call. You may now disconnect.

We look forward to speaking with you again on the Q4 2025 full-year earnings call. The team will be available the rest of the day to take any follow-up questions you might have. Thank you.

Is one acquisition.

The.

Our next oncology, we should say.

upwards of the contributions on our conditions to the company, as a whole as you know, as uh homeless has been the case the, the bulk of that is in um,

And Exxonmobil.

Operator: This concludes today's conference call. You may now disconnect.

has um,

Especially in oncology very attractive business, we acquired this.

End of Q3, so not much contribution in Q3.

although I think in this past quarter,

And the inorganic contributions warrant, yes, we'd be a few million dollars I guess.

Okay.

Double digits like $50 million or thereabouts revenue to R&D, yes in Q4 with respect to <unk>, we didn't do much.

We did, um, a large acquisition that was uh, in R&D as an S. I think that what we, we spent 485 million dollars, we spend in total and the most, most of that is 1 across the next oncology, which is a, um,

In Q3.

And so I guess the acquisition contributions will be Europe.

Well, we think we need to see SMS deal as well right, which is it's small obviously, but.

An Smo specialized in oncology very attractive business. We acquired this, uh, you know, end of Q3. So not much contribution in Q3

Since you have some extra small segments. It was the launch of.

Peacefully.

Um and the inorganic contribution to rnds will be a few million dollars, I guess. Uh,

So not as much in tires in Q3 in general.

We tried to buy technology companies companies that can add.

Ari Bousbib: I guess the acquisition is contribution for the year. We did a CSMS deal as well, right, which is small, obviously, but since CSMS is a small segment, it was a large piece of it. Not much in TAS in Q3. In general, we try to buy technology companies, companies that can add capabilities to our suite of products, analytics companies. There's a lot of innovation, as you know, in the AI space.

<unk> suite of products.

And then it picks companies, there's a lot of innovation as you move in the Gi space.

In the double digits, like 50 million dollars or thereabouts of Revenue to rnds in Q4 with respect to ties, we didn't do much uh, in Q3. Um, and so I guess the Acquisitions is contribution for the year.

Medical Affairs, yes, they can put up data as real world Real World is a very strong real world evidence was.

Well we see, we need a csms deal as well. Right. Which is its small obviously, but since csms is a small segment, it was a large

Really very very strong in the quarter.

Um, piece of it.

And we expect that to continue.

Into the future so.

Yes.

Yes, I mean for the year.

Uh, so not much in tasks in Q3 in general. Um, we try to buy technology companies companies that can add a capabilities to our suite of products.

Again point than I have.

I would say.

[Analyst]: Medical affairs, consumer products.

60% of that would be does and correct.

Um, analytics companies there's a lot of innovation as, you know, in the AI space.

Ari Bousbib: Yeah, medical affairs, real world. Real world is very strong. Real-world evidence was really very, very strong in the quarter, and we expect that to continue into the future. For the year, you know, again, a point and a half, I would say 50%, 60% of that would be TAS and the rest for the year, right, for 2025. The rest RDS and then a little bit CSMS.

And the rest for the year nicely from.

25, and then the rest.

Yes.

Yes, and I believe it does.

Symbols.

Um, medical Affairs, many product areas real world. Real world is a very strong real world evidence was, uh, really uh, very, very strong in the hole.

Okay.

Your next question comes from the line of Shlomo Rosenbaum Stifel. Your line is open.

Um, and we expect that to continue, um, into the future. So, yeah, I mean, um,

Alright. Thank you alright refresh your question I just want to also commend drawn.

yeah, I mean for the year, you know, again the point and I have

The one I've seen you retire before it I'm not totally convinced you're gone right now.

Right.

I'll walk through our platform in a refinery.

Yes, you've dragged him out of retirement in the past already so I don't know.

I would say, um, 50 60% of that would be tasks and correct and the rest before the year, right? For, for 25, and then the rest, uh, rnds and then a little bit CS SMS.

Alright.

Kerri Joseph: Your next question comes from the line of Shlomo Rosenbaum. Your line is open.

I want to ask you to talk a little bit about the sub components.

Taz in how they are growing in terms of.

[Analyst]: Hi. Thank you. Ari, before I ask you a question, I just want to also commend Ron. Ron, I've seen you retire before, and I'm not fully convinced you're gone right now.

Real world evidence and consulting and analytics and just.

Your next question comes from the line. Stifle, your line is open.

Some of them some of the trends that youre seeing there I know consulting often kind of leads the trend in terms of if you see that picking up that means that the environment is getting better and maybe you could just talk a little bit about each of the components and what youre seeing and maybe what that says about the market.

Ari Bousbib: Why is that the wrong word to apply to Ron, not retiring.

[Analyst]: Yeah, you've dragged him out of retirement in the past, Ari, so I don't know. Ari, I want to ask you to talk a little bit about the subcomponents in TAS and how they're growing in terms of real-world evidence and consulting and analytics, and just, you know, some of the trends that you're seeing there. I know consulting often kind of leads the trend in terms of if you see that picking up, that means that, you know, the environment is getting better. Maybe you could just talk a little bit about each of the components and what you're seeing and maybe what that says about the market.

All right, thank you. All right, before I ask you a question, I just want to also commend Ron. Um, Ron, I’ve seen you retire before and I’m not fully convinced you’re gone right now. Um, why is 'not' the wrong word to apply to Ron not retiring?

Yeah, So look at the growth rates in Q3, it's hard to.

Yeah, you've dragged him out of retirement in the past already, so I don't know. Um, I already.

Derive big trends because.

As you know Q3.

E General is the weakest quarter in the year, but specifically this year, we had a tough compare with last year was the growth of that.

Q3, lessor was eight 6% or low single basically April 6% growth last year.

Ari Bousbib: Yeah. Look, the growth rates in Q3, it's hard to derive big trends because, as you know, Q3, in general, is the weakest quarter in the year. Specifically this year, we had a tough compare with last year. What was the growth of TAS Q3 last year? It was like 8.6%, I want to say. I don't know if you've mentioned it yet. 8.6% growth last year. We knew we had a tough compare this quarter. As I mentioned in my introductory remarks, sequentially, we're slightly up. Usually, because Q3 is the toughest quarter, given nothing happens for six weeks in Europe. It used to be three weeks, then it's four, and now it's six, and it's going to eight. Anyway, nobody is working. I think that the performance this quarter was very strong. It was led largely by the real-world evidence, which was very, very strong.

I want to ask you to talk a little bit about the subcomponents that in Taz, and how they're growing in terms of, uh, real world evidence and Consulting and analytics and just, you know, some of some of the trends that you're seeing there. I know Consulting often kind of leads the trend in terms of, if you see that picking up that means that, you know, the environment is getting better and, and maybe you could just talk a little bit about each of the components and what you're seeing and maybe what that says about the market

So we knew we had a tough compare this quarter.

But as I mentioned much luxury remarks sequentially were slightly up and usually because Q3 is the toughest quarter given.

yeah, so look, the growth rates in Q3, it's hard to uh derive, big trends because

as you know, Q3

Nothing happens for six weeks in Europe.

Used to be three weeks or now <unk>, it's going to eight.

I wish we could hope that it is.

He is working.

So.

I think that the performance this quarter was very strong it was largely by the real world evidence, which was very very strong.

Um, e General is the weakest quarter in the year. But specifically, this year, we had uh, a tough compared with last year, was the growth of Tans Q3 last year was like, 8.6%, I want to say 8.6% growth last year.

And everything else.

Obviously data is usually low single digits.

Nevertheless was between low to mid single digit growth again against <unk>.

Soft compares.

Helpful Consulting.

Yeah.

Are you seeing a pickup in net consultants call you will recall that.

And Boston consulting because it's kind of the most discrete and it's positive.

Ari Bousbib: Everything else was obviously data is usually low single digits, and everything else was between low to kind of mid-single digits growth. Again, against very tough compares. Same for consulting.

In terms of leading indicators.

So we knew we had a tough compared this quarter. Um, but as I mentioned in my introductory remarks sequentially, we were slightly up and usually need to because Q3 is the toughest quarter given uh nothing happens for 6 weeks in Europe. It used to be 3 weeks, then it's 4. Now, it's 6 and it's going to 8 and nobody is working. Um, so um, you know, I I think that the performance this quarter was very strong. It was led largely by the real world of evidence which was very very strong and everything else.

When things were trending.

Um, was obviously data is usually low single digits.

Negative territory consulting went down very rapidly.

In the 'twenty four and 'twenty.

<unk> thousand three first part of 2004 timeframe.

Single digits growth again against very uh, tough compares.

Uh, same for Consulting.

[Analyst]: Are you seeing a pickup in that consulting?

Consulting was down actually negative.

Ari Bousbib: You will recall that I know why you're asking consulting because it's kind of the most discreet, and it's positive, you know, in terms of leading indicator. When things were trending in negative territory, consulting went down very rapidly. In 2024, end of 2023, first part of 2024 timeframe, consulting was down, actually negative. One of the quarters, I think it was almost negative double digits. It's positive this quarter. Everything outside real-world evidence in aggregate was, you know, mid-single digits, so there that was.

One of the worst <unk>.

Negative double digits.

But it was positive this quarter end.

Again, everything outside real World real World evidence.

In aggregate.

You can see what the chips or thereabouts.

Are you seeing a pick up on that Consulting? Cool. You will recall, that I know where you are seeing Consulting, because it's kind of a, the most discreet, and it's, it's positive, you know, in terms of being an indicator, um, you know, when things were uh, trending

Thank you.

Uh, Negative Territory Consulting went down very rapidly.

Thank you.

Our next question comes from the line of Eric Coldwell from Baird. Your line is open.

Okay.

I mean.

I'll stick on the tax question here just to make sure we're all.

Uh, you know, in the 24th part of the 24 time frame, uh, Consulting was down, actually negative 1 of the boards. I think it was on, was negative double digits.

Level set for the fourth quarter back in February you guided to six 3% to $6 5 billion.

Um, but it's positive this quarter, and um, again everything outside real-world evidence.

Quite a while ago a lot of things change but.

[Analyst]: Thank you.

In Android was, you know, need single digits. So there was

If I use that original range and I take out what you've done year to date that would put.

Ari Bousbib: Thank you, Ron.

thank you.

Kerri Joseph: Your next question comes from the line of Eric Caldwell from Baird. Your line is open.

Thank you.

The implied fourth quarter revenue guidance about 100 to 300 million below the street on task.

Your next question comes from the line of Eric Caldwell from beard. Your line is open.

[Analyst]: Morning. I'll stick on the TAS question here just to make sure we're all level set for the fourth quarter. Back in February, you guided to $6.3 to $6.5 billion. That was quite a while ago. A lot of things changed. If I use that original range and I take out what you've done year to date, that would put the implied fourth quarter revenue guidance about $100 to $300 million below the street on TAS. That's a big range and obviously a lower number than where consensus lies today. I'm just hoping you can give us a little specificity on what you're thinking for TAS in the fourth quarter so we aren't ahead of our skates here.

That's a big range and obviously.

Lower number than where consensus wise today. So I'm just hoping you can give us a little specificity on what youre thinking for cats in the fourth quarter <unk> <unk> ahead of our skies.

I um I'll stick on the the task question here just to make sure we're all. Um,

Yes, Im not sure are you talking about ours.

Our targets and then you talked about the street.

In your guide.

February six 3% to $6 5 billion.

The year to date number through three quarters is four eight little over $4 eight so that leaves less than 1.5 to less than 1.7 to get to them.

Ari Bousbib: Yeah, I'm not sure you're talking about our targets, and then you talked about the street.

Full year, if I've done them, yes.

Set for the fourth quarter, back in February, you guided to $6.3 billion to $6.5 billion. That was quite a while ago; a lot of things changed. But if I use that original range and I take out what you've done year to date, that would put the implied fourth quarter revenue guidance about $100 million to $300 million below the street on Taz. That's a big range, and obviously, a lower number than where consensus lies today. So I'm just hoping you can give us a little specificity on what you're thinking for Taz and the fourth quarter, so we aren't ahead of our skates.

<unk> been I believe frankly, but what you're suggesting that.

[Analyst]: You guided from February to $6.3 to $6.5 billion. The year-to-date number through three quarters is $4.8, a little over $4.8. That leaves less than $1.5 to less than $1.7 to get to the full year, if I've done the math.

That ties will be lower than our guidance.

Yeah, I'm not sure you were talking about our, uh, our targets. And then you talked about the streets.

You bet.

I don't. Yeah, you, you guys you guys in February to 6.3 to 6.5 billion and

Well, I'm really suggesting anything okay.

Okay.

Sure.

Yeah, Yeah, I'm, hoping you'll tell us that things have changed since the February numbers, but it is possible that maybe the street is just a little high on the segment I mean, it looks like Youll cover it with Rds in PSM, but I just wanted to I want to make sure we're.

Ari Bousbib: Yeah, I'm going to talk to the finance team here and ask them. I don't have the numbers in front of me, but what you were suggesting, that TAS would be lower than our guidance, I don't see that.

Again, Eric I think you're right.

We are delivering on guidance.

The the year to date number through 3/4 is, uh, 4.8. A little over 4.8 so that leaves, uh, less than 1.5 to less than 1.7, um, to get to the, to the full year. If I've done the yeah, I want to talk to the finance team. You're asking, I don't have the numbers in front of me but what are your suggestions that um, that ties would be lower than our guidance? I, I don't

Eric what will help you with some of the key for details, but on a full year basis has been no change all year because that the full year <unk> growth rates are between sort of five 6%. So there is no change there.

[Analyst]: You're not really suggesting anything. I'm hoping you'll tell us.

See.

Ari Bousbib: Okay, you can take that on your follow-up.

[Analyst]: Yeah. I'm hoping you'll tell us that things have changed since the February numbers, but it is possible that maybe the street's just a little high on this segment. I mean, it looks like you'll cover it with RDS and CSMS. I just want to make sure we're.

Always says 5% to 6% growth year.

Year over year, correct, and CFS <unk> correct, yes exactly.

Ari Bousbib: Eric, I think we are delivering on guidance. Is that? Am I?

I think you said five to seven constant currency and.

I think.

I believe it was five to seven on February 6th.

[Analyst]: Yeah. Eric, we'll help you with some of the Q4 details. On a full-year basis, there's been no change all year with TAS, that the full-year constant FX growth rates were between 5% and 6%. There's no change there. We can help you with that.

<unk>.

We narrowed we narrowed our guys in the last call there so.

So we're still sticking with the five to six there is no change from our prior guidance and no change where tax is going to land in a full year okay.

Ari Bousbib: We always said 5% to 6% growth year over year. Correct?

[Analyst]: CFX.

That. Well not really suggesting anything. I'm hoping you can you can take that. Yeah I'm hoping you'll tell us that things have changed since the February numbers but it is possible that maybe the streets just a little high on the segment. I mean looks like you'll cover it with RDS and csms but I just want to just want to make sure we're I I'm again Eric I think you you're we are delivering on guides, is that? Am I what, what will help you with some of the key Ford details? But on a full year basis, there's been no change all year, which has that the the full year, see if that's growth rate, so between sort of 5 and 6 percent, so there's no change there, so we can help you with. We we always said 5 to 6% growth.

I mean to change them.

Ari Bousbib: Correct. And that's exactly what we are.

There is no change.

[Analyst]: I think you said 5 to 7 constant currency. I think I believe it was 5 to 7 on February 6th was the range. We narrowed our guide in the last call there. We're still sticking with the 5 to 6. There's no change from the prior guide and no change where TAS is going to land in the full year. Okay.

Yes, we'll help you with that with the Q4, but there's been no change yeah. Perfect. Thanks, just want to make sure. We're not ahead of our scale I appreciate that very much.

Year-over-year, correct. See if that's CFX, correct? And that's exactly what I think. You said 5 to 7 constant currency and, uh,

Okay.

Anything else Johan <unk>.

Our education.

Go ahead 42 questions, but you told us to stick to one.

No.

I am wondering what are you a special discount because that wasn't really a question so well.

Ari Bousbib: I don't see any. I don't see a change, though. There's no change, Eric.

Well look I mean.

I I think, um, I I believe it was 5 to 7 on. February 6th was the the range but we we we we we we narrowed, we narrowed our guys in the in the last call there. So, um, so we're still sticking with the 5 to 6. There's no change from the prior guys and and no change. We're test is going to land in the full year, okay? Yeah, we don't, I don't see any, I, I

[Analyst]: We'll help you with that with the Q4, but there's been no change. Yeah. Perfect. Thanks. Just want to make sure we're not ahead of our skates. I appreciate that very much.

It was like a commentary.

We're trying to create.

I appreciate it so I'll take two and I'll take advantage and.

Ari Bousbib: Do you have anything else other than this clarification?

Well, there's no change. Eric. Yeah, we'll help you with that with the Q4, but there's been no change. Yeah, perfect. Thanks. Just want to make sure we're uh not ahead of our skates. I appreciate that very much.

Given and I will take a mile.

Two things just quickly when do get some ongoing questions on those couple of Mega trials that you mentioned earlier this year I'm. Just curious if you can tell us what the status is I think one was definitely ramping back up here in the back half and I believe the other was still pushed out till next year.

[Analyst]: I think I had 42 questions, but you told us to stick to one. Let me see.

And anything else you have other than this clarification?

Ari Bousbib: I know, but I'm going to give you a special discount because that wasn't really your question.

[Analyst]: I mean, you know.

Go ahead 42 questions, but you told us to stick to 1, um, let me know, I I I am going to, I'm going to give you a 1 of you a special discount because I wasn't really a question. So

Ari Bousbib: That was like a commentary. I know you were trying to get some color.

It's happening at all can maybe just an update on the Mega trials and then secondarily are you in your in your prepared commentary you you highlighted some interesting wins and you mentioned phase one a couple of times.

[Analyst]: I appreciate it. I'll sneak two in. I'll take advantage and, you know, give an inch. I'll take a mile. Two things just quickly. One, do get some ongoing questions on those couple of mega trials that you mentioned earlier this year. I'm just curious if you can tell us what the status is. I think one was definitely ramping back up here in the back half, and I believe the other was still pushed out till next year if after.

My historic interpretation of past conversations with you Werent really a big phase one trial, maybe you partnered with some others, but I'm.

I'm curious on what your involvement is these days and actually.

Managing or even having phase one.

Operator: Maybe just an update on the mega trials. Secondarily, Ari, in your prepared commentary, you highlighted some interesting wins. You mentioned phase one a couple of times. My historic interpretation of past conversations was that you weren't really a big phase one shop. Maybe you partnered with some others. I'm curious on what your involvement is these days in actually managing or even having phase one CPU units. Maybe give us a little more color on what you're doing there. Thanks so much.

CPU unit, maybe give us a little more color on what youre doing there. Thanks.

Yes.

Very good observation Eric.

We.

Our senior all demands.

For phase one.

Rich.

And we are on that as well.

As you know we don't have.

The significant presence in that segment, but we are expanding.

In the slide shows the highlights a couple of examples each also by the way part of our Seymour read more.

Ari Bousbib: Yeah, it's a very good observation, Eric. We are seeing a lot of demand for phase one work. We are the network partners. You know, we don't have any significant presence in that segment, but we are expanding. This is why I chose to highlight a couple of examples. It's also, by the way, part of our see more, win more strategy. It happens to be that there is more demand. Things are getting, quote unquote, restarted again. The pipelines are strong. We are seeing more demand, and we are ourselves being more present in the segment.

Our strategy.

And happens to be that there is more demand seems are getting sourced.

Next year, if if happening at all. So maybe just an update on the mega trials and then secondarily uh, Ari and your um, in your prepared commentary. You you highlighted some uh, interesting wins and you, you mentioned Phase 1 a couple of times and my historic interpretation of past conversations was that you weren't really. Um, a big Phase 1 shot, maybe you partnered with some others but I'm I'm curious on what your involvement is these days. And actually uh uh managing or even having Phase 1 uh CPU units. Um, maybe give us a little more color on what you're doing there. Thanks so much. Yeah, it's a good. It's a very good observation. Eric, um, we, uh, are seeing a lot of Demands.

Restarted again and the pipelines are strong.

And so we are seeing more demand and we are ourselves being more of a presence in the segments.

For Phase 1 uh work. Um and um we are the network Founders, you know, we don't have

Baseline in oncology is a little bit different not dealing with healthy volunteers. So it tends to fee generator business.

Uh, any significant presence in that segment, but we are expanding.

Other baseline.

There is some distinction there and thats, what next oncology with phase one oncology yes.

Perfect.

Super helpful. Thanks.

Yeah, and then the two trials.

No change there, we don't have anything factored into our fourth quarter guidance for revenue burn from either of them. So I suppose that's a slight change from what we said about it.

Ron Bruehlman: Yeah, in phase one in oncology, it's a little bit different because you're not dealing with healthy volunteers. You're right. It tends to feed your later business than other phase one trials. There is some distinction there. That's what Next Oncology was, phase one oncology.

Um, and this is why I chose to highlight a couple of examples. It, it also, by the way, part of our Sim more win more uh, a strategy. Uh, and it happens to be that there is more demand. Things are getting so important, what's restarted again? And and the pipelines are strong. Um, and so we are seeing more demands and we are ourselves being more present in the segment. Yeah. In Phase 1 and oncology is a little bit different but you're not dealing with healthy volunteers here. But so

Basically all pushed out of the year.

And it's not contemplated in the guidance.

Operator: Yeah, perfect. That's super helpful. Thanks.

Bear in mind.

Ari Bousbib: Yeah, and the two trials.

Yes.

Oh, uh, it tends to feed your labor business better than other Phase 1 trials. So there is some distinction there, and that's what Next Oncology was: Phase 1 oncology. Yeah, perfect, perfect. That's super helpful. Thanks.

We mentioned these.

Ron Bruehlman: Yeah, the two trials, no change there. We don't have anything factored into our fourth quarter guidance for revenue burn from either of them. I suppose that's a slight change from what we said.

But it's like a year ago.

Sign because it caused us.

As upon change our guidance for all of these were fast burning and.

Ari Bousbib: Right, right. It's basically all pushed out of the year, and it's not contemplated in the guidance, right? Not contemplated in the guidance. Yeah, bear in mind that, you know, we mentioned these, what is it, like a year ago at this time because it caused us at the time to change our guidance for RDS. These were fast burning and had already gotten started, and they were interrupted. That caused us to change our guide for RDS in the fourth quarter of last year, and so we had to mention it. We only mention specific trials to the extent we can, and we try to be very careful because we are mindful of confidentiality for our clients and so on. We cannot say very much, but we do mention it when there is a significant event attached to one trial.

Already gotten sockets and they were interrupted.

Yeah. And then the 2 trials. Yeah, this is Trials. No change there. Uh, we don't have anything factored into our uh, fourth quarter guidance, for Revenue burn from either of them. So I I suppose that's a slight change from what we said, right? It's it basically all pushed out of the year.

And so that caused us to change Allen our guide for Rvs in the fourth quarter for the fourth quarter of last year.

And it's not contemplated in the Dynamics, right? Not completely for those.

And so we have to mentioned we already mentioned.

Specific trials will be extended we can and we try to be very careful because we are mindful of confidentiality for our clients and so on so we cannot see.

Yep. Bear in mind that, you know, we mentioned these, uh, what is it, like a year ago at this time, because it caused us.

Say very much but we do mention it.

When there is a significant.

Events detached one.

Um, at the time to change our guidance for all the years, these were fast burning, and it had already gotten started and they were interrupted.

Trial.

In this case was true.

That caused us.

To change anything in our numbers, but bear in mind.

Uh and so that caused us to change our our guide for RDS in the fourth quarter for the fourth quarter of last year.

Any point in time, we are working on a couple of thousand trials and.

And, uh, so we have to mention it. We only mention.

And we can.

Building backlog as you saw in the and Thankfully we have had very positive momentum in our bookings and it's continuing.

Specific trials, to the extent, we can and we try to be very careful because we are mindful of confidentiality for our clients and so on. So we cannot

Say very much, but we do mention it.

So we feel good about that in the.

And you continue to stagger.

Ari Bousbib: In this case, it was two, and that caused us to change anything in our numbers. Bear in mind, you know, at any point in time, we're working on a couple of thousand trials, and we keep building backlog, as you saw. Thankfully, we have had very positive momentum on our bookings, and it's continuing. We feel good about that, and it continued to stagger on our book of business, which again enabled us to continue to deliver and do even better on RDS, even without those trials resuming this year. Thank you, Erik.

On a book of business so.

When there is a significant, uh, event attached to 1 uh trial.

Yes.

Would you have been enabled us to continue to deliver and we've been better on rvs, even without that the trials from zooming tissue.

In this case, it was $2, and that caused us, uh,

Eric.

I'll give you one more question.

Yes.

Well.

Okay.

Next question operator.

This will be our last question.

Your last question comes from the line of Jeff Garro from Stephens. Your line is open.

Yes. Good morning, Thanks for taking the question I wanted to ask more about AI and maybe try and make it a two parter first part being if you have any insights how AI is changing your customers' business models and specifically their appetite for outsourcing and then the second part would be how.

Operator: Thank you.

Ari Bousbib: Do you have any more questions?

Ron Bruehlman: Yes.

Ari Bousbib: One more?

Uh, to change anything in our, in our numbers. But bear in mind we, you know, at any point in time, we're working on a couple of thousand trials and, you know, and we keep building backlog as you saw. And, uh, and thankfully we have had very positive momentum on our bookings. And it's it continuing. So we feel good about that and and, and, and he continued to stagger, uh, on our book of business. So, yeah. But which, which, again, enables us to continue to deliver and do even better on all. Yes. Even without the the, those trials resuming this year. Thank you, Eric. I'll give you 1 more question. Yes.

Operator: Next question, operative.

Ari Bousbib: This will be our last question.

Kerri Joseph: Your next, your last question comes from the line of Jeff Garra from Stephens. Your line is open.

Next question, operator.

As IQ via using AI internally to deliver results for clients that may be a little bit more efficiently and whether you have any visibility into potential gross margin improvements from those internal use cases. Thank you.

It should be our last question. Your next

Operator: Good morning. Thanks for taking the question. I want to ask more about AI and maybe try to make it a two-parter. First part being, if you have any insights how AI is changing your customers' business models and specifically their appetite for outsourcing. The second part would be, how is IQVIA using AI internally to deliver results for clients that may be a little bit more efficiently? Whether you have any visibility into potential gross margin improvements from those internal use cases. Thank you.

Your last question comes from the line of Jeff. Go from Stevens. Your line is open.

Yes, Thank you Jeff.

We've spoken about this in the past and so far we have about 90, AIA agents and develop needs that cover.

<unk> use cases, and we continue to.

Is that.

Bye.

By early 2007, we plan to develop 500 highly specialized agents and what this June.

Is there essentially.

Ari Bousbib: Yeah, thank you, Jeff. You know, we've spoken about this in the past. So far, we have about 90 AI agents in development that cover 25 use cases. We continue to progress that. By early 2027, we plan to develop 500 highly specialized agents. What these do is they essentially eliminate a lot of physical labor from the tasks that we perform for our clients. Internally, I think the second part of your question first, certainly, that will help improve our margins longer term. It takes time to deploy, obviously, and it takes time to translate that into margin improvements. We've had great examples on the commercial side. We use, for example, AI tools to compare patient cohorts to each other and highlight differences with natural language output, which leads to improvements in cycle times from several weeks to a couple of weeks.

Yeah, good morning. Thanks for taking the question. I, I want to ask more about Ai and maybe we'll try to make it a 2-part first part. Being if if you have any insights, how AI is is changing your customer's business models and and specifically their appetite for outsourcing. And and then the second part would be how is IQ via using AI internally to deliver results for clients that maybe a little bit more efficiently and whether you have any visibility into potential gross margin improvements from those internal use cases. Thank you.

In even named a lot of physical labor from the past that we performed for our clients.

So, thank you.

So clearly the second part of your question first.

That's really helpful.

Improve our margins longer term now it takes time to be growing obviously.

And that's fine too.

Two teams to translate that into margin improvements.

Yeah.

We've had the.

Great examples.

On the commercial side.

Use cases and we continue to uh progress that by uh you know, by early 27, we plan to develop 500, highly specialized agents. And what these do is they essentially, um, eliminate a lot of physical labor from the tasks that we perform for our clients.

Um,

We have.

We use for example, AI tools and compare patient cohorts to each other.

Um, so internally at the second part of your question first.

And highlight differences, we natural language outputs, which.

It leads to improvements in cycle times from several weeks with a couple of weeks.

So certainly that will help uh uh improve our margins longer term. Now it takes time to deploy obviously. Um and it takes time to um to to to translate that into Market improvements.

We really have a lot of examples and pick your own clients.

Um, you know that we've had the

June to recite those but we see significant value in continuing to do more with less room.

<unk> agents within our internal processes for our clients I gave a number of examples in my introductory remarks, our clients are very stable of course using AI. So early early on before we get involved in discovery.

Great examples. Uh, on the commercial side, you know, we have uh, you we we we use, for example, AI tools to compare patient cohorts to each other. Um, and highlight differences with natural language outputs. Which, um, you know, leads to improvements in cycle times from several weeks to a couple of weeks.

Ari Bousbib: We really have a lot of examples, and it takes a long time to recite those. We see significant value in continuing to do more with less through deploying agents within our internal processes. For our clients, I give a number of examples in my introductory remarks. Our clients are very interested, of course, in using AI. Early on, before we get involved in discovery, there's a lot of focus from our clients in the discovery space to try to use AI to sort out molecules and try to identify, you know, the most, like, quote unquote, the most likely to succeed trials to tackle a specific disease. We participate a little bit with some models and some tools that we have. Later on, the issue on the clinical side is that it's highly regulated, and you get to go through standard processes that are defined by regulations.

There's a lot of.

Our focus from our clients in the discovery space to try to use AI to solve outs molecules and tried to identify.

The most like cotton called the most likely to succeed the.

Trials to stockholder of the specific disease.

Dolby participate between some models and some tools that we have.

Um, we we, we really have a lot of examples and take a long time to, uh, to to, to recite those. But we see significant value in continuing to do more with less through deploying agents, within our internal processes for our clients. I give a number of examples in my introductory remarks, our clients are very interested, of course in using AI. So early early on, before we get involved in this discovery,

But.

Les wrong.

The issue on the clinical side is that it's highly regulated.

And you've got to work through them.

Standard processes that are.

Define spy renovations and <unk>.

Intermediary step.

Spaces between those regulatory interactions to utilize and deploy it on other sites, it's very helpful.

And.

Our clients are using AI in the form of technology moves that some.

Um, you know, there's a lot of, um, uh, Focus from our clients in the Discovery Space to try to use AI to sort out, molecules, and try to identify, um, you know, the most likely quote unquote, the most likely to succeed. Uh, trials to tackle a, uh, specific disease. Um, the only participate a little bit with some models and some tools that we have. Um, but you know, later on, you know, look the, the, the the the issue on the clinical side is that it, it's highly regulated.

Some of which are all of the tools.

That would be used commercially.

Ari Bousbib: You have to use the intermediary spaces between those regulatory interactions to utilize and deploy AI. At the sites, it's very helpful, and our clients are using, of course, AI in all the technology tools, some of which are our tools that they use commercially. They use AI, I gave a few examples, to manage their promotion campaigns, marketing campaigns. They use AI to get patient insights in the real world. Real-world evidence is a big area for us, and one of the reasons we experience such great growth is we've got very advanced capabilities given our vast information assets in the real world, in patient data. You know, using AI tools and trying to evaluate how a drug behaves in the real world using AI becomes a great, great opportunity. These are the areas.

They use AI and give you a few examples to manage their promotion campaigns marketing campaigns. These AI to get patient insights in the real World Real World evidence is a big area for us and one of the reasons, we experience such great growth.

We've got very advanced capabilities, given our robust.

And information assets.

In real World patient data.

And you've got to go through, um, standard processes that are, um, defined by regulations. You have to use the intermediary spaces between those regulatory interactions to utilize and deploy AI and the sites. It's very helpful. Um, and um, our clients are using, of course, AI in all the technology tools that some of which are our tools.

Using AI tools.

Uh, that they use commercially.

<unk> tried to evaluate how the drug behaves in the real world using AI becomes a great great opportunity. So these are the areas now with respect to the margin.

As you know we've had.

Uh, they use Ai and they have a few examples to manage their um, promotion campaigns marketing campaigns, they use AI to get patient insights in the real world, real world evidence is a big area for us. And in, in 1 of the reasons we experienced such great growth,

Lot of the restaurant margin headwinds.

Certainly Europe.

Because of more pass throughs, largely because of the FX tailwind, which all of which comes with Readouts without profits.

We've got very advanced capabilities, given our vast information assets in the real world with patient data.

And the little bit of the mix, you'll see for example, <unk> was stronger and yes, a much lower margin.

Ari Bousbib: Now, with respect to the margin, as you know, we've had a lot of, we have some margin headwinds, certainly this year, because of more fast tools, largely because of the FX tailwind, which all of which comes without profits. A little bit of the mix, for example, in Q3, Contract Sales & Medical Solutions was stronger. Contract Sales & Medical Solutions is lower margin. When you have margin headwinds like that, certainly, we're counting on our usual cost reduction programs, offshoring, and so on. Longer term, AI, certainly, and AI enablement will help mitigate those headwinds and help us long-term improve margins. Thank you. I think the team will be available for follow-up questions, as always. Thank you.

So when you have the market headwinds like that certainly we're counting and unusual.

Um you know using AI tools and try to evaluate how a drug behaves in the real world using AI you know becomes a a great great opportunity. So these are the areas now with respect to the margin

Cost reduction programs offshoring.

As, you know, we've had a lot of, we have some margin, headwinds certainly, this year.

And so on.

And longer term AI certain Eni AI enablement will.

<unk> will help mitigate those headwinds and help us to improve margins.

Because of, uh, more fast tools, largely because of the FX Tailwind, which all comes without, uh, without profits.

Yeah.

And I think you'd see would be available for follow up question goes on.

And a little bit of the mix, you know. So for example Q3 csms was stronger and csms is lower margin.

Okay.

Thank you for taking your time today.

Um, so when you have, uh, Martin heads like that, certainly we're counting on our usual.

Yes, Mr. Joseph Bank.

No.

Thank you.

Thanks for taking the time to join US today, and we look forward to speaking with you again on the 2025.

Full year earnings for the team will be available the rest of the day to take any follow up questions you might have.

Um, you know, cost reduction programs, offshoring, uh, and so on. But longer term, AI certainly, AI enablement will, um, help mitigate those headwinds and help us long-term improve margins.

Thank you.

Thank you.

This concludes today's conference call you may now disconnect.

And I think your team will be available for for our questions. As always. Thank you.

Ron Bruehlman: Thank you for taking the time today. Yeah.

Kerri Joseph: Mr. Joseph, I'll turn the call back over to you.

Thank you for taking the time today.

Ron Bruehlman: Thank you. Thanks for taking the time to join us today. We look forward to speaking with you again on the 2025 fourth quarter earnings call. The team will be available the rest of the day to take any follow-up questions you might have. Thank you.

Yeah, Mr. Joseph, I turned the call back over to you.

Thank you.

John: We look forward to speaking with you again in 2025 for the portal for your earnings call. The team will be available the rest of the day to take any follow-up questions you might have.

Thank you.

Operator: This concludes today's conference call. You may now disconnect.

This concludes today's conference call. You may now disconnect.