IQVIA Holdings Q4 2025 IQVIA Holdings Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 IQVIA Holdings Inc Earnings Call
Operator: Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Fourth 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 star one again. 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.
Operator: Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Q4 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 star one again. 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.
Speaker #1: noise. After the speakers remarks, All lines have been placed 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.
Speaker #1: to withdraw your question, press star If you would like one again. 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.
Speaker #1: Mr. Joseph, please begin your
Speaker #1: conference. Thank
Speaker #2: you all for good morning, everyone. Thank you for joining our Fourth Quarter and Full Year 2025 Earnings Call. With me today are Ari Bousbib, Officer, Ron Bruehlman, Executive Vice President and Chief Financial Officer, Eric Sherbert, Executive Vice President and General Counsel, Mike Fita, Senior Vice President, Financial Planning and Analysis, and Gustavo Perrone, Senior Director of be referencing a presentation that will be visible during this call for those of you on the webcast.
Kerri Joseph: Thank you, operator. Good morning, everyone. Thank you for joining our Q4 and full year 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 Fedock, Senior Vice President, Financial Planning and Analysis; and Gustavo Perrone, Senior Director of Investor Relations. Today, we'll be referencing a presentation that will be visible during this call for those of you on the webcast. This presentation will also be available following this call in the Events and Presentations 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.
Kerri Joseph: Thank you, operator. Good morning, everyone. Thank you for joining our Q4 and full year 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 Fedock, Senior Vice President, Financial Planning and Analysis; and Gustavo Perrone, Senior Director of Investor Relations. Today, we'll be referencing a presentation that will be visible during this call for those of you on the webcast. This presentation will also be available following this call in the Events and Presentations 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.
Speaker #2: This presentation will also be available following this call in the Events and Presentations 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.
Speaker #2: Actual results could differ materially from those stated or implied by forward-looking statements of the risk and uncertainty 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.
Kerri Joseph: Actual results could differ materially from those stated or implied by forward-looking statements due to the risks 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 and conference call presentation. I would now like to turn the call over to our Chairman and CEO, Ari Bousbib.
Kerri Joseph: Actual results could differ materially from those stated or implied by forward-looking statements due to the risks 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 and conference call presentation. I would now like to turn the call over to our Chairman and CEO, Ari Bousbib.
Speaker #2: In addition, we will discuss call, which should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP.
Speaker #2: A reconciliation of these measures is included in the press release and conference call presentation. I would now like to turn the call over to our Chairman and Bousbib.
Speaker #3: Thank you, Kerri. And good
Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thank you for joining us today to discuss our Q4 and full-year 2025 results. We closed 2025 with a strong Q4, resulting in full-year revenue growth of 6%, adjusted diluted earnings per share growth of 7%, and free cash flow of $2.1 billion, representing about 100% of adjusted net income. As I reflect on our accomplishments in 2025, I'm proud of the results delivered by the IQVIA team, given that our industry faced significant challenges with heightened uncertainty around macroeconomic and government policy, as well as continued pressure from interest rates. This macro environment led to slower customer decision-making and tempered biotech funding. This impacted R&DS bookings and revenue earlier in the year.
Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thank you for joining us today to discuss our Q4 and full-year 2025 results. We closed 2025 with a strong Q4, resulting in full-year revenue growth of 6%, adjusted diluted earnings per share growth of 7%, and free cash flow of $2.1 billion, representing about 100% of adjusted net income. As I reflect on our accomplishments in 2025, I'm proud of the results delivered by the IQVIA team, given that our industry faced significant challenges with heightened uncertainty around macroeconomic and government policy, as well as continued pressure from interest rates. This macro environment led to slower customer decision-making and tempered biotech funding. This impacted R&DS bookings and revenue earlier in the year.
Speaker #3: morning, everyone. Thank you for joining us today CEO, Ari to discuss our Fourth Quarter. And Full Year 2025 results. We closed 2025 with a strong Fourth Quarter.
Speaker #3: Resulting in full-year revenue growth of 6%. Adjusted diluted earnings per share growth of 7%. And free cash flow of 2.1 billion dollars, representing about 100% of adjusted net accomplishments in 2025, I'm proud income.
Speaker #3: of the results delivered by the As I reflect on our IQVIA team given that our industry faced significant challenges. With heightened uncertainty around macroeconomic and government policy, as well as continued pressure from interest rates.
Speaker #3: This macro environment led to slower customer decision-making and tempered biotech funding. This impacted R&DS bookings and revenue earlier in the year. But as environment stabilized the year progressed, the somewhat, and demand indicators became more favorable.
Ari Bousbib: But as the year progressed, the environment stabilized somewhat, and demand indicators became more favorable, and funding increased. Despite the environment, we at IQVIA continued to invest in developing innovative offerings and more integrated solutions to advance development programs and drive commercial success. Examples of the depth and breadth of our clinical and commercial offerings and significant investments in 2025 include: increasing our phase 1 trial capabilities to test new drugs in healthy volunteers with the acquisition of a facility in the UK. Expanding our site management organization with the acquisition of Next Oncology, a network of specialized sites serving patients enrolled in early-stage oncology trials. Helping clients advance critical programs ranging from global phase 3 oncology and obesity trials to launching innovative treatments in rare disease and underserved patient communities. Seeing great demand among large and mid-sized pharma clients for our DAS Plus solution.
Ari Bousbib: But as the year progressed, the environment stabilized somewhat, and demand indicators became more favorable, and funding increased. Despite the environment, we at IQVIA continued to invest in developing innovative offerings and more integrated solutions to advance development programs and drive commercial success. Examples of the depth and breadth of our clinical and commercial offerings and significant investments in 2025 include: increasing our phase 1 trial capabilities to test new drugs in healthy volunteers with the acquisition of a facility in the UK. Expanding our site management organization with the acquisition of Next Oncology, a network of specialized sites serving patients enrolled in early-stage oncology trials. Helping clients advance critical programs ranging from global phase 3 oncology and obesity trials to launching innovative treatments in rare disease and underserved patient communities. Seeing great demand among large and mid-sized pharma clients for our DAS Plus solution.
Speaker #3: And funding increased. Despite the environment, we at IQVIA continued to invest in developing innovative solutions to advance offerings and more integrated development programs and drive commercial success.
Speaker #3: Examples of the depth and breadth of our clinical and commercial offerings and significant investments in 2025 include increasing our phase one trial capabilities to test new drugs in healthy volunteers with the acquisition of a facility in the UK.
Speaker #3: Expanding our site management organization with the acquisition of NEXT Oncology and a network of specialized sites serving patients and playing a role in early-stage oncology trials. Helping clients advance critical programs ranging from global Phase III oncology and obesity trials to launching innovative treatments in rare diseases and underserved patient communities.
Speaker #3: Seeing great demand among large and mid-sized pharma clients for our DAS Plus solution, DAS Data as a Service, which data as a single harmonized provides AI-ready source simplifying customers' data management and building a strong foundation for AI analytics.
Ari Bousbib: DAS, Data as a Service, which provides AI-ready data as a single harmonized source, simplifying customers' data management and building a strong foundation for AI analytics. This offering integrates global to local data, highlighting IQVIA's unique ability to merge proprietary assets, data assets, with third-party data assets with a compliant, scalable framework. Advancing the digitization of patient support programs to streamline workflows for treatment, access, and adherence with the recent launch of the IQVIA Patient Experience Platform, which already has six new customers on. Working with the Sabin Vaccine Institute to provide more than 640 Marburg vaccine doses to Ethiopia for a phase two trial during the nation's first Marburg virus disease outbreak, partnering with local health authorities to evaluate safety and efficacy. We won our first full-service commercial outsourcing deal in Asia with a large pharma client.
Ari Bousbib: DAS, Data as a Service, which provides AI-ready data as a single harmonized source, simplifying customers' data management and building a strong foundation for AI analytics. This offering integrates global to local data, highlighting IQVIA's unique ability to merge proprietary assets, data assets, with third-party data assets with a compliant, scalable framework. Advancing the digitization of patient support programs to streamline workflows for treatment, access, and adherence with the recent launch of the IQVIA Patient Experience Platform, which already has six new customers on. Working with the Sabin Vaccine Institute to provide more than 640 Marburg vaccine doses to Ethiopia for a phase two trial during the nation's first Marburg virus disease outbreak, partnering with local health authorities to evaluate safety and efficacy. We won our first full-service commercial outsourcing deal in Asia with a large pharma client.
Speaker #3: This offering integrates global-to-local data merge, highlighting IQVIA's unique ability to combine proprietary data assets with third-party data assets within a compliant, scalable framework.
Speaker #3: Advancing the digitization of patient support programs to streamline workflows for treatment access and adherence with the recent launch of the IQVIA Patient Experience Platform, which already has six new customers on.
Speaker #3: Working with a saving vaccine institute to provide more than 640 Marburg vaccine doses to Ethiopia for a phase two trial during the nation's first Marburg virus disease outbreak, partnering with local health authorities to evaluate safety and efficacy.
Speaker #3: first Winning our full-service commercial outsourcing deal in Asia with a large pharma client. And last example, enhancing our capabilities in patient solutions and payer analytics with the acquisition of Cedar Gate Technologies in the fourth quarter.
Ari Bousbib: A last example, enhancing our capabilities in patient solutions and payer analytics with the acquisition of Cedar Gate Technologies in the fourth quarter. Let us now turn to the results for the quarter. Revenue for the quarter came in above the high end of our guidance range, representing year-over-year growth of 10.3% on a reported basis, and 8.1% at constant currency. Acquisitions represented about 2 points of this growth. Fourth quarter adjusted EBITDA increased 5% versus prior year. Fourth quarter adjusted diluted EPS of $3.42 increased 9.6% year-over-year. On the clinical side, net bookings totaled over $2.7 billion, growing 7% year-over-year, 5% sequentially. This resulted in a net book-to-bill ratio of 1.18, reflecting the continued improvement in customer trends, as well as solid execution from our sales teams.
Ari Bousbib: A last example, enhancing our capabilities in patient solutions and payer analytics with the acquisition of Cedar Gate Technologies in the Q4. Let us now turn to the results for the quarter. Revenue for the quarter came in above the high end of our guidance range, representing year-over-year growth of 10.3% on a reported basis, and 8.1% at constant currency. Acquisitions represented about 2 points of this growth. Fourth quarter adjusted EBITDA increased 5% versus prior year. Fourth quarter adjusted diluted EPS of $3.42 increased 9.6% year-over-year. On the clinical side, net bookings totaled over $2.7 billion, growing 7% year-over-year, 5% sequentially. This resulted in a net book-to-bill ratio of 1.18, reflecting the continued improvement in customer trends, as well as solid execution from our sales teams.
Speaker #3: Let us now turn to the results for the quarter. Revenue for the quarter came in above the high end of our guidance range, representing year-over-year growth of 10.3% on a reported basis.
Speaker #3: And 8.1% at constant currency. Acquisitions represented about two points of this growth. Fourth quarter adjusted EBITDA increased 5% versus prior year. Fourth quarter adjusted diluted EPS of increased 9.6% year-over-year.
Speaker #3: On a $3.42 clinical side, net bookings total over $2.7 7% year-over-year, 5% sequential. This resulted in a net book-to-bill ratio of 1.18, reflecting the continued improvement in customer trends as well as solid execution from our sales teams.
Speaker #3: I should point out that in the fourth quarter, our cancellations were in the normal range were really slightly above the normal range due to a specific idiosyncratic aspect of certain trials that had to be canceled.
Ari Bousbib: I should point out that in the fourth quarter, our cancellations, while in the normal range, were really slightly above the normal range, due to specific idiosyncratic aspects of certain trials that had to be canceled. Key demand metrics for the quarter continued to be positive. Our qualified pipeline is about 10% higher year-over-year, with growth across all customer segments. RFP flow grew double digits year-over-year, with growth across all segments, largest gains in large pharma and in EBP. Our win rates improved year-over-year, several percentage points. Backlog reached a new record of $32.7 billion at the end of the quarter, growing 5.3% compared to the prior year. And encouragingly, EBP funding was strong in Q4, reaching $33 billion, according to BioWorld.
Ari Bousbib: I should point out that in the fourth quarter, our cancellations, while in the normal range, were really slightly above the normal range, due to specific idiosyncratic aspects of certain trials that had to be canceled. Key demand metrics for the quarter continued to be positive. Our qualified pipeline is about 10% higher year-over-year, with growth across all customer segments. RFP flow grew double digits year-over-year, with growth across all segments, largest gains in large pharma and in EBP. Our win rates improved year-over-year, several percentage points. Backlog reached a new record of $32.7 billion at the end of the quarter, growing 5.3% compared to the prior year. And encouragingly, EBP funding was strong in Q4, reaching $33 billion, according to BioWorld.
Speaker #3: Key demand metrics for the quarter continued to be positive. Our qualified pipeline is about 10% higher year-over-year. With growth across all customer segments. RFP flow grew double digits year-over-year with growth across all segments, largest in gains in large pharma and EBP.
Speaker #3: Our win rates improved year-over-year by several percentage points. Backlog reached a new record of $32.7 billion at the end of the quarter, growing 5.3% compared to the prior year.
Speaker #3: And encouragingly, EBP funding was strong in Q4 reaching 33 billion according to BioWorld. On the commercial side, DAS continued to perform very well in the fourth quarter.
Ari Bousbib: On the commercial side, TAS continued to perform very well in the fourth quarter, achieving better-than-expected results despite the anticipated tougher year-over-year comparisons. We delivered growth in TAS of 9.8% reported, 7.1% at constant currency, highlighting the resilience of our broader commercial portfolio. Now, a few highlights of business activity in the fourth quarter. We announced a strategic collaboration with Amazon Web Services, naming AWS as our preferred agentic cloud provider, to accelerate the industry's digital transformation. With the world's largest pharmaceutical companies already relying on IQVIA and AWS, we believe this partnership will make AI more readily available across life sciences, medical affairs, and healthcare analytics, and enable faster delivery of life-saving treatments to patients worldwide.
Ari Bousbib: On the commercial side, TAS continued to perform very well in the fourth quarter, achieving better-than-expected results despite the anticipated tougher year-over-year comparisons. We delivered growth in TAS of 9.8% reported, 7.1% at constant currency, highlighting the resilience of our broader commercial portfolio. Now, a few highlights of business activity in the fourth quarter. We announced a strategic collaboration with Amazon Web Services, naming AWS as our preferred agentic cloud provider, to accelerate the industry's digital transformation. With the world's largest pharmaceutical companies already relying on IQVIA and AWS, we believe this partnership will make AI more readily available across life sciences, medical affairs, and healthcare analytics, and enable faster delivery of life-saving treatments to patients worldwide.
Speaker #3: Achieving better than expected results despite the anticipated tougher year-over-year comparisons. With deliberate growth in DAS of 9.8% reported 7.1% at constant currency highlighting the resilience of our broader commercial portfolio.
Speaker #3: And now a few highlights of business activity in the fourth quarter. We announced a strategic collaboration with Amazon Web Services naming AWS as our preferred agentic cloud provider to accelerate the industry's digital transformation.
Speaker #3: With the world's largest pharmaceutical companies already relying on IQVIA and AWS, we believe this partnership will make AI more readily available across life sciences, medical affairs, and healthcare analytics, and enable it to patients worldwide.
Speaker #3: IQVIA was recognized by Everest Group for our AI leadership. receive the number one ranking The only clinical research organization to for generative AI leadership in life sciences.
Ari Bousbib: IQVIA was recognized by Everest Group for our AI leadership, the only clinical research organization to receive the number one ranking for generative AI leadership in life sciences. You will recall that we started on this AI journey quite a while ago, and specifically, a little more than a year ago, we announced a partnership with NVIDIA, with whom we have been working for over a year to build agents into our workflows, both in clinical and commercial, and we have made significant progress to date. In commercial, demand for our AI-driven innovations is gaining momentum with our clients, especially in large pharma. A few examples: A top 20 pharma client selected IQVIA to provide comprehensive AI-enabled information and analytics solutions for a major US gastroenterology franchise.
Ari Bousbib: IQVIA was recognized by Everest Group for our AI leadership, the only clinical research organization to receive the number one ranking for generative AI leadership in life sciences. You will recall that we started on this AI journey quite a while ago, and specifically, a little more than a year ago, we announced a partnership with NVIDIA, with whom we have been working for over a year to build agents into our workflows, both in clinical and commercial, and we have made significant progress to date. In commercial, demand for our AI-driven innovations is gaining momentum with our clients, especially in large pharma. A few examples: A top 20 pharma client selected IQVIA to provide comprehensive AI-enabled information and analytics solutions for a major US gastroenterology franchise.
Speaker #3: You will recall that we started quite a while ago and specifically a little more than on this AI journey a year ago we announced a partnership with NVIDIA with whom we have been working for over a year.
Speaker #3: To build agents into our workflows both in clinical and commercial. And we have made significant progress to date. In commercial, demand for our AI-driven innovations is gaining momentum with our clients especially in large pharma.
Speaker #3: top 20 pharma client selected IQVIA to provide A few examples. A analytics solutions for a major US gastroenterology franchise. The top 15 pharma client chose IQVIA as the strategic partner for a multi-year program to deliver analytics solutions across the enterprise.
Ari Bousbib: The top 15 pharma client chose IQVIA as the strategic partner for a multi-year program to deliver analytics and agentic AI solutions across the enterprise. Another pharma client selected IQVIA to deploy our AI-enabled patient relationship management solution for rare disease hub services, improving patient engagement and therapy adherence. On the clinical side, in R&DS, I'll share some key wins in the quarter, focusing on large pharma and biotech companies, and focusing on AI capabilities.... A top 15 pharma client selected IQVIA for a major respiratory development program, where IQVIA's ability to integrate AI-driven planning tools to accelerate timelines and improve efficiency was key to secure the win. A large pharma client chose IQVIA to manage a large full-service program of NASH studies, utilizing AI-enhanced planning tools and advanced recruiting strategies.
Ari Bousbib: The top 15 pharma client chose IQVIA as the strategic partner for a multi-year program to deliver analytics and agentic AI solutions across the enterprise. Another pharma client selected IQVIA to deploy our AI-enabled patient relationship management solution for rare disease hub services, improving patient engagement and therapy adherence. On the clinical side, in R&DS, I'll share some key wins in the quarter, focusing on large pharma and biotech companies, and focusing on AI capabilities.... A top 15 pharma client selected IQVIA for a major respiratory development program, where IQVIA's ability to integrate AI-driven planning tools to accelerate timelines and improve efficiency was key to secure the win. A large pharma client chose IQVIA to manage a large full-service program of NASH studies, utilizing AI-enhanced planning tools and advanced recruiting strategies.
Speaker #3: Another pharma and agentic AI client selected IQVIA to deploy our AI-enabled patient relationship management solution for rare disease hub services improving patient engagement and therapy adherence.
Speaker #3: On the clinical side, in RNDS, I'll share some key wins in the quarter, focusing on large pharma and biotech companies and focusing on AI capabilities.
Speaker #3: The top 15 pharma major respiratory development clients selected IQVIA for a program where IQVIA's ability to integrate efficiency was key to accelerate timelines and improve secure the win.
Speaker #3: A large pharma client chose IQVIA to manage a large food service program of matched studies utilizing AI-enhanced planning tools and advanced recruiting strategies. IQVIA was selected to manage a pivotal oncology study with end-to-end services, leveraging tailored AI-enabled technology solutions, including patient randomization and drug supply optimization.
Ari Bousbib: IQVIA was selected to manage a pivotal oncology study with end-to-end services and leveraging tailored AI-enabled technology solutions, including patient randomization and drug supply optimization. Now, I'd like to take a minute to share how we are simplifying our organization in 2026 to strengthen collaboration, enhance efficiency, and support continued growth. Our goal is to better align our teams with how our operating model has evolved to adapt to the new ways our clients are purchasing our capabilities. In the clinical space, clients are incorporating real-world evidence earlier in clinical development programs. In the commercial space, as I mentioned in prior calls, we are seeing clients increasingly looking to outsource integrated commercialization programs that use IQVIA's suite of capabilities, from analytics to field-based sales, and medical forces. Against this backdrop, we've implemented a simplified organization that consists of two reporting segments: Commercial Solutions and R&DS.
Ari Bousbib: IQVIA was selected to manage a pivotal oncology study with end-to-end services and leveraging tailored AI-enabled technology solutions, including patient randomization and drug supply optimization. Now, I'd like to take a minute to share how we are simplifying our organization in 2026 to strengthen collaboration, enhance efficiency, and support continued growth. Our goal is to better align our teams with how our operating model has evolved to adapt to the new ways our clients are purchasing our capabilities. In the clinical space, clients are incorporating real-world evidence earlier in clinical development programs. In the commercial space, as I mentioned in prior calls, we are seeing clients increasingly looking to outsource integrated commercialization programs that use IQVIA's suite of capabilities, from analytics to field-based sales, and medical forces. Against this backdrop, we've implemented a simplified organization that consists of two reporting segments: Commercial Solutions and R&DS.
Speaker #3: Now, I'd like to take a minute to share how we are simplifying our organization in 2026 to strengthen collaboration and hence efficiency and support continued growth.
Speaker #3: Our goal is to better align our teams with how our operating model has evolved to adapt to the new ways our clients are purchasing our capabilities.
Speaker #3: In the clinical space, clients are incorporating real-world evidence earlier in clinical development programs and in the commercial space, as I mentioned in prior calls, we are seeing clients outsource integrated commercialization increasingly looking to programs that use IQVIA's suite of capabilities from analytics to field-based sales and medical forces.
Speaker #3: Against this backdrop, we've implemented a simplified organization that consists of two reporting segments. Commercial solutions and RNDS. Under this CSMS segment which has become commercial offerings in the DAS new reporting segment and represents 788 million in 2025 more closely integrated into revenue is incorporated into the DAS segment which is renamed Commercial Solutions.
Ari Bousbib: Under this new reporting segment, model, the CSMS segment, which has become more closely integrated into commercial offerings in the TAS segment, and represents $788 million in 2025 revenue, is incorporated into the TAS segment, which is renamed Commercial Solutions. Additionally, certain offerings currently reported in the TAS segment, consisting of real-world late phase, as well as certain other real-world offerings that have become more closely related to the clinical trial business, are moved to the R&DS segment. The business dynamics and growth patterns of real-world late phase and these other offerings mirror those in the clinical trial business. They represent $674 million in revenue in 2025. So simply put, Commercial Solutions is TAS, plus the CSMS segment, minus the clinically oriented real-world offerings that were moved to R&DS.
Ari Bousbib: Under this new reporting segment, model, the CSMS segment, which has become more closely integrated into commercial offerings in the TAS segment, and represents $788 million in 2025 revenue, is incorporated into the TAS segment, which is renamed Commercial Solutions. Additionally, certain offerings currently reported in the TAS segment, consisting of real-world late phase, as well as certain other real-world offerings that have become more closely related to the clinical trial business, are moved to the R&DS segment. The business dynamics and growth patterns of real-world late phase and these other offerings mirror those in the clinical trial business. They represent $674 million in revenue in 2025. So simply put, Commercial Solutions is TAS, plus the CSMS segment, minus the clinically oriented real-world offerings that were moved to R&DS.
Speaker #3: Additionally, certain DAS segment consisting of real-world late-phase as well offerings currently reported in the as certain other real-world offerings that have become more business are moved to the RNDS segment.
Speaker #3: The business dynamics and growth patterns of real-world late-phase and these other offerings mirror those in the clinical trial business. They represent $674 million in revenue in 2025.
Speaker #3: So simply put, commercial solutions is DAS segment minus the clinically oriented real-world offerings that were moved to RNDS. segment reporting aligns with This new industry evolution and the company's operating model.
Ari Bousbib: This new segment reporting aligns with industry evolution and the company's operating model. It has a negligible impact on segments' growth rates, as you can see on the chart. We believe our broad and differentiated capabilities position us well to pursue enterprise-wide partnerships across these two segments as clients continue to consolidate vendors. I want to take another moment to acknowledge and congratulate our employees around the world. For the ninth year in a row, IQVIA was named one of the world's most admired companies in Fortune's annual survey. And importantly, for the fifth year in a row, IQVIA was named the number one most admired company in our category. Finally, this is the last earnings call for our longtime CFO, Ron Bruehlman. I want to take a moment to acknowledge Ron. I've been working with Ron for the last three decades.
Ari Bousbib: This new segment reporting aligns with industry evolution and the company's operating model. It has a negligible impact on segments' growth rates, as you can see on the chart. We believe our broad and differentiated capabilities position us well to pursue enterprise-wide partnerships across these two segments as clients continue to consolidate vendors. I want to take another moment to acknowledge and congratulate our employees around the world. For the ninth year in a row, IQVIA was named one of the world's most admired companies in Fortune's annual survey. And importantly, for the fifth year in a row, IQVIA was named the number one most admired company in our category. Finally, this is the last earnings call for our longtime CFO, Ron Bruehlman. I want to take a moment to acknowledge Ron. I've been working with Ron for the last three decades.
Speaker #3: It has a negligible impact on segment growth rates as you can see on the chart. We believe our broad and differentiated capabilities position us well to pursue enterprise-wide partnerships across these two segments as clients continue to consolidate vendors.
Speaker #3: I want to take our employees around the world for the another moment to acknowledge and congratulate ninth year in a row IQVIA was named one of the world's most admired survey.
Speaker #3: An importantly, for the fifth year in a row, IQVIA was named the companies in Fortune's annual company in our number one most admired category.
Speaker #3: Finally, this is the last earnings call for our long-time CFO, Ron Bruhlman. I want to take a moment to acknowledge Ron. I've been working with Ron for the he's a last three decades; proven extraordinary world-class leader who played an instrumental role in shaping and executing our company's financial strategy and transformation.
Ari Bousbib: He's a proven, extraordinary world-class leader, who played an instrumental role in shaping and executing our company's financial strategy and transformation. Ron's steady leadership and long-term strategic vision have been essential in building a high-performing global finance organization and helped IQVIA remain resilient through unprecedented times. On behalf of the entire IQVIA team, I want to thank Ron for his exceptional service, and the good news is, he's not going anywhere, and only transitioning into a senior advisory role, assuming he returns from his upcoming trek in Nepal. Now to Ron for more details on our financial performance.
Ari Bousbib: He's a proven, extraordinary world-class leader, who played an instrumental role in shaping and executing our company's financial strategy and transformation. Ron's steady leadership and long-term strategic vision have been essential in building a high-performing global finance organization and helped IQVIA remain resilient through unprecedented times. On behalf of the entire IQVIA team, I want to thank Ron for his exceptional service, and the good news is, he's not going anywhere, and only transitioning into a senior advisory role, assuming he returns from his upcoming trek in Nepal. Now to Ron for more details on our financial performance.
Speaker #3: long-term strategic vision have been essential in building a Ron's steady leadership and high-performing global finance organization and helped IQVIA through unprecedented remain resilient entire IQVIA team, I want to thank Ron times.
Speaker #3: for his exceptional On behalf of the service, and the good news is he's not going anywhere. And only transitioning into a senior advisory role.
Speaker #3: Assuming he returns from his upcoming trek in Nepal. And now to Ron for more details on our financial
Speaker #3: performance. Thanks, Peter.
Ron Bruehlman: Thanks for your kind words, Henri. I promise I will make it back.
Ron Bruehlman: Thanks for your kind words, Henri. I promise I will make it back.
Speaker #2: Fine words, Ari, and I promise I
Speaker #2: will make it back. Let's start by digging into the numbers a with the fourth quarter. Fourth quarter revenue was $4,364 million. 10.3% on a reported basis and little bit more.
Ari Bousbib: Okay.
Ari Bousbib: Okay.
Ron Bruehlman: Good morning, everyone. Let's start by digging into the numbers a little bit more, starting with the fourth quarter. Fourth quarter revenue was $4.364 billion. That was up 10.3% on a reported basis, and 8.1% at constant currency. Excluding all COVID-related work, revenue grew over 8% at constant currency. This included approximately two points of contributions from acquisitions. Technology and analytics solutions revenue for the fourth quarter was $1.821 billion. That's up 9.8% reported, and 7.1% constant currency. RD Solutions fourth quarter revenue of $2.333 billion was up 9.1% reported, and 8.2% at constant currency.
Ron Bruehlman: Good morning, everyone. Let's start by digging into the numbers a little bit more, starting with the fourth quarter. Fourth quarter revenue was $4.364 billion. That was up 10.3% on a reported basis, and 8.1% at constant currency. Excluding all COVID-related work, revenue grew over 8% at constant currency. This included approximately two points of contributions from acquisitions. Technology and analytics solutions revenue for the fourth quarter was $1.821 billion. That's up 9.8% reported, and 7.1% constant currency. RD Solutions fourth quarter revenue of $2.333 billion was up 9.1% reported, and 8.2% at constant currency.
Speaker #2: Starting Technology and analytics solutions revenue $1,821 million. for the fourth quarter was That's up 9.8% reported and 7.1% constant currency. R&D solutions fourth quarter revenue of $2,333 million, was up 9.1% reported and 8.2% at constant COVID-related work, R&DS revenue currency.
Speaker #2: That was up 8.1% at constant currency. Now, excluding all COVID-related work, revenue grew over 8% at constant currency. This included approximately $2 million of contributions from acquisitions.
Ron Bruehlman: Excluding the step down in COVID-related work, RDS revenue grew over 8.5% at constant currency. Finally, Contract Sales and Medical Solutions, or CSMS, fourth quarter revenue was $210 million, increased 18.6% reported, 15.3% at constant currency, and about 5 points of that growth was due to the acquisition we mentioned in the third quarter call. For the full year, revenue was $16.31 billion, up 5.9% reported, and 4.8% at constant currency. That included Technology and Analytics Solutions revenue of $6.626 billion, which grew 7.6% reported and 6.2% constant currency.
Ron Bruehlman: Excluding the step down in COVID-related work, RDS revenue grew over 8.5% at constant currency. Finally, Contract Sales and Medical Solutions, or CSMS, fourth quarter revenue was $210 million, increased 18.6% reported, 15.3% at constant currency, and about 5 points of that growth was due to the acquisition we mentioned in the Q3 call. For the full year, revenue was $16.31 billion, up 5.9% reported, and 4.8% at constant currency. That included Technology and Analytics Solutions revenue of $6.626 billion, which grew 7.6% reported and 6.2% constant currency.
Speaker #2: Grew over 8.5% at constant currency. Finally, contract sales and medical solutions, or CSMS, Q4 revenue was $210 million. Excluding the step-down, it increased 18.6% reported and 15.3% at constant currency.
Speaker #2: And about five points of that growth was due to the acquisition we mentioned in the third quarter call. $16,310 For the full year revenue, it was million.
Speaker #2: Up 4.8% at constant currency, 5.9% reported, and Solutions revenue of $6,626 million, which grew 7.6% reported and 6.2% at constant currency. And R&D Solutions full-year revenue was up 4.3% reported and 3.5% at constant currency.
Ron Bruehlman: And R&DS full year revenue was $8.896 billion, up 4.3% reported, and 3.5% at constant currency. And finally, full year CSMS revenue was $788 million, up 9.7% reported, and 8.2% at constant currency. Now, moving down to P&L. Fourth quarter adjusted EBITDA was $1.046 billion, representing growth of an even 5%, while full year adjusted EBITDA was $3.788 billion, up 2.8% year-over-year. Fourth quarter GAAP net income was $514 million, and GAAP diluted earnings per share was $2.99.
Ron Bruehlman: And R&DS full year revenue was $8.896 billion, up 4.3% reported, and 3.5% at constant currency. And finally, full year CSMS revenue was $788 million, up 9.7% reported, and 8.2% at constant currency. Now, moving down to P&L. Fourth quarter adjusted EBITDA was $1.046 billion, representing growth of an even 5%, while full year adjusted EBITDA was $3.788 billion, up 2.8% year-over-year. Fourth quarter GAAP net income was $514 million, and GAAP diluted earnings per share was $2.99.
Speaker #2: And finally, full year CSMS $8,896 million. revenue was $788 9.7% reported and million. Up 8.2% at constant currency. Now, moving down the P&L, fourth quarter adjusted EBITDA was $1,046 million.
Speaker #2: Representing growth of an even 5%. While full year adjusted EBITDA was $3,788 million, up 2.8% year over year. Fourth quarter GAAP net income was $514 million, and GAAP diluted earnings per share was $2.99.
Speaker #2: Full year GAAP net income was $1,360 million, or $7.84. Of earnings per diluted share. Adjusted net income was $588 million, for the fourth quarter.
Ron Bruehlman: Full year GAAP net income was $1.36 billion, or $7.84 of earnings per diluted share. Adjusted net income was $588 million for the fourth quarter, and adjusted diluted earnings per share was $3.42. That was up 9.6%. That brought the full year adjusted net income to $2.068 billion, or $11.92 per share, up 7.1%. Now, as already noted, we had strong net new bookings growth this quarter, which confirmed the improved demand environment that we started seeing in the second quarter. RDS backlog at December 31 was $32.7 billion. That's up 5.3% year-over-year, and next twelve-month revenue from backlog was $8.3 billion at year-end.
Ron Bruehlman: Full year GAAP net income was $1.36 billion, or $7.84 of earnings per diluted share. Adjusted net income was $588 million for the fourth quarter, and adjusted diluted earnings per share was $3.42. That was up 9.6%. That brought the full year adjusted net income to $2.068 billion, or $11.92 per share, up 7.1%. Now, as already noted, we had strong net new bookings growth this quarter, which confirmed the improved demand environment that we started seeing in the Q2. RDS backlog at December 31 was $32.7 billion. That's up 5.3% year-over-year, and next twelve-month revenue from backlog was $8.3 billion at year-end.
Speaker #2: And adjusted diluted earnings per share was $3.42, that was up 9.6%. That brought the full-year adjusted net income to $2,068 million, or $11.92.
Speaker #2: Per share. Up 7.1%. Now, as Ari noted, we had strong net new bookings growth this quarter. Which confirmed the improved demand environment that we started seeing in the second quarter.
Speaker #2: R&DS backlog at December 31 was $32.7 billion. That's up 5.3% year over year. And next 12-month revenue billion. At year-end. Okay, now turning to the balance sheet.
Ron Bruehlman: Okay, now turning to the balance sheet. As of December 31, cash and cash equivalents totaled $1.98 billion, and gross debt was $15.724 billion, which results in net debt of $13.744 billion. Our net leverage ratio ended the year at 3.63 times, trailing twelve-month adjusted EBITDA. Cash flow from operations in the fourth quarter was $735 million, and capital expenditures were $174 million, which translated into free cash flow of $561 million. For the full year, free cash flow was $2.051 billion, representing 99% of our full year adjusted net income.
Ron Bruehlman: Okay, now turning to the balance sheet. As of December 31, cash and cash equivalents totaled $1.98 billion, and gross debt was $15.724 billion, which results in net debt of $13.744 billion. Our net leverage ratio ended the year at 3.63 times, trailing twelve-month adjusted EBITDA. Cash flow from operations in the fourth quarter was $735 million, and capital expenditures were $174 million, which translated into free cash flow of $561 million. For the full year, free cash flow was $2.051 billion, representing 99% of our full year adjusted net income.
Speaker #2: As of December 31, backlog was $8.3 billion. Cash and cash equivalents totaled $1,980 million, and gross debt was $15,724 million, which results in net debt of $13,744 million.
Speaker #2: Our net leverage ratio ended the year at 3.63 times trailing 12-month adjusted EBITDA. Cash flow from operations in the fourth quarter was $735 million, and capital expenditures were $174 million.
Speaker #2: Which translated into free cash flow of $561 million. For the full year, free cash flow was $2,051 million, representing 99% of our full year adjusted net income.
Speaker #2: In the quarter, we repurchased $212 million of shares, bringing our full year share repurchase activity to $1 billion, at an average price of $1,244 per share.
Ron Bruehlman: In the quarter, we repurchased $212 million of shares, bringing our full year share repurchase activity to $1.244 billion at an average price of $169 per share. Now I'll turn it over to Mike Fedock, who will share details on our 2026 guidance. Mike?
Ron Bruehlman: In the quarter, we repurchased $212 million of shares, bringing our full year share repurchase activity to $1.244 billion at an average price of $169 per share. Now I'll turn it over to Mike Fedock, who will share details on our 2026 guidance. Mike?
Speaker #2: Now, I'll turn it over to Mike Fiedach, who will share details on our 2026 guidance.
Speaker #2: Mike. Thank you,
Mike Fedock: Thank you, Ron. For full year 2026, we expect revenue to be between $17.15 billion and $17.35 billion. This includes about 150 basis points of contribution from M&A and approximately 100 basis points of tailwind from foreign exchange versus prior year. Our adjusted EBITDA guidance is $3.975 billion to $4.025 billion, and our adjusted diluted EPS guidance is $12.55 to $12.85. Now, let me provide some color on the below-the-line items. This guidance includes approximately $610 million of operational D&A, net interest expense of approximately $760 million, which is about $80 million higher than 2025.
Michael Fedock: Thank you, Ron. For full year 2026, we expect revenue to be between $17.15 billion and $17.35 billion. This includes about 150 basis points of contribution from M&A and approximately 100 basis points of tailwind from foreign exchange versus prior year. Our adjusted EBITDA guidance is $3.975 billion to $4.025 billion, and our adjusted diluted EPS guidance is $12.55 to $12.85. Now, let me provide some color on the below-the-line items. This guidance includes approximately $610 million of operational D&A, net interest expense of approximately $760 million, which is about $80 million higher than 2025.
Speaker #3: Ron. For full year 2026, we expect revenue to be between $17,150 million and $17,350 million. This includes about $150 basis points of contribution from M&A, and approximately $100 basis points of tailwind from foreign exchange versus prior year.
Speaker #3: Our adjusted EBITDA guidance is $3,975 million. To $4,025 million. And our adjusted diluted EPS guidance is $12.55. To $12.85. Now, let me provide some color on the below-the-line items.
Speaker #3: This guidance includes approximately $610 million of operational D&A, net interest expense of approximately $760 million, which is about $80 million higher than 2025. This increase reflects the full-year impact of the senior notes issued in June 2025, swap maturities, and refinancing activity we expect to complete in 2026, partially offset by the lower interest rates on our variable debt, and finally, our guidance assumes an effective income tax rate of just over 17%.
Mike Fedock: This increase reflects the full year impact of the senior notes issued in June 2025, swap maturities, and refinancing activity we expect to complete in 2026, partially offset by the lower interest rates on our variable debt. And finally, our guidance assumes an effective income tax rate of just over 17%, an average diluted share count of just over 171 million, and assumes that foreign currency rates as of February 4 continue for the balance of the year. Now, let's look at revenue at the new segment level. As already mentioned, we will start reporting 2026 under two segments, Commercial Solutions and RDS.... This change to better align and simplify our operating to the evolving market landscape.
Michael Fedock: This increase reflects the full year impact of the senior notes issued in June 2025, swap maturities, and refinancing activity we expect to complete in 2026, partially offset by the lower interest rates on our variable debt. And finally, our guidance assumes an effective income tax rate of just over 17%, an average diluted share count of just over 171 million, and assumes that foreign currency rates as of February 4 continue for the balance of the year. Now, let's look at revenue at the new segment level. As already mentioned, we will start reporting 2026 under two segments, Commercial Solutions and RDS.... This change to better align and simplify our operating to the evolving market landscape.
Speaker #3: An average diluted share count of just over 171 million and assumes that foreign currency rates as of February 4th continue for the balance of the year.
Speaker #3: Now, let's look at revenue at the new segment level. As Ari mentioned, we will start reporting 2026 under two segments, commercial solutions and RDS.
Speaker #3: This change will better align and simplify our operating units to the evolving market landscape. We will provide the full recast of relevant historical financials for the two segments starting with the first quarter 10-Q and the 2026 10-K.
Mike Fedock: We will provide a full recast of relevant historical financials for the two segments, starting with the Q1 10-Q and the 2026 10-K. In the meantime, we have included a recast of 2025 and 2024 revenue in the press release that accompanies this earnings presentation. On a recast basis, 2025 full year revenue for the two new segments has Commercial Solutions at $6.74 billion, and R&DS at $9.57 billion. With this new reporting, TAS transfers $674 million of real-world late phase and real-world clinical-related offerings into R&DS, and Commercial Solutions receives the full $788 million of CSMS revenues.
Michael Fedock: We will provide a full recast of relevant historical financials for the two segments, starting with the Q1 10-Q and the 2026 10-K. In the meantime, we have included a recast of 2025 and 2024 revenue in the press release that accompanies this earnings presentation. On a recast basis, 2025 full year revenue for the two new segments has Commercial Solutions at $6.74 billion, and R&DS at $9.57 billion. With this new reporting, TAS transfers $674 million of real-world late phase and real-world clinical-related offerings into R&DS, and Commercial Solutions receives the full $788 million of CSMS revenues.
Speaker #3: And in the meantime, we have included a recast of 2025 and 2024 revenue in the press release that accompanies this earnings presentation. When a recast basis, 2025 full year revenue for the two new segments has commercial solutions at $6,740 million, and RDS at $9,570 million.
Speaker #3: With this new reporting tags transfers $674 million of real world late phase and real world clinical related offerings in to RDS, and commercial solutions receives the full $788 million of CSMS revenues.
Speaker #3: For full year 2026, we expect commercial solutions revenue to be between $7.2 and $7.3 billion, which represents growth of approximately 7 to 9%. RDS revenue is expected to be between $9.9 and $10 billion, which is a little over 4% growth year over year at the midpoint.
Mike Fedock: For full year 2026, we expect Commercial Solutions revenue to be between $7.2 and 7.3 billion, which represents growth of approximately 7% to 9%. RDS revenue is expected to be between $9.9 and 10 billion, which is a little over 4% growth year-over-year at the midpoint. Now let's review our Q1 guidance. For Q1, we expect revenue to be between $4.05 and 4.15 billion. Adjusted EBITDA is expected to be between $920 million and 940 million, and adjusted diluted EPS is expected to be between $2.77 and 2.87.
Michael Fedock: For full year 2026, we expect Commercial Solutions revenue to be between $7.2 and 7.3 billion, which represents growth of approximately 7% to 9%. RDS revenue is expected to be between $9.9 and 10 billion, which is a little over 4% growth year-over-year at the midpoint. Now let's review our Q1 guidance. For Q1, we expect revenue to be between $4.05 and 4.15 billion. Adjusted EBITDA is expected to be between $920 million and 940 million, and adjusted diluted EPS is expected to be between $2.77 and 2.87.
Speaker #3: Now, let's review our first quarter guidance. For the first quarter, we expect $4,050 million and $4,150 million. Adjusted revenue to be between $920 million and EBITDA is expected to be between $940 million.
Speaker #3: And adjusted diluted EPS is expected to be between $2.77 and $2.87. Now, before we move to Q&A, I just want to take a moment to thank Ron for his support, guidance, and mentorship.
Mike Fedock: Now, before we move to Q&A, I just want to take a moment to thank Ron for his support, guidance, and mentorship. I've enjoyed working with Ron over the last nine years, first as CFO of the lab business, then as CFO of R&DS, and most recently, leading the corporate DNA function. I'm grateful for everything he shared with me along the way. Now, with that said, let me hand it back to the operator for Q&A. Operator?
Michael Fedock: Now, before we move to Q&A, I just want to take a moment to thank Ron for his support, guidance, and mentorship. I've enjoyed working with Ron over the last nine years, first as CFO of the lab business, then as CFO of R&DS, and most recently, leading the corporate DNA function. I'm grateful for everything he shared with me along the way. Now, with that said, let me hand it back to the operator for Q&A. Operator?
Speaker #3: I've enjoyed working with Ron over the last nine years, first as CFO of the lab business, then as CFO of R&DS, and most recently leading the corporate DNA function.
Speaker #3: I'm grateful for everything he shared with me along the way. Now, with that said, let me hand it back to the operator for Q&A.
Speaker #3: Operator.
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 yourselves to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster. Your first question comes from Shlomo Rosenbaum with Stifel.
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 yourselves to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster. Your first question comes from Shlomo Rosenbaum with Stifel.
Speaker #4: would like to remind everyone in order to ask a question, press star, then the number one on your telephone At this time, I keypad.
Speaker #4: We request that you please limit yourselves to just one question. So that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster.
Speaker #4: Your first question comes from SloMo Rosenbaum with Stifel.
Shlomo Rosenbaum: Hi, thank you very much for taking my questions. Ari, maybe you could just talk about, you know, the concerns everyone's having in the market about the potential for AI to disrupt various established businesses. And if you could just talk about why you think your business is, you know, is insulated or, or why it would be hard to disrupt it, and then, you know, why you think AI is really more of an enabling technology for the business versus, you know, anything that investors should be concerned about.
Shlomo Rosenbaum: Hi, thank you very much for taking my questions. Ari, maybe you could just talk about, you know, the concerns everyone's having in the market about the potential for AI to disrupt various established businesses. And if you could just talk about why you think your business is, you know, is insulated or, or why it would be hard to disrupt it, and then, you know, why you think AI is really more of an enabling technology for the business versus, you know, anything that investors should be concerned about.
Speaker #5: questions. Ari, Hi, thank you very much for taking my maybe you could just talk about the concerns everyone's having in the market about the potential for AI to disrupt various established businesses.
Speaker #5: Could you just talk about why you think your business is insulated, or why it would be hard to disrupt it? And more about AI as an enabling technology for the business versus anything else—then why you think AI is really about.
Speaker #6: Well, I don't know where to
Ari Bousbib: Well, you know, I, I don't know where to start. I wish we would be spending the next few moments talking about our great results for the year and our great guidance for 2026. We're very excited about how business is going. But an article was published a couple of days ago, and all of a sudden, it's the end of the world. I don't know why it was news to people. It certainly is not news to us. We started on this AI journey a long time ago. Specifically, I mentioned again, we've been working with NVIDIA for over a year to build agents into our workflows, and we've made a lot of progress. We've seen this opportunity for our business very early, and again, I stress it's an opportunity, not a challenge. There really is nothing new here for us.
Ari Bousbib: Well, you know, I, I don't know where to start. I wish we would be spending the next few moments talking about our great results for the year and our great guidance for 2026. We're very excited about how business is going. But an article was published a couple of days ago, and all of a sudden, it's the end of the world. I don't know why it was news to people. It certainly is not news to us. We started on this AI journey a long time ago. Specifically, I mentioned again, we've been working with NVIDIA for over a year to build agents into our workflows, and we've made a lot of progress. We've seen this opportunity for our business very early, and again, I stress it's an opportunity, not a challenge. There really is nothing new here for us.
Speaker #6: Start. I wish we were—we would be spending the next few moments talking about how great results for the year and how great guidance for '26.
Speaker #6: We're very investors should be concerned excited about how business is going. But an article was published a couple of days ago, and all of a sudden, it's the end of the world.
Speaker #6: I don't know why it was news to people. It certainly is not news to us. We started on this specifically I mentioned again, AI journey a long time ago, we've been working with NVIDIA for over a year to build agents into our workflows.
Speaker #6: And we made a lot of progress. We've seen this opportunity for our business very early. And again, I stress it's an opportunity, not a challenge.
Speaker #6: There really is nothing new here for us. Other than, obviously, I want to take the opportunity—because it's obviously not clear to people—to clarify what I believe are fundamental misunderstandings of both what our business is and what AI is.
Ari Bousbib: Other than obviously, I want to take the opportunity, because it's obviously not clear to people, to clarify what I believe is fundamental misunderstandings of both what our business is and what AI is. And why we have an offer. There are 3 requirements for AI agents. Number 1, significant, ready-to-consume data ingredients at scale. Number 2, domain expertise. And number 3, technology, meaning the AI tools everybody talks about with French names, and the processing capability to enable these AI agents to work. Now, the first two are absolutely necessary, meaning the data ingredients and the domain expertise. The third one can be bought, and it's typically a combination of tools that constitute a tech stack from a variety of ecosystem players. I want to focus on these first two. Let's start with the data.... First, our data is proprietary.
Ari Bousbib: Other than obviously, I want to take the opportunity, because it's obviously not clear to people, to clarify what I believe is fundamental misunderstandings of both what our business is and what AI is. And why we have an offer. There are 3 requirements for AI agents. Number 1, significant, ready-to-consume data ingredients at scale. Number 2, domain expertise. And number 3, technology, meaning the AI tools everybody talks about with French names, and the processing capability to enable these AI agents to work. Now, the first two are absolutely necessary, meaning the data ingredients and the domain expertise. The third one can be bought, and it's typically a combination of tools that constitute a tech stack from a variety of ecosystem players. I want to focus on these first two. Let's start with the data.... First, our data is proprietary.
Speaker #6: And why we're not a law firm. There are three requirements for AI agents. Number ready-to-consume data ingredients at scale. Number two, domain expertise. And number three, technology, meaning the AI tools everybody talks about with French names.
Speaker #6: And the processing capability to work. Now, the first two are absolutely ingredients and the domain expertise. necessary, meaning the data The third one can be bought, and it's typically a combination of tools that constitute a tech stack from a variety players.
Speaker #6: I want to focus of ecosystem on this first two. Let's start with the data is First, our data. proprietary. You need to understand that our data is web.
Ari Bousbib: You need to understand that our data is not readily available on the web. It's proprietary. It's not like case law, jurisprudence, company financials, consumer information. It's just not available. This is a lot more than simply aggregating data, vacuum cleaning everything that's on the web, and organizing it neatly for somebody to use with an AI tool. It's just not there. Second, it's sourced, de-identified, cleansed, curated, and integrated into data lakes that enable fit-for-purpose extraction algorithms to do their work. We do this at a huge cost and on a massive scale, and we have been doing this for decades. By the way, many have tried to replicate it. No one has duplicated it. Third, healthcare data is dynamic data. That is, it changes every moment, and it needs to be updated constantly. It's not like a legal case. It remains the same legal case forever. It's static.
Ari Bousbib: You need to understand that our data is not readily available on the web. It's proprietary. It's not like case law, jurisprudence, company financials, consumer information. It's just not available. This is a lot more than simply aggregating data, vacuum cleaning everything that's on the web, and organizing it neatly for somebody to use with an AI tool. It's just not there. Second, it's sourced, de-identified, cleansed, curated, and integrated into data lakes that enable fit-for-purpose extraction algorithms to do their work. We do this at a huge cost and on a massive scale, and we have been doing this for decades. By the way, many have tried to replicate it. No one has duplicated it. Third, healthcare data is dynamic data. That is, it changes every moment, and it needs to be updated constantly. It's not like a legal case. It remains the same legal case forever. It's static.
Speaker #6: It's proprietary. It's not like case law, jurisprudence, company financials, or consumer information—it's just not available. This is a lot more about aggregating data than simply vacuum-cleaning everything that's on the web and organizing it neatly for somebody to use with an AI tool.
Speaker #6: It's just not Second, it's sourced, there. that enable fit-for-purpose into data lakes extraction algorithms to do their work. We do this at a huge cost and on a massive scale and we have been doing this for decades.
Speaker #6: de-identified, cleansed, have tried to replicate it. No one has duplicated it. Third, healthcare data is dynamic changes every moment and it needs to data.
Speaker #6: That is, it is updated constantly. It's not like a legal case. It remains the same legal case forever—it's static. Fourth, healthcare data is subject to significant regulatory compliance and privacy frameworks that vary across countries and geographies.
Ari Bousbib: Fourth, healthcare data is subject to significant regulatory, compliance, and privacy frameworks that vary across countries and geographies. Do you really think that Germany is going to allow, let's call him Jean-Paul, to access and play around with individual healthcare data of their citizens? Fifth, healthcare data needs to meet interoperability, relevance, completeness, traceability, reliability, and linkability standards under countless ontologies at a scale and level of complexity that has zero comparison to any other industry. Sixth, the data that we sell to our clients is for specific defined uses. We do not sell all the data that we source. We sell the final product, not the ingredients. And the ingredients, which have much higher latency and higher levels of granularity, are what you need to train differentiated and specialized AI agents.
Ari Bousbib: Fourth, healthcare data is subject to significant regulatory, compliance, and privacy frameworks that vary across countries and geographies. Do you really think that Germany is going to allow, let's call him Jean-Paul, to access and play around with individual healthcare data of their citizens? Fifth, healthcare data needs to meet interoperability, relevance, completeness, traceability, reliability, and linkability standards under countless ontologies at a scale and level of complexity that has zero comparison to any other industry. Sixth, the data that we sell to our clients is for specific defined uses. We do not sell all the data that we source. We sell the final product, not the ingredients. And the ingredients, which have much higher latency and higher levels of granularity, are what you need to train differentiated and specialized AI agents.
Speaker #6: you really think that Germany is going to Do allow let's call him Jean-Paul to access and play around with individual healthcare data of their citizens?
Speaker #6: Fifth, healthcare data needs to meet completeness, interoperability, relevance, traceability, reliability, and linkability standards, under countless ontologies at a scale and level of complexity that has zero comparison to any other industry.
Speaker #6: Sixth, the data that we send to our clients is for specific defined all the data that we source. We sell the final product, not the uses. ingredients.
Speaker #6: Sixth, the data that we send to our clients is for specific defined all the data that we source. We sell the final product, not the uses.
Speaker #6: Ingredients which have much higher latency and higher levels of granularity are what you need to train differentiated and specialized AI agents. Now, obviously, I could go on and on, but why healthcare data at—we do not sell resemblance whatsoever to data in any other—IQVIA bears no industry.
Ari Bousbib: Now, obviously, I could go on and on about why healthcare data at IQVIA bears no resemblance whatsoever to data in any other industry. But let me switch to the second important requirement to do AI agentification, and that is domain expertise. In some industries, a couple of lawyers will do to interpret a case. Not so in healthcare. To build the algorithms required to develop AI agents, you need to have the ability to read, understand, and interpret these highly complex data sets in their proper context, so the agents can perform these workflows at the level of precision, accuracy, trust, and compliance required by the regulators in healthcare. That is, by the way, what we've been calling, with our clients, healthcare-grade AI. And this is why our clients trust us to work with them on their own AI journey.
Ari Bousbib: Now, obviously, I could go on and on about why healthcare data at IQVIA bears no resemblance whatsoever to data in any other industry. But let me switch to the second important requirement to do AI agentification, and that is domain expertise. In some industries, a couple of lawyers will do to interpret a case. Not so in healthcare. To build the algorithms required to develop AI agents, you need to have the ability to read, understand, and interpret these highly complex data sets in their proper context, so the agents can perform these workflows at the level of precision, accuracy, trust, and compliance required by the regulators in healthcare. That is, by the way, what we've been calling, with our clients, healthcare-grade AI. And this is why our clients trust us to work with them on their own AI journey.
Speaker #6: But let me switch to the second important requirement to do AI agentification, and that is domain expertise. In some industries, a couple of lawyers will do to case.
Speaker #6: Not so in healthcare. To build the algorithms required to develop AI agents, you need to have the ability to read, understand, and interpret these highly complex data sets in agents can perform this accuracy, trust, and compliance required by the workflows at the level of precision, regulators in their proper context.
Speaker #6: healthcare. That is, by the way, what we've been calling with our clients healthcare-grade AI. And this is why our clients trust us to work with them on their own So the journey.
Speaker #6: On the one hand, it helps us differentiate in clinical research and win more business. On the commercial side, we've seen an uptick in demand offerings.
Speaker #6: On the one hand, it helps us differentiate in clinical research and win more business. On the commercial side, we've seen an uptick in demand for AI-enabled analytical A lot of what we do with large pharma is being discussed in partnership with IQVIA.
Ari Bousbib: On the one hand, it helps us differentiate in clinical research and win more business. On the commercial side, we've seen an uptick in demand for AI-enabled analytical offerings. A lot of what we do with large pharma is being discussed. It's in partnership with IQVIA. Bear in mind, our agents have been training on our data assets for over a year now, and to date, we've deployed over 150 agents, covering over 30 use cases across the business, clinical and commercial. It's important to understand about how this AI agentification is done, and forgive me if I'm being simplistic and explaining obvious things. A workflow includes many tasks. Each of these tasks can be performed by an AI agent.
Ari Bousbib: On the one hand, it helps us differentiate in clinical research and win more business. On the commercial side, we've seen an uptick in demand for AI-enabled analytical offerings. A lot of what we do with large pharma is being discussed. It's in partnership with IQVIA. Bear in mind, our agents have been training on our data assets for over a year now, and to date, we've deployed over 150 agents, covering over 30 use cases across the business, clinical and commercial. It's important to understand about how this AI agentification is done, and forgive me if I'm being simplistic and explaining obvious things. A workflow includes many tasks. Each of these tasks can be performed by an AI agent.
Speaker #6: Bear in mind, our agents have been training on our data assets for over a year now. And to date, we've deployed over 150 agents covering more than 30 use cases across the business.
Speaker #6: Clinical and commercial. It's important to understand about how this AI agentification is done. And forgive me if I'm being simplistic and explaining obvious things.
Speaker #6: A workflow includes many tasks. Each of these tasks can be performed by an AI agent. So within a workflow, there could be 10, 15, or 20 agents that are involved, and they work together under the oversight, usually of an orchestration agent that sits on the top.
Ari Bousbib: So within a workflow, there could be 10, 15, or 20 agents that are involved, and they work together under the oversight, usually, of an orchestration agent that sits on the top. Now, for each of these tasks, we choose the model that's best suited to the task. So for a particular task within a workflow, it could be OpenAI. For another task, it could be Claude, it could be one of our own tools or a number of models and tools. So within one agentification process of one workflow, you may have many different tools working together. And the goal is to pick for each task the best-suited tool, and of course, optimize the overall cost, as some of these tools are actually quite expensive.
Ari Bousbib: So within a workflow, there could be 10, 15, or 20 agents that are involved, and they work together under the oversight, usually, of an orchestration agent that sits on the top. Now, for each of these tasks, we choose the model that's best suited to the task. So for a particular task within a workflow, it could be OpenAI. For another task, it could be Claude, it could be one of our own tools or a number of models and tools. So within one agentification process of one workflow, you may have many different tools working together. And the goal is to pick for each task the best-suited tool, and of course, optimize the overall cost, as some of these tools are actually quite expensive.
Speaker #6: Now, for each of these tasks, we choose the model that's best suited to the task. So for a particular task within a workflow, it could be OpenAI; for another task, it could be Claude.
Speaker #6: It could be one of our own tools. Or a number of models and tools. So process of one workflow, you may have many different tools working together.
Speaker #6: And the goal is to pick for each task the best suited tool. And of course, optimize the overall cost as some of these tools are actually quite is where deep domain expertise expensive.
Ari Bousbib: Here is where deep domain expertise is critical to be able to choose the best model and fine-tuning that model on proprietary domain-specific data to optimize performance. Now, finally, the investment required to put this all together is quite significant. It's only justified if you have the scale across both clinical and commercial, across a broad array of therapies, and across the globe to make the economics worthwhile. Now, we sell to over 10,000 clients, and therefore we have that scale. That's why we exist in the first place, long before AI came to the fore. Everything we do, our clients would do, but they're not, because it's a lot more, economically, rational to outsource it to us and to partner with us. Same here.
Ari Bousbib: Here is where deep domain expertise is critical to be able to choose the best model and fine-tuning that model on proprietary domain-specific data to optimize performance. Now, finally, the investment required to put this all together is quite significant. It's only justified if you have the scale across both clinical and commercial, across a broad array of therapies, and across the globe to make the economics worthwhile. Now, we sell to over 10,000 clients, and therefore we have that scale. That's why we exist in the first place, long before AI came to the fore. Everything we do, our clients would do, but they're not, because it's a lot more, economically, rational to outsource it to us and to partner with us. Same here.
Speaker #6: is critical to be able to choose the best model and fine-tuning that model on data to optimize performance. Here Now, finally, the investment required to put this all together is quite significant.
Speaker #6: It's only justified if you have the scale across both clinical and commercial, across a broad array of therapies, and across the globe to make the economics worthwhile.
Speaker #6: Now, we sell to over 10,000 clients and therefore we have that scale. That's why we exist in the first place, long before AI came to the fore.
Speaker #6: Everything we do, our clients could it's a lot do. economically rational But they're not. to outsource it to us and to partner Same here.
Speaker #6: So I would say, overall, in answer to your 'because' question—and forgive my patience for the time it took to answer the question—but I think it's important to me, and I beg your clarity.
Ari Bousbib: So I would say overall, in answer to your question, forgive me, and I beg your patience for the time it took to answer the question, that it's important to clarify. Overall, I would say AI agentification is a positive for our business across both clinical and commercial, and I understand it's hard to distinguish between us and other CROs, us and other information services provider. And I tried to give you some detail, and we could go up, you know, in more detail in follow-up calls, if you so desire. I hope we can go to the main subject of the call, which is the results and our guidance. But again, our proprietary data assets, which are not strippable by horizontal AI models, are more valuable than ever, actually.
Ari Bousbib: So I would say overall, in answer to your question, forgive me, and I beg your patience for the time it took to answer the question, that it's important to clarify. Overall, I would say AI agentification is a positive for our business across both clinical and commercial, and I understand it's hard to distinguish between us and other CROs, us and other information services provider. And I tried to give you some detail, and we could go up, you know, in more detail in follow-up calls, if you so desire. I hope we can go to the main subject of the call, which is the results and our guidance. But again, our proprietary data assets, which are not strippable by horizontal AI models, are more valuable than ever, actually.
Speaker #6: Overall, I would say AI agentification is a positive for our business across both clinical and commercial. And I understand it's hard to distinguish between us and other CROs.
Speaker #6: Us and other information And I try to give you some detail, and we could go in more services providers. detail in follow-up calls if you so desire.
Speaker #6: I hope we can go to call, which is the results and our guidance. But again, our proprietary data assets, which are not scrapable by horizontal AI models, are more valuable than ever, actually.
Speaker #6: Our services are differentiated because they leverage deep domain expertise that very organizations possess in-house. So yes, some lower-level consulting and analytics work may be displaced, but at the same time, we're seeing increasing demand for new offerings.
Ari Bousbib: Our services are differentiated because they leverage deep domain expertise that very few, if any, healthcare organizations possess in-house. So yes, some lower-level consulting and analytics work may be displaced, but at the same time, we're seeing increasing demand for new offerings, including the next generation information management SaaS solution that I spoke about in my introductory remarks. And by the way, these introductory remarks were written long before the AI drama erupted a couple of days ago. So, I hope that addresses your question, Trevor. And I guess anybody wants to add anything here? No, no.
Ari Bousbib: Our services are differentiated because they leverage deep domain expertise that very few, if any, healthcare organizations possess in-house. So yes, some lower-level consulting and analytics work may be displaced, but at the same time, we're seeing increasing demand for new offerings, including the next generation information management SaaS solution that I spoke about in my introductory remarks. And by the way, these introductory remarks were written long before the AI drama erupted a couple of days ago. So, I hope that addresses your question, Trevor. And I guess anybody wants to add anything here?
Speaker #6: few, if any, healthcare Including the next-generation I spoke about in my information management DAS solutions that written long before the AI drama erupted a couple of days ago.
Speaker #6: Introductory remarks. And, by the way, question, Flo. I guess anybody wants to add anything. And I...
Speaker #2: No.
Ron Bruehlman: No, no.
Speaker #3: All right. No. Thank you very
Ron Bruehlman: All right. Thank you very much.
Shlomo Rosenbaum: All right. Thank you very much.
Ari Bousbib: Okay. Next question.
Ari Bousbib: Okay. Next question.
Speaker #1: question. here?
Speaker #4: Your next question comes
Operator: Your next question comes from Eric Coldwell with Baird.
Operator: Your next question comes from Eric Coldwell with Baird.
Speaker #4: from Eric Caldwell with
Eric Coldwell: Thanks very much, and good morning. I was hoping to dig into the latest acquisition, Cedar Gate. Perhaps help us better understand holistically what the value and driver of that acquisition is for the organization, and how it fits into the total IQVIA ecosystem. And then technically, could you provide any color on the specific revenue and profit contribution of that business? Is it accretive, dilutive? Maybe give us a sense of the margin profile, if you could. That would be very helpful. Thanks.
Eric Coldwell: Thanks very much, and good morning. I was hoping to dig into the latest acquisition, Cedar Gate. Perhaps help us better understand holistically what the value and driver of that acquisition is for the organization, and how it fits into the total IQVIA ecosystem. And then technically, could you provide any color on the specific revenue and profit contribution of that business? Is it accretive, dilutive? Maybe give us a sense of the margin profile, if you could. That would be very helpful. Thanks.
Speaker #3: to dig into the latest Thanks very much. acquisition Cedar Okay. And good
Speaker #3: Gate perhaps help us better understand holistically Next what the value and driver of that acquisition is for the organization. And how it fits into the total IQVIA ecosystem and then technically, could you provide any color on the specific revenue and profit contribution of that business?
Speaker #3: accretive, dilutive? Maybe you give us a sense of the margin profile if you could. That would be very helpful. Thanks. Is it
Ari Bousbib: Yeah, thank you very much. So look, we've been dabbling around the payer provider analytics business for some time. We never at scale. I think overall, before the Cedar Gate acquisition, our overall payer provider business for the company is like, it's a couple of percentage points of our total revenues, and it's mostly in the EMEIA region, in Europe and in the Middle East, with specific technology platforms. So in the US, we looked at several assets before, but you know, nothing that was of sufficient scale, and obviously, the valuations were not rational at the time. That Cedar Gate itself was a great opportunity.
Ari Bousbib: Yeah, thank you very much. So look, we've been dabbling around the payer provider analytics business for some time. We never at scale. I think overall, before the Cedar Gate acquisition, our overall payer provider business for the company is like, it's a couple of percentage points of our total revenues, and it's mostly in the EMEIA region, in Europe and in the Middle East, with specific technology platforms. So in the US, we looked at several assets before, but you know, nothing that was of sufficient scale, and obviously, the valuations were not rational at the time. That Cedar Gate itself was a great opportunity.
Speaker #1: Thank you very much. So look, we've Yeah. provider analytics business think for some time. We never scaled. I overall, before the Cedar Gate acquisition, our overall like a it's a couple of percentage points been dabbling around the Bayer of our total revenues, and it's mostly in the EMEA region in Europe.
Speaker #1: East. We specific technology And in the Middle platforms. So in the US, we looked at several assets before, but nothing that was that would be that was of sufficient scale.
Speaker #1: not rational at And obviously, the valuations were the time. Cedar Gate itself was a great opportunity basically it transforms healthcare data into insights for improved patient outcomes and provides these analytics to payers.
Ari Bousbib: It basically transforms healthcare data into insights for improved patient outcomes and provides analytics to payers. It does have a great technology platform as well. It has the right scale. You asked for the numbers. It's about, in 2024, it was about $125 million in revenue, and it has 35, somewhere, 33, 33 million dollars of Adjusted EBITDA. That's what I have in front of me. $32.7, to be precise. Okay. So, in 2025, we have numbers. A little bit higher than that. 140, maybe? About that. Yeah. Yeah. About that, yeah. 140 and about 36. Similar. Yeah, similar margins. Yeah. Okay. So that's the for the numbers. So, yeah.
Ari Bousbib: It basically transforms healthcare data into insights for improved patient outcomes and provides analytics to payers. It does have a great technology platform as well. It has the right scale. You asked for the numbers. It's about, in 2024, it was about $125 million in revenue, and it has 35, somewhere, 33, 33 million dollars of Adjusted EBITDA. That's what I have in front of me. $32.7, to be precise. Okay. So, in 2025, we have numbers. A little bit higher than that. 140, maybe? About that. Yeah. Yeah. About that, yeah. 140 and about 36. Similar. Yeah, similar margins. Yeah. Okay. So that's the for the numbers. So, yeah.
Speaker #1: It does have a great technology platform as well. It has the right scale. about in You ask for the numbers. 24, it was about It's 125 million dollars in revenue.
Speaker #1: And it has 35, somewhere adjusted EBITDA. That's what I have in front of me. 32.7, to be precise. Okay. So and 25, I don't have the numbers in front of me.
Speaker #1: $33 million of, yeah. Yeah. $140 million on that. About $36 million or so. $140 million,
Speaker #1: A little bit higher than maybe?
Speaker #3: About that.
Speaker #3: Similar.
Speaker #1: Okay. So that's for the Yeah. Similar markets. Yeah. numbers. So yeah, it helps improve patient outcomes, higher quality of care, reduce costs across the system.
Ari Bousbib: It helps improve patient outcomes, higher quality of care, reduced costs across the system. It utilizes data from the customers. I think it has 4 petabytes of data and about 60 million lives. So obviously, they don't utilize data purchased from IQVIA or other third parties. It helps expand our solutions and, you know, and, and that has some synergies with our data analytics and technology business.
Ari Bousbib: It helps improve patient outcomes, higher quality of care, reduced costs across the system. It utilizes data from the customers. I think it has 4 petabytes of data and about 60 million lives. So obviously, they don't utilize data purchased from IQVIA or other third parties. It helps expand our solutions and, you know, and, and that has some synergies with our data analytics and technology business.
Speaker #1: It utilizes data from the customers. I think it has four petabytes of data. And about 60 million lives. So obviously, they don't utilize data purchased from IQVIA or other third parties.
Speaker #1: It helps expand our solutions. And that has some technology
Speaker #1: synergies with our data analytics and Eric.
Speaker #1: business.
Speaker #3: Thank you very
Operator: Thank you very much.
Eric Coldwell: Thank you very much.
Speaker #3: much. Your next question comes
Ari Bousbib: Thank you, Eric.
Ari Bousbib: Thank you, Eric.
Operator: Your next question comes from Justin Bowers with Deutsche Bank.
Operator: Your next question comes from Justin Bowers with Deutsche Bank.
Speaker #4: from Justin Bowers with Deutsche
Speaker #4: Bank.
Speaker #3: All right. Good morning, everyone. And Ari, I'm an may, but I do Thank you, recall in your 2019 investor day where IQVIA was highlighting its investments in the cloud and AI and ML.
Justin Bowers: All right. Good morning, everyone, and, Ari, I may add one, if I may, but I do recall in your 2019 investor day where IQVIA was highlighting its investments in the cloud and AI and ML, and, and, maybe now is the time where IQVIA really starts to, you know, to monetize those investments, whereas the rest of the world has caught up.
Justin Bowers: All right. Good morning, everyone, and, Ari, I may add one, if I may, but I do recall in your 2019 investor day where IQVIA was highlighting its investments in the cloud and AI and ML, and, and, maybe now is the time where IQVIA really starts to, you know, to monetize those investments, whereas the rest of the world has caught up.
Speaker #3: And I think a lot of those investments may not have been accretive to cash flow at the time or over add-on if I the course of those few years.
Speaker #3: And maybe really starts now is the time where IQVIA to monetize those investments whereas the rest of the world was caught up. But I think the one question at the risk of oversimplifying is just to understand whether this is an opportunity or risk for your of accretive, business.
Justin Bowers: But I think the one question, at the risk of oversimplifying, is just to understand whether this is an opportunity or risk for your business, and is it, you know, is it sort of accretive, neutral, or, you know, detrimental to, to growth, whether it's RDS and TAS or TAS? And I think your, you know, response at the end to Shlomo's question is that it's potentially accretive to the long-term growth rate of IQVIA. So, I just want to confirm that that's what you're messaging, or, you know, maybe you can restate the thoughts on, you know, what the impact is or opportunity is for the segment growth rates. And then, just secondly, it does sound like what you're seeing in RDS is an improving business environment based on your prepared remarks. And is that, you know...
Justin Bowers: But I think the one question, at the risk of oversimplifying, is just to understand whether this is an opportunity or risk for your business, and is it, you know, is it sort of accretive, neutral, or, you know, detrimental to, to growth, whether it's RDS and TAS or TAS? And I think your, you know, response at the end to Shlomo's question is that it's potentially accretive to the long-term growth rate of IQVIA. So, I just want to confirm that that's what you're messaging, or, you know, maybe you can restate the thoughts on, you know, what the impact is or opportunity is for the segment growth rates. And then, just secondly, it does sound like what you're seeing in RDS is an improving business environment based on your prepared remarks. And is that, you know.
Speaker #3: Neutral, or decremental to growth, whether it's RDS or TAS? And I think your—that it's—and is it sort of potentially accretive to the long-term growth rate of IQVIA?
Speaker #3: So I just want to confirm that that's what your messaging or maybe you can restate the thoughts on what the impact is or opportunity is for the segment growth rates.
Speaker #3: And then just secondly, it does sound like what you're seeing in RDS is an improving business environment based on your prepared remarks and is that are we on course to really sort of get back to the 1.2 book to bill throughout 2026?
Justin Bowers: Are we on course to really sort of get back to the 1.2 book-to-bill throughout 2026? Does the pipeline support that, or is it sort of too early to tell? And thank you in advance.
Justin Bowers: Are we on course to really sort of get back to the 1.2 book-to-bill throughout 2026? Does the pipeline support that, or is it sort of too early to tell? And thank you in advance.
Speaker #3: Does the pipeline support that? Or is it sort of too early to tell? And thank you in advance.
Ari Bousbib: Yeah. Well, thank you. I mean, I don't really know where to start. It's really frustrating that, you know, everything we've been saying on AI, you referred to, went back to 2019, it's true. But again, we've been accelerating all of this over the past year, and we've communicated this over and over again. It's really hard to disprove a generic assertion. You know, like, AI is going to displace your business. It's exactly the opposite. I said before, and I'm gonna repeat it again, AI justification is a positive, has been a positive, will continue to be a positive for us. IQVIA has the largest proprietary healthcare information assets in the world and is the foundation of our value to clients. That access is not available.
Ari Bousbib: Yeah. Well, thank you. I mean, I don't really know where to start. It's really frustrating that, you know, everything we've been saying on AI, you referred to, went back to 2019, it's true. But again, we've been accelerating all of this over the past year, and we've communicated this over and over again. It's really hard to disprove a generic assertion. You know, like, AI is going to displace your business. It's exactly the opposite. I said before, and I'm gonna repeat it again, AI justification is a positive, has been a positive, will continue to be a positive for us. IQVIA has the largest proprietary healthcare information assets in the world and is the foundation of our value to clients. That access is not available.
Speaker #1: Well, thank you. I mean, I don't really know where to start. It's, yeah, really frustrating that everything we've been saying on AI—you know, it's true.
Speaker #1: But again, we've been accelerating refer to you went back to 2019. all of this over the past year. And we've communicated this over and over again.
Speaker #1: It's really hard to disprove a generic assertion like AI is going to displace your business. It's exactly the opposite. I said before, and I'm going to repeat it again, AI justification is a positive, has been a positive, will continue to be a positive for us.
Speaker #1: has the largest proprietary healthcare information assets in the world IQVIA of our value to clients. That access is not available. We have that access to non-public granular that nobody high-frequency data can license at that level of depth, which is the level of depth that's required to build the it.
Speaker #1: has the largest proprietary healthcare information assets in the world IQVIA of our value to clients. That access is not available. We have that access to non-public granular that nobody high-frequency data can license at that level of depth, which is the level of depth that's required to build the agents.
Ari Bousbib: We have that access to non-public, granular, high-frequency data that nobody can license at that level of depth, which is the level of depth that's required to build the agents. I don't know how else to say it. Number 2, industry expertise and global presence cannot be replicated by general purpose AI, like it can be in many other services. Our value comes from 7 decades of built knowledge across 100+ countries, deep understanding of local health systems. It cannot be systemized or replaced by generic LLMs. It just can't, outside healthcare. Believe me, if it could, we have already been on it. So our company is integral to our clients' ecosystem. AI is more likely to augment the clients' team, but not to replace us. Our clients' AI initiatives are enabled by our data services, and workflows, and people.
Ari Bousbib: We have that access to non-public, granular, high-frequency data that nobody can license at that level of depth, which is the level of depth that's required to build the agents. I don't know how else to say it. Number 2, industry expertise and global presence cannot be replicated by general purpose AI, like it can be in many other services. Our value comes from 7 decades of built knowledge across 100+ countries, deep understanding of local health systems. It cannot be systemized or replaced by generic LLMs. It just can't, outside healthcare. Believe me, if it could, we have already been on it. So our company is integral to our clients' ecosystem. AI is more likely to augment the clients' team, but not to replace us. Our clients' AI initiatives are enabled by our data services, and workflows, and people.
Speaker #1: Number two, industry expertise and global presence cannot—I don't know how else to say—be replicated by general-purpose AI. It can't be in any other services.
Speaker #1: Our value comes from seven decades of deep knowledge across 100-plus countries, deep understanding of global health systems, it cannot be systemized or replaced by generic LLMs.
Speaker #1: It just can't. Outside healthcare. Believe me, if we could, we would have already been on it. So we are our company is integral to our clients' ecosystem.
Speaker #1: AI is more likely to augment the client's team but not to replace us. Our clients' AI initiatives are enabled by our data services, and workflows, and people.
Ari Bousbib: You know, the scale and the centralization that make IQVIA the natural healthcare AI partner should be evident. You know, it reminds me a little bit over a year ago or about a year ago, I was hearing people telling me that R&D investments and in drug development is over. No one is going to invest in drug development anymore. I had people stating that as a fact. I don't know what to say. Okay, so I've said what I have to say. You can reread the transcript. I just want to remind you, you know, again, AI delivers the most value when it's embedded in existing workflows.
Ari Bousbib: You know, the scale and the centralization that make IQVIA the natural healthcare AI partner should be evident. You know, it reminds me a little bit over a year ago or about a year ago, I was hearing people telling me that R&D investments and in drug development is over. No one is going to invest in drug development anymore. I had people stating that as a fact. I don't know what to say. Okay, so I've said what I have to say. You can reread the transcript. I just want to remind you, you know, again, AI delivers the most value when it's embedded in existing workflows.
Speaker #1: The scale and the healthcare AI partner should be centralization that make IQVIA the natural evident. A little bit, it reminds me—just, it reminds me a little bit over a year, I was hearing people telling me that R&D investments and in drug development is over.
Speaker #1: No one is going to invest in drug development anymore. I had people stating that as fact. I don't a know what to say. Okay.
Speaker #1: So I've said what I had to say. You can reread the transcript. I just want to remind you, again, value when it's embedded in existing workflows.
Speaker #1: Why should you build a new And you can simply optimize it. Most of what covers 80% of what needs to be done, but you're still not need to have someone AI does, by the way, it with the subject matter expertise to complete the remaining 20%.
Ari Bousbib: Why do you-- Why should you build a new wheel if the existing one works, and you can simply optimize it? Most of what AI does, by the way, covers 80% of what needs to be done, but you still now need to have someone with the subject matter expertise to complete the remaining 20%. Otherwise, you keep compounding errors, and, and, and you end up with an incomplete product, which in healthcare is a no-no to begin with. You're also forgetting regulations. AI is all about productivity, it's all about enabling people to do more. It will not replace, it will help enhance and improve. Okay, I guess I'm not in by. R&DS, and the bookings. So the metrics, the demand metrics are very strong. They continue to be double digits, whether it's qualified pipelines, RFP flow.
Ari Bousbib: Why do you-- Why should you build a new wheel if the existing one works, and you can simply optimize it? Most of what AI does, by the way, covers 80% of what needs to be done, but you still now need to have someone with the subject matter expertise to complete the remaining 20%. Otherwise, you keep compounding errors, and, and, and you end up with an incomplete product, which in healthcare is a no-no to begin with. You're also forgetting regulations. AI is all about productivity, it's all about enabling people to do more. It will not replace, it will help enhance and improve. Okay, I guess I'm not in by. R&DS, and the bookings. So the metrics, the demand metrics are very strong. They continue to be double digits, whether it's qualified pipelines, RFP flow.
Speaker #1: Otherwise, you keep compounding incomplete product, which in healthcare is errors. wheel if the existing one works? And you end up with an a no-no to begin with.
Speaker #1: You also forget regulations. AI is all about productivity. It's all about enabling people to do, replace; it will help enhance and improve. Okay. I guess I'm not inviting.
Speaker #1: RNDS. And bookings. So the metrics the demand metrics are very strong. They continue to be double digits, whether it's 45 pipelines, RFP flow. The book to bill, again, I'm always pushing back on you've seen that it has improved during the year.
Ari Bousbib: The book-to-bill, again, I'm always pushing back on. You've seen that it has improved during the year. We had telegraphed that. This quarter had cancellations of, for futility reasons, but we had very strong bookings. Look, despite the naysayers who were telling us a year ago that we were done booking any business, we booked again, $10 billion of business this year, you know, like every other year, after cancellations. So, you know, what the book-to-bill will be next quarter, the quarter after next year, we don't project that. So I don't know. But again, the demand indicators are strong. And funding is strong. EBP demand has come back largely because funding has come back.
Ari Bousbib: The book-to-bill, again, I'm always pushing back on. You've seen that it has improved during the year. We had telegraphed that. This quarter had cancellations of, for futility reasons, but we had very strong bookings. Look, despite the naysayers who were telling us a year ago that we were done booking any business, we booked again, $10 billion of business this year, you know, like every other year, after cancellations. So, you know, what the book-to-bill will be next quarter, the quarter after next year, we don't project that. So I don't know. But again, the demand indicators are strong. And funding is strong. EBP demand has come back largely because funding has come back.
Speaker #1: We had telegraphed that. We this more. quarter had cancellations of for futility It will not reasons. But we had very strong bookings. Look, despite the naysayers who were telling us a year ago business, we booked again.
Speaker #1: We had telegraphed that. We this more. quarter had cancellations of for futility It will not reasons. But we had very strong bookings. Look, despite the naysayers who were telling us a year ago that we were done, booking any $10 billion of business this year.
Speaker #1: Like every other year, after cancellations. So what the book-to-bill will be, we don't project that. So I don't know. But again, the funding is strong.
Speaker #1: EVP demand has come back largely because funding has come back. Large next quarter, the quarter after next year, pharma has very rich pipeline of demand indicators are strong.
Ari Bousbib: Our large pharma has a very rich pipeline of opportunities we're working on, so, I don't see anything here that's unusual. Thank you. Next question.
Ari Bousbib: Our large pharma has a very rich pipeline of opportunities we're working on, so, I don't see anything here that's unusual. Thank you. Next question.
Speaker #1: So I don't see anything here opportunities we're working on. that's unusual. Thank you. Next
Speaker #1: question.
Speaker #2: Your next
Operator: Your next question comes from Elizabeth Anderson with Evercore ISI.
Operator: Your next question comes from Elizabeth Anderson with Evercore ISI.
Speaker #2: question comes from Elizabeth Anderson with Evercore ISI.
Speaker #3: Hi, good morning. Ari and everyone, and thanks for the question. I don't want to beat a dead horse, but have you actually seen I think one of the fears that came out this week and I'd just be curious your thoughts on it are that I think Pfizer and maybe some others have talked about using efficiency, improving trial efficiency.
Elizabeth Anderson: Good morning, Ari, and everyone, and thanks for the question. I don't want to beat a dead horse, but have you actually seen... I think one of the fears that came out this week, and I'd just be curious your thoughts on it, are that, you know, I think Pfizer and maybe some others have talked about using AI in terms of improving trial efficiency. And when I heard that, it seemed sort of in line with sort of what you and others have maybe previously said about sort of an increase, just generalized increase in that over time. Have you seen any difference in sort of behaviors from that large pharma segment in terms of what they're asking for you?
Elizabeth Anderson: Good morning, Ari, and everyone, and thanks for the question. I don't want to beat a dead horse, but have you actually seen... I think one of the fears that came out this week, and I'd just be curious your thoughts on it, are that, you know, I think Pfizer and maybe some others have talked about using AI in terms of improving trial efficiency. And when I heard that, it seemed sort of in line with sort of what you and others have maybe previously said about sort of an increase, just generalized increase in that over time. Have you seen any difference in sort of behaviors from that large pharma segment in terms of what they're asking for you?
Speaker #3: And when I heard that, it seemed sort of in line with sort of what you and others have maybe previously said about sort of an increase just generalized increase in that over time.
Speaker #3: Have you seen any difference in sort of 'have' behaviors from that large pharma segment in terms of what they're asking for you? Because I think the fear comes down to, are they going to need fewer FSP seats or something like that?
Elizabeth Anderson: Because I think the fear comes down to, like, are they gonna need fewer FSP seats or something like that, and that would be a drag on revenue? Or is this, you know, so, one, I guess, have you heard over that? And then, two, maybe on the financial side, anything you can point out in terms of the cadence of profitability, this year that would be sort of different than what we've seen in prior years? Thank you.
Elizabeth Anderson: Because I think the fear comes down to, like, are they gonna need fewer FSP seats or something like that, and that would be a drag on revenue? Or is this, you know, so, one, I guess, have you heard over that? And then, two, maybe on the financial side, anything you can point out in terms of the cadence of profitability, this year that would be sort of different than what we've seen in prior years? Thank you.
Speaker #3: And that would be a drag on revenue. Or is this—so one, I guess, have you heard over that? And then two, maybe on the financial side, anything you can point out in terms of the cadence of profitability this year that would be sort of different than what we've seen in prior years?
Speaker #3: Thank you.
Ari Bousbib: No. No, nothing different with respect to large pharma AI efforts and the idea that clinical trials can be made more efficient with AI. We've been talking about this for a long time. The very creation of IQVIA was predicated on this idea, and the innovation of new tools that allow AI identification, we climbed on that right away, and we've been working on it. And in fact, I would say with respect to client clinical trial efficiency improvements through AI agents, large pharma is doing this with us. With respect to large pharma work on AI earlier in the process, which you alluded to, that is on discovery, which, by the way, this is the bulk.
Speaker #4: No. No, with respect to large pharma AI efforts. And nothing different that clinical trials can be made more efficient with AI we've been talking about this.
Ari Bousbib: No. No, nothing different with respect to large pharma AI efforts and the idea that clinical trials can be made more efficient with AI. We've been talking about this for a long time. The very creation of IQVIA was predicated on this idea, and the innovation of new tools that allow AI identification, we climbed on that right away, and we've been working on it. And in fact, I would say with respect to client clinical trial efficiency improvements through AI agents, large pharma is doing this with us. With respect to large pharma work on AI earlier in the process, which you alluded to, that is on discovery, which, by the way, this is the bulk.
Speaker #4: For a long time. The very creation of IQVIA was predicated on this idea and the innovation of new tools that allow AI identification. We climbed on that right away.
Speaker #4: And we've been working on it. And in fact, I would say, with respect to client clinical trial efficiency improvements through AI agents, large pharma is doing this with us.
Speaker #4: With respect to large pharma work on process, which you alluded to, that is on discovery, which by the AI earlier in the hear large pharma way, this is the bulk.
Ari Bousbib: When you hear large pharma mention AI, 99% of what they mean is using AI simulation tools way, way upstream to try to sort through the molecules, to try, decide, and anticipate in advance which trial will be most successful. So that doesn't affect what our business is. You could conclude theoretically that as a result they will start less trials, but I don't believe that at all. In fact, if you talk to large pharma, they'll tell you: No, we'll do more trials, and they'll be more successful. They think, you know, there are whole theories that will negate that. Most of the innovations, if you go back, actually came fortuitously, not because they proved the initial hypothesis.
Ari Bousbib: When you hear large pharma mention AI, 99% of what they mean is using AI simulation tools way, way upstream to try to sort through the molecules, to try, decide, and anticipate in advance which trial will be most successful. So that doesn't affect what our business is. You could conclude theoretically that as a result they will start less trials, but I don't believe that at all. In fact, if you talk to large pharma, they'll tell you: No, we'll do more trials, and they'll be more successful. They think, you know, there are whole theories that will negate that. Most of the innovations, if you go back, actually came fortuitously, not because they proved the initial hypothesis.
Speaker #4: When you mention AI, 99% of what they mean is using tools, way, way upstream, to try to sort through the molecules to try to decide and anticipate in advance which trial will be most successful.
Speaker #4: So that doesn't our business is, you could conclude theoretically that as a result, they will start less trials. But I don't believe that at all.
Speaker #4: In fact, you no. We'll do more trials and they'll be more successful. if you talk to large pharma, they'll tell They think. Their whole theory is that we'll negate that.
Speaker #4: Most of the innovations, if you go back, actually came fortuitously—not because they proved the initial hypothesis. So it's a different discussion. But innovations in surgicals have often come per chance, so to speak, in the course of a trial that was trying to do, in pharma, something else.
Ari Bousbib: So, you know, it's a different discussion, but innovation in pharmaceuticals has often come, you know, per chance, so to speak, in the course of a trial that was trying to do something else. Either way, we do not see any change in demand dynamics. We only see opportunities for productivity improvements. We are on it. We help our clients with those productivity improvements. It helps us as well. We work in partnership with our clients, and our business is stable and growing, and nothing has changed, and we believe that we will continue to grow, gain market share as we've been doing, and execute on the strategy. There's nothing new here because an article was published. Nothing.
Ari Bousbib: So, you know, it's a different discussion, but innovation in pharmaceuticals has often come, you know, per chance, so to speak, in the course of a trial that was trying to do something else. Either way, we do not see any change in demand dynamics. We only see opportunities for productivity improvements. We are on it. We help our clients with those productivity improvements. It helps us as well. We work in partnership with our clients, and our business is stable and growing, and nothing has changed, and we believe that we will continue to grow, gain market share as we've been doing, and execute on the strategy. There's nothing new here because an article was published. Nothing.
Speaker #4: Either way, if we do not see any change in demand opportunities for productivity improvements, we are on it. We help our clients with those productivity improvements.
Speaker #4: It helps us as well. We work in partnership with our clients. And our dynamics, we only see the business is stable and growing and nothing has changed.
Speaker #4: And we believe that we will continue to grow, gain market share as we've been doing, and execute on the strategy. There's because an article was published.
Speaker #4: Nothing.
Speaker #3: Super helpful in terms of the preclinical context too. Thank
Elizabeth Anderson: Super helpful in terms of the preclinical context, too. Thank you.
Elizabeth Anderson: Super helpful in terms of the preclinical context, too. Thank you.
Speaker #3: you. Your next
Operator: Your next question comes from David Windley with Jefferies.
Operator: Your next question comes from David Windley with Jefferies.
Speaker #2: with Jeffries.
Speaker #5: Super. Hi. Good morning. Thanks for squeezing me in here. Ari, I wanted to ask a question about
David Windley: ... Super. Hi, good morning. Thanks for squeezing me in here. Ari, I wanted to ask a question about margin. Your margin year-over-year was down a little bit in Q4, but it looks like to us, your pass-through growth was quite high, so that more than accounted for that margin pressure, and maybe you did actually gain some productivity apart from that. So my question is-
David Windley: Super. Hi, good morning. Thanks for squeezing me in here. Ari, I wanted to ask a question about margin. Your margin year-over-year was down a little bit in Q4, but it looks like to us, your pass-through growth was quite high, so that more than accounted for that margin pressure, and maybe you did actually gain some productivity apart from that. So my question is-
Speaker #5: Your margin year over year was down a little bit in the fourth quarter, but it looks like to us your pass-through growth was quite high.
Speaker #5: So that more than accounted for that margin pressure and maybe you did actually gain some that. productivity apart from question is, if my question is twofold.
Ari Bousbib: Yeah. Well-
Ari Bousbib: Yeah. Well-
David Windley: My question is twofold. Sorry. So, one is this more simple version of what is the trajectory of pass-throughs, and how should we think about how that's affecting margin? The bigger question, though, is dovetailing on your productivity points and thinking about how those productivity gains are shared with the client. Historically, my best understanding was kind of the expectation of some sharing. I guess, what I'm interested in is, you've also talked about having been through a period of pretty significant reprocurement. Has the price taking, the price pressure by pharma in those reprocurements been their way of extracting that productivity value, and then you go get it? Or is it more of a, you know, program by program, contract by contract discussion with them, where the strategy on the trial drives shared efficiency?
David Windley: My question is twofold. Sorry. So, one is this more simple version of what is the trajectory of pass-throughs, and how should we think about how that's affecting margin? The bigger question, though, is dovetailing on your productivity points and thinking about how those productivity gains are shared with the client. Historically, my best understanding was kind of the expectation of some sharing. I guess, what I'm interested in is, you've also talked about having been through a period of pretty significant reprocurement. Has the price taking, the price pressure by pharma in those reprocurements been their way of extracting that productivity value, and then you go get it? Or is it more of a, you know, program by program, contract by contract discussion with them, where the strategy on the trial drives shared efficiency?
Speaker #5: Sorry, question comes from David Wendley. So, one is the more simple version of: What is the trajectory of pass-throughs and how should we think about how that's affecting margin?
Speaker #5: The bigger question, though, is dovetailing on your productivity points and thinking gains are shared with the productivity client. Historically, my best understanding was kind of the expectation of some sharing.
Speaker #5: I guess what I'm interested in is, you've also talked about having been through a period of pretty significant reprocurement. Has the price-taking, the price pressure by pharma in those reprocurements, been their way of extracting that?
Speaker #5: Or is it more of a program-by-program contract-by-contract discussion with them where the strategy on the trial drives shared monetize the efficiency that you're chasing.
David Windley: I'm just trying to understand how you monetize the-
David Windley: I'm just trying to understand how you monetize the-
Ari Bousbib: Yeah.
David Windley: Efficiency that you're chasing. Thank you.
Ari Bousbib: Yeah.
David Windley: Efficiency that you're chasing. Thank you.
Speaker #5: Thank you.
Speaker #4: Yeah. I think, again, the procurement you refer to—I'm just going to answer the second part—the procurement is determined, rates and so on and so forth.
Ari Bousbib: Yeah, I think, you know, again, you know, the procurement you refer to, I'm just gonna answer the second part of your question is: the procurement is it, you know, is determine rates and so on, so forth. So you could, you would conclude normally that that's the, you know, it's the, the former, not the latter.
Ari Bousbib: Yeah, I think, you know, again, you know, the procurement you refer to, I'm just gonna answer the second part of your question is: the procurement is it, you know, is determine rates and so on, so forth. So you could, you would conclude normally that that's the, you know, it's the, the former, not the latter.
Speaker #4: question is So you would conclude normally
Speaker #4: that that's the it's the former, not the latter. efficiency?
Speaker #5: Okay. I'm just trying to understand how you
David Windley: Okay.
David Windley: Okay.
Ari Bousbib: Having said that, obviously, in a given trial, there still may be, you know, a little bit of negotiation here and there. But look, on long term, you have-- you share productivity gains with the clients. That's, you know, no question, no, no secret. But you're asking about the short term? No, it is, in that sense. What was the first question?
Ari Bousbib: Having said that, obviously, in a given trial, there still may be, you know, a little bit of negotiation here and there. But look, on long term, you have-- you share productivity gains with the clients. That's, you know, no question, no, no secret. But you're asking about the short term? No, it is, in that sense. What was the first question?
Speaker #4: given trial, there still may be a little bit of negotiation here and there. term, you share But look, on a long productivity gains with the clients.
Speaker #4: That's no question, no secret. But you're asking about the short term—no, that's set. What was the first
Speaker #4: question? The first was trajectory of Yeah.
David Windley: The first was-
David Windley: The first was-
Ari Bousbib: Oh, yeah.
Ari Bousbib: Oh, yeah.
David Windley: Trajectory of pass-throughs and how we should think about that?
David Windley: Trajectory of pass-throughs and how we should think about that?
Speaker #5: Pass-throughs and how we should think about that.
Speaker #4: Yeah, yeah, yeah. You answered your question yourself, I think—the pass-throughs.
Ari Bousbib: Yeah.
Ari Bousbib: Yeah.
David Windley: Yeah.
David Windley: Yeah.
Ari Bousbib: Yeah, yeah, yeah. You answered your question yourself. I think the pass-through is-
Ari Bousbib: Yeah, yeah, yeah. You answered your question yourself. I think the pass-through is-
Ron Bruehlman: Yeah, pass-through, the biggest driver of the gross margin decline you saw was very strong pass-through growth in the quarter, okay? And there, there's some mix, product mix impact that gets into that as well. Now, as we go into next year, you saw we're guiding towards flat overall EBITDA margins, and the pass-through growth will moderate going into next year, next year, into 2026.
David Windley: Yeah, pass-through, the biggest driver of the gross margin decline you saw was very strong pass-through growth in the quarter, okay? And there, there's some mix, product mix impact that gets into that as well. Now, as we go into next year, you saw we're guiding towards flat overall EBITDA margins, and the pass-through growth will moderate going into next year, next year, into 2026.
Speaker #4: The biggest Yeah. driver that drives margin decline you saw was very quarter day. And there's some mixed product mix impact that gets into that as well.
Speaker #4: Guiding towards flat now, as we go overall, EBITDA margins and the pass-through growth will moderate going into next year, into 2026. Right. Right.
Ari Bousbib: Right. Right. And it's basically, yeah, to answer your question, you, you said, you talked about productivity. Yes. I mean, we, we offset, some of these-
Ari Bousbib: Right. Right. And it's basically, yeah, to answer your question, you, you said, you talked about productivity. Yes. I mean, we, we offset, some of these-
Speaker #4: And it's basically, yeah, to answer for your question, you said you talked about productivity. Yes. I mean, we offset some of these with the productivity gains that when you then there's just that much you can have growth with a lot of pass-throughs, do.
Ron Bruehlman: Yeah
David Windley: Yeah
Ari Bousbib: with the productivity gains that, you know, when you have growth with a lot of pass-throughs, then, you know, there's just that much you can do.
Ari Bousbib: with the productivity gains that, you know, when you have growth with a lot of pass-throughs, then, you know, there's just that much you can do.
Speaker #4: Yeah, you'll see that the SG&A margin continues to improve. And a lot of that is productivity-related. Yeah.
Ron Bruehlman: Yeah, you'll see that the SG&A margin continues to improve, and a lot of that is productivity related.
David Windley: Yeah, you'll see that the SG&A margin continues to improve, and a lot of that is productivity related.
Ari Bousbib: Yeah.
Ari Bousbib: Yeah.
Speaker #5: Great. Thank you. Again, thanks for getting me in. Good luck with 2026. And good luck
David Windley: Great. Thank you. Again, thanks for getting me in. Good luck with 2026.
David Windley: Great. Thank you. Again, thanks for getting me in. Good luck with 2026.
Ari Bousbib: All right.
Ari Bousbib: All right.
Speaker #4: All right. With retirement, Ron, you. Okay. Thank you. That—
David Windley: Good luck with retirement, Ron.
David Windley: Good luck with retirement, Ron.
Speaker #4: Yeah. Thank
Ron Bruehlman: Yeah, thank you.
Ron Bruehlman: Yeah, thank you.
Speaker #6: Thank you.
Ari Bousbib: Thank you.
Ari Bousbib: Thank you.
Kerri Joseph: Okay, thank you. That was our last question, all. That was our last question, operator.
Kerri Joseph: Okay, thank you. That was our last question, all. That was our last question, operator.
Speaker #4: That was our last question. Thank you for having me join us, operator, today.
Operator: Okay, and now-
Operator: Okay, and now-
Kerri Joseph: Thank you for taking the time to join us today. Thank you, operator. Thank you for taking the time today to join us, and we look forward to speaking with you again on our Q1 2026 Earnings Call. The team and I will be available the rest of the day to take any follow-up questions you might have.
Kerri Joseph: Thank you for taking the time to join us today. Thank you, operator. Thank you for taking the time today to join us, and we look forward to speaking with you again on our Q1 2026 Earnings Call. The team and I will be available the rest of the day to take any follow-up questions you might have.
Speaker #6: Thank you, operator. Thank you for taking the time today to join us. We look forward to speaking with you again on our first quarter 2026 earnings day to take any follow-up questions you might have.
Speaker #6: Thank you, operator. Thank you for taking the time today to join us. And we look forward to speaking with you again on our first quarter of 2026 earnings the day to take any follow-up questions you might
Speaker #6: have. This concludes today's conference
Operator: This concludes today's conference call. You may now disconnect.
Operator: This concludes today's conference call. You may now disconnect.
