Q2 2026 IQVIA Holdings Inc Earnings Call

July 28, 2026

Speaker #1: Good morning, everyone. Thank you for joining our second quarter 2026 earnings call. With me today are Ari Guzmi, Chairman, and Chief Executive Officer. Mike Vidal, Executive Vice President and Chief Financial Officer.

Kerri Joseph: Good morning, everyone. Thank you for joining our Q2 2026 earnings call. With me today are Ari Bousbib, Chairman and Chief Executive Officer. Mike Fedock, Executive Vice President and Chief Financial Officer. Eric Sherbet, Executive Vice President and General Counsel. Clarissa Willett, Senior Vice President, Financial Planning and Analysis. Katie Ward, Vice President, Investor Relations. Today we will be referencing a presentation that will be visible during this call for those of you on our webcast. This presentation will also be available following this call in the Events and Presentation section of our IQVIA Investor Relations website at ir.iqvia.com. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements.

Speaker #1: Eric Scherber, Executive Vice President and General Counsel. Clarissa Willett, Senior Vice President and Financial Planning and Analysis. And Katie Ward, Vice President and Investor Relations.

Speaker #1: Today we'll be referencing a presentation that will be visible during this call for those of you on our 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.

Speaker #1: Before we begin, I'd like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements. Actual results could differ materially from those stated or implied by forward-looking statements, due to risk and uncertainty associated with the company's business.

Kerri Joseph: Actual results could differ materially from those stated or implied by forward-looking statements due to 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. As previously disclosed, we implemented a new segment reporting structure effective 1 January 2026. In conjunction with this change, prior period segment amounts have been recast to conform to this reporting structure. I would now like to turn the call over to our Chairman and CEO, Ari Bousbib.

Speaker #1: 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.

Speaker #1: A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the press release and conference call presentation. As previously discussed, we implemented a new segment reporting structure effective January 1, 2026, in conjunction with this change prior period segment amounts have been recast to conform to this reporting structure.

Speaker #4: The operator, can you hear us now?

Speaker #1: I would now like to turn the call over to our Chairman and CEO, Ari Guzmi.

Speaker #6: Yes, I can hear you.

Speaker #4: Okay. Great. Not sure where we cut out on that, but Rod was talking about our capital allocation priorities. I'll assume that we got through that question that you guys heard most of the answer on that.

Speaker #2: Thank you, Kerry, and good morning, everyone. Thank you for joining us today to discuss our second quarter results. IQVIA delivered an outstanding second quarter with revenue adjusted EBITDA and adjusted diluted earnings per share all exceeding the high end of our guidance.

Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thank you for joining us today to discuss our Q2 results. IQVIA delivered an outstanding Q2 with revenue, adjusted EBITDA, and adjusted diluted earnings per share, all exceeding the high end of our guidance. Importantly, the momentum we saw in the Q1 continued with improving market conditions and strong operational execution. Organic growth for the company as a whole accelerated to 6% year-over-year, which is three times the rate we delivered a year ago. Adjusted EBITDA margin began improving earlier than we had anticipated due to better operational performance. Let us look at the results for the quarter. Total revenue for the Q2 exceeded the high end of our guidance range, representing year-over-year growth of 8.7% on a reported basis, with FX much less of a tailwind than we had anticipated. At constant currency, growth was very strong at 8.5%.

Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thank you for joining us today to discuss our Q2 results. IQVIA delivered an outstanding Q2 with revenue, Adjusted EBITDA, and adjusted diluted earnings per share, all exceeding the high end of our guidance. Importantly, the momentum we saw in the Q1 continued with improving market conditions and strong operational execution. Organic growth for the company as a whole accelerated to 6% year-over-year, which is three times the rate we delivered a year ago. Adjusted EBITDA margin began improving earlier than we had anticipated due to better operational performance. Let us look at the results for the quarter. Total revenue for the Q2 exceeded the high end of our guidance range, representing year-over-year growth of 8.7% on a reported basis, with FX much less of a tailwind than we had anticipated. At constant currency, growth was very strong at 8.5%.

Speaker #4: Michael, I'll pick up with your question on the data center upside. The outperformance in Q2 and really the growth that we're seeing in CoreSight is broad-based.

Speaker #2: Importantly, the momentum we saw in the first quarter continued with improving market conditions and strong operational execution. Organic growth for the company as a whole accelerated to 6% year over year, which is 3 times the rate we delivered a year ago.

Speaker #4: In Q2, we saw another record quarter, and that was driven by strong sales in both traditional customers and retail customers. It's the hybrid multi-cloud installation.

Speaker #4: And we were a AI use cases also, we saw very strong trends in mark-to-market and inflection interconnection activity, a big inflection up interconnection activity.

Speaker #4: So it's really everything in that business is seeing positive tailwinds. They're driving that outperformance.

Speaker #2: Adjusted EBITDA margin began improving earlier than we had anticipated due to better operational performance. Let's look at the results for the quarter. Total revenue for the second quarter exceeded the high end of our guidance range representing year-over-year growth of 8.7% on a reported basis, with FX much less of a tailwind than we had anticipated.

Speaker #2: Great. Wonderful. Thanks, Steve. Thanks, Rod.

Speaker #5: Thanks, Michael.

Speaker #4: Yep. Sorry for the technical glitch there, guys.

Speaker #6: Thank you. One moment for our next question. Our next question comes from the line of Michael Rollins, from Citi. Your line is now open.

Speaker #7: Thanks, and good morning. So first, Steve and Rod, I was curious if you could talk a little bit more about what you're seeing from the carriers in terms of their interest to densify.

Speaker #2: At constant currency, growth was very strong at 8.5%. Second quarter adjusted EBITDA was above the high end of our guidance as well, representing year-over-year growth of 9.2%.

Ari Bousbib: Q2 adjusted EBITDA was above the high end of our guidance as well, representing year-over-year growth of 9.2%. Q2 adjusted diluted EPS of $3.15 also exceeded the high end of our guidance range and increased 12.1% year-over-year. The beat was driven entirely by strong operational performance. Let us discuss the results by segment. On the clinical side, R&DS delivered great results with revenue growth of nearly 9% and organically 7%. We had $3,150 million in net new bookings, representing 19% growth year-over-year and 27% growth sequentially, with notable strength in full service bookings translating into a quarterly book-to-bill ratio of 1.22. If I may add, this 1.22 was in a quarter where our revenue was up almost 9% year-over-year, stronger than anticipated. I want to point out that the improvement in bookings is not just from this quarter alone.

Ari Bousbib: Q2 Adjusted EBITDA was above the high end of our guidance as well, representing year-over-year growth of 9.2%. Q2 adjusted diluted EPS of $3.15 also exceeded the high end of our guidance range and increased 12.1% year-over-year. The beat was driven entirely by strong operational performance. Let us discuss the results by segment. On the clinical side, R&DS delivered great results with revenue growth of nearly 9% and organically 7%. We had $3,150 million in net new bookings, representing 19% growth year-over-year and 27% growth sequentially, with notable strength in full service bookings translating into a quarterly book-to-bill ratio of 1.22. If I may add, this 1.22 was in a quarter where our revenue was up almost 9% year-over-year, stronger than anticipated. I want to point out that the improvement in bookings is not just from this quarter alone.

Speaker #7: Along this 5G cycle in the US, is that something where you're already in conversations for densification later this year, next year? And is that something where the carriers may want to enter into comprehensive deals for co-location—maybe different from the ways where they more predominantly did that for amendment activity?

Speaker #2: Second quarter adjusted diluted EPS of $3.15 also exceeded the high end of our guidance range, and increased 12.1% year over year. The beat was driven entirely by strong operational performance.

Speaker #7: And if I could just have two quick follow-ups on the data center side. Just curious, you mentioned an acceleration of interconnection. I'm curious where that's coming from and what you're seeing as maybe the catalyst for that.

Speaker #2: Let's discuss the results by segment. On the clinical side, R&D has delivered great results with revenue growth of nearly 9% and organically 7%. We had $3,150,000,000.00 in net new bookings, representing 19% growth year over year, and $27% growth sequential, with notable strength in full-service bookings translating into a quarterly book-to-been ratio of 1.22.

Speaker #7: And then just related to the upcoming convertible for the data center business with your financial partner, curious if that's something where if you could walk us through the mechanics and how you're thinking about your ownership position in these assets over time.

Speaker #7: Is that something you actually may want to increase your ownership over time given what you've discussed in terms of the growth of the business?

Speaker #7: Thanks.

Speaker #2: If I may add, this 1.22 was in a quarter where our revenue was up almost 9% year over year, stronger than anticipated. I want to point out that the improvement in bookings is not just from this quarter alone.

Speaker #4: Hey, thanks, Michael. I'll take the first two and then Rod, you can talk about the last one. In terms of the carrier trends, this is something we've been talking about for over a year now.

Speaker #4: It's something that we've been seeing in our conversations with carriers and it's translated into our application pipeline. So we're already seeing the benefit of more co-locations in our new business pipeline with the carriers.

Speaker #2: As you know, I always remind you that we are a long-cycle business, and it's more meaningful to look at trends over longer time periods.

Ari Bousbib: As you know, I always remind you that we are a long cycle business and it's more meaningful to look at trends over longer time periods. If you look at our last 12-month net new bookings, they have increased in each of the past four quarters. With $11.3 billion of last 12-month net new bookings as of 30 June, they are up 13% year-over-year. What these metrics point to is a consistently improving demand environment as well as improving win rates for our R&DS business. On the commercial side, organic revenue growth accelerated year-over-year to 5%, which is more than a full point higher organic growth than a year ago. These clients launched newly approved products and expanded the breadth of services they utilize from IQVIA. Notably, analytics and consulting grew organically high single digits year-over-year, the highest growth rate since 2022.

Ari Bousbib: As you know, I always remind you that we are a long cycle business and it's more meaningful to look at trends over longer time periods. If you look at our last 12-month net new bookings, they have increased in each of the past four quarters. With $11.3 billion of last 12-month net new bookings as of 30 June, they are up 13% year-over-year. What these metrics point to is a consistently improving demand environment as well as improving win rates for our R&DS business. On the commercial side, organic revenue growth accelerated year-over-year to 5%, which is more than a full point higher organic growth than a year ago. These clients launched newly approved products and expanded the breadth of services they utilize from IQVIA. Notably, analytics and consulting grew organically high-single-digits year-over-year, the highest growth rate since 2022.

Speaker #4: And it's exactly what we expected to see.

Speaker #2: And if you look at our last 12-month net new bookings, they have increased in each of the past 4 quarters. With 11.3 billion dollars of last 12-month net new bookings as of June 30, they are up 13% year over year.

Speaker #2: What this metrics point to is a consistently improving demand environment, as well as improving win rates for our R&DS business. On the commercial side, organic revenue growth accelerated year over year to 5%, which is more than a full point higher organic growth than a year ago.

Speaker #2: And this adds clients launched newly approved products and expanded the breadth of services they utilize from IQVIA. Notably, analytics and consulting grew organically high single digits year over year, the highest growth rate since 2022.

Speaker #2: Commercial engagement services and patient solutions both continue to grow double digits year over year, and our AI offerings gained further traction with increased customer adoption, with 3 consecutive quarters of strong sustained and improving results and pipelines that remain at record levels that is clear momentum in commercial solutions.

Ari Bousbib: Commercial engagement services and patient solutions both continued to grow double digits year-over-year, and our AI offerings gained further traction with increased customer adoption. With three consecutive quarters of strong, sustained, and improving results and pipelines that remain at record levels, there is clear momentum in Commercial Solutions. Let me now give you a little more color on what we are seeing in the market environment, let's start with forward-looking demand metrics in the clinical environment. RFP flow growth remains strong, with double-digit growth both year-over-year and sequentially, with improvements across all client segments. Decision timelines continue to shorten, EBP funding continues to be very strong, with Q2 at $35 billion according to BioWorld, which is more than double the Q2 2025 number. I want to elaborate on this EBP segment.

Speaker #1: Let me now give you a little more color on what we are seeing in the market environment, and let's start with forward-looking demand metrics in the clinical environment.

Speaker #1: RFP flow growth remains strong, with double-digit growth both year over year and sequential, with improvement across all client segments. Decision timelines continued to shorten, and EBIT funding continues to be very strong with the second quarter at 35 billion dollars according to BioWorld, which is more than double the Q2 2025 number.

Speaker #1: I want to elaborate on this EBIT segment. In response to investor feedback and in reviewing publicly available information, we are taking the opportunity to update our own classification of customer segments to help you better benchmark IQVIA to our CRO peers.

Ari Bousbib: In response to investor feedback and in reviewing publicly available information, we are taking the opportunity to update our own classification of customer segments to help you better benchmark IQVIA to our CRO peers. From now on, we are going to define large pharma by the top 20 companies by RX sales. Mid-size companies will be the next 60 pharma companies by RX sales, EBPs everyone else. I want to give you the breakdown of R&DS revenue by customer segments as I just defined them. Large pharma represents approximately 50% of our R&DS revenue. Mid-size approximately 15% of our R&DS revenue, EBP represents 35% of our R&DS revenue. I guess you can see that based on publicly available information, it is apparent that we have more revenue in the EBP segment than any of our CRO peers.

Speaker #1: From now on, we are going to define large pharma by the top 20 companies by RX sales, mid-size companies will be the next 60 pharma companies by RX sales, and EBITs everyone else.

Speaker #1: I'm going to give you the breakdown of R&DS revenue by customer segments as I just defined them. Large pharma represents approximately 50% of our R&DS revenue.

Speaker #1: Mid-size approximately 15%, 15, of our R&DS revenue. And EBIT represents 35% of our R&DS revenue. I guess you can see that based on publicly available information, it is apparent that we have more revenue in the EBIT segment than any of our CRO peers.

Speaker #1: And this is extremely important because emerging biopharma continues to be where much of the industry's innovation is coming from. A decade ago, EBITs represented about 45% of all clinical trial starts globally.

Ari Bousbib: This is extremely important because emerging biopharma continues to be where much of the industry's innovation is coming from. A decade ago, EBPs represented about 45% of all clinical trial starts globally. Today, EBPs represent about 70% of all clinical trial starts globally. EBP R&D spend is also rate of large pharma R&D spend. Of course, EBP trials are full service outsourcing. All of this creates a meaningful opportunity for IQVIA given we are the largest EBP provider. At the same time, large pharma continues to be a significant segment for us. In fact, we are benefiting from the strategic outsourcing partnership renewals by large pharma over the past two years, which we've been discussing several times in the past. We, as you know, have significantly expanded the number and the scope of our preferred partnerships.

Speaker #1: Today, EBITs represent about 70% of all clinical trial starts globally. EBIT R&D spend is also. Rate of large pharma R&D spend. And of course, EBIT trials are full-service outsourcing.

Speaker #1: All of this creates a meaningful opportunity for IQVIA given we are the largest EBIT provider. At the same time, large pharma continues to be a significant segment for us.

Speaker #1: In fact, we are benefiting from the strategic outsourcing partnership renewals by large pharma over the past 2 years, which we've been discussing several times in the past.

Speaker #1: And, of course, EBP trials are full-service outsourcing. All of this creates a meaningful opportunity for IQVIA, given we are the largest EBP provider.

Speaker #1: And we, as you know, have significantly expanded the number and the scope of our preferred partnerships. As a result, we have seen our win rate with large pharma improved materially leading to an expansion of our share of wallet with those partnerships.

Ari Bousbib: As a result, we have seen our win rate with large pharma improve materially, leading to an expansion of our share of wallet with those partnerships. In several cases, replacing large CRO incumbent providers. Shifting now to Commercial Solutions. The market environment continues to improve, supported by a nearly 45% increase in new drug launches in H1 2026 versus H1 2025. As you know, this is important because launch activity is a significant driver of demand across our commercial portfolio, with roughly half of launch-related spending typically occurring in the first 2 years post-approval. In addition, as we shared before, there is an increasing trend from our large pharma customers seeking to outsource the full commercialization of certain therapies in select geographies.

Speaker #1: At the same time, large pharma continues to be a significant segment for us. In fact, we are benefiting from the strategic outsourcing partnership renewals by large pharma over the past 2 years, which we've been discussing several times in the past.

Speaker #1: And in several cases, replacing large CRO incumbent providers. Shifting now to commercial solutions. The market environment continues to improve, supported by a nearly 45% increase in new drug launches in the first half of 2026 versus the first half of 2025.

Speaker #1: And we, as you know, have significantly expanded the number and the scope of our preferred partnerships. As a result, we have seen our win rate with large pharma improve materially leading to an expansion of our share of wallets with those partnerships.

Speaker #1: As you know, this is important because launch activity is a significant driver of demand across our commercial portfolio, with roughly half of launch-related spending typically occurring in the first 2 years post-approval.

Speaker #1: And in several cases, replacing large CRO incumbent providers. Shifting now to commercial solutions, the market environment continues to improve, supported by a nearly 45% increase in new drug launches in the first half of 2026 versus the first half of 2025.

Speaker #1: Additionally, as we shared before, there is an increasing trend from our large pharma customers seeking to outsource the full commercialization of certain therapies in select geographies and given our global footprint and spectrum of capabilities across information, insights, and engagement, we have been winning a fair share of these opportunities.

Ari Bousbib: Given our global footprint and spectrum of capabilities across information, insights, and engagement, we have been winning a fair share of these opportunities. I want to take a moment to again remind you how to think about our Commercial Solutions business, especially in the era of AI. We help our clients in 3 main areas. 1, understand their market. 2, plan their commercial strategies. 3, engage with their own customers. 1, we help our clients understand the landscape, primarily through our information offering. Our information business represents about 30% of our Commercial Solutions segment, and revenue typically grows at low single digits. 2, we help our customers plan their commercial strategies, primarily through insights from our analytics and consulting business. This business represents about 20% of our Commercial Solutions business, and it grows mid to high single digits.

Ari Bousbib: Given our global footprint and spectrum of capabilities across information, insights, and engagement, we have been winning a fair share of these opportunities. I want to take a moment to again remind you how to think about our Commercial Solutions business, especially in the era of AI. We help our clients in three main areas. One, understand their market. Two, plan their commercial strategies. Three, engage with their own customers. One, we help our clients understand the landscape, primarily through our information offering. Our information business represents about 30% of our Commercial Solutions segment, and revenue typically grows at low-single-digits. Two, we help our customers plan their commercial strategies, primarily through insights from our analytics and consulting business. This business represents about 20% of our Commercial Solutions business, and it grows mid to high-single-digits.

Speaker #1: I want to take a moment to again remind you how to think about our commercial solutions business, especially in the era of AI. We help our clients in 3 main areas.

Speaker #1: One, understand their market. Two, plan their commercial strategies and three, engage with their own customers. So one, we help our clients understand the landscape, primarily through our information offering.

Speaker #1: And given our global footprint and spectrum of capabilities across information, insights, and engagement, we have been winning a fair share of these opportunities. I want to take a moment to again remind you how to think about our commercial solutions business, especially in the era of AI.

Speaker #1: Our information business represents about 30% of our commercial solutions segment and revenue typically grows at low single digits. Two, we help our customers plan their commercial strategies, primarily through insights from our analytics and consulting business.

Speaker #1: We help our clients in three main areas: one, understand their market; two, plan their commercial strategies; and three, engage with their own customers. So one, we help our clients understand the landscape, primarily through our information offering.

Speaker #1: This business represents about 20% of our commercial solutions business, and it grows mid to high single digits. And three, we help our customers engage with their own customers, that is, healthcare providers, distribution channels, patients, and payers.

Speaker #1: Our Information business represents about 30% of our Commercial Solutions segment, and revenue typically grows at low single digits. Two, we help our customers plan their commercial strategies, primarily through insights from our Analytics and Consulting business.

Ari Bousbib: 3, we help our customers engage with their own customers, that is healthcare providers, distribution channels, patients, and payers. We do this through our patient solutions, technology, and commercial engagement services. That in aggregate is about 50% of our Commercial Solutions business and grows at high single digit to low double digits. Now, we've continued to see increased demand for these services across the board, as is evident in our own commercial demand indicators. The pipeline continues to grow strong double digits year to date. Decision timelines continue to reduce double digits. Of course, we are also winning more with win rates up double digits. When we think about future trends across both of our segments, clinical and commercial, we see the outsourcing market continuing to grow in 2027 and the years ahead.

Ari Bousbib: Three, we help our customers engage with their own customers, that is healthcare providers, distribution channels, patients, and payers. We do this through our patient solutions, technology, and commercial engagement services. That in aggregate is about 50% of our Commercial Solutions business and grows at high-single-digit to low-double-digits. Now, we've continued to see increased demand for these services across the board, as is evident in our own commercial demand indicators. The pipeline continues to grow strong double digits year to date. Decision timelines continue to reduce double digits. Of course, we are also winning more with win rates up double digits. When we think about future trends across both of our segments, clinical and commercial, we see the outsourcing market continuing to grow in 2027 and the years ahead.

Speaker #1: And we do this through our patient solutions, technology, and commercial engagement services. That, in aggregate, is about 50% of our commercial solutions business and grows at high single digit to low double digits.

Speaker #1: This business represents about 20% of our Commercial Solutions segment, and it grows at a mid- to high-single-digit rate. Third, we help our customers engage with their own customers, that is, healthcare providers, distribution channels, patients, and payers.

Speaker #1: Now, with continuing to see increased demand for these services across the board, as is evident in our own commercial demand indicators. The pipeline continues to grow strong double digits year to date.

Speaker #1: Decision timelines continue to reduce double digits. And of course, we are also winning more with win rates up double digits. When we think about future trends across both of our segments, clinical and commercial, we see the outsourcing market continuing to grow in 2027 and the years ahead.

Speaker #1: And in fact, we think AI will continue to contribute to this market expansion, and we'll continue to fuel a strong tailwind for IQVIA. On the clinical side, clients are already telling us that AI in discovery will only increase demand for CRO services, as more molecules with a higher predictable success are entering development.

Ari Bousbib: In fact, we think AI will continue to contribute to this market expansion and will continue to fuel a strong tailwind for IQVIA. On the clinical side, clients are already telling us that AI in discovery will only increase demand for CRO services as more molecules with a higher predictable success are entering development. Additionally, IQVIA's leading AI solutions are further differentiating our clinical offerings and deepening our partnerships across all customer segments, large, mid, and EBP. Our AI-enabled capabilities, which as you know, we've been working on, training on, and refining for at least 2 years, are already improving study design, accelerating timelines, and reducing operational risk across complex global trials. Let me give you an example of how this is playing out with large pharma. One of our longstanding customers recently expanded its partnership with IQVIA to include our full-service clinical capabilities.

Speaker #1: Decision timelines continue to reduce double digits. And of course, we are also winning more with win rates at double digits. When we think about future trends across both of our segments, clinical and commercial, we see the outsourcing market continuing to grow in 2027 and the years ahead.

Speaker #1: Additionally, IQVIA's leading AI solutions are further differentiating our clinical offerings and deepening our partnerships across all customer segments large, mid, and EBP. Our AI-enabled capabilities, which, as you know, we've been working on training on and refining for IQVIA's 2 years, are already improving study design, accelerating timelines, and reducing operational risk across complex global trials.

Speaker #1: And in fact, we think AI will continue to contribute to this market expansion, and will continue to fuel a strong tailwind for IQVIA. On the clinical side, clients are already telling us that AI in discovery will only increase demand for CRO services, as more molecules with a higher predicted success are entering development.

Speaker #1: Additionally, IQVIA is leading AI solutions are further differentiating our clinical offerings and deepening our partnerships across all customer segments large, mid, and EBP. Our AI-enabled capabilities, which, as you know, we've been working on, training on, and refining for at least 2 years, are already improving study design, accelerating timelines, and reducing operational risk across complex global trials.

Speaker #1: Let me give you an example of how this is playing out with large pharma. One of our long-standing customers recently expanded its partnership with IQVIA to include our full-service clinical capabilities.

Speaker #1: That expansion led to an end-to-end award for large complex phase 3 stroke outcomes study. This client specifically told us that our AI-enabled capabilities in site startup and enrollment, along with our therapeutic expertise and global execution model, clinched the deal because it will help manage risk and run these studies with greater predictability.

Ari Bousbib: That expansion led to an end-to-end award for large, complex phase III stroke outcomes study. This client specifically told us that our AI-enabled capabilities in site start-up and enrollment, along with our therapeutic expertise and global execution model, clinched the deal because it will help manage risk and run these studies with greater predictability. In another example, an EVP awarded IQVIA a complex global phase III oncology study across multiple treatment arms. We won here because AI-enabled patient recruitment will help keep a complex study moving at higher speed with much better predictability. Another EVP selected IQVIA for a series of global autoimmune programs that bring together clinical, laboratory, and technology-enabled patient and owned solutions. Here, our AI-enabled patient-reported outcome capabilities made the difference because they help support patient retention, protocol compliance and higher quality outcomes.

Speaker #1: In another example, an EBP awarded IQVIA a complex global phase 3 oncology study across multiple treatment arms. And we want here because AI-enabled patient recruitment will help keep a complex study moving at higher speed with much better predictability.

Speaker #1: Another EBP selected IQVIA for a series of global autoimmune programs that bring together clinical, laboratory, and technology-enabled patient and/or solutions. Here, our AI-enabled patient-reported outcome capabilities made the difference because they help support patient retention, protocol compliance, and higher quality outcomes.

Speaker #1: In another example, an EBP awarded IQVIA a complex, global Phase 3 oncology study across multiple treatment arms. We won here because AI-enabled patient recruitment will help keep a complex study moving at higher speed with much better predictability.

Speaker #1: In commercial, we're seeing AI begin to contribute to more directly to top-line growth as clients are moving beyond pilots and data foundation work, and they're starting to deploy IQVIA AI agents more broadly.

Speaker #1: Another EBP selected IQVIA for a series of global autoimmune programs that bring together clinical, laboratory, and technology-enabled patient endpoint solutions. Here, our AI-enabled patient-reported outcome capabilities made the difference because they help support patient retention, protocol compliance, and higher quality outcomes.

Ari Bousbib: In Commercial, we are seeing AI begin to contribute more directly to top-line growth as clients are moving beyond pilots and data foundation work. They're starting to deploy IQVIA AI agents more broadly. Let me give you an example of what that looks like in practice. A mid-size pharma client is expanding its use of IQVIA AI across an immunology franchise in 95 countries. We are combining our global syndicated pharmaceutical market data with our launch planning conversational AI agent to give the client an integrated view of market dynamics and help teams get to actionable insights in near real time. Again, the benefit here is speed, precision, and accuracy. Another example in Commercial. We are working with a top five large pharma to deliver a complete AI-enabled enterprise analytic solution that seamlessly brings together data, technology, and advisory support.

Speaker #1: Let me give you an example of what that looks like in practice. A mid-sized pharma client is expanding its use of IQVIA AI across an immunology franchise in 95 countries.

Speaker #1: We are combining our global syndicated pharmaceutical market data with our launch planning conversational AI agent to give the client an integrated view of market dynamics and help teams get to actionable insights in near real time.

Speaker #1: In commercial, we are seeing AI begin to contribute more directly to top-line growth as clients are moving beyond pilots and data foundation work, and they're starting to deploy IQVIA AI agents more broadly.

Speaker #1: Again, the benefit here is speed, precision, and accuracy. Another example, in commercial, we are working with a top 5 large pharma to deliver a complete AI-enabled enterprise analytics solution that seamlessly brings together data, technology, and advisory support.

Speaker #1: Let me give you an example of what that looks like in practice. A mid-sized pharma client is expanding its use of IQVIA AI across an immunology franchise in 95 countries.

Speaker #1: This will deliver customized workflows that accelerate decision-making and improve quality and accuracy. Beyond this broad and deep relationships with our customers, governments and regulatory authorities around the world look to IQVIA for trusted healthcare expertise and insights.

Ari Bousbib: This will deliver customized workflows that accelerate decision-making and improve quality and accuracy. Beyond these broad and deep relationships with our customers, governments and regulatory authorities around the world look to IQVIA for trusted healthcare expertise and insights. Recently, IQVIA was the only CRO invited to provide our perspective on clinical trial innovation at the clinical trials roundtable with the U.S. Department of Health and Human Services as part of their Operation TrialBlazer initiative. We were subsequently invited to testify at the hearing of the House Energy and Commerce Subcommittee on Health regarding the FDA's role in creating a more efficient and accelerated path for early clinical development in the United States. We were the only CRO, and also, by the way, the only representative from the biopharma industry to testify.

Ari Bousbib: This will deliver customized workflows that accelerate decision-making and improve quality and accuracy. Beyond these broad and deep relationships with our customers, governments and regulatory authorities around the world look to IQVIA for trusted healthcare expertise and insights. Recently, IQVIA was the only CRO invited to provide our perspective on clinical trial innovation at the clinical trials roundtable with the US Department of Health and Human Services as part of their Operation TrialBlazer initiative. We were subsequently invited to testify at the hearing of the House Energy and Commerce Subcommittee on Health regarding the FDA's role in creating a more efficient and accelerated path for early clinical development in the United States. We were the only CRO, and also, by the way, the only representative from the biopharma industry to testify.

Speaker #1: Recently, IQVIA was the only CRO invited to provide our prospective on clinical trial innovation at a clinical trials roundtable with the US Department of Health and Human Services as part of their trial blazer initiative.

Speaker #1: This will deliver customized workflows that accelerate decision-making and improve quality and accuracy. Beyond this, our broad and deep relationships with customers, governments, and regulatory authorities around the world mean that they look to IQVIA for trusted healthcare expertise and insights.

Speaker #1: We were subsequently invited to testify at a hearing of the House Energy and Commerce Subcommittee on Health regarding the FDA's role in creating a more efficient and accelerated path for early clinical development in the United States.

Speaker #1: We were the only CRO and also by the way, the only representative from the biopharma industry to testify. We are proud of the trust policymakers placed in our leading expertise as they consider reforms to accelerate development timelines, modernize trials using AI, and strengthening US competitiveness in biomedical innovation.

Ari Bousbib: We are proud of the trust policymakers place in our leading expertise as they consider reforms to accelerate development timelines, modernize trials using AI, and strengthening US competitiveness in biomedical innovation. I'd like you all to mark your calendars for the upcoming IQVIA Investor Day, which we are planning for 2 December 2026. Now to Mike for more details on our financial performance.

Speaker #1: Finally, I'd like you all to mark your calendars for the upcoming IQVIA Investor Day which we are planning for December 2nd, 2026. And now to Mike, for more details on our financial performance.

Speaker #1: We were the only CRO and also, by the way, the only representative from the biopharma industry to testify. We are proud of the trust policymakers placed in our leading expertise as they consider reforms to accelerate development timelines, modernize trials using AI, and strengthen U.S. competitiveness in biomedical innovation.

Speaker #2: Thanks, Ari. Good morning, everyone. As a reminder, we implemented a new segment reporting structure, effective January 1, 2026. In conjunction with this change, prior period segment amounts have been recast to conform to this reporting structure.

Mike Fedock: Thanks, Ari. Good morning, everyone. As a reminder, we implemented a new segment reporting structure effective 1 January 2026. In conjunction with this change, prior period segment amounts have been recast to conform to this reporting structure. Let's start by reviewing revenue. Q2 revenue of $4,368,000,000 grew 8.7% on a reported basis and 8.5% at constant currency. Revenue growth within the quarter includes about two and a half points of contribution from acquisitions. Commercial Solutions revenue for Q2 was $1,793,000,000, up 8.6% on a reported basis and 8.4% at constant currency. R&D Solutions Q2 revenue was $2,575,000,000, up 8.8% on a reported basis and 8.6% at constant currency. For H1 of the year, total company revenue was $8,519,000,000, up 8.6% on a reported basis and 7.3% at constant currency. Commercial Solutions revenue was $3,547,000,000, up 10.1% reported and 8.5% at constant currency.

Speaker #1: Finally, I'd like you all to mark your calendars for the upcoming IQVIA Investor Day which we are planning for December 2, 2026. And now to Mike, for more details on our financial performance.

Speaker #2: Now, let's start by reviewing revenue. Second-quarter revenue of $4,368 million grew 8.7% on the reported basis and 8.5% at constant currency. Revenue growth within the quarter includes about 2.5 points of contribution from acquisitions.

Speaker #2: Thanks, Ari. Good morning, everyone. As a reminder, we implemented a new segment reporting structure effective January 1, 2026. In conjunction with this change, prior period segment amounts have been recast to conform to this reporting structure.

Speaker #2: Commercial solutions revenue for the second quarter was $1,793 million, up 8.6% on the reported basis and 8.4% at constant currency. R&D solutions second quarter revenue was $2,575 million, up 8.8% on the reported basis and 8.6% at constant currency.

Speaker #2: Now, let's start by reviewing revenue. Second-quarter revenue of $4,368 million grew 8.7% on reported basis and 8.5% at constant currency. Revenue growth within the quarter includes about 2.5 points of contribution from acquisitions.

Speaker #2: For the first half of the year, total company revenue was $8,519 million, up 8.6% on the reported basis and 7.3% at constant currency. Commercial solutions revenue was $3,547 million, up 10.1% reported and 8.5% at constant currency.

Speaker #2: Commercial Solutions revenue for the second quarter was $1.793 billion, up 8.6% on a reported basis and 8.4% at constant currency. R&D Solutions second quarter revenue was $2.575 billion, up 8.8% on a reported basis and 8.6% at constant currency.

Speaker #2: R&D solutions revenue was $4,972 million, up 7.5% on the reported basis and 6.4% at constant currency. And moving down the P&L, second quarter adjusted EBITDA is $994 million, representing growth of 9.2% year over year, while first half adjusted EBITDA was $1,926 million.

Mike Fedock: R&D Solutions revenue was $4,972,000,000, up 7.5% on a reported basis and 6.4% at constant currency. Moving down to P&L. Q2 adjusted EBITDA was $994,000,000, representing growth of 9.2% year-over-year, while H1 adjusted EBITDA was $1,926,000,000. Q2 GAAP net income was $266,000,000, and GAAP diluted earnings per share was $1.53. For H1, GAAP net income was $530,000,000, or $3.14 of earnings per diluted share. Q2 adjusted net income was $527,000,000, and adjusted diluted earnings per share was $3.15, representing growth of 12.1% year-over-year. For H1, adjusted net income was $1,019,000,000, or $6.04 per diluted share, up 9.8%. Turning to R&D Solutions bookings. The R&D Solutions net new bookings in the quarter were $3,150,000,000, a 19.3% increase year-over-year, resulting in a 1.22 book-to-bill, which, as Ari mentioned, is all the more impressive given revenue grew 9%.

Mike Fedock: R&D Solutions revenue was $4,972,000,000, up 7.5% on a reported basis and 6.4% at constant currency. Moving down to P&L. Q2 Adjusted EBITDA was $994,000,000, representing growth of 9.2% year-over-year, while H1 Adjusted EBITDA was $1,926,000,000. Q2 GAAP net income was $266,000,000, and GAAP diluted earnings per share was $1.53. For H1, GAAP net income was $530,000,000, or $3.14 of earnings per diluted share. Q2 adjusted net income was $527,000,000, and adjusted diluted earnings per share was $3.15, representing growth of 12.1% year-over-year. For H1, adjusted net income was $1,019,000,000, or $6.04 per diluted share, up 9.8%. Turning to R&D Solutions bookings. The R&D Solutions net new bookings in the quarter were $3,150,000,000, a 19.3% increase year-over-year, resulting in a 1.22 book-to-bill, which, as Ari mentioned, is all the more impressive given revenue grew 9%.

Speaker #2: For the first half of the year, total company revenue was $8,519 million, up 8.6% on a reported basis and 7.3% at constant currency. Commercial solutions revenue was $3,547 million, up 10.1% reported and 8.5% at constant currency.

Speaker #2: Second quarter gap net income was $256 million, and gap diluted earnings per share was $1.53. For the first half, gap net income was $530 million, or $3.14, of earnings per diluted share.

Speaker #2: R&D solutions revenue was $4,972 million, up 7.5% on a reported basis and 6.4% at constant currency. Now, moving down the P&L. Second quarter adjusted EBITDA is $994 million, representing growth of 9.2% year over year while first half adjusted EBITDA was $1,926 million.

Speaker #2: Second quarter adjusted net income was $527 million, and adjusted diluted earnings per share was $3.16, representing growth of 12.1% year over year. And for the first half, adjusted net income was $1,019 million, or $6.04, per diluted share, up 9.8%.

Speaker #2: Second quarter GAAP net income was $256 million, and GAAP diluted earnings per share was $1.53. For the first half, GAAP net income was $530 million, with $3.14 of earnings per diluted share.

Speaker #2: Now, turning to RDS bookings. The R&D solutions net new bookings in the quarter were $3,150 million, a 19.3% increase year over year, resulting in a 1.22 book-to-bill, which is already mentioned, is all the more impressive given revenue grew 9%.

Speaker #2: Second quarter adjusted net income was $527 million, and adjusted diluted earnings per share was $3.15, representing growth of 12.1% year over year. For the first half, adjusted net income was $1,019 million, or $6.04 per diluted share, up 9.8%.

Speaker #2: I should also note that cancellations remained within the historical range. As of June 30th, R&DF backlog was $34.2 billion, and the next 12-month revenue from this backlog was $9,230 million, which is up 7.5% versus last year.

Mike Fedock: I should also note that cancellations remained within the historical range. As of 30 June, R&D Solutions backlog was $34.2 billion and the next 12-month revenue from this backlog was $9,230,000,000, which is up 7.5% versus last year. As discussed, given the long cycle nature of our business, it's more important to focus on the longer-term booking trends. In the quarter, the last 12 months net new bookings were $11,250,000,000, an increase of 12.9% year-over-year. Importantly, this metric has been steadily increasing in each of the past 4 quarters and clearly points to momentum in our business. Let's turn to the balance sheet. As of 30 June, cash and cash equivalents was $1,909,000,000. Gross debt was $15,999,000,000, resulting in net debt of $14,090,000,000. Our net leverage ratio ended the quarter at 3.59 times trailing 12 months adjusted EBITDA.

Speaker #2: And as discussed, given the long cycle nature of our business, it's more important to focus on the longer-term booking trends. In the quarter, the last 12-month net new bookings were $11,250 million, an increase of 12.9% year over year.

Speaker #2: I should also note that cancellations remained within the historical range. As of June 30, R&DF backlog was $34.2 billion, and the next 12-month revenue from this backlog was $9.23 billion, which is up 7.5% versus last year.

Speaker #2: And importantly, this metric has been steadily increasing in each of the past four quarters and clearly points to momentum in our business. Now, let's turn to the balance sheet.

Speaker #2: As of June 30th, cash and cash equivalents was $1,909 million, gross debt was $15,999 million, resulting in net debt of $14,090 million. Our net leverage ratio ended the quarter at 3.59 times trailing 12 months adjusted EBITDA.

Speaker #2: And as discussed, given the long-cycle nature of our business, it's more important to focus on the longer-term booking trends. In the quarter, the last 12-month net new bookings were $11.25 billion, an increase of 12.9% year over year.

Speaker #2: And importantly, this metric has been steadily increasing in each of the past four quarters and clearly points to momentum in our business. Now, let's turn to the balance sheet.

Speaker #2: Second quarter cash flow from operations was $558 million, and capital expenditures were $198 million, resulting in free cash flow of $360 million representing growth of 23% year over year.

Mike Fedock: Q2 cash flow from operations was $558,000,000, and capital expenditures were $198,000,000, resulting in free cash flow of $360,000,000, representing growth of 23% year-over-year. In the quarter, we repurchased $398,000,000 of our shares, resulting in H1 share repurchases of $950,000,000. This leaves us with approximately $2.8 billion of share repurchase authorization remaining under the current program. Let's turn to guidance. To reflect stronger organic revenue growth and changes in the M&A and foreign exchange impacts, we are raising our full-year 2026 guidance for revenue, for adjusted EBITDA, and for adjusted diluted earnings per share. We now expect revenue to be between $17 billion to $275 million and $17 billion to $475 million, representing year-over-year growth of 5.9% to 7.1%. The new midpoint of the revenue growth guidance is 6.5% versus the prior guidance midpoint of 5.8%.

Mike Fedock: Q2 cash flow from operations was $558,000,000, and capital expenditures were $198,000,000, resulting in free cash flow of $360,000,000, representing growth of 23% year-over-year. In the quarter, we repurchased $398,000,000 of our shares, resulting in H1 share repurchases of $950,000,000. This leaves us with approximately $2.8 billion of share repurchase authorization remaining under the current program. Let's turn to guidance. To reflect stronger organic revenue growth and changes in the M&A and foreign exchange impacts, we are raising our full-year 2026 guidance for revenue, for Adjusted EBITDA, and for adjusted diluted earnings per share. We now expect revenue to be between $17 billion to $275 million and $17 billion to $475 million, representing year-over-year growth of 5.9% to 7.1%. The new midpoint of the revenue growth guidance is 6.5% versus the prior guidance midpoint of 5.8%.

Speaker #2: As of June 30, cash and cash equivalents was $1,909 million, gross debt was $15,999 million, resulting in net debt of $14,090 million. Our net leverage ratio ended the quarter at 3.59 times trailing 12-month adjusted EBITDA.

Speaker #2: And in the quarter, we repurchased $398 million of our shares, resulting in first half share repurchases of $950 million, and this leaves us with approximately $2.8 billion of share repurchase authorization remaining under the current program.

Speaker #2: Second quarter cash flow from operations was $558 million, and capital expenditures were $198 million, resulting in free cash flow of $360 million, representing growth of 23% year over year.

Speaker #2: Now, let's turn to guidance. To reflect stronger organic revenue growth and changes in the M&A and foreign exchange impacts, we are raising our full-year 2026 guidance for revenue, for adjusted EBITDA, and for adjusted diluted earnings per share.

Speaker #2: And in the quarter, we repurchased $398 million of our shares, resulting in first-half share repurchases of $950 million, and this leaves us with approximately $2.8 billion of share repurchase authorization remaining under the current program.

Speaker #2: We now expect revenue to be between $17 billion and $275 million, and $17 billion and $475 million representing year-over-year growth of 5.9 to 7.1%.

Speaker #2: The new midpoint of the revenue growth guidance is 6.5% versus the prior guidance midpoint of 5.8%. This new guidance includes approximately 100 basis points higher organic revenue growth and approximately 50 basis points higher contribution from M&A offset by a foreign exchange impact that is 80 basis points less of a tailwind than in the former guidance.

Mike Fedock: This new guidance includes approximately 100 basis points higher organic revenue growth and approximately 50 basis points higher contribution from M&A, offset by a foreign exchange impact that is 80 basis points less of a tailwind than in the former guidance. This revenue guidance now assumes approximately 200 basis points of contribution from acquisitions and only approximately 20 basis points of a tailwind from foreign exchange. We are also raising our adjusted EBITDA to be between $4 billion and $4.50 billion, growing 5.6% to 6.9% year over year, reconfirming flat margins year over year at approximately 23.2%. Finally, we are also raising adjusted diluted EPS to be between $12.80 and $13 of 7.4% to 9.1% versus prior year, or 8.2% at the midpoint. Let me provide our third quarter guidance.

Mike Fedock: This new guidance includes approximately 100 basis points higher organic revenue growth and approximately 50 basis points higher contribution from M&A, offset by a foreign exchange impact that is 80 basis points less of a tailwind than in the former guidance. This revenue guidance now assumes approximately 200 basis points of contribution from acquisitions and only approximately 20 basis points of a tailwind from foreign exchange. We are also raising our Adjusted EBITDA to be between $4 billion and $4.50 billion, growing 5.6% to 6.9% year-over-year, reconfirming flat margins year-over-year at approximately 23.2%. Finally, we are also raising adjusted diluted EPS to be between $12.80 and $13 of 7.4% to 9.1% versus prior year, or 8.2% at the midpoint. Let me provide our third quarter guidance.

Speaker #2: We now expect revenue to be between $17 billion and $275 million, and $17 billion and $475 million representing year-over-year growth of 5.9 to 7.1%.

Speaker #2: This revenue guidance now assumes approximately $200 basis points of contribution from acquisitions, and only approximately 20 basis points of a tailwind from foreign exchange.

Speaker #2: The new midpoint of the revenue growth guidance is 6.5%, versus the prior guidance midpoint of 5.8%. This new guidance includes approximately 100 basis points higher organic revenue growth and approximately 50 basis points higher contribution from M&A, all offset by a foreign exchange impact that is 80 basis points less of a tailwind than in the former guidance.

Speaker #2: We are also raising our adjusted EBITDA to be between $4 billion and $4,050 million, growing 5.6 to 6.9% year over year, reconfirming flat margins year over year at approximately 23.2%.

Speaker #2: And finally, we are also raising adjusted diluted EPS to be between $12.80 and $13, up 7.4 to 9.1% versus prior year, or 8.2% at the midpoint.

Speaker #2: This revenue guidance now assumes approximately 200 basis points of contribution from acquisitions, and only approximately 20 basis points of tailwind from foreign exchange.

Speaker #2: We are also raising our adjusted EBITDA to be between $4.0 billion and $4.05 billion, growing 5.6% to 6.9% year over year, reconfirming flat margins year over year at approximately 23.2%.

Speaker #2: Let me provide a third quarter guidance. For the third quarter, we expect revenue to be between $4,315 million and $4,390 million, which represents year-over-year growth of 5.2% to 7.1%.

Mike Fedock: For the third quarter, we expect revenue to be between $4.315 billion and $4.390 billion, which represents year-over-year growth 5.2% to 7.1%. Adjusted EBITDA is expected to be between $1 billion and $1.020 billion, representing growth of 5.4% to 7.5% versus prior year. Adjusted diluted EPS is expected to be between $3.19 and $3.29, which represents year-over-year growth of 6.3% to 9.7%. Both this guidance and the full-year guidance assume that foreign currency rates as of 27 July continue for the balance of the year. To summarize, IQVIA delivered outstanding financial results with Q2 revenue, adjusted EBITDA, and adjusted diluted EPS exceeding the high end of our guidance. We accelerated organic revenue growth across both commercial and clinical segments. We delivered strong adjusted EBITDA margins in the quarter. We had strong free cash flow performance, up 23% year over year.

Mike Fedock: For the third quarter, we expect revenue to be between $4.315 billion and $4.390 billion, which represents year-over-year growth 5.2% to 7.1%. Adjusted EBITDA is expected to be between $1 billion and $1.020 billion, representing growth of 5.4% to 7.5% versus prior year. Adjusted diluted EPS is expected to be between $3.19 and $3.29, which represents year-over-year growth of 6.3% to 9.7%. Both this guidance and the full-year guidance assume that foreign currency rates as of 27 July continue for the balance of the year. To summarize, IQVIA delivered outstanding financial results with Q2 revenue, Adjusted EBITDA, and adjusted diluted EPS exceeding the high end of our guidance. We accelerated organic revenue growth across both commercial and clinical segments. We delivered strong Adjusted EBITDA margins in the quarter. We had strong free cash flow performance, up 23% year-over-year.

Speaker #2: And finally, we are also raising adjusted diluted EPS to be between $12.80 and $13.00, up 7.4% to 9.1% versus the prior year, or 8.2% at the midpoint.

Speaker #2: Adjusted EBITDA is expected to be between $1 billion and $1,020 million, representing growth of 5.4% to 7.5% versus prior year. And adjusted diluted EPS is expected to be between $3.19 and $3.29, which represents year-over-year growth of 6.3% to 9.7%.

Speaker #2: Let me provide a third quarter guidance. For the third quarter, we expect revenue to be between $4.315 billion and $4.390 billion, which represents year-over-year growth of 5.2% to 7.1%.

Speaker #2: Both this guidance and the full-year guidance assume that foreign currency rates as of July 27th continue for the balance of the year. So to summarize, IQVIA delivered outstanding financial results.

Speaker #2: Adjusted EBITDA is expected to be between $1.00 billion and $1.02 billion, representing growth of 5.4% to 7.5% versus the prior year. Adjusted diluted EPS is expected to be between $3.19 and $3.29, which represents year-over-year growth of 6.3% to 9.7%.

Speaker #2: The second quarter revenue adjusted EBITDA and adjusted diluted EPS exceeding the high end of our guidance. We accelerated organic revenue growth across both commercial and clinical segments.

Speaker #2: We delivered strong adjusted EBITDA margins in the quarter. We had strong free cash flow performance up 23% year over year. The RDF net new bookings were the highest since 2022 at $3,150 million, growing double digits year over year and sequentially with very strong full-service bookings.

Speaker #2: Both this guidance and the full-year guidance assume that foreign currency rates as of July 27 continue for the balance of the year. So, to summarize, IQVIA delivered outstanding financial results, with second quarter revenue, adjusted EBITDA, and adjusted diluted EPS exceeding the high end of our guidance.

Mike Fedock: The RDS net new bookings were the highest since 2022 at $3.150 billion, growing double digits year over year and sequentially with very strong full service bookings. As Ari mentioned, the demand environment for both clinical and commercial has significantly improved as reflected in our forward-looking demand indicators. We've raised our full-year guidance for revenue, adjusted EBITDA, and adjusted diluted earnings per share, and we are planning a 2 December investor day where we look forward to seeing you. With that said, let me hand it back to the operator for Q&A.

Mike Fedock: The RDS net new bookings were the highest since 2022 at $3.150 billion, growing double digits year-over-year and sequentially with very strong full service bookings. As Ari mentioned, the demand environment for both clinical and commercial has significantly improved as reflected in our forward-looking demand indicators. We've raised our full-year guidance for revenue, Adjusted EBITDA, and adjusted diluted earnings per share, and we are planning a 2 December investor day where we look forward to seeing you. With that said, let me hand it back to the operator for Q&A.

Speaker #2: And as already mentioned, the demand environment for both clinical and commercial has significantly improved, as reflected in our forward-looking demand indicators. We raised our full-year guidance for revenue adjusted EBITDA and adjusted diluted earnings per share, and we are planning a December 2nd investor day where we look forward to seeing you.

Speaker #2: We accelerated organic revenue growth across both commercial and clinical segments. We delivered strong adjusted EBITDA margins in the quarter. We had strong free cash flow performance of 23% year over year.

Speaker #2: The RDS net new bookings were the highest since 2022 at $3.15 billion, growing double digits year over year and sequentially, with very strong full-service bookings.

Speaker #2: Now, with that said, let me hand it back to the operator for Q&A.

Speaker #1: Thank you. At this time, I would like to remind everyone in order to ask a question, press star then the number 1 on your telephone keypad.

Operator: Thank you. At this time, I would like to remind everyone, in order to ask a question, press star 1 on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster. Your first question comes from the line of Eric Coldwell with Baird. Your line is open. Please go ahead.

Speaker #1: We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster.

Speaker #1: Your first question comes from the line of Eric Coldwell with Baird. Your line is open. Please go ahead.

Speaker #2: Now, with that said, let me hand it back to the operator for Q&A.

Speaker #1: Thank you. At this time, I would like to remind everyone: in order to ask a question, press star, then the number 1 on your telephone keypad.

Speaker #3: Thanks very much. Almost feel like you're out in the call now. That was pretty positive update. We can only go south, I think. So last quarter, you had some added disclosures around the bookings profile that helped I think help people understand the dynamics and what was optically a lower net book to bill.

Eric Coldwell: Thanks very much. Almost feel like you ought to end the call now. That was a pretty positive update. We can only go south, I think. Last quarter, you had some added disclosures around the bookings profile that I think helped people understand the dynamics and what was optically a lower net book-to-bill. This quarter, you're obviously putting up a bigger book-to-bill against a strong revenue growth rate. I do have to ask, were there any chunky awards or other call-outs within those bookings? You did mention FSO was very strong. What about FSP awards? What about pass-through mix in the awards? Any other notable call-outs that you'd like to share with us? Thanks very much.

Speaker #1: We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster.

Speaker #3: I'm this quarter, you're obviously putting up a bigger book to bill against a strong revenue growth rate. But I do have to ask, were there any chunky awards or other callouts within those bookings?

Speaker #1: Your first question comes from the line of Eric Coldwell with Baird. Your line is open. Please go ahead.

Speaker #3: Thanks very much. Almost feel like you're out on the call now. That was a pretty positive update. We can only go south, I think. So last quarter, you had some added disclosures around the bookings profile that helped, I think, people understand the dynamics and what was optically a lower net book-to-bill.

Speaker #3: And you did mention FSO was very strong. What about FSP awards? What about pass-through mix and the awards? Any other notable callouts that you'd like to share with us?

Speaker #3: Thanks very much.

Speaker #4: Well, good morning, Eric, and thanks again for your kind words. Actually, you had a good call in your notes. A few weeks ago. We had indeed a great quarter.

Ari Bousbib: Well, good morning, Eric, and thanks again for your kind words. Actually, you had a good call in your notes a few weeks ago. We had indeed a great quarter. I have to tell you, in over 25 years of reporting earnings in this or other companies, I've never had as clean a quarter as this one all around. I must tell you, there is absolutely nothing salient, unusual, abnormal, odd, awkward in our numbers anywhere. With respect to the question on the bookings per se, there was strength literally across the board. Nothing unusual. Pass-throughs were in the normal range. Cancellations were in the normal range. Good mix of large, mid, EBP. FSO was very strong, but again, see to what it was before all the multiple crises erupted over the past two, three, four years.

Speaker #3: In this quarter, you're obviously putting up a bigger book-to-bill against a strong revenue growth rate. But I do have to ask, were there any chunky awards or other callouts within those bookings?

Speaker #3: And you did mention FSO was very strong. What about FSP awards? What about pass-through mix in the awards? Any other notable callouts that you'd like to share with us?

Speaker #4: I have to tell you, in over 25 years of reporting earnings in this or other companies, I've never had as clean a quarter as this one, all around.

Speaker #3: Thanks very much.

Speaker #4: I must tell you, there is absolutely nothing salient unusual abnormal odd awkward in our numbers anywhere. With respect to your booking, the question on the bookings per se, there was strike literally across the board.

Speaker #4: Well, good morning, Eric, and thanks again for your kind words. Actually, you had a good call in your notes a few weeks ago. We did indeed have a great quarter.

Speaker #4: I have to tell you, in over 25 years of reporting earnings in this or other companies, I've never had as clean a quarter as this one, all around.

Speaker #4: Nothing unusual. Pass-throughs were in the normal range. Cancellations were in the normal range. Good mix of large, mid, EBP, I mean, really FSO was very strong, but again, similar to what it was before all the multiple crises erupted over the past two, three, four years.

Speaker #4: I must tell you, there is absolutely nothing salient, unusual, abnormal, odd, or awkward in our numbers anywhere. With respect to your question on the bookings per se, there was a strike literally across the board.

Speaker #4: Really, good, strong outsourcing continuing from large pharma. Good EBP. Bookings again, strong around FSP. You asked specifically low to mid double digits kind of as usual.

Ari Bousbib: Really good, strong outsourcing continuing from large pharma, good EBP bookings. Again, strong around FSP. You asked specifically, low to mid double digits kind of as usual percentage of total, Mike. I mean, really.

Speaker #4: Nothing unusual. Pass-throughs were in the normal range. Cancellations were in the normal range. Good mix of large, mid, EBP. I mean, really, FSO was very strong, but again, similar to what it was before all the multiple crises erupted over the past two, three, four years.

Speaker #4: Percentage of total? I mean, really nothing to call. I mean, it's a fair question because the numbers are so good everywhere. I have to tell you, in preparing for the call, we looked and said, "Okay, well, is there anything we can point to?" And there is nothing unusual.

Mike Fedock: Nothing to call out there.

Ari Bousbib: nothing to call. I mean, it's a fair question because the numbers are so good everywhere. I have to tell you, in preparing for the call, we looked and said, Well, is there anything we can point to? There is nothing unusual. All very strong. Mike, anything else?

Ari Bousbib: Nothing to call. I mean, it's a fair question because the numbers are so good everywhere. I have to tell you, in preparing for the call, we looked and said, Well, is there anything we can point to? There is nothing unusual. All very strong. Mike, anything else?

Speaker #4: Really good, strong outsourcing continuing from large pharma. Good EBP bookings—again, strong around FSP. You asked specifically: low- to mid-double digits, kind of as usual, percentage of total, Mike.

Speaker #4: All very strong. Mike, anything else?

Speaker #2: No, I was just going to add that the therapeutic mix and all that stuff is aligned with the trends.

Mike Fedock: No, I was just going to add that the therapeutic mix.

Ari Bousbib: Yes

Mike Fedock: with the trends.

Mike Fedock: With the trends.

Speaker #3: Great job, guys. I'll leave it there.

Eric Coldwell: Great job, guys. I'll leave it there.

Speaker #2: Thanks, Eric.

Speaker #4: Thank you.

Mike Fedock: Thanks, Eric.

Mike Fedock: Thank you.

Ari Bousbib: Thank you.

Speaker #4: I mean, really nothing to call out. I mean, it's a fair question because the numbers are so good everywhere. I have to tell you, in preparing for the call, we looked and said, "Okay, well, is there anything we can point to?" And there is nothing unusual.

Speaker #1: Your next question comes from the line of Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Speaker #5: Hi, good morning, everyone. Ari, in your prepared remarks, you talked about outsourcing penetration potentially increasing. Over the interim, is that comment broad-based, more focused on some of the conversations you've been having with your large and mid-sized pharma customers?

Justin Bowers: Hi. Good morning, everyone. Ari, in your prepared remarks, you talked about outsourcing penetration potentially increasing over the interim. Is that comment broad-based, more focused on some of the conversations you've been having with your large and mid-size pharma customers? Just any more color there would be helpful.

Speaker #4: All very strong. Mike, anything else?

Speaker #3: No, I was just going to add

Speaker #2: that the therapeutic mix and all that stuff is aligned with the trends.

Speaker #3: Great job, guys. I'll leave it there.

Speaker #2: Thanks, Eric.

Speaker #4: Thank you.

Speaker #5: Just any more color there would be helpful.

Speaker #1: Your next question comes from the line of Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Speaker #4: Sure. Thank you. Okay. So as you know, the EBP segment is 100% outsourced. By definition. And again, as I want to reiterate, we are the largest CRO provider to the EBP segment.

Ari Bousbib: Sure. Thank you. Okay. As you know, the EBP segment is 100% outsourced, by definition. Again, as I want to reiterate, we are the largest CRO provider to the EBP segment. I think it's very clear from the numbers now. That clearly is all outsourcing. Mid-size, pretty much similar, except for some of the larger ones that some of themselves are a little bit of FSP. Large pharma is really where you've had that debate, insourcing, outsourcing, et cetera. Look, as I tell you that large pharma clients are already telling us that because of the increasing expensive use of AI, and by the way, use of AI by large pharma is not starting on 28 July with a press release. It's been going on for more than two or three years. Okay. The use of AI in discovery will only increase demand for CRO services.

Speaker #5: Hi, good morning, everyone. Ari, in your prepared remarks, you talked about outsourcing penetration potentially increasing. Over the interim, is that comment broad-based, or more focused on some of the conversations you've been having with your large and mid-sized pharma customers?

Speaker #4: I think it's very clear from the numbers now. So that clearly is all outsourcing. Mid-size, pretty much similar except for some of the larger ones that do some of it themselves and a little bit of FSP.

Speaker #5: Just any more color there would be helpful.

Speaker #4: Sure. Thank you. Okay. So, as you know, the EBP segment is 100% outsourced by definition. And again, I want to reiterate, we are the largest CRO provider to the EBP segment.

Speaker #4: Large pharma is really where you've had that debate in sourcing, outsourcing, etc. Look, I want to tell you that large pharma clients are already telling us that because of the extensive increasing extensive use of AI and by the way, the use of AI by large pharma is not starting on July 28th with a press release.

Speaker #4: I think it's very clear from the numbers now. So that clearly is all outsourcing. Mid-size is pretty much similar, except for some of the larger ones that do some of it themselves and a little bit of FSP.

Speaker #4: It's been going on for more than two or three years. Okay? So the use of AI in discovery will only increase demand for CRO services.

Speaker #4: Large pharma is really where you've had that debate in sourcing, outsourcing, etc. Look, I was going to tell you that large pharma clients are already telling us that because of the extensive increasing extensive use of AI and by the way, the use of AI by large pharma is not starting on July 28 with a press release.

Speaker #4: And our clients are actually telling us and asking us to gear up capacity as additional molecule will enter development. Some of our large pharma clients are predicting they will double their study portfolio.

Ari Bousbib: Our clients are actually telling us and asking us to gear up capacity as additional molecule will enter development. Some of our large pharma clients are predicting they will double their study portfolio, they're asking us literally to add thousands of FCEs in anticipation of those studies. The additional demand with CROs is simply because, again, the dynamics of outsourcing remain the same. Some of these new molecules that are identified through use of AI are in adjacent therapies where the client may not have all the therapeutic expertise. The additional capacity required, no one is interested in adding more headcount for specific trials. It's always more cost-effective to use a CRO. The global footprint helps.

Speaker #4: It's been going on for more than two or three years, okay? So, the use of AI in discovery will only increase demand for CRO services.

Speaker #4: And so they're asking us literally to ask thousands of FCEs in anticipation of those studies. So the additional demand with CROs, it's simply because again, the dynamics of outsourcing remain the same.

Speaker #4: And our clients are actually telling us and asking us to gear up capacity as additional molecules will enter development. Some of our large pharma clients are predicting they will double their study portfolio.

Speaker #4: Some of these new molecules are identified to the use of AI are in adjacent therapies where the client may not have all the therapeutic expertise.

Speaker #4: The additional capacity required, no one is interested in adding more headcount. For specific trials, it's always more cost-effective to use a CRO. And then the global footprint helps.

Speaker #4: And so they're asking us, literally, to ask thousands of FCEs in anticipation of those studies. So the additional demand with CROs is simply because, again, the dynamics of outsourcing remain the same.

Speaker #4: The domain expertise, the regulatory and medical knowledge for study design, the site relationships, and the network, the broad therapeutic coverage, the expensive data to land on the best design and successfully recruit more specialized patient populations all of that.

Speaker #4: Some of these new molecules are identified to use of AI are in adjacent therapies where the client may not have all the therapeutic expertise.

Ari Bousbib: The domain expertise, the regulatory and medical knowledge for study design, the site relationships and the network, the broad therapeutic coverage, the expensive data to land on the best design and successfully recruit more specialist patient populations, all of that lends itself to more outsourcing. The current outsourcing for large pharma will continue to increase as we look at our conversations with our clients and we model it out.

Speaker #4: Lends itself to more outsourcing. So the current outsourcing for large pharma will continue to increase as we look at our conversation with our clients and we model it out.

Speaker #4: The domain expertise, the regulatory and medical knowledge for study design, the site relationships and the network, the broad therapeutic coverage, the expensive data to land on the best design and successfully recruit more specialized patient populations—all of that.

Speaker #5: Thank you. That's it for me.

Justin Bowers: Thank you. That's it for me.

Speaker #1: Your next question comes from the line of Michael Reiskin with Bank of America. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Michael Ryskin with Bank of America. Your line is open. Please go ahead.

Speaker #4: It lends itself to more outsourcing, so the current outsourcing for large pharma will continue to increase as we look at our conversations with our clients and as we model it out.

Speaker #5: Great. Thanks,

Speaker #6: sir, for taking the question. I kind of want to follow up on just the last one. Thinking about your future investment and your future opportunities there, like you said, you have been talking about AI for a number of years now.

Michael Ryskin: Great. Thanks for taking the question. I kind of want to follow up on just the last one, thinking about your future investment and your future opportunity there. Like you said, you have been talking about AI for a number of years now. You've talked up some of the benefits you're seeing from the solutions you've developed internally. There's clearly some opportunity to partner externally or maybe do some M&A. There was a deal in the space maybe a week or two ago. Could you just talk about how you see the development of those solutions over time and where you're putting the incremental dollars? Thanks.

Speaker #6: You've talked up some of the benefits you're seeing from the solutions you've developed internally. There's clearly some opportunity to partner externally or maybe do some M&A.

Speaker #5: Thank you. That’s it for me.

Speaker #1: Your next question comes from the line of Michael Reiskin with Bank of America. Your line is open. Please go ahead.

Speaker #6: There was a deal in the space maybe a week or two ago. Could you just talk about how you see the development of those solutions over time and where you're putting the incremental dollars?

Speaker #5: Great. Thanks for taking the question. I kind of want to follow up on just the last one. I'm thinking about your future investment and your future opportunities there.

Speaker #6: Thanks.

Speaker #4: Well, I mean, look, we've again, not news, for us, we've been doing this for some time. The idea of inserting intelligence in the design and performance of clinical trials to accelerate outcomes and improve outcomes is really what prompted our merger 10 years ago.

Ari Bousbib: Well, I mean, look, again, it's not news for us. We've been doing this for some time. The idea of inserting intelligence in the design and performance of clinical trials to accelerate outcomes and improve outcomes, is really what prompted our merger 10 years ago. Now, of course, with the advent of frontier models, et cetera, this has just been accelerating over the past two, three years. Just to step back, in terms of investments and where we continue to focus, at complex, I've said this before, but I think it's worth repeating, there are at least three necessary requirements to effectively deploy AI models in our industry. Number one. You need proprietary expert content that is globally sourced, de-identified, curated, fit for purpose, integrated, interoperable, and ready for extraction. That's proprietary healthcare data, and we've got that.

Speaker #5: Like you said, you have been talking about AI for a number of years now. You've discussed some of the benefits you're seeing from the solutions you've developed internally.

Speaker #5: There's clearly some opportunity to partner externally or maybe do some M&A. There was a deal in the space maybe a week or two ago. Could you just talk about how you see the development of those solutions over time, and where you're putting the incremental dollars?

Speaker #4: Now, of course, with the advance of Frontier, models, etc., this has just been accelerated over the past two, three years. Just to step back, in terms of investments and where we continue to focus, at Complex, I've said this before, but I think it's worth repeating, there are at least three necessary requirements to effectively deploy AI models in our industry.

Speaker #5: Thanks.

Speaker #4: Number one, you need proprietary expert content. That is globally sourced, de-identified, curated, fit for purpose, integrated, interoperable, and ready for extraction. That's proprietary healthcare data.

Speaker #4: Now, of course, with the advance of Frontier, models, etc., this has just been accelerated over the past two or three years. Just to step back, in terms of investments and where we continue to focus at Complex, I’ve said this before, but I think it’s worth repeating.

Speaker #4: And we've got that. Again, it has to meet interoperability, relevance, completeness, traceability, reliability, and linkability standards under countless oncologies at a scale that has no comparison to any other industry.

Ari Bousbib: It has to meet interoperability, relevance, completeness, traceability, reliability, and linkability standards under countless ontologies at a scale that has no comparison to any other industry. This is why our clients trust us to work with them on their AI journey. Actually, I recently read a quote from, you might want to look at the book if you haven't already, called Empire of AI. The author says there, Acquiring training data has turned into one of the most difficult, expensive, and legally fraught activities a frontier lab undertakes. There's a phrase going around now that the web is empty because the frontier AI models essentially are close to exhausting everything that's out there. So you got to turn out the proprietary data. Again, we've got that, and that's where we are continuing to invest.

Speaker #4: There are at least three necessary requirements to effectively deploy AI models in our industry. Number one, you need proprietary expert content. That is globally sourced, de-identified, curated, fit for purpose, integrated, interoperable, and ready for extraction.

Speaker #4: And this is why our clients trust us to work with them on their AI journey. Actually, we recently read a quote from one of look at the book if you haven't already called Empire of AI.

Speaker #4: That's proprietary healthcare data, and we've got that. Again, it has to meet interoperability, relevance, completeness, traceability, reliability, and linkability standards under countless ontologies, at a scale that has no comparison to any other industry.

Speaker #4: And the author says they're acquiring training data has turned into one of the most difficult, expensive, and legally fraught activities if Frontier Lab undertakes.

Speaker #4: There's a phrase going around now that the web is empty because the frontier AI models essentially are close to exhausting everything that's out there.

Speaker #4: And this is why our clients trust us to work with them on their AI journey. Actually, we recently read a quote from—you might want to look at the book if you haven't already—called 'Empire of AI.'

Speaker #4: And so you got to turn out to proprietary data and again, we've got that and that's what we are continuing to invest. Number two, you need deep domain knowledge to read, understand, and interpret these highly complex data sets in their proper context.

Ari Bousbib: Number 2, you need deep domain knowledge to read, understand, and interpret these highly complex data sets in their proper context. Of course, we've got that too. Number 3, you need to operate within the significant regulatory compliance and privacy frameworks that healthcare requires. They vary across countries and geographies. Of course, we've got that expertise too. Our own agentic roadmap has continued to make great progress. In fact, we now have 294 agents deployed across 90 use cases. I want to remind you, an agent is not one model. An agent is built of multiple tasks that are all powered by different models. We work with every single AI company out there in this country and overseas. You build that. We've been building that with the help of NVIDIA very successfully.

Ari Bousbib: Number two, you need deep domain knowledge to read, understand, and interpret these highly complex data sets in their proper context. Of course, we've got that too. Number three, you need to operate within the significant regulatory compliance and privacy frameworks that healthcare requires. They vary across countries and geographies. Of course, we've got that expertise too. Our own agentic roadmap has continued to make great progress. In fact, we now have 294 agents deployed across 90 use cases. I want to remind you, an agent is not one model. An agent is built of multiple tasks that are all powered by different models. We work with every single AI company out there in this country and overseas. You build that. We've been building that with the help of NVIDIA very successfully.

Speaker #4: And the author says that acquiring training data has turned into one of the most difficult, expensive, and legally fraught activities a frontier lab undertakes.

Speaker #4: And of course, we've got that too. And number three, you need to operate within the significant regulatory compliance and privacy frameworks that healthcare requires.

Speaker #4: There's a phrase going around now that the web is empty because the frontier AI models are essentially close to exhausting everything that's out there.

Speaker #4: And they vary across countries and geographies. And of course, we've got that expertise too. So our own agentic roadmap has continued to make great progress.

Speaker #4: And so you've got to turn out to proprietary data, and again, we've got that, and that's where we are continuing to invest. Number two, you need deep domain knowledge to read, understand, and interpret these highly complex data sets in their proper context.

Speaker #4: In fact, we now have 294 agents deployed across 90 use cases. I want to remind you an agent is not one model. An agent is built of multiple tasks that are all powered by different models.

Speaker #4: And of course, we've got that too. And, number three, you need to operate within the significant regulatory, compliance, and privacy frameworks that healthcare requires.

Speaker #4: And they vary across countries and geographies. And of course, we've got that expertise too. So our own agentic roadmap has continued to make great progress.

Speaker #4: We work with every single AI company out there. In this country, and overseas. And you build that. We've been building that with the help of NVIDIA very successfully.

Speaker #4: In fact, we now have 294 agents deployed across 90 use cases. I want to remind you that an agent is not one model. An agent is built of multiple tasks that are all powered by different models.

Speaker #4: In fact, many of our large pharma clients are recognizing all of this and the limits of AI frontier models and instead they are partnering with us to develop their AI roadmaps.

Ari Bousbib: In fact, many of our large pharma clients are recognizing all of this and the limits of AI frontier models, and instead, they are partnering with us to develop their AI roadmaps. Four of the top 10 pharma companies have already contracted with us to co-develop AI solutions. 19 of the top 20 pharma companies have already deployed Active AI solutions in their workflow. This has been and continues to be a priority area for investment and continues. We are seeing it in our win rates, clearly differentiates us from the rest of the pack. We've been displacing incumbents in deal after deal, including the large CROs. Thank you.

Speaker #4: Four of the top 10 pharma companies have already contracted with us to co-develop AI solutions. And 19 of the top 20 pharma companies have already deployed active AI solutions in their workflow.

Speaker #4: We work with every single AI company out there, in this country and overseas. And you build that. We've been building that with the help of NVIDIA very successfully.

Speaker #4: So this has been and continues to be a priority area for investment and continues we're seeing it in our win rates clearly differentiates us from the rest of the pack.

Speaker #4: In fact, many of our large pharma clients are recognizing all of this and the limits of AI frontier models, and instead they are partnering with us to develop their AI roadmaps.

Speaker #4: We've been displacing incumbents in deal after deal, including the large CROs. Thank you.

Speaker #4: Four of the top 10 pharma companies have already contracted with us to co-develop AI solutions, and 19 of the top 20 pharma companies have already deployed IQVIA AI solutions in their workflow.

Speaker #6: Thank

Michael Cherny: Thank you.

Michael Ryskin: Thank you.

Speaker #1: Your next question comes from the line of Michael Cherney with Lyrink Partners. Your line is open. Please go ahead.

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

Speaker #4: So this has been and continues to be a priority area for investment and continues we're seeing it in our win rates clearly differentiates us from the rest of the pack.

Speaker #5: Hey, guys. Thanks for taking the question. Maybe to build on that last comment, Ari had regarding displacing other CROs and competitive processes, can you give us a little flavor of what that looks like?

Michael Cherny: Hey, guys. Thanks for taking the question. Maybe to build on that last comment, Ari, you had regarding displacing other CROs and competitive processes, can you give us a little flavor of what that looks like? When you go into these competitive RFPs or competitive displacements, what is the discussion looking like on price versus capabilities versus technology and AI functionality? If you can break those down to those three buckets. Thanks.

Speaker #4: We've been displacing incumbents in deal after deal, including the large CROs. Thank you.

Speaker #5: And when you go into these competitive RFPs or competitive displacements, what is the discussion looking like on price versus capabilities versus technology and AI functionality?

Speaker #5: Thank you.

Speaker #1: Your next question comes from the line of Michael Cherny with Leerink Partners. Your line is open. Please go ahead.

Speaker #5: If you can break it down to those three buckets. Thanks.

Speaker #4: Yeah. Thanks for your question, Michael. We've shared before that large pharma literally every single one of the top 20 went through a very significant process to renegotiate all of their partnerships.

Ari Bousbib: Yeah. Thanks for your question, Michael. We've shared before that large pharma, literally every single one of the top 20, went through a very significant process to renegotiate all of their partnerships. They opened up all of their preferred relationships, and that process occurred over the 2024, 2025 time frame. We stated before that we were very happy with the outcome of those renegotiations. We both increased the number and the scope of those relationships. When there is a specific RFP within the context of those partnerships, a large pharma typically invites the two or three partners that they have selected in that prior process. By the way, the rates have been typically negotiated during those relationships.

Speaker #5: Hey, guys, thanks for taking the question. Maybe to build on that last comment Ari had regarding displacing other CROs and competitive processes, can you give us a little flavor of what that looks like?

Speaker #5: And when you go into these competitive RFPs or competitive displacements, what is the discussion looking like on price versus capabilities versus technology and AI functionality?

Speaker #4: They opened up all of their preferred relationships and that process occurred over the 24, 25 timeframe. We stated before that we were very happy with the outcome of those renegotiations.

Speaker #5: If you can break it down into those three buckets, thanks.

Speaker #4: Yeah, thanks for your question, Michael. We’ve shared before that large pharma—literally, every single one of the top 20—went through a very significant process to renegotiate all of their partnerships.

Speaker #4: We both increased the number and the scope of those relationships. And so when there is a specific RFP within the context of those partnerships, a large pharma typically invites the two or three partners that they have selected.

Speaker #4: They opened up all of their preferred relationships, and that process occurred over the 2024–2025 timeframe. We stated before that we were very happy with the outcome of those renegotiations.

Speaker #4: In that prior process. And then the discussion, by the way, the rates have been typically negotiated during those relationships. So yeah, I would say it's less on price on a specific RFP.

Ari Bousbib: Yeah, I would say it's less on price on a specific RFP and more on delivery timelines, capabilities, technology, site networks, relationships, experience with that particular therapeutic area, the skill sets of the individuals involved, et cetera, and of course, our AI capabilities. Thank you.

Speaker #4: And more on delivery timelines capabilities, technology, site networks, relationships, experience with that particular therapeutic area the skill sets of the individuals involved, etc. And of course, our AI capabilities.

Speaker #4: And then the discussion — by the way — the rates have been typically negotiated during those relationships. So I would say it's less on price on a specific RFP.

Speaker #4: Thank you.

Speaker #4: And more on delivery timelines, capabilities, technology, site networks, relationships, experience with that particular therapeutic area, the skill sets of the individuals involved, etc. And of course, our AI capabilities.

Speaker #1: Your next question comes from the line of David Windley with Jefferies. Your line is open. Please go ahead.

Operator: Your next question comes from the line of David Windley with Jefferies. Your line is open. Please go ahead.

Speaker #5: Hi, good morning. Thanks for taking my question. I wanted to ask a clarification and then more of a content question. So the clarification, I think, Mike, you quantified two and a half percent of acquisition contribution.

David Windley: Hi. Good morning. Thanks for taking my question. I wanted to ask a clarification and then more of a content question. The clarification, I think, Mike, you quantified 2.5% of acquisition contribution. I was wondering if you could break that out between segments. Ari, you seem in the mood to talk about the expanse of the business. The company has quietly started to build some discovery capabilities. You're talking a lot about AI. I wondered if you might expand the discussion to talk about what your thoughts are in investing in and building out capabilities in the early part of the development supply chain, and how you see that folding into your broader strategy leading into your clinical capabilities. Is there an AI angle there as well? Thank you.

Speaker #5: I was wondering if you could break that out between segments. And then Ari, you seem in the mood to talk about the expanse of the business.

Speaker #4: Thank you.

Speaker #5: The company is kind of quietly started to build some discovery capabilities. You're talking a lot about AI. I wondered if you might expand the discussion to talk about what your thoughts are in investing in and building out capabilities in the early part of the development supply chain and how you see that folding into your broader strategy leading into your clinical capabilities.

Speaker #1: Your next question comes from the line of David Windley with Jefferies. Your line is open. Please go ahead.

Speaker #6: Hi, good morning. Thanks for taking my question. I wanted to ask a clarification, and then more of a content question. So the clarification: I think, Mike, you quantified 2.5% of acquisition contribution.

Speaker #6: I was wondering if you could break that out between segments. And then, Ari, you seem in the mood to talk about the expanse of the business.

Speaker #5: And is there an AI angle there as well? Thank you.

Speaker #6: The company has kind of quietly started to build some discovery capabilities. You're talking a lot about AI. I wondered if you might expand the discussion to talk about what your thoughts are on investing in and building out capabilities in the early part of the development supply chain, and how you see that folding into your broader strategy leading into your clinical capabilities.

Speaker #4: Well, David, it sounds like you've been in listening in in our highly secretive strategy session. We are all I can say, all I can say is that yes, we are working on those things.

Ari Bousbib: Well, Dave, it sounds like you've been listening in in our highly secretive strategy session.

David Windley: I wish.

Ari Bousbib: All I can say is that, yes, we are working on those things and I can leave it at that. I think you would expect us to do that simply because we have great relationships with our clients, we are expanding upwards and downwards the set of capabilities. You saw us buy discovery assets. In fact, we completed the acquisition of the Charles River assets in the quarter. I guess that was the first part of the question. Mike, you want to maybe say. That's basically what Normally, our acquisitions, we have guided to a point and a half for the year. Now that we did, it's going to add, what, about $75 million, $80 million?

Speaker #4: And I kind of leave it at that. And again, you would expect us to do that simply because we have great relationships with our clients.

Speaker #6: And is there an AI angle there as well? Thank you.

Speaker #4: And we are expanding upwards and downwards the set of capabilities you saw us buy discovery assets. In fact, we completed the acquisition of the Charles River assets in the quarter.

Speaker #4: Well, David, it sounds like you’ve been listening in on our highly secretive strategy session. We are.

Speaker #6: I wish. I wish.

Speaker #4: All I can say, all I can say is that yes, we are working on those things, and I'll kind of leave it at that.

Speaker #4: I guess that was the first part of the question to you, Mike. You want to say what? And that's basically what normally our acquisitions we had guided to a point and a half for the year.

Speaker #4: And I guess you would expect us to do that, simply because we have great relationships with our clients. And we are expanding upwards and downwards the set of capabilities. You saw us buy discovery assets.

Speaker #4: But now that we did and it's going to add what, about 75, 80 million?

Speaker #5: Yeah.

Speaker #4: This year's revenue.

Mike Fedock: Yeah.

Ari Bousbib: This year's revenue.

Speaker #5: Yeah. They normally are the acquisition impact is usually about two-thirds commercial, one-third R&DS. It's about the same.

Mike Fedock: Yeah, Dave, normally, the acquisition impact is usually about two-thirds Commercial, one-third R&DS. It's about the same.

Speaker #4: In fact, we completed the acquisition of the Charles River assets in the quarter. I guess that was the first part of the question to you, Mike.

Mike Fedock: Yeah, Dave, normally, the acquisition impact is usually about two-thirds Commercial, one-third R&DS. It's about the same.

Speaker #4: Yeah. About the same for this quarter as well. Thanks. Thank you.

Ari Bousbib: Yeah. About the same for this quarter as well.

Speaker #4: You want to say what? And that's basically what—normally, our acquisitions, we had guided to a point and a half for the year. But now, with what we did, and it's going to add, what, about $75 million to $80 million?

David Windley: Okay.

Ari Bousbib: Thank you.

Speaker #1: Your next question comes from the line of Jalendra Singh with Truist Securities. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Jailendra Singh with Truist Securities. Your line is open. Please go ahead.

Speaker #6: Yeah.

Speaker #4: This year's revenue.

Speaker #6: Yeah. And Dave, normally the acquisition impact is usually about two-thirds commercial, one-third R&D. It's about the same.

Speaker #5: And thank you. And congrats on a strong quarter. I want to follow up on your comments around EBITDA margin improving faster than you had expected.

Jailendra Singh: Thank you. Congrats on a strong quarter. I want to follow up on your comments around EBITDA margin improving faster than you had expected. Can you elaborate on that? What was the key operational drivers there? Related to that, have you started to see any benefits from any productivity-related investments from AI?

Speaker #5: Can you elaborate on that? What was some of the key operational drivers there? And related to that, have you started to see any benefit from any productivity-related investments from AI?

Speaker #4: Yeah. About the same for this quarter as well. Thanks. Thank you.

Speaker #1: Your next question comes from the line of Jalandra Singh with Truist Securities. Your line is open. Please go ahead.

Speaker #2: Sure, Jalendra. I'll take that one. So let me give you some color on our EBITDA margins. Yes, they expanded as we noted, 10 basis points.

Mike Fedock: Sure, Jailendra. I'll take that one. Let me give you some color on our EBITDA margins. Yes, they expanded, as we noted, 10 basis points. As we started to provide a little bit more color on the composition, our operational and productivity programs are going exceptionally well. We've said that AI is just another lever in that toolkit. That drove about 90 basis points of operational margin expansion in the quarter. Obviously we have non-operational items like FX that were about 80 basis points of drag.

Speaker #5: And thank you. And congrats on a strong quarter. I want to follow up on your comments around EBITDA margin improving faster than you had expected.

Speaker #2: And as we started to provide a little bit more color on the composition, our operational and productivity programs are going exceptionally well. And we've said that AI is just another lever in that toolkit.

Speaker #5: Can you elaborate on that? What were some of the key operational drivers there? And, related to that, have you started to see any benefit from any productivity-related investments from AI?

Speaker #2: So that drove about 90 basis points of operational margin expansion the quarter. And then obviously, we have non-operational items like effects that were about 80 basis points of address.

Speaker #6: Sure, Jalandra. I'll take that one. So let me give you some color on our EBITDA margins. Yes, they expanded, as we noted, by 10 basis points.

Speaker #4: That's effects.

Speaker #2: Excuse me.

Speaker #4: Effects have zero effects.

Ari Bousbib: FX, you mean?

Mike Fedock: Excuse me

Speaker #2: Zero impact. Past periods of 80 basis points of a drag. Just so clearly, our operational productivity programs are delivering value.

Ari Bousbib: FX has zero impact.

Mike Fedock: Pass-throughs of 80 basis points of a drag. Clearly our operational productivity programs are delivering value.

Speaker #6: And as we started to provide a little bit more color on the composition, our operational and productivity programs are going exceptionally well. And we've said that AI is just another lever in that toolkit.

Mike Fedock: Pass-throughs of 80 basis points of a drag. Clearly our operational productivity programs are delivering value.

Speaker #4: Yeah. I mean, just for context, Jalendra, if you recall in the first quarter, we reported that we generated 60 bips of operational productivity improvements.

Ari Bousbib: Yeah, just for context, Jailendra, if you'll recall, in Q1, we reported that we generated 60 basis points of operational productivity improvements, now margins, that was offset by 120 basis points of negative impact from the stronger pass-through growth as well as FX.

Speaker #6: So, that drove about 90 basis points of operating margin expansion in the quarter. And then, obviously, we have non-operational items like FX that were about 80 basis points of address.

Speaker #4: Now margins. But that was offset by 120 bips of negative impact from the stronger pass-through growth as well as effects. Now, in this quarter, we had no effects virtually.

Speaker #4: That's efficient.

Speaker #6: Excuse me. Zero impact.

Speaker #4: Past periods of 80 basis points of a drag. So, clearly, our operational productivity programs are delivering value.

Mike Fedock: Correct.

Ari Bousbib: Now, in this quarter, we had no FX, virtually negligible, but we still had pass-throughs growth, and those created a headwind of 80 basis points. Now, we generated 90 basis points of operational underlying margin improvement, and that led to that small, I guess, 10 basis points of adjusted EBITDA improvement.

Speaker #4: Negligible. But we still had pass-throughs growth. And those created a headwind of 80 bips. Now, we generated 90 bips of operational underlying margin improvement.

Speaker #5: Yeah. I mean, just for context, Jalandra, if you recall in the first quarter, we reported that we generated 60 bips of operational productivity improvements.

Speaker #5: Now margins. But that was offset by 120 bips of negative impact from the stronger pass-through growth as well as FX. Now, in this quarter, we had no FX virtually.

Speaker #4: And that led to that small, I guess, 10 bips of adjusted EBITDA improvement.

Speaker #5: Yeah. And it's also important to remember that we get leverage off of our fixed cost base as we have stronger revenues.

Mike Fedock: Yeah. It's also important to remember that we get leverage off of our fixed cost base as we have stronger revenues.

Speaker #4: That's true.

Ari Bousbib: That's true.

Speaker #5: Negligible. But we still had pass-throughs growth. And those created a headwind of 80 bips. Now, we generated 90 bips of operational underlying margin improvement.

Speaker #5: Got it. Thanks, guys.

Jailendra Singh: Got it. Thanks, guys.

Speaker #1: Your next question comes from the line of Sean Dodge with BMO Capital Markets. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Sean Dodge with BMO Capital Markets. Your line is open. Please go ahead.

Speaker #5: Yeah. Thanks. Good morning. Maybe just adding a little bit more dimension to what you just talked about with the margins and the guidance. Mike, I think you said 80 basis points of non-operational headwind EBITDA margins in the second quarter.

Speaker #5: And that led to that small, I guess, 10 bps of adjusted EBITDA improvement.

Sean Dodge: Yeah, thanks. Good morning. Maybe just adding a little bit more dimension to what you just talked about with the margins and the guidance. Mike, I think you said 80 basis points of non-operational headwinds EBITDA margins in Q2. If you could just help us understand how FX and pass-throughs are going to progress in terms of non-operational margin headwinds in Q3 and Q4. Thanks.

Speaker #6: Yeah, and it's also important to remember that we got leverage off of our fixed cost base as we had stronger revenues.

Speaker #5: If you could just kind of help us understand how FX and pass-throughs are going to kind of progress in terms of non-operational margin headwinds in Q3 and Q4.

Speaker #4: That's true.

Speaker #5: Got it. Thanks, guys.

Speaker #1: Your next question comes from the line of Sean Dodge with BMO Capital Markets. Your line is open. Please go ahead.

Speaker #5: Thanks.

Speaker #2: Yeah. So in the full year, I think that was the context of your question. I mean, we were pretty explicit in our guide that you really have to look at all the moving parts.

Mike Fedock: Yeah. In the full year, I think that was the context of your question. We were pretty explicit in our guide. You really have to look at all the moving parts that are in there. Obviously, FX tailwind reducing helps our reported margins. We added in M&A, which is primarily Charles River, which as you know, has lower margins. Then we have our strong productivity programs that are delivering incremental EBITDA margins and value that are helping offset. When you put all of that together, that's where we're maintaining our flat margins for the year.

Speaker #2: Yeah, thanks. Good morning. Maybe just adding a little bit more dimension to what you just talked about with the margins and the guidance. Mike, I think you said 80 basis points of non-operational headwind to EBITDA margins in the second quarter.

Speaker #2: Those that are in there. So obviously, effects, tailwind reducing, helps our reported margins. We added in M&A, which is primarily Charles River, which as you know has lower margins.

Speaker #2: If you could just kind of help us understand how FX and pass-throughs are going to kind of progress in terms of non-operational margin headwinds in Q3 and Q4.

Speaker #2: And then we have our strong productivity programs that are delivering incremental EBITDA margins. And value that are helping offset. And we put all of that together.

Speaker #2: Thanks.

Speaker #6: Yeah. So in the full year, I think that was the context of your question. I mean, we were pretty explicit in our guide that you really have to look at all the moving parts because that are in there.

Speaker #2: That's where we're maintaining our flat margins for the year.

Speaker #4: Yeah. Just to be clear, effects is not helping margins. Less of an effects impact eliminates the headwind to margins that we have. When we started the year, effects, as you know, has changed dramatically over the course of the quarter.

Ari Bousbib: Yeah, just to be clear, FX is not helping margins. Less of an FX impact eliminates the headwinds to margins that we had when we started the year. FX, as you know, has changed dramatically over the course of the quarter. The main headwind, non-operational headwind to margins is pass-throughs, which as you know, come with no profit. Thank you. One more question?

Speaker #6: So obviously, FX tailwind reducing helps our reported margins. We added in M&A, which is primarily Charles River, which, as you know, has lower margins.

Speaker #6: And then we have our strong productivity programs that are delivering incremental EBITDA margins and value that are helping offset. And we put all of that together.

Speaker #4: The main headwind, non-operational headwind to margins is pass-throughs, which, as you know, came with no profit. Thank you. One more question, then?

Speaker #6: That's where we're maintaining our flat margins for the year.

Speaker #4: Yeah. Just to be clear, FX is not helping margins. Less of an FX impact eliminates the headwind to margins that we have. When we started the year, FX, as you know, has changed dramatically over the course of the quarter.

Speaker #1: Your last question will be from the line of Shlomo Rosenbaum with Stifel. Your line is open. Please go ahead.

Operator: Your last question will be from the line of Shlomo Rosenbaum with Stifel. Your line is open. Please go ahead.

Speaker #5: Hi. Thank you for squeezing me in. Yeah. All right. I want to ask you something. I'm not sure how quantitatively you can answer, but maybe qualitatively, you talked about 100 basis points of better organic revenue growth in the guidance.

Shlomo Rosenbaum: Hi. Thank you for squeezing me in. Hey, Ari, I want to ask you something. I'm not sure how quantitatively you can answer, but maybe qualitatively. You talked about 100 basis points of better organic revenue growth in the guidance, and I'm trying to understand the whole market is getting better. You said that the market environment is strengthening. Are you able to give us an idea of how much of your guidance raised on the organic side is just a rising tide lifting all boats versus the better execution and the win rates that you're having? If you could give us some color on how we should be thinking about this.

Speaker #4: The main headwind, non-operational headwind to margins is pass-throughs, which, as you know, came with no profit. Thank you. One more question, then?

Speaker #5: And I'm trying to understand the whole market is getting better. You said that the market environment is strengthening. Are you able to kind of give us an idea of how much of your guidance raised on the organic side is just a rising tide lifting all boats versus the better execution and the win rates that you're having?

Speaker #1: Your last question will be from the line of Shlomo Rosenbaum with Stiefel. Your line is open. Please go ahead.

Speaker #6: Hi. Thank you for squeezing me in. Yeah, all right. I want to ask you something. I'm not sure how quantitatively you can answer, but maybe qualitatively. You talked about 100 basis points of better organic revenue growth in the guidance.

Speaker #5: And if you could give us some color on how we should be thinking about

Speaker #4: Well, I do. I mean, you need a good market to be able to perform. As you know, we've been facing a lot of headwinds.

Speaker #6: And I'm trying to understand the whole market is getting better. You said that the market environment is strengthening. Are you able to kind of give us an idea of how much of your guidance raised on the organic side is just a rising tide lifting all boats versus the better execution and the win rates that you're having?

Ari Bousbib: Well, look, I mean, you need a good market to be able to perform. As you know, we've been facing a lot of headwinds, macro headwinds over the past years. There's no question, I shared some of the forward-looking demand indicators, no question that the RFP flows, which we report or indicate to you at every quarter, have been improving. I don't quite recall, top of my mind, the RFP flow growth is probably one or two quarters, which if you go back and look, I'm sure they were good, probably mid to high single digits. That kind of reflects itself now in our bookings. Now, RFP flows were up double digits in the quarter, strong double digits, actually. I think that bodes well for the future. Now, of course, it's not enough to get an RFP. You also have to win. You're right.

Ari Bousbib: Well, look, I mean, you need a good market to be able to perform. As you know, we've been facing a lot of headwinds, macro headwinds over the past years. There's no question, I shared some of the forward-looking demand indicators, no question that the RFP flows, which we report or indicate to you at every quarter, have been improving. I don't quite recall, top of my mind, the RFP flow growth is probably one or two quarters, which if you go back and look, I'm sure they were good, probably mid to high-single-digits. That kind of reflects itself now in our bookings. Now, RFP flows were up double digits in the quarter, strong double digits, actually. I think that bodes well for the future. Now, of course, it's not enough to get an RFP. You also have to win. You're right.

Speaker #4: Micro headwinds over the past years. But there's no question I shared some of the forward-looking demand indicators. No questions. That the RFP flows, which we report or indicate to you at every quarter, have been improving.

Speaker #6: And if you could give us some color on how we should be thinking about this.

Speaker #4: I don't quite recall top of my mind the RFP flow growth in the prior one or two quarters, which you can go back and look.

Speaker #4: Well, I think—I mean, you need a good market to be able to perform. As you know, we've been facing a lot of headwinds.

Speaker #4: I'm sure they were good. Probably mid to high single digits. And that kind of reflects itself now in our bookings. Now, RFP flows were up double digits.

Speaker #4: Micro headwinds over the past years, but there's no question I shared some of the forward-looking demand indicators. No questions. That the RFP flows, which we report or indicate to you at every quarter, have been improving.

Speaker #4: In the quarter, strong double digits, actually. And I think that goes well for the future. Now, of course, it's not enough to get an RFP.

Speaker #4: You also have to win. And so you're right. Our win rate has been ticking up significantly on the back of all of the capabilities we talked about.

Speaker #4: I don't quite recall, off the top of my mind, the RFP flow growth in the prior one or two quarters. If you go back and look, I'm sure they were good—probably mid- to high- single digits.

Ari Bousbib: Our win rate has been ticking up significantly on the back of all of the capabilities we talked about and on the back of the fact that the EBP segment, in particular, has seen very, very strong funding growth, and that usually translates six months to three quarters after the funding into awards. Again, given our strong position in the segment, we're winning a fair share. That has also contributed. Anything else, Mike, you want to add?

Speaker #4: And on the back of the fact that the EBP segment in particular has seen very, very strong funding growth. And that usually translates six months to two years after the funding into a worse.

Speaker #4: And that kind of reflects itself now in our bookings. Now, RFP flows were up double digits. In the quarter, strong double digits, actually. And I think that bodes well for the future.

Speaker #4: And again, given our strong position in the EBP segment in winning a fair share, so that has also contributed. Anything else, Mike?

Speaker #4: Now, of course, it's not enough to get an RFP; you also have to win. And so you're right, our win rate has been ticking up significantly on the back of all of the capabilities we talked about.

Speaker #2: No.

Mike Fedock: No, I think it's okay.

Speaker #5: Next question.

Ari Bousbib: Next question, please.

Speaker #1: Your next question comes from the line of Elizabeth Anderson with Evercore ICI. Your line is open. Please go ahead.

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

Speaker #6: Hi guys. Congrats on the nice quarter. And thanks so much for the question. If we think about the guidance, particularly the revenue increase, how would you sort of allocate that between the improving demand environment that you're seeing in R&DS and CS and anything to call out and sort of either interest expense or tax rate or anything that changed versus what you were saying last quarter?

Elizabeth Anderson: Hi, guys. Congrats on the nice quarter, and thanks so much for the question. If we think about the guidance, particularly the revenue increase, how would you sort of allocate that between the improving demand environment that you're seeing in R&DS and CS? Anything to call out in sort of either like interest expense or tax rate or anything that changed versus what you were saying last quarter? Thank you.

Speaker #4: And again, given our strong position in the EBP segment and winning a fair share, that has also contributed. Anything else, Mike, you want to add?

Speaker #6: No. I think that's it.

Speaker #4: Yeah.

Speaker #6: Next question, please. Yeah.

Speaker #6: Thank you.

Speaker #1: Your next question comes from the line of Elizabeth Anderson with Evercore ISI. Your line is open. Please go ahead.

Speaker #2: Well, I'm saying no significant changes on the below the line assumptions there. And clearly, when you talk about R&DS, it's a long-cycle business. So the great bookings that we've had, are really more of a 27 and beyond indicator.

Mike Fedock: I'm saying no significant changes on the below the line assumptions there. Clearly, when you talk about R&DS, it's a long-cycle business, so the great bookings that we've had are really more of a 2027 and beyond indicator. We've been getting a lot of questions about our bookings.

Speaker #7: Hi, guys. Congrats on the nice quarter and thanks so much for the question. If we think about the guidance, particularly the revenue increase, how would you sort of allocate that between the improving demand environment that you're seeing in R&DS and anything to call out and sort of either interest expense or tax rate or anything that changed versus what you were saying last quarter?

Speaker #2: So we've been getting a lot of questions about our bookings.

Speaker #4: Yeah. Well, I think I think I answered an earlier questions about bookings and the fact that they were really broad-based. Again, there was nothing salient.

Ari Bousbib: Well, again, I think I answered an earlier questions about bookings and the fact that they were really broad-based. Again, there was nothing salient. I think it was generally very strong. I just want to mention, recently, several of you asked about bookings and bookings policy in light of some other people changes to their bookings policies and so on. I just want to again emphasize that we continue to have contracted bookings. That is, all bookings need a signature, and to take a cancellation, we also need a signature. We feel that the signature is an objective criteria and it removes judgment. We think that we're going to stick with that best-in-class policy. I'm just giving you that as a context for your questions. Again, broad-based bookings or contracted bookings.

Speaker #7: Thank you.

Speaker #6: Well, I'm saying no significant changes on the below-the-line assumptions there. And clearly, when you talk about RDS, it's a long-cycle business. So the great bookings that we've had are really more of a 2027 and beyond indicator.

Speaker #4: I think it was generally very strong. And I just want to mention, in the recently several of you asked about bookings and bookings policy in light of some of some other people changes to their bookings policies and so on.

Speaker #6: So, we've been getting a lot of questions about our bookings.

Speaker #4: Yeah. Well, I think I answered an earlier question about bookings and the fact that they were really broad-based. Again, there was nothing salient. I think it was generally very strong.

Speaker #4: And I just want to, again, emphasize that we continue to have contract with bookings. That is that old bookings need a signature. And to take a cancellation, we also need a signature.

Speaker #4: And I just want to mention in the recently several of you asked about bookings and bookings policy in light of some of some other people changes to their bookings policies and so on.

Speaker #4: We feel that the signature is an objective criteria. And then we move judgment. And we think that we're going to stick with that best in class policy.

Speaker #4: I'm just giving you that as a context for your questions that, again, broad-based bookings or contracted bookings many of you, by the way, also will receive several inquiries wondering if we also have a 15 or 16 percent of our backlog that's inactive trials.

Speaker #4: And I just want to, again, emphasize that we continue to have contract bookings. That is that old bookings need a signature and to take a cancellation, we also need a signature.

Ari Bousbib: Many of you, by the way, also, we received several inquiries wondering if we also have 15% or 16% of our backlog that's inactive trials. We asked the R&DS team to go back. Obviously, in our backlog, $34 billion, we've got thousands and thousands of trials, as you can imagine, accumulating over the years. We asked the R&DS team to review the backlog to identify so-called inactive trials. Just want to make sure that to reassure those of you who asked, and several of you asked, about the quality of the backlog. Mike, do you have any comments on that? I assume they were preliminary results of that.

Speaker #4: We feel that the signature is an objective criterion. And then we move to judgment. And we think that we're going to stick with that best-in-class policy.

Speaker #4: And we asked the R&DS team to go back. Obviously, we have in our backlog, 34 billion dollars. We've got thousands and thousands of trials, as you can imagine.

Speaker #4: I'm just giving you that as a context for your questions. And again, broad-based bookings or contracted bookings many of you, by the way, also will receive several inquiries wondering if we also have a 15 or 16 percent of our backlog that's inactive trials.

Speaker #4: Accumulating over the years. And we asked the R&DS team to review the backlog to identify so-called inactive trials. And just want to make sure that to reassure those of you who asked and several of you asked, about the quality of the backlog.

Speaker #4: Mike, do you have any comments on that? So they were preliminary results of that.

Speaker #4: And we ask the R&Ds team to go back. Obviously, we have, in our backlog, $34 billion. We've got thousands and thousands of trials, as you can imagine.

Speaker #5: Yeah. I think the team is looking at it. And we'll finalize it in the third quarters. But if there is an adjustment to our backlog for inactive trials, it's in the ballpark of 5%.

Mike Fedock: I think the team is looking at it, and we'll finalize it in the Q3. If there is an adjustment to our backlog for inactive trials, it's in the ballpark of 5%. Not this 15% metric that was out there by a competitor. I think that it's important to note that if we do make an adjustment, it will have zero impact on any historical financial results, guidance, the next 12-month revenue from backlog that we just reported, zero. Again, it's something that we're looking into, and if we do something, we will talk about it in our Q3 call.

Speaker #4: Accumulating over the years. And we ask the R&DS team to review the backlog to identify so-called inactive trials. And just want to make sure that to reassure those of you who asked and several of you asked, about the quality of the backlog.

Speaker #5: Not this 15% metric that was out there by competitor. And I think that it's important to note that if we do make an adjustment, it will have zero.

Speaker #5: Impact on any historical financial results, guidance, the next 12-month revenue from backlog averages recorded zero. So again, it's something that we're looking into. And if we do something, we will talk about it in our third quarter call.

Speaker #4: Mike, do you have any comments on that? So, they were preliminary results of that.

Speaker #6: Yeah, I think the team is looking at it and will finalize it in the third quarter. But if there is an adjustment to our backlog for inactive trials, it's in the ballpark of 5%.

Speaker #4: But to your question about the next what is important because we reported this time very strong growth in next 12 months revenue from backlog.

Ari Bousbib: To your question about what is important, because as we reported this time, very strong growth in next 12 months revenue from backlog, right? As you know, it's at the record level. What's the number? Nine point over nine-

Speaker #6: Not this 15% metric that was out there by a competitor. And I think that it's important to note that if we do make an adjustment, it will have zero impact on any historical financial results, guidance, or the next 12-month revenue from backlog that we just reported—zero.

Speaker #4: And as you know, it's at the record level. What's the number? 9. Over 9.2 billion dollars. Seven percent growth. And that's been also increasing quarter after quarter.

Mike Fedock: Seven and a half%.

Ari Bousbib: 17% growth, and has been also increasing quarter after quarter. We want to draw your attention also to the net new bookings last 12 months, quarter after quarter. If you go back and look over the past five quarters, that metric has been constantly increasing in a regular, steady pace and year-over-year, it's up 12.9%. All of that bodes well to your question about our revenue going forward, not just guidance for this year, but the momentum into next year.

Speaker #6: So again, it's something that we're looking into, and if we do something, we will talk about it on our third quarter call.

Speaker #4: We want to enjoy your attention also to the net new bookings last 12 months quarter after quarter. If you go back and look over the past five quarters, that metric has been constantly increasing in a regular steady pace.

Speaker #4: But to your question about the next, what is important is that we reported this time very strong growth in next 12 months' revenue from backlog.

Speaker #4: And as you know, it's at a record level. What's the number? Over $9.2 billion. 7% growth. And that's also been increasing quarter after quarter.

Speaker #4: And year over year, it's up 12.9%. All of that bodes well to your question about our revenue going forward, not just guidance for this year, but the momentum into next year.

Speaker #4: We want to draw your attention also to the net new bookings over the last 12 months, quarter after quarter. If you go back and look over the past five quarters, that metric has been consistently increasing at a regular, steady pace.

Speaker #5: And specifically this year, we're seeing the acceleration growth in both commercial solutions and RDS segment, Elizabeth. So we feel good about the guide.

Mike Fedock: Specifically this year, we're seeing the acceleration growth in both Commercial Solutions and R&DS segment, Elizabeth, so we feel good about the guide.

Speaker #4: Okay. Thank you all.

Ari Bousbib: Thank you all.

Speaker #1: Thank you. At this time, Mr. Joseph, I turn the call back over to you.

Speaker #4: And year over year, it's up 12.9%. All of that bodes well for your question about our revenue going forward, not just guidance for this year, but also the momentum into next year.

Operator: Thank you. At this time, Mr. Joseph, I turn the call back over to you.

Speaker #4: Thank you, operator. Thank you, everyone, for taking the time to join us today. And we look forward to speaking with you again on third quarter 2026 earnings call.

Kerri Joseph: Thank you, operator. Thank you everyone for taking the time to join us today. We look forward to speaking with you again on Q3 2026 earnings call. The team will be available the rest of the day to take any follow-up questions you might have. Thank you. Have a good day.

Speaker #4: The team will be available the rest of the day to take any follow-up questions you might have. Thank you. Have a good day.

Speaker #6: And specifically this year, we're seeing the acceleration of growth in both the Commercial Solutions and RDS segments, Elizabeth. So we feel good about the guide.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Speaker #4: Okay. Thank you all.

Speaker #1: Thank you. At this time, Mr. Joseph, I turn the call back over to you.

Speaker #4: Thank you all for it. Thank you, everyone, for taking the time to join us today. We look forward to speaking with you again on third quarter 2026 earnings call.

Speaker #4: The team will be available for the rest of the day to take any follow-up questions you might have. Thank you. Have a good day.

Q2 2026 IQVIA Holdings Inc Earnings Call

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