IQVIA Holdings IQV · USD

SegmentsThe following table presents the Company’s operations by reportable segment. The Company is managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions provides mission critical information, technology solutions and real world insights and services to the Company’s life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical customers and the broader healthcare market. Certain costs are not allocated to the Company's segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation and expenses related to integration activities and acquisitions, as well as certain general corporate and unallocated expenses. The Company also does not allocate restructuring costs, depreciation and amortization or impairment charges, if any, to its segments. Asset information by segment is not presented, as this measure is not used by the chief executive officer, who is the chief operating decision maker ("CODM"), to assess the Company’s performance. For all segments, the CODM uses segment revenue and segment profit in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly and quarterly basis for both segment revenue and profit when making decisions about allocating operating and capital resources to the segments. The CODM also uses segment revenue and profit to assess the performance for each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.Effective January 1, 2026, the Company will be updating its segment reporting to align with industry evolution, its updated operating model, and how internal reporting will be provided to the CODM. As a result, the Contract Sales & Medical Solutions segment, which has become more closely related operationally to the Technology & Analytics Solutions segment commercial offerings, will be incorporated into the Technology & Analytics Solutions segment, which is renamed Commercial Solutions.

Revenues by Geography, Concentration of Credit Risk and Remaining Performance ObligationsThe Company attributes revenues to geographical region based upon where the services are performed. The following tables represent revenues by geographical region and reportable segment for the years ended December 31, 2025, 2024 and 2023:December 31, 2025(in millions)Technology & Analytics SolutionsResearch & Development SolutionsContract Sales & Medical SolutionsTotalRevenues:Americas$3,363 $4,105 $277 $7,745 Europe and Africa2,646 2,273 266 5,185 Asia-Pacific617 2,518 245 3,380 Total revenues$6,626 $8,896 $788 $16,310 December 31, 2024(in millions)Technology & Analytics SolutionsResearch & Development SolutionsContract Sales & Medical SolutionsTotalRevenues:Americas$3,182 $3,894 $280 $7,356 Europe and Africa2,397 2,304 219 4,920 Asia-Pacific581 2,329 219 3,129 Total revenues$6,160 $8,527 $718 $15,405 December 31, 2023(in millions)Technology & Analytics SolutionsResearch & Development SolutionsContract Sales & Medical SolutionsTotalRevenues:Americas$3,091 $4,157 $304 $7,552 Europe and Africa2,156 2,103 200 4,459 Asia-Pacific615 2,135 223 2,973 Total revenues$5,862 $8,395 $727 $14,984 When attributing revenues to individual countries based upon where the services are performed, no individual country, except for the United States, accounted for 10% or more of total revenues for the years ended December 31, 2025, 2024 and 2023. For the years ended December 31, 2025, 2024 and 2023, revenues in the United States accounted for approximately 42%, 42%, and 45% of total revenues, respectively, using this revenue attribution approach.No individual customer represented 10% or more of total revenues for the years ended December 31, 2025, 2024 and 2023.Transaction Price Allocated to the Remaining Performance ObligationsAs of December 31, 2025, approximately $34.2 billion of revenues are expected to be recognized in the future from remaining performance obligations. The Company expects to recognize revenues on approximately 30% of these remaining performance obligations over the next twelve months, on approximately 85% over the next five years, with the balance recognized thereafter. Most of the Company's remaining performance obligations where revenues are expected to be recognized beyond the next twelve months are for service contracts for clinical research in the Company's Research & Development Solutions segment.

Income TaxesThe components of income before income taxes and equity in earnings of unconsolidated affiliates are as follows:Year Ended December 31,(in millions)202520242023Domestic$94 $214 $108 Foreign1,4971,4551,351$1,591$1,669$1,459The components of income tax expense attributable to continuing operations are as follows:Year Ended December 31,(in millions) 202520242023Current expense:Federal and state$49$44$21 Foreign383 386 349 432 430 370 Deferred (benefit) expense:Federal and state(132)(116)(236)Foreign(48)(13)(33)(180)(129)(269)$252 $301 $101 The differences between the Company’s consolidated income tax expense attributable to continuing operations and the expense computed at the United States statutory income tax rate of 21% were as follows:Year Ended December 31,(in millions)2025Federal income tax expense at statutory rate$334 21.0 %Foreign tax effects23 1.4 %Effect of cross-border tax lawsForeign Derived Intangible Income ("FDII")(57)(3.6)%Foreign earnings subject to US tax, net of related foreign tax credits(56)(3.5)%Change in unrecognized tax benefits11 0.7 %Other(3)(0.2)%$252 15.8 %Year Ended December 31,(in millions)20242023Federal income tax expense at statutory rate$351 $306 State and local income taxes, net of federal effect9 16 Research and development(28)(25)United States taxes recorded on foreign earnings(*)(79)(41)Tax contingencies14 17 Foreign Derived Intangible Income (“FDII”)(56)(53)Foreign rate differential87 45 Equity compensation3 — Valuation Allowance Release— (102)Basis Difference Reversal— (61)Other— (1)$301 $101 (*) Includes impact of GILTI, and other U.S. taxes on foreign earnings.The Company's effective income tax rate was 15.8%, 18.0%, and 6.9% for the years ending December 31, 2025, 2024 and 2023, respectively. The Company's effective income tax rate for the year ended December 31, 2025 was favorably impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions, compared to the Company's effective income tax rate for the year ended December 31, 2024. The Company's effective income tax rate for the year ended December 31, 2023, was favorably impacted due to the completion of an internal legal entity restructuring that resulted in a benefit of $125 million.

LeasesThe Company has operating leases for corporate offices, data centers, motor vehicles and certain equipment, many of which contain renewal and escalation clauses. These operating leases primarily expire at various dates through 2037 with options to cancel certain leases at various intervals. The Company also has finance leases for offices and lab spaces that expire at various dates through 2048.The components of lease expense were as follows:Year Ended December 31, (in millions)Classification202520242023Operating lease cost (1) Selling, general and administrative expenses$160 $158 $160 Finance lease cost (1)Depreciation and amortization, and Interest expense18 18 18 Total lease cost$178 $176 $178 (1) Includes short-term and variable lease costs, which are immaterial.Other information related to leases was as follows:Year Ended December 31, (in millions)202520242023Supplemental Cash Flow:Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows for operating leases$157 $160 $175 Operating cash flows for finance leases$8 $8 $8 Financing cash flows for finance leases$5 $5 $3 Right-of-use assets obtained in exchange for lease obligations:Operating leases$133 $58 $59 Weighted Average Remaining Lease Term:Operating leases5.35 years4.58 years4.61 yearsFinance leases18.74 years19.73 years20.67 yearsWeighted Average Discount Rate:Operating leases5.24%4.57%3.81 %Finance leases3.90%3.90%3.

Business CombinationsThe Company completed several individually immaterial acquisitions during the years ended December 31, 2025 and 2024. The Company’s assessment of fair value, including the valuation of certain acquired intangibles and noncontrolling interests ("NCI"), and the purchase price allocation related to the acquisitions that occurred during the year ended December 31, 2025 is preliminary and subject to change upon completion. Further adjustments, largely related to acquired intangible assets and related deferred taxes, may be necessary as additional information related to the fair values of assets acquired and liabilities assumed is assessed during the measurement period (up to one year from the acquisition date). The Company recorded goodwill from these acquisitions, primarily attributable to assembled workforce, expected synergies and new customer relationships. The fair value of the NCI as of the acquisition date was based on fair value assessments, primarily using an income approach and applying the NCI’s ownership percentage. The condensed consolidated financial statements include the results of the acquisitions subsequent to their respective closing dates. Pro forma information is not presented as pro forma results of operations would not be materially different to the actual results of operations of the Company. The following table provides certain preliminary financial information for these acquisitions:Year Ended December 31,(in millions)20252024Assets acquired:Cash and cash equivalents$90 $28 Accounts receivable137 68 Other assets85 60 Goodwill1,279 532 Other identifiable intangibles777 313 Liabilities assumed:Other liabilities(130)(114)Deferred income taxes, long-term(128)(40)Net assets acquired (1)(2)$2,110 $847 Fair value of noncontrolling interests(3)126 — Fair value of controlling interests acquired$1,984 $847 (1) Net assets acquired include contingent consideration and deferred purchase price of $66 million and $84 million for the years ended December 31, 2025 and 2024, respectively, and $141 million related to NCI and the net assets of the step acquisition disclosed in (3) below for the year ended December 31, 2025. (2) During the year ended December 31, 2025, the Company acquired an entity in which it previously held a convertible note instrument of approximately $43 million, and the net assets acquired are included here.

Our Board actively oversees our enterprise risk management program. Our Board’s role in risk oversight is consistent with our overall leadership structure: management is responsible for assessing and managing our short- and long-term risk exposures, and our Board and its committees provide effective oversight through independent monitoring of strategic risks and regularly scheduled meetings with management to discuss in-depth the strategic objectives of the Company and associated risks. In connection with Board oversight across the entire enterprise risk management program, the Board delegates to the individual committees certain elements of its oversight function. The Audit Committee of the Board has oversight of cybersecurity risk and receives regular updates on any developments from our Chief Information Security Officer (“CISO”), including biannual updates on strategies and action plans, with periodic reports provided to our full Board. We have an Enterprise Risk Council made up of leaders from our principal functional areas and business units that meets on a quarterly basis to update our enterprise risk framework used to identify and manage our key risks, including cybersecurity. Cybersecurity is a standing item on our Enterprise Risk Council agenda and our cybersecurity team regularly presents its work to the Enterprise Risk Council to enable evolving risks to be integrated into our management processes. The Global Information Security team, led by our CISO, create cybersecurity processes and frameworks for use throughout IQVIA. Our CISO is an experienced cybersecurity leader with over 25 years of experience in security, technology and risk management, and has previously served as a public company CISO for a global financial services firm, where he spent 18 years serving in roles of increasing responsibility, leading large cross functional security and technology teams. The IQVIA cybersecurity program employs policies, procedures, guidelines, training, communications, tools, assessments and other methods and resources to identify and manage cybersecurity risks. Our Integrated Information Security Framework ("IISF") defines minimum controls and safeguards used to safeguard proprietary and confidential information.

DerivativesInterest Rate Risk ManagementThe Company has entered into interest rate swaps for purposes of managing its exposure to interest rate fluctuations. The Company does not enter into interest rate swaps for investment or speculative purposes.On January 3, 2023, the Company entered into interest rate swaps with a combined notional value of $1,000 million in an effort to limit its exposure to changes in the variable interest rate on its Senior Secured Credit Facilities (see Note 10 for additional information). Interest on the swaps began accruing on December 30, 2022 and the swaps expired on December 31, 2025. The Company paid a fixed rate of 4.10% and received a variable rate of interest equal to one-month Term SOFR on the swaps.On November 17, 2023, the Company entered into interest rate swaps with a combined notional value of $1,500 million in an effort to limit its exposure to changes in the variable interest rate on its Senior Secured Credit Facilities (see Note 10 for additional information). Interest on the swaps began accruing on November 28, 2023 and the swaps expire on January 2, 2031. The Company pays a fixed rate of 6.11% and receives a variable rate of interest equal to three-month Term SOFR plus 2.00% on the swaps.The critical terms of the interest rate swaps noted above are substantially the same as the underlying borrowings. These interest rate swaps are accounted for as cash flow hedges as these transactions were executed to hedge the Company's interest payments and for accounting purposes are considered highly effective. As such, changes in the fair value of the interest rate swaps are recorded as unrealized gains (losses) on derivatives included in AOCI.The fair value of these interest rate swaps represents the present value of the anticipated net payments the Company will make to the counterparties, which, when they occur, are reflected as interest expense on the consolidated statements of income. These interest rate swaps result in a total debt mix of approximately 73% fixed rate debt and 27% variable rate debt.Foreign Exchange Risk ManagementThe Company transacts business in more than 100 countries and is subject to risks associated with fluctuating foreign exchange rates. Accordingly, the Company enters into foreign currency forward contracts to hedge certain forecasted foreign exchange cash flows arising from service contracts (“Service Contract Hedging”).

InvestmentsDebt, Equity and Other SecuritiesCurrentThe Company’s short-term investments in debt, equity and other securities consist primarily of trading investments in mutual funds and are measured at fair value with realized and unrealized gains and losses recorded in other income, net on the accompanying consolidated statements of income.Long-termThe Company’s long-term debt and equity investments (except those accounted for under the equity method, those that result in consolidation of the investee and certain other investments) are measured at fair value and any changes in fair value are recognized in net income at the end of each reporting period. For debt and equity investments that do not have readily determinable fair values and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurement, to estimate fair value using the net asset value per share of the investment, the Company applies the measurement alternative and measures those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer at each reporting period.Unconsolidated AffiliatesThe Company accounts for its investments in unconsolidated affiliates under the equity method of accounting and records its pro rata share of its losses or earnings from these investments in equity in earnings of unconsolidated affiliates. The following is a summary of the Company’s investments in unconsolidated affiliates:December 31,(in millions)20252024NovaQuest Pharma Opportunities Fund V, L.P. (“NQ Fund V”)$33 $36 NovaQuest Private Equity Fund I, L.P. (“NQ PE Fund I”)1011RxWare (formerly "Helparound")72NovaQuest Pharma Opportunities Fund IV, L.P. (“NQ Fund IV”)44Longwood Fund V, L.P. ("Longwood")4 6 NostraData Pty Ltd.