IQV

A month has gone by since the last earnings report for TransMedics (TMDX). Shares have added about 10.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TransMedics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. TransMedics delivered earnings per share of 44 cents in the second quarter of 2026, down 52.2% year over year. The figure missed the Zacks Consensus Estimate by 12%. Revenues rose 20.7% year over year to $189.9 million and surpassed the consensus estimate by 3.1%. Net product revenues totaled $111.2 million, up 15.7% from the prior-year quarter. The improvement was led by higher organ utilization and increased OCS adoption, particularly across the liver and heart businesses. Service revenues represented roughly 41% of total revenues and increased 28.6% to $78.8 million. Clinical service revenues rose 19.1% to around $36 million. The stronger service contribution reflected broader logistics adoption, pricing adjustments and higher aviation-fleet utilization. Transplant Logistics’ services revenues for second-quarter 2026 were approximately $41 million, up 39% year over year. TransMedics operated 22 owned aircraft during the quarter and covered 86% of National OCS Program missions requiring air transportation, compared with 82% coverage in the first quarter of 2026. This growth resulted from the broader adoption of TransMedics’ logistics services, increased aviation-fleet utilization and improved operating efficiency. In the quarter under review, TransMedics’ gross profit increased 17.2% year over year to $113.2 million. The gross margin contracted 100 basis points (bps) to 60%. Selling, general and administrative expenses rose 31.2% year over year to $57.8 million. Research, development and clinical trials expenses surged 98.5% year over year to $31.6 million. Total operating expenses of $89.5 million increased 49.1% year over year. Adjusted operating profit totaled $25.8 million, reflecting a decline of 29.5% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 960 bps to 13.6%. TransMedics exited second-quarter 2026 with cash of $472.7 million compared with $461.7 million at the end of the first quarter. Total long-term debt at the end of second-quarter 2026 was $39.7 million compared with $44.5 million at the end of the first quarter. Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $41.8 million compared with $88.8 million a year ago. TransMedics raised the lower end of its 2026 revenue guidance. Revenues are now expected to be between $737 million and $757 million, representing growth of approximately 22% to 25% from the 2025 level. The previous projection called for revenues of $727 million to $757 million. The outlook excludes contributions from PAD Aviation and assumes no incremental revenues from the ENHANCE Part B and DENOVO clinical programs. Adjusted operating margin, excluding PAD Aviation, is expected to be between 12.5% and 14%, below the company’s prior expectation of approximately 16% because of accelerated OCS Kidney investments. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -31.5% due to these changes. At this time, TransMedics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransMedics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. TransMedics is part of the Zacks Medical - Instruments industry. Over the past month, IQVIA Holdings (IQV), a stock from the same industry, has gained 11.8%. The company reported its results for the quarter ended June 2026 more than a month ago. IQVIA reported revenues of $4.37 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $3.15 for the same period compares with $2.81 a year ago. IQVIA is expected to post earnings of $3.25 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. IQVIA has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TransMedics Group, Inc. (TMDX) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the drug development inputs & services industry, including IQVIA (NYSE:IQV) and its peers. Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity. The 8 drug development inputs & services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 0.8% above. Luckily, drug development inputs & services stocks have performed well with share prices up 13.2% on average since the latest earnings results. Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively. IQVIA reported revenues of $4.37 billion, up 8.7% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance slightly topping analysts’ expectations. "In a strengthening market environment, the IQVIA team executed well and delivered outstanding results, exceeding the high-end of our expectations for revenue, Adjusted EBITDA and Adjusted Diluted EPS," said Ari Bousbib, chairman and CEO of IQVIA. Interestingly, the stock is up 22.1% since reporting and currently trades at $260.36. Is now the time to buy IQVIA? Access our full analysis of the earnings results here, it’s free. Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials. Azenta reported revenues of $161.2 million, up 12% year on year, outperforming analysts’ expectations by 8%. The business had an incredible quarter with a beat of analysts’ EPS estimates. The market seems happy with the results as the stock is up 9.4% since reporting. It currently trades at $32.95. Is now the time to buy Azenta? Access our full analysis of the earnings results here, it’s free. With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ:RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes. Repligen reported revenues of $204.1 million, up 11.9% year on year, exceeding analysts’ expectations by 1.1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates and an impressive beat of analysts’ organic revenue estimates. Repligen delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 38.4% since the results and currently trades at $181.33. Read our full analysis of Repligen’s results here. Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies. Charles River Laboratories reported revenues of $1.00 billion, down 2.7% year on year. This number beat analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates. The stock is up 24.9% since reporting and currently trades at $292.50. Read our full, actionable report on Charles River Laboratories here, it’s free. Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products. West Pharmaceutical Services reported revenues of $872.3 million, up 13.8% year on year. This print topped analysts’ expectations by 3.5%. It was a very strong quarter as it also put up an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates. The stock is down 5.9% since reporting and currently trades at $337.20. Read our full, actionable report on West Pharmaceutical Services here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for IQVIA Holdings (IQV). Shares have added about 5.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for IQVIA Holdings Inc. before we dive into how investors and analysts have reacted as of late. IQVIA Holdings Inc. has reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. The quarter benefited from broad-based segment growth and strengthening demand indicators. R&D Solutions generated record net new bookings of $3.15 billion, up 19% year over year, producing a 1.22X book-to-bill ratio. Commercial Solutions revenues were $1.79 billion, increasing 8.6% on a reported basis and 8.4% at constant currency. The business contributed roughly 41% to the total quarterly revenues. Growth reflected double-digit gains in patient solutions and commercial engagement services. Analytics and consulting delivered high-single-digit organic growth, while increased adoption of IQVIA’s artificial intelligence solutions also contributed to the segment’s accelerating organic growth. Research & Development Solutions revenues reached $2.58 billion, up 8.8% as reported and 8.6% at constant currency. Excluding reimbursed expenses, revenues advanced 6.7% on a reported basis. Demand indicators strengthened considerably. Trailing-12-month net new bookings rose 13% to $11.3 billion, while contracted backlog stood at $34.2 billion. IQVIA expects $9.2 billion of that backlog to convert into revenues over the next 12 months, representing 7.5% year-over-year growth. The strong bookings performance provides improved visibility into future clinical research revenues. It also supports management’s expectation for sustained business momentum through the remainder of 2026 and into 2027. Adjusted EBITDA increased 9.2% year over year to $994 million. The adjusted EBITDA margin was 22.8%, modestly above the prior-year level, as profit growth slightly outpaced revenue growth. Adjusted net income increased to $527 million from $486 million. The improvement reflected stronger operating performance despite higher stock-based compensation, restructuring-related expenses and acquisition-related costs included in the company’s reconciliation. GAAP net income attributable to IQVIA was $256 million, down from $266 million a year earlier. GAAP diluted earnings were $1.53 per share compared with $1.54 in the prior-year quarter. Cost of revenues increased to $2.93 billion from $2.69 billion in the year-ago quarter. Selling, general and administrative expenses rose to $574 million from $509 million, while depreciation and amortization increased to $292 million. Restructuring costs nearly doubled to $63 million from $32 million. As a result, GAAP income from operations remained unchanged at $506 million despite the higher revenue base. Interest expenses increased to $197 million from $182 million. These cost pressures explain the contrast between the decline in GAAP net income and stronger growth in adjusted earnings and EBITDA. The second-quarter operating cash flow climbed 26% year over year to $558 million. The free cash flow rose 23.3% to $360 million after $198 million of property, equipment and software spending. For the first half, the operating cash flow totaled $1.18 billion and the free cash flow reached $851 million. IQVIA repurchased $398 million of common stock during the quarter, bringing first-half repurchases to $950 million. IQVIA ended June with $1.91 billion in cash and cash equivalents, and $16 billion in debt. Net debt was $14.09 billion, while the net leverage ratio stood at 3.59X trailing-12-month adjusted EBITDA. The company had $2.82 billion remaining under its share-repurchase authorization. Its current portion of long-term debt was $2.29 billion compared with $1.84 billion at the end of 2025. IQVIA raised its 2026 revenue guidance to $17.28-$17.48 billion from $17.15-$17.35 billion. The updated forecast assumes 200 basis points of contribution from acquisitions, up from 150 basis points previously. It also incorporates a foreign-exchange tailwind of approximately 20 basis points, down from the prior assumption of 100 basis points. Adjusted EBITDA guidance increased to $4-$4.05 billion from $3.98-$4.03 billion. IQVIA also lifted adjusted diluted earnings guidance to $12.80-$13 from $12.65-$12.95, reflecting stronger expected organic revenue growth and revised acquisition and currency impacts. In the past month, investors have witnessed a upward trend in estimates review. At this time, IQVIA has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. IQVIA is part of the Zacks Medical - Instruments industry. Over the past month, Edwards Lifesciences (EW), a stock from the same industry, has gained 5.9%. The company reported its results for the quarter ended June 2026 more than a month ago. Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago. For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Edwards Lifesciences has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Veeva Systems VEEV is scheduled to report second-quarter fiscal 2027 results on Aug. 26, after the market close. In the last reported quarter, the company’s earnings per share (EPS) of $2.24 topped the Zacks Consensus Estimate by 5.16%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all four occasions, delivering an earnings surprise of 5.45%, on average. Let’s check out the factors that have shaped VEEV’s performance prior to this announcement. Falcon AI Rollout Remains the Biggest Growth Catalyst: Investors are likely to closely watch management's commentary on Veeva Falcon, which emerged as the company's biggest long-term AI initiative in the first quarter. Management positioned Falcon as an "agentic labor" platform designed to automate high-volume workflows such as clinical trial document processing, safety case triage and regulatory correspondence rather than serving as a traditional AI assistant. The company has been rapidly building the platform, onboarding early customers and preparing for its early adopter launch. Investors will look for updates on customer engagement, deployment timelines, pricing strategy and progress toward commercialization, as Falcon represents a significant expansion beyond Veeva's traditional software business. Vault CRM Momentum and Commercial Execution in Focus: Another key area of focus will be Veeva's continued execution in Commercial Cloud, particularly Vault CRM. In the first quarter, the company secured major global wins with Teva and Merck KGaA, expanded its installed base to more than 150 live customers and completed more than 40 CRM migrations. Management also reported an overall win rate exceeding 80% while expecting to capture the majority of the remaining Top 20 CRM decisions. Investors will therefore look for additional enterprise wins, migration progress, AI adoption within Vault CRM and further commercialization of new offerings like Commercial Evidence and Ostro, which are expected to have strengthened the company's commercial ecosystem. R&D Cloud Growth and Crossix Strength to Support Revenue Expansion: Investors will also assess whether Veeva Systems can sustain momentum across its R&D portfolio and Crossix business. During the first quarter, management highlighted healthy growth across Development Cloud and Quality Cloud, supported by early-stage products such as EDC, RTSM, Safety, LIMS and eCOA. At the same time, Crossix continued gaining market share as pharmaceutical companies increased digital marketing spending and expanded measurement across newer channels like OpenEvidence. Investors are likely to watch for updates on enterprise R&D wins, pipeline conversion, Crossix growth durability and continued adoption of newer cloud products, as these businesses remain important drivers of long-term subscription revenue expansion. Profitability and FY2027 Guidance Will Be Closely Watched: Investors are likely to closely evaluate Veeva Systems' ability to balance continued AI investments with its industry-leading profitability. The company began fiscal 2027 with revenue and operating income exceeding guidance while maintaining that the broader macro environment remains healthy. Management continues investing in Falcon, Vault AI, Data Cloud and services while expecting AI revenue outside Ostro to remain largely immaterial this year. Investors will therefore focus on subscription margins, operating income, cash generation and any changes to full-year guidance, as these metrics will indicate whether Veeva Systems can sustain profitable growth while funding its next phase of innovation. Veeva Systems Inc. price-eps-surprise | Veeva Systems Inc. Quote For second-quarter fiscal 2027, the Zacks Consensus Estimate for revenues is pegged at $904.1 million, implying an improvement of 14.6% from the prior-year quarter’s reported figure. The consensus estimate for EPS is pegged at $2.22, indicating growth of 11.6% from the prior-year period’s reported number. Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below. Earnings ESP: VEEV has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank:The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here. In the year-to-date period, VEEV shares have gained 11.0%, trailing the broader Zacks Medical Information Systems Market, which has advanced 15.4% over the same period. VEEV has also slightly underperformed the S&P 500, which has returned 11.7%, as investors have balanced enthusiasm around the company's AI-driven innovation with broader healthcare technology market performance. Among its closest peers, VEEV has marginally outperformed Medpace MEDP, which has gained 10.5%, but trailed IQVIA IQV, whose shares have rallied 15.2% during the same period. Image Source: Zacks Investment Research From a valuation standpoint, VEEV is trading at a forward 12-month price-to-sales (P/S) multiple of 10.38X, reflecting a premium valuation relative to its healthcare technology peers. The elevated multiple indicates that investors continue assigning a higher valuation to Veeva Systems’ long-term growth prospects, supported by its expanding AI-driven software ecosystem, strong position in life sciences cloud applications and durable recurring revenue model. VEEV currently trades well above Medpace, which carries a forward 12-month P/S multiple of 5.83X, and IQVIA, which is valued at 2.37X sales. Image Source: Zacks Investment Research Veeva Systems’ long-term investment thesis remains supported by its expanding life sciences cloud ecosystem and growing leadership in industry-specific artificial intelligence. The company continues strengthening its Commercial Cloud and Development Cloud businesses through Vault CRM migrations, Crossix market share gains and expanding adoption of products like Safety, EDC, RTSM and LIMS. At the same time, management views Falcon as a transformational opportunity that extends Veeva beyond traditional software by introducing AI-powered "agentic labor" for high-volume workflows such as clinical trial document processing and safety case management. These initiatives significantly broaden the company's addressable market while deepening customer engagement across pharmaceutical research and commercialization. Artificial intelligence remains Veeva Systems’ biggest long-term differentiator. Management believes its MAAP (Models, Agents and Applications) architecture, combined with Vault AI and Falcon, creates a structural advantage by integrating AI-driven automation with Veeva Systems’ established software and consulting expertise. Early customer adoption of Vault AI agents, continued investments in Falcon's rollout and the strategic expansion of Ostro strengthen the company's long-term revenue visibility while supporting management's broader objective of delivering greater value to life sciences customers through increasingly integrated AI-powered solutions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fiserv, Inc. FISV reported dismal second-quarter 2026 results. Fiserv's adjusted earnings of $1.84 per share missed the Zacks Consensus Estimate of $1.89 by 2.7%. Adjusted earnings declined 26% from the year-ago quarter as profitability contracted sharply. GAAP revenues of $4.96 billion missed the consensus mark of $5.05 billion by a slight margin and decreased 10% year over year. Organic revenues fell 5%, with declines across both operating segments. Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote Adjusted revenues were $4.96 billion, down 4% from the prior-year quarter. The gap between GAAP and adjusted revenues reflected $329 million of postage reimbursements compared with $320 million a year earlier. Processing and services revenues totaled $4.29 billion, nearly flat from $4.30 billion in the year-ago quarter. Product revenues dropped to $1 billion from $1.21 billion, accounting for most of the reported revenue decline. For the first six months of 2026, adjusted revenues decreased 3% to $9.64 billion. Organic revenues declined 4%, indicating that the weakness extended beyond the second quarter. Merchant Solutions revenues decreased 1% year over year to $2.61 billion. Organic revenues in the segment also declined 1%, making Merchant the more stable of the company’s two operating businesses. Merchant operating income fell to $781 million from $914 million. The segment’s operating margin contracted to 30% from 34.6%, showing that modest revenue pressure was accompanied by a steeper decline in profitability. First-half Merchant revenues decreased 1% to $4.98 billion. Operating income for the six months dropped to $1.41 billion from $1.72 billion, while the operating margin declined to 28.3% from 34.4%. Financial Solutions revenues fell 8% to $2.36 billion from $2.55 billion in the prior-year quarter. Organic revenues declined at the same 8% rate after acquisition adjustments. Operating income in the segment decreased to $912 million from $1.24 billion. The operating margin narrowed to 38.7% from 48.7%, creating a significant drag on consolidated earnings performance. For the first half, Financial Solutions revenues declined 6% to $4.66 billion. Organic revenues fell 7%, while operating income decreased to $1.79 billion from $2.39 billion. GAAP operating income declined to $1.02 billion from $1.70 billion. The GAAP operating margin fell to 19.2% from 30.7%, reflecting higher expenses despite lower revenues. Adjusted operating income was $1.58 billion, down from $2.06 billion, while the adjusted operating margin contracted to 31.8% from 39.6%. The quarter included $187 million of One Fiserv transformation program expenses, $40 million of severance costs, and $23 million of merger and integration costs. GAAP earnings declined 37% to $1.17 per share. Net income attributable to Fiserv fell to $627 million from $1.03 billion. A gain from early debt extinguishment partly offset the effects of transformation costs, severance and acquisition-related amortization. Net cash provided by operating activities totaled $2.08 billion in the first six months of 2026, down from $2.31 billion a year earlier. The free cash flow declined to $1.36 billion from $1.55 billion as capital expenditures increased to $956 million. Fiserv repurchased 1.7 million shares for $100 million during the quarter. First-half repurchases totaled 5 million shares for $300 million. It retired $1.41 billion of senior notes through a cash tender offer and open-market purchases for total consideration of $1.23 billion. The company lowered 2026 organic revenue growth between negative 1% and flat compared with the preceding quarter’s 1-3%. The company also lowered its adjusted earnings outlook to $7.20-$7.40 per share from the preceding quarter’s $8-$8.30. Management said that growth in overall volumes, transactions and accounts, along with recurring revenue growth, supported the underlying performance. Fiserv reiterated its expected medium-term growth rates despite reducing its 2026 targets. The company also completed the formation of MoneyPass Group in August. The joint venture encompasses its MoneyPass Network, ATM Managed Services and Cash Intelligence businesses, with Fiserv retaining a minority ownership interest. Fiserv carries a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. IQVIA Holdings Inc. IQV reported impressive second-quarter 2026 results. IQV registered adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. Corpay, Inc. CPAY posted impressive second-quarter 2026 results. CPAY reported adjusted earnings per share of $7, growing 36% year over year and surpassing the Zacks Consensus Estimate of $6.60 by 6.1%. Revenues increased 21% to $1.33 billion, beating the consensus mark by 2.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FISV) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Corpay, Inc. (CPAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ICON Public Limited Company ICLR presents a mixed investment case. The stock trades below several key benchmarks, while new business awards and backlog point to healthier commercial demand. That opportunity is tempered by weaker earnings expectations, lower margins and unfinished control remediation. The current setup favors patience rather than an aggressive entry. ICLR trades at about 15.4X forward earnings, below the 16.2X multiple for its sub-industry and roughly 20.6X for both the broader medical sector and the S&P 500. The discount is also meaningful against ICON’s five-year median multiple of 17.9X. That relative valuation may create room for upside if earnings stabilize. Still, a lower multiple alone does not make the stock inexpensive because current estimates continue to move lower. IQVIA Holdings Inc. IQV and Fortrea Holdings Inc. FTRE provide useful industry context as clinical research peers serving pharmaceutical, biotechnology and medical-device customers through broad development-service platforms. Commercial indicators are more encouraging. ICON reported a 1.51X book-to-bill ratio and a $23.4 billion backlog, giving the company a sizable base of contracted work that could support future revenues. Awards were diversified across large pharmaceutical companies, midsized customers and biotechnology firms. Broader cross-selling and functional-service programs could expand the opportunity set by deepening relationships across multiple services rather than relying only on isolated project wins. In the past year, ICLR shares have risen 3.6% compared with the industry’s 18.4% growth. Image Source: Zacks Investment Research The near-term earnings outlook remains the main reason not to chase the valuation discount. ICON expects 2026 revenues of $7.85 billion to $8.15 billion and adjusted earnings of $10 to $11 per share, both below 2025 results. The projected 15.3% decline in first-year earnings reinforces that pressure. The annual earnings estimate has also fallen 18.1% over the past 12 weeks, indicating that analysts have become more cautious about the pace of recovery. Adjusted EBITDA margin declined to 15.9% from 20.5%. Higher pass-through revenues, which generally carry lower margins, diluted the reported margin profile and limited the benefit from improving demand indicators. Recovery now depends on execution. Cost actions, workforce adjustments and a more favorable business mix must produce measurable improvement. A broad rebound in direct-fee revenues has not yet developed, so margin expansion cannot be assumed from backlog growth alone. Based on short-term price targets offered by 14 analysts, the average price target for Icon comes to $184.86. The average price target represents an increase of 17.86% from the last closing. Image Source: Zacks Investment Research The bottom line is that ICLR offers a more attractive valuation and better pipeline signals, but earnings and margin risks remain unresolved. Investors may find the stock worth monitoring, though the evidence does not yet support chasing the discount. ICLR currently carries a Zacks Rank #3 (Hold) and a VGM Score of B. Its Value Score of B and Momentum Score of A offer support, while the Growth Score of C reflects a less favorable expansion profile. Zacks Style Scores are designed to complement the Zacks Rank. A Hold-rated stock can remain appropriate to own, but the rank does not provide the same buying signal as a Zacks Rank #1 or #2. Until estimates stabilize and margins show more durable improvement, a measured hold-or-wait stance fits the current risk-reward balance. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ICON PLC (ICLR) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Fortrea Holdings Inc. (FTRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Verisk VRSK has reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. Organic constant-currency growth was 5.8%, supported by an 8% increase in underlying subscription revenues and growth across both Underwriting and Claims. Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote Underwriting revenues increased 3.5% year over year to $569 million. On an organic constant-currency basis, revenues advanced 5.6%. Growth reflected annual price increases tied to continued enhancements in the models and content supporting Verisk’s forms, rules and loss cost services. The company also benefited from sales of expanded catastrophe and risk solutions to new and existing customers. Claims revenues rose 6.3% year over year to $237 million. Organic constant-currency growth was 6.1%, outpacing the reported growth rate of the Underwriting business. The improvement was primarily driven by anti-fraud analytics, and property and restoration solutions. These offerings supported broader Insurance revenue growth as carriers continued using Verisk’s data and technology across underwriting and claims decisions. Adjusted EBITDA increased 4.2% year over year to $463.6 million. On an organic constant-currency basis, adjusted EBITDA grew 7.4%, reflecting revenue growth and continued cost discipline. The adjusted EBITDA margin was 57.5% compared with 57.6% in the prior-year quarter. Adjusted EBITDA expenses increased to $342.7 million from $327.8 million, while operating income rose to $363.7 million from $354.3 million. Net income declined 9.8% year over year to $228.6 million. The net income margin contracted to 28.4% from 32.8%, while diluted GAAP earnings fell 3.3% to $1.75 per share. The decline reflected a higher effective tax rate, increased net interest expenses and legal fees connected with ongoing litigation. Net interest expenses increased to $52.8 million from $35.5 million, while the effective tax rate rose to 24.6% from 22.7%. Net cash provided by operating activities jumped 49.7% year over year to $366 million. The free cash flow increased 57.9% to $297.9 million despite capital expenditure rising 22% to $68.1 million. The cash flow improvement was primarily driven by higher operating profit and the timing of certain vendor and tax payments. Verisk ended June with $551.4 million in cash and cash equivalents compared with $2.18 billion at the end of 2025. The company entered a $200-million accelerated share repurchase program during the quarter. It received an initial delivery of 949,190 shares at an initial price of $179.10, representing roughly 85% of the aggregate purchase price. In the first six months of 2026, Verisk funded aggregate share repurchases of $1.9 billion and received an initial delivery of 8.5 million shares at an average price of $186.32. The company had $800 million remaining under its repurchase authorization at the quarter-end. Management said that Verisk continues to invest in proprietary datasets and deploy advanced artificial intelligence technologies across those assets. The strategy is aimed at generating differentiated insights and strengthening value for insurance clients. The company expects growth to return to levels consistent with its Investor Day targets during the second half of 2026. Verisk also approved another quarterly cash dividend of 50 cents per share, payable Sept. 30, to shareholders of record as of Sept. 15. Verisk maintained its 2026 revenue guidance of $3.19-$3.24 billion. Management expects adjusted EBITDA of $1.79-$1.83 billion and an adjusted EBITDA margin of 56-56.5%. Diluted adjusted earnings are projected between $7.45 and $7.75 per share. The company expects a tax rate of 23-26%, capital expenditure of $260-$280 million and interest expenses of $190-$200 million. VRSK carries a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. IQVIA Holdings Inc. IQV reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. Waste Connections, Inc. WCN reported impressive second-quarter 2026 results. WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter. Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WM WM reported second-quarter 2026 adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.99 by 1.5%. Earnings increased 5.2% from the year-ago quarter’s $1.92. Revenues rose 4% year over year to $6.68 billion but missed the consensus estimate of $6.71 billion by 0.4%. Disciplined pricing and operating efficiencies supported profitability, while Collection and Disposal volume declined 1.8%. Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote Core price increased 5.7% in the quarter, while Collection and Disposal yield improved 3.6%. Higher energy surcharges and increased volumes in the recycling and renewable energy businesses also supported revenue growth. Collection and Disposal volume fell 1.8%, largely because wildfire cleanup work boosted the prior-year period. Excluding that activity, landfill volumes increased 1.7%, while Collection and Disposal volume declined 0.4%. The strategic exit from lower-margin residential contracts also weighed on volumes. Adjusted operating EBITDA increased 5.5% year over year to $2.07 billion. Excluding wildfire cleanup contributions from the prior-year quarter, adjusted operating EBITDA growth was 9.1%. The adjusted operating EBITDA margin expanded 40 basis points to 30.9%. The improvement came despite a 60-basis-point headwind from the comparison with wildfire cleanup work and a 40-basis-point drag from higher energy surcharges. Collection and Disposal revenues increased 3.7% year over year to $5.48 billion. Commercial revenues rose to $1.49 billion from $1.40 billion, industrial revenues increased to $820 million from $790 million and residential revenues advanced to $911 million from $872 million. The segment’s adjusted operating EBITDA increased $79 million to $2.12 billion. Favorable price-to-cost spread, lower frontline turnover and disciplined cost management helped offset the unfavorable comparison with wildfire cleanup contributions in the year-ago period. Recycling Processing and Sales revenues increased to $403 million from $381 million. Renewable Energy revenues climbed to $157 million from $115 million, reflecting higher production following the completion of growth projects. Combined adjusted operating EBITDA from the recycling and renewable energy businesses increased 32.5%, or $40 million. Higher recycling volumes, automation-related efficiencies and increased renewable natural gas production drove the improvement despite lower prices for recycled commodities, natural gas and renewable fuel credits. Healthcare Solutions revenues declined to $638 million from $646 million. However, the business generated adjusted operating EBITDA of $121 million, up from $110 million in the year-ago quarter. The adjusted operating EBITDA margin expanded to 19% from 17%. Effective selling, general and administrative expense management and integration benefits from WM’s core Collection and Disposal operations supported the segment’s profitability. Operating expenses totaled $3.96 billion and represented 59.2% of revenues compared with 59.1% a year earlier. Cost controls and productivity initiatives largely offset higher fuel-related expenses. Adjusted selling, general and administrative expenses declined to $662 million from $672 million. The adjusted SG&A expense ratio improved 60 basis points to 9.9%, reflecting cost discipline and continued synergy capture within Healthcare Solutions. Net cash provided by operating activities increased nearly 12% to $1.73 billion. Free cash flow jumped 34.5% to $1.10 billion, driven by operating EBITDA growth and working capital improvements. WM returned $1.04 billion to shareholders during the quarter. This included $659 million in share repurchases and $379 million in cash dividends. The company also completed three renewable natural gas facilities and a new recycling facility in Denver. WM reduced its revenue outlook to $26.28-$26.48 billion from the preceding quarter’s view of $26.43-$26.63 billion, reflecting lower volume expectations partly offset by higher energy surcharges. The Zacks Consensus Estimate is pinned at $26.54 billion. Management maintained its 2026 adjusted operating EBITDA outlook of $8.15-$8.25 billion and free cash flow projection of $3.75-$3.85 billion. The adjusted operating EBITDA margin forecast was raised 20 basis points to 31-31.2% from the preceding quarter’s view of 30.8-31%. WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. S&P Global Inc. SPGI reported second-quarter 2026 adjusted earnings of $4.83 per share, rising 23% year over year and beating the Zacks Consensus Estimate of $4.49 by 7.6%. Pro forma revenues of $3.68 billion increased 11% and surpassed the consensus mark of $3.64 billion by 0.8%. IQVIA Holdings Inc. IQV posted second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waste Management, Inc. (WM) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

IQVIA Holdings Inc. IQV has reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. The quarter benefited from broad-based segment growth and strengthening demand indicators. R&D Solutions generated record net new bookings of $3.15 billion, up 19% year over year, producing a 1.22X book-to-bill ratio. IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote Commercial Solutions revenues were $1.79 billion, increasing 8.6% on a reported basis and 8.4% at constant currency. The business contributed roughly 41% to the total quarterly revenues. Growth reflected double-digit gains in patient solutions and commercial engagement services. Analytics and consulting delivered high-single-digit organic growth, while increased adoption of IQVIA’s artificial intelligence solutions also contributed to the segment’s accelerating organic growth. Research & Development Solutions revenues reached $2.58 billion, up 8.8% as reported and 8.6% at constant currency. Excluding reimbursed expenses, revenues advanced 6.7% on a reported basis. Demand indicators strengthened considerably. Trailing-12-month net new bookings rose 13% to $11.3 billion, while contracted backlog stood at $34.2 billion. IQVIA expects $9.2 billion of that backlog to convert into revenues over the next 12 months, representing 7.5% year-over-year growth. The strong bookings performance provides improved visibility into future clinical research revenues. It also supports management’s expectation for sustained business momentum through the remainder of 2026 and into 2027. Adjusted EBITDA increased 9.2% year over year to $994 million. The adjusted EBITDA margin was 22.8%, modestly above the prior-year level, as profit growth slightly outpaced revenue growth. Adjusted net income increased to $527 million from $486 million. The improvement reflected stronger operating performance despite higher stock-based compensation, restructuring-related expenses and acquisition-related costs included in the company’s reconciliation. GAAP net income attributable to IQVIA was $256 million, down from $266 million a year earlier. GAAP diluted earnings were $1.53 per share compared with $1.54 in the prior-year quarter. Cost of revenues increased to $2.93 billion from $2.69 billion in the year-ago quarter. Selling, general and administrative expenses rose to $574 million from $509 million, while depreciation and amortization increased to $292 million. Restructuring costs nearly doubled to $63 million from $32 million. As a result, GAAP income from operations remained unchanged at $506 million despite the higher revenue base. Interest expenses increased to $197 million from $182 million. These cost pressures explain the contrast between the decline in GAAP net income and stronger growth in adjusted earnings and EBITDA. The second-quarter operating cash flow climbed 26% year over year to $558 million. The free cash flow rose 23.3% to $360 million after $198 million of property, equipment and software spending. For the first half, the operating cash flow totaled $1.18 billion and the free cash flow reached $851 million. IQVIA repurchased $398 million of common stock during the quarter, bringing first-half repurchases to $950 million. IQVIA ended June with $1.91 billion in cash and cash equivalents, and $16 billion in debt. Net debt was $14.09 billion, while the net leverage ratio stood at 3.59X trailing-12-month adjusted EBITDA. The company had $2.82 billion remaining under its share-repurchase authorization. Its current portion of long-term debt was $2.29 billion compared with $1.84 billion at the end of 2025. IQVIA raised its 2026 revenue guidance to $17.28-$17.48 billion from $17.15-$17.35 billion. The Zacks Consensus Estimate is pinned at $17.26 billion. The new midpoint implies 6.5% growth from 5.8% under the previous outlook. The updated forecast assumes 200 basis points of contribution from acquisitions, up from 150 basis points previously. It also incorporates a foreign-exchange tailwind of approximately 20 basis points, down from the prior assumption of 100 basis points. Adjusted EBITDA guidance increased to $4-$4.05 billion from $3.98-$4.03 billion. IQVIA also lifted adjusted diluted earnings guidance to $12.80-$13 from $12.65-$12.95, reflecting stronger expected organic revenue growth, and revised acquisition and currency impacts. The consensus estimate for earnings is set at $12.78 per share. IQV carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Waste Connections, Inc. WCN reported impressive second-quarter 2026 results. WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter. Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year. Equifax Inc. EFX posted second-quarter 2026 adjusted earnings of $2.25 per share, up 12.5% year over year. The figure beat the Zacks Consensus Estimate of $2.21 by 1.8%. Revenues increased 10.6% year over year to $1.7 billion and surpassed the consensus mark by a slight margin. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Equifax, Inc. (EFX) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Organic revenue growth accelerated to 6% year-over-year, tripling the rate from the prior year due to improving market conditions and strong operational execution. The R&D Solutions segment benefited from a consistently improving demand environment and higher win rates, particularly within the Emerging Biopharma (EBP) segment which now represents 70% of global clinical trial starts. Commercial Solutions growth was fueled by a 45% increase in new drug launches in the first half of 2026, driving demand for analytics, consulting, and patient solutions. Management highlighted a strategic shift in large pharma toward outsourcing full commercialization of therapies in select geographies, where IQVIA is capturing significant market share. AI-enabled capabilities are increasingly serving as a primary differentiator, helping clinch complex Phase III awards by improving study design, site startup, and patient recruitment predictability. The company redefined its customer segments to better align with industry standards, noting that its 35% revenue exposure to EBPs is higher than any CRO peer. Operational productivity programs drove 90 basis points of margin expansion, successfully offsetting non-operational headwinds from pass-through costs and foreign exchange. Full-year 2026 guidance was raised to reflect 100 basis points of higher organic revenue growth and increased M&A contribution, despite a reduced foreign exchange tailwind. Management anticipates the outsourcing market will continue to expand through 2027, driven by AI in drug discovery increasing the volume of molecules entering development. Large pharma clients are signaling a potential doubling of study portfolios, leading to requests for IQVIA to scale capacity and add thousands of FTEs in anticipation. The company expects AI to contribute more directly to top-line growth as clients move from pilot programs to broad deployment of IQVIA AI agents across global franchises. Guidance for the remainder of the year assumes flat year-over-year adjusted EBITDA margins at approximately 23.2%, balancing productivity gains against lower-margin M&A and pass-through growth. IQVIA completed the acquisition of Charles River assets during the quarter, contributing to a 50 basis point increase in the full-year M&A revenue growth contribution. Management addressed industry-wide concerns regarding backlog quality, stating that so-called 'inactive trials' represent only approximately 5% of their backlog, significantly lower than some competitors. The company maintained its 'best-in-class' booking policy, requiring signed contracts for all reported bookings to ensure objective criteria and remove management judgment. A potential future adjustment for inactive trials is being reviewed for Q3 but is expected to have zero impact on historical results or next-12-month revenue projections. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized the quarter as exceptionally 'clean' with no unusual or 'chunky' awards driving the 1.22 book-to-bill ratio. Strength was broad-based across large, mid, and EBP segments, with cancellations and pass-throughs remaining within historical ranges. AI in discovery is expected to increase demand for CRO services as more molecules with higher predictable success rates enter the development pipeline. Large pharma is increasingly relying on CROs for adjacent therapies where they lack internal expertise and to avoid adding permanent internal headcount for fluctuating trial volumes. IQVIA is winning by displacing large CRO incumbents during partnership renewals by focusing on delivery timelines and AI-enabled site networks rather than just price. Four of the top 10 pharma companies have already contracted to co-develop AI solutions, further deepening strategic moats. Management confirmed they are actively working on expanding capabilities 'upwards and downwards' in the development supply chain, including recent discovery asset acquisitions. The strategy involves leveraging deep client relationships to provide a broader set of integrated services from discovery through commercialization.

This article first appeared on GuruFocus. Total Revenue: $4,368 million, up 8.7% on a reported basis and 8.5% at constant currency. Commercial Solutions Revenue: $1,793 million, up 8.6% on a reported basis and 8.4% at constant currency. R&D Solutions Revenue: $2,575 million, up 8.8% on a reported basis and 8.6% at constant currency. Adjusted EBITDA: $994 million, representing growth of 9.2% year-over-year. GAAP Net Income: $256 million. GAAP Diluted EPS: $1.53. Adjusted Net Income: $527 million. Adjusted Diluted EPS: $3.15, up 12.1% year-over-year. R&D Solutions Net New Bookings: $3,150 million, a 19.3% increase year-over-year, with a book-to-bill ratio of 1.22. Free Cash Flow: $360 million, representing growth of 23% year-over-year. Share Repurchases: $398 million in the quarter, totaling $950 million for the first half. Full Year Revenue Guidance: $17,275 million to $17,475 million, growth of 5.9% to 7.1% year-over-year. Full Year Adjusted EBITDA Guidance: $4 billion to $4.05 billion, growth of 5.6% to 6.9% year-over-year. Full Year Adjusted Diluted EPS Guidance: $12.80 to $13, up 7.4% to 9.1% year-over-year. Third Quarter Revenue Guidance: $4.350 billion to $4.390 billion, growth of 5.2% to 7.1% year-over-year. Third Quarter Adjusted EBITDA Guidance: $1 billion to $1.020 billion, growth of 5.4% to 7.5% year-over-year. Third Quarter Adjusted Diluted EPS Guidance: $3.19 to $3.29, growth of 6.3% to 9.7% year-over-year. Warning! GuruFocus has detected 3 Warning Sign with IQV. Is IQV fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IQVIA Holdings Inc (NYSE:IQV) delivered outstanding second quarter results with revenue, adjusted EBITDA, and adjusted diluted earnings per share all exceeding the high end of guidance. Organic growth accelerated to 6% year-over-year, three times the rate from the previous year. R&D Solutions segment showed strong performance with nearly 9% revenue growth and a 19% increase in net new bookings year-over-year. Commercial Solutions segment experienced organic revenue growth of 5%, with analytics and consulting growing at the highest rate since 2022. AI-enabled capabilities are enhancing IQVIA's offerings, leading to improved study design, accelerated timelines, and reduced operational risk in clinical trials. The company faces potential risks and uncertainties associated with forward-looking statements, as discussed in their SEC filings. Foreign exchange impacts have been a headwind, reducing the tailwind effect in the revenue guidance. Pass-through growth, which comes with no profit, created an 80 basis point headwind to margins. The acquisition of Charles River assets, while expanding capabilities, has lower margins, impacting overall margin performance. Despite strong bookings, the long-cycle nature of the R&D business means that current bookings are more indicative of future performance rather than immediate revenue growth. Q: Were there any notable call-outs within the bookings for this quarter, such as chunky awards or pass-through mix? A: Ari Bousbib, Chairman and CEO, stated that the quarter was exceptionally strong with no unusual or abnormal elements in the numbers. The strength was broad-based across the board, with pass-throughs and cancellations within the normal range. FSO was very strong, and there was a good mix of large, mid, and EBP bookings. Q: Can you elaborate on the potential increase in outsourcing penetration, particularly with large and mid-sized pharma customers? A: Ari Bousbib explained that the EBP segment is fully outsourced, and IQVIA is the largest CRO provider to this segment. Large pharma clients are increasingly using AI in discovery, which is expected to increase demand for CRO services. Some large pharma clients predict doubling their study portfolios, leading to increased outsourcing due to the need for additional capacity and expertise. Q: How does IQVIA plan to develop its AI solutions over time, and where are the incremental dollars being invested? A: Ari Bousbib highlighted that IQVIA has been investing in AI for years, focusing on proprietary healthcare data, deep domain knowledge, and regulatory compliance. IQVIA has 294 AI agents deployed across 90 use cases, and partnerships with top pharma companies to co-develop AI solutions. The company continues to prioritize AI as a key investment area. Q: What factors contribute to IQVIA's ability to displace other CROs in competitive processes? A: Ari Bousbib noted that large pharma companies have renegotiated partnerships, and IQVIA has increased the number and scope of these relationships. In competitive RFPs, discussions focus on delivery timelines, capabilities, technology, site networks, therapeutic expertise, and AI capabilities, rather than price. Q: Can you provide more details on the operational drivers behind the faster-than-expected improvement in EBITDA margins? A: Michael Fedock, CFO, explained that operational and productivity programs, including AI, drove about 90 basis points of operational margin expansion. Non-operational items like FX had zero impact, while pass-through growth created an 80 basis point headwind. The company also benefits from leverage off its fixed cost base with stronger revenues. Q: How does the guidance raise for organic revenue growth reflect market improvements versus better execution and win rates? A: Ari Bousbib stated that the improving market environment, reflected in strong RFP flows and funding growth in the EBP segment, contributes to the guidance raise. Additionally, IQVIA's improved win rates, driven by capabilities and strong position in the EBP segment, also play a significant role. Q: How is the revenue guidance increase allocated between improving demand in R&DS and Commercial Solutions? A: Michael Fedock mentioned that the guidance reflects acceleration in growth for both segments. The R&DS segment's long-cycle nature means current bookings are more indicative of future growth, while Commercial Solutions is seeing immediate acceleration. Q: Can you clarify the impact of acquisitions on revenue growth and segment contributions? A: Michael Fedock clarified that acquisitions contributed about 2.5% to revenue growth, with the impact typically being two-thirds in Commercial Solutions and one-third in R&DS. The acquisition of Charles River assets added approximately $75 million to $80 million in revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript.