IQVIA (IQV) Citi’s 2026 Unplugged MedTech and Life Sciences Access Day summary

Business performance and segment updates

• Achieved strong Q4 growth: nearly 10% actual currency, 7% constant currency, with double-digit growth in real-world business and sequential improvement in consulting.

• Legacy TAS breakdown: about one-third real-world, one-quarter info, 20% consulting, and low 20s tech.

• Commercial Solutions segment guided for 8% growth, with R&DS at 4%; momentum supported by strong pipelines and improved client decision-making.

• Cedar Gate acquisition enhances U.S. payer and provider platform within patient solutions.

• M&A expected to contribute 150 basis points to growth, with two-thirds allocated to Commercial Solutions.

Margins, pricing, and financial guidance

• Margin profiles for Commercial Solutions and R&DS remain stable after segment shifts; no significant changes expected.

• Gross margin impacted by FX and pass-throughs, with 2025 margins declining 70 basis points due to non-operational factors.

• Productivity programs, including AI initiatives, offset mix and pricing headwinds, supporting long-term EBITDA margin expansion of 0–30 basis points annually.

• Pricing environment is stable, with disciplined strategic decisions and ongoing productivity initiatives maintaining margins.

• Leverage remains comfortable in the 3–4x range, with capital deployment balanced between M&A and share repurchases based on pipeline strength and stock valuation.

AI strategy and impact

• AI viewed as a significant opportunity, not a threat, due to proprietary, complex, and dynamic data assets, domain expertise, and technology know-how.

• Data moat reinforced by 71 years of data collection, 150,000 global data feeds, and substantial annual investment in data acquisition and preparation.

• AI agentic solutions launched, with 150+ agents covering 30 use cases by year-end, driving efficiency and new client offerings.

• Small areas of consulting (e.g., primary market research) may be eroded by AI, but overall opportunities far outweigh risks.

• AI expected to increase viable drug programs by accelerating upstream molecule screening, with pharma reinvesting efficiency gains into pipelines.