filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
IQVIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in millions, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | 4,368 | $ | 4,017 | $ | 8,519 | $ | 7,846 | ||||||||||||||||||
| Cost of revenues, exclusive of depreciation and amortization | 2,933 | 2,694 | 5,729 | 5,225 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 574 | 509 | 1,076 | 1,017 | ||||||||||||||||||||||
| Depreciation and amortization | 292 | 276 | 580 | 541 | ||||||||||||||||||||||
| Restructuring costs | 63 | 32 | 114 | 61 | ||||||||||||||||||||||
| Income from operations | 506 | 506 | 1,020 | 1,002 | ||||||||||||||||||||||
| Interest income | (7) | (10) | (17) | (21) | ||||||||||||||||||||||
| Interest expense | 197 | 182 | 389 | 347 | ||||||||||||||||||||||
| Loss on extinguishment of debt | 3 | — | 3 | 4 | ||||||||||||||||||||||
| Other expense, net | 12 | 11 | 16 | 26 | ||||||||||||||||||||||
| Income before income taxes and equity in earnings (losses) of unconsolidated affiliates | 301 | 323 | 629 | 646 | ||||||||||||||||||||||
| Income tax expense | 60 | 56 | 119 | 117 | ||||||||||||||||||||||
| Income before equity in earnings (losses) of unconsolidated affiliates | 241 | 267 | 510 | 529 | ||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated affiliates | 17 | (1) | 23 | (14) | ||||||||||||||||||||||
| Net income | 258 | 266 | 533 | 515 | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (2) | — | (3) | — | ||||||||||||||||||||||
| Net income attributable to IQVIA Holdings Inc. | $ | 256 | $ | 266 | $ | 530 | $ | 515 | ||||||||||||||||||
| Earnings per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | 1.54 | $ | 1.55 | $ | 3.17 | $ | 2.96 | ||||||||||||||||||
| Diluted | $ | 1.53 | $ | 1.54 | $ | 3.14 | $ | 2.94 | ||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 166.1 | 171.8 | 167.2 | 173.7 | ||||||||||||||||||||||
| Diluted | 167.3 | 173.2 | 168.6 | 175.3 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
IQVIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income | $ | 258 | $ | 266 | $ | 533 | $ | 515 | ||||||||||||||||||
| Comprehensive income adjustments: | ||||||||||||||||||||||||||
| Unrealized gains (losses) on derivative instruments, net of income tax expense (benefit) of $4,$(1), $4, $(6) | 11 | (4) | 11 | (21) | ||||||||||||||||||||||
| Defined benefit plan adjustments, net of income tax (benefit) of $—, $(1), $(1), $(1) | (1) | — | — | (3) | ||||||||||||||||||||||
| Foreign currency translation, net of income tax expense (benefit) of $9,$(93), $23, $(139) | (9) | 102 | (42) | 181 | ||||||||||||||||||||||
| Reclassification adjustments: | ||||||||||||||||||||||||||
| Reclassifications on derivative instruments included in net income, net of income tax (expense) benefit of $—,$(1), $3, $(1) | 3 | (2) | 10 | (1) | ||||||||||||||||||||||
| Comprehensive income | 262 | 362 | 512 | $ | 671 | |||||||||||||||||||||
| Comprehensive income attributable to noncontrolling interests | (2) | — | (3) | — | ||||||||||||||||||||||
| Comprehensive income attributable to IQVIA Holdings Inc. | $ | 260 | $ | 362 | $ | 509 | $ | 671 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
IQVIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| (in millions, except per share data) | June 30, 2026 | December 31, 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 1,909 | $ | 1,980 | ||||||||||
| Trade accounts receivable and unbilled services, net | 3,345 | 3,400 | ||||||||||||
| Prepaid expenses | 220 | 162 | ||||||||||||
| Income taxes receivable | 42 | 27 | ||||||||||||
| Investments in debt, equity and other securities | 171 | 161 | ||||||||||||
| Other current assets and receivables | 539 | 519 | ||||||||||||
| Total current assets | 6,226 | 6,249 | ||||||||||||
| Property and equipment, net | 547 | 533 | ||||||||||||
| Operating lease right-of-use assets | 304 | 290 | ||||||||||||
| Investments in debt, equity and other securities | 82 | 108 | ||||||||||||
| Investments in unconsolidated affiliates | 390 | 324 | ||||||||||||
| Goodwill | 16,604 | 16,616 | ||||||||||||
| Other identifiable intangibles, net | 4,749 | 4,962 | ||||||||||||
| Deferred income taxes | 421 | 357 | ||||||||||||
| Deposits and other assets, net | 558 | 505 | ||||||||||||
| Total assets | $ | 29,881 | $ | 29,944 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 3,608 | $ | 3,751 | ||||||||||
| Unearned income | 2,281 | 2,118 | ||||||||||||
| Income taxes payable | 175 | 140 | ||||||||||||
| Current portion of long-term debt | 2,294 | 1,840 | ||||||||||||
| Other current liabilities | 457 | 489 | ||||||||||||
| Total current liabilities | 8,815 | 8,338 | ||||||||||||
| Long-term debt, less current portion | 13,705 | 13,884 | ||||||||||||
| Deferred income taxes | 173 | 179 | ||||||||||||
| Operating lease liabilities | 242 | 225 | ||||||||||||
| Other liabilities | 645 | 688 | ||||||||||||
| Total liabilities | 23,580 | 23,314 | ||||||||||||
| Commitments and contingencies (Note 8) | ||||||||||||||
| Stockholders’ equity: | ||||||||||||||
| Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2026 and December 31, 2025, $0.01 par value, 259.6 shares issued and 164.6 shares outstanding as of June 30, 2026; 259.1 shares issued and 169.6 shares outstanding as of December 31, 2025 | 11,496 | 11,378 | ||||||||||||
| Retained earnings | 7,955 | 7,425 | ||||||||||||
| Treasury stock, at cost, 95.0 and 89.5 shares as of June 30, 2026 and December 31, 2025, respectively | (12,316) | (11,357) | ||||||||||||
| Accumulated other comprehensive loss | (964) | (943) | ||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 6,171 | 6,503 | ||||||||||||
| Noncontrolling interests | 130 | 127 | ||||||||||||
| Total stockholders’ equity | 6,301 | 6,630 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 29,881 | $ | 29,944 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
IQVIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Six Months Ended June 30, | ||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
| Operating activities: | ||||||||||||||
| Net income | $ | 533 | $ | 515 | ||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 580 | 541 | ||||||||||||
| Amortization of debt issuance costs and discount | 12 | 11 | ||||||||||||
| Stock-based compensation | 160 | 132 | ||||||||||||
| (Earnings) losses from unconsolidated affiliates | (23) | 14 | ||||||||||||
| Loss (gain) on investments, net | 12 | (16) | ||||||||||||
| Benefit from deferred income taxes | (74) | (86) | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Change in accounts receivable, unbilled services and unearned income | 239 | 269 | ||||||||||||
| Change in other operating assets and liabilities | (263) | (369) | ||||||||||||
| Net cash provided by operating activities | 1,176 | 1,011 | ||||||||||||
| Investing activities: | ||||||||||||||
| Acquisition of property, equipment and software | (325) | (293) | ||||||||||||
| Acquisition of businesses, net of cash acquired | (200) | (315) | ||||||||||||
| Sales of marketable securities, net | 3 | 2 | ||||||||||||
| Investments in unconsolidated affiliates, net of payments received | (58) | (27) | ||||||||||||
| Investments in debt and equity securities | — | (19) | ||||||||||||
| Other | 3 | 1 | ||||||||||||
| Net cash used in investing activities | (577) | (651) | ||||||||||||
| Financing activities: | ||||||||||||||
| Proceeds from issuance of debt | 1,758 | 3,985 | ||||||||||||
| Payment of debt issuance costs | (20) | (35) | ||||||||||||
| Repayment of debt and principal payments on finance leases | (1,370) | (2,140) | ||||||||||||
| Proceeds from revolving credit facility | 900 | 875 | ||||||||||||
| Repayment of revolving credit facility | (900) | (1,700) | ||||||||||||
| Payments related to employee stock incentive plans | (41) | (35) | ||||||||||||
| Repurchase of common stock | (950) | (1,032) | ||||||||||||
| Contingent consideration and deferred purchase price payments | (15) | (20) | ||||||||||||
| Other | (9) | (11) | ||||||||||||
| Net cash used in financing activities | (647) | (113) | ||||||||||||
| Effect of foreign currency exchange rate changes on cash | (23) | 90 | ||||||||||||
| (Decrease) increase in cash and cash equivalents | (71) | 337 | ||||||||||||
| Cash and cash equivalents at beginning of period | 1,980 | 1,702 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 1,909 | $ | 2,039 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
IQVIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited)
| (in millions) | Common Stock Shares | Treasury Stock Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | 259.1 | (89.5) | $ | 3 | $ | 11,375 | $ | 7,425 | $ | (11,357) | $ | (943) | $ | 127 | $ | 6,630 | ||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 0.5 | — | — | (40) | — | — | — | — | (40) | |||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, net of tax | — | (3.2) | — | — | — | (557) | — | — | (557) | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 66 | — | — | — | — | 66 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | 274 | — | — | 1 | 275 | |||||||||||||||||||||||||||||||||||||||||||||||
| Defined benefit plan adjustments, net of tax | — | — | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation, net of tax | — | — | — | — | — | — | (33) | — | (33) | |||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification adjustments, net of tax | — | — | — | — | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2026 | 259.6 | (92.7) | 3 | 11,401 | 7,699 | (11,914) | (968) | 128 | 6,349 | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | — | — | — | (1) | — | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, net of tax | — | (2.3) | — | — | — | (402) | — | — | (402) | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 93 | — | — | — | — | 93 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | 256 | — | — | 2 | 258 | |||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gains on derivative instruments, net of tax | — | — | — | — | — | — | 11 | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
| Defined benefit plan adjustments, net of tax | — | — | — | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation, net of tax | — | — | — | — | — | — | (9) | — | (9) | |||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification adjustments, net of tax | — | — | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2026 | 259.6 | (95.0) | $ | 3 | $ | 11,493 | $ | 7,955 | $ | (12,316) | $ | (964) | $ | 130 | $ | 6,301 | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | Common Stock Shares | Treasury Stock Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 258.2 | (82.1) | $ | 3 | $ | 11,140 | $ | 6,065 | $ | (10,103) | $ | (1,038) | $ | — | $ | 6,067 | ||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 0.3 | — | — | (35) | — | — | — | — | (35) | |||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, net of tax | — | (2.3) | — | — | — | (429) | — | — | (429) | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 65 | — | — | — | — | 65 | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions related noncontrolling interests | — | — | — | — | — | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | 249 | — | — | — | 249 | |||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized losses on derivative instruments, net of tax | — | — | — | — | — | — | (17) | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||||
| Defined benefit plan adjustments, net of tax | — | — | — | — | — | — | (3) | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation, net of tax | — | — | — | — | — | — | 79 | — | 79 | |||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification adjustments, net of tax | — | — | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | 258.5 | (84.4) | 3 | 11,170 | 6,314 | (10,532) | (978) | 8 | 5,985 | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, net of tax | — | (4.1) | — | — | — | (613) | — | — | (613) | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | 52 | — | — | — | — | 52 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | 266 | — | — | — | 266 | |||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gains on derivative instruments, net of tax | — | — | — | — | — | — | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation, net of tax | — | — | — | — | — | — | 102 | — | 102 | |||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification adjustments, net of tax | — | — | — | — | — | — | (2) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | 258.5 | (88.5) | $ | 3 | $ | 11,222 | $ | 6,580 | $ | (11,145) | $ | (882) | $ | 8 | $ | 5,786 | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IQVIA HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
1. Summary of Significant Accounting Policies
The Company
IQVIA Holdings Inc. (together with its subsidiaries, the “Company” or “IQVIA”) is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries. With approximately 94,000 employees, the Company conducts business in more than 100 countries.
Unaudited Interim Financial Information
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the Company’s financial condition and results of operations have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The balance sheet as of December 31, 2025 has been derived from the audited consolidated financial statements of the Company, but does not include all the disclosures required by GAAP.
Recently Issued Accounting Standards
Accounting pronouncements issued but not adopted as of June 30, 2026
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), to improve the disclosures about an entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The new guidance requires additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, and will be effective for the Company in the annual period beginning January 1, 2027, and interim periods beginning January 1, 2028. The Company is assessing the impacts of this ASU on its disclosures within the consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, to modernize the accounting for internal-use software costs. The new guidance amends the existing standard that refers to various stages of a software development project to align better with current software development methods. Under the new guidance, entities will start capitalizing eligible costs when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. In evaluating whether it is probable the project will be completed, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. The new guidance will be effective for the Company for interim and annual periods beginning January 1, 2028. The Company is assessing the impacts of this ASU on its consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Accounting for Government Grants Received by Business Entities, to establish guidance on the recognition, measurement, and presentation of government grants received by business entities. The overall principle of the new standard is that a government grant is recognized in earnings in the same periods that the costs for which the grant was intended to compensate are recognized. However, a government grant cannot be recognized until it is probable that the company will comply with the conditions attached to the grant and the grant will be received. The new guidance requires that a grant related to an asset be recognized on the balance sheet as a business entity incurs the related costs for which the grant is intended to compensate, either as deferred income (the deferred income approach), or an adjustment to the cost basis in determining the carrying amount of the asset (the cost accumulation approach). The new guidance will be effective for the Company for interim and annual periods beginning January 1, 2029. The Company is assessing the impacts of this ASU on its consolidated financial statements.
2. Revenues by Geography, Concentration of Credit Risk and Remaining Performance Obligations
The following tables represent revenues by geographic region and reportable segment for the three and six months ended June 30, 2026 and 2025. Results for the three and six months ended June 30, 2025 reflect the recast of segment information based on the changes described in Note 14.
| Three Months Ended June 30, 2026 | ||||||||||||||||||||
| (in millions) | Commercial Solutions | Research & Development Solutions | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Americas | $ | 895 | $ | 1,144 | $ | 2,039 | ||||||||||||||
| Europe and Africa | 687 | 722 | 1,409 | |||||||||||||||||
| Asia-Pacific | 211 | 709 | 920 | |||||||||||||||||
| Total revenues | $ | 1,793 | $ | 2,575 | $ | 4,368 |
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| (in millions) | Commercial Solutions | Research & Development Solutions | Total | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Americas | $ | 825 | $ | 1,110 | $ | 1,935 | |||||||||||||||||
| Europe and Africa | 640 | 601 | 1,241 | ||||||||||||||||||||
| Asia-Pacific | 186 | 655 | 841 | ||||||||||||||||||||
| Total revenues | $ | 1,651 | $ | 2,366 | $ | 4,017 |
| Six Months Ended June 30, 2026 | ||||||||||||||||||||
| (in millions) | Commercial Solutions | Research & Development Solutions | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Americas | $ | 1,751 | $ | 2,272 | $ | 4,023 | ||||||||||||||
| Europe and Africa | 1,375 | 1,389 | 2,764 | |||||||||||||||||
| Asia-Pacific | 421 | 1,311 | 1,732 | |||||||||||||||||
| Total revenues | $ | 3,547 | $ | 4,972 | $ | 8,519 |
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| (in millions) | Commercial Solutions | Research & Development Solutions | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Americas | $ | 1,615 | $ | 2,127 | $ | 3,742 | ||||||||||||||
| Europe and Africa | 1,233 | 1,232 | 2,465 | |||||||||||||||||
| Asia-Pacific | 375 | 1,264 | 1,639 | |||||||||||||||||
| Total revenues | $ | 3,223 | $ | 4,623 | $ | 7,846 |
No individual customer represented 10% or more of consolidated revenues for the three and six months ended June 30, 2026 or 2025.
Transaction Price Allocated to the Remaining Performance Obligations
As of June 30, 2026, approximately $36.4 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. The customer contract transaction price allocated to the remaining performance obligations differs from backlog in that it does not include wholly unperformed contracts under which the customer has a unilateral right to cancel the arrangement.
3. Trade Accounts Receivable, Unbilled Services and Unearned Income
Trade accounts receivables and unbilled services consist of the following:
| (in millions) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Trade accounts receivable | $ | 1,626 | $ | 1,668 | ||||||||||
| Unbilled services | 1,769 | 1,783 | ||||||||||||
| Trade accounts receivable and unbilled services | 3,395 | 3,451 | ||||||||||||
| Allowance for doubtful accounts | (50) | (51) | ||||||||||||
| Trade accounts receivable and unbilled services, net | $ | 3,345 | $ | 3,400 |
Unbilled services and unearned income were as follows:
| (in millions) | June 30, 2026 | December 31, 2025 | Change | |||||||||||||||||
| Unbilled services | $ | 1,769 | $ | 1,783 | $ | (14) | ||||||||||||||
| Unearned income | (2,281) | (2,118) | (163) | |||||||||||||||||
| Net balance | $ | (512) | $ | (335) | $ | (177) |
Unbilled services, which is comprised of approximately 75% and 71% of unbilled receivables and 25% and 29% of contract assets as of June 30, 2026 and December 31, 2025, decreased by $14 million as compared to December 31, 2025. Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time. Unearned income increased by $163 million over the same period resulting in a decrease of $177 million in the net balance of unbilled services and unearned income between June 30, 2026 and December 31, 2025. The change in the net balance is driven by the difference in timing of revenue recognition in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, primarily related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is based on certain milestones.
The majority of the unearned income balance as of the beginning of the year is expected to be recognized in revenues during the year ended December 31, 2026.
Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three and six months ended June 30, 2026 and 2025.
Accounts Receivable Factoring Arrangements
The Company has accounts receivable factoring agreements to sell certain eligible unsecured trade accounts receivable, either based on automatic arrangements or at its option, without recourse, to unrelated third-party financial institutions for cash. During the six months ended June 30, 2026, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $367 million of customer invoices on a non-recourse basis and received approximately $364 million in cash proceeds from the sales. During the six months ended June 30, 2025, through these same accounts receivable factoring arrangements, the Company factored approximately $330 million of customer invoices on a non-recourse basis and received approximately $327 million in cash proceeds from the sales. The fees associated with these transactions were immaterial. The Company has other accounts receivable arrangements for which the activity associated with them is immaterial.
4. Goodwill
The following is a summary of goodwill by reportable segment for the six months ended June 30, 2026:
| (in millions) | Commercial Solutions | Research & Development Solutions | Consolidated | |||||||||||||||||
| Balance as of January 1, 2026 | $ | 12,987 | $ | 3,629 | $ | 16,616 | ||||||||||||||
| Business combinations | 56 | 79 | 135 | |||||||||||||||||
| Impact of foreign currency fluctuations and other | (130) | (17) | (147) | |||||||||||||||||
| Balance as of June 30, 2026 | $ | 12,913 | $ | 3,691 | $ | 16,604 |
In the first quarter of 2026, the Company reorganized its reportable segments as further detailed in Note 14. As a result, the former Contract Sales & Medical Solutions segment, which had a goodwill balance of $167 million at the time of the reorganization, was incorporated into the Technology & Analytics Solutions segment, which was renamed Commercial Solutions. Additionally, Real-World Late Phase and certain other Real-World offerings were moved from the Technology & Analytics Solutions segment to the Research & Development Solutions segment. Goodwill balances as of January 1, 2026 have been recast using the relative fair value approach to conform to this new presentation. In addition, the Company performed a goodwill impairment test, and the results of the analysis indicated that the fair values for all of its reporting units were in excess of their carrying values, indicating no impairment.
5. Derivatives
The fair values of the Company’s derivative instruments and the line items on the accompanying condensed consolidated balance sheets to which they were recorded are summarized in the following table:
| (in millions) | Balance Sheet Classification | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Assets | Liabilities | Notional | Assets | Liabilities | Notional | |||||||||||||||||||||||||||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | Other current liabilities | $ | — | $ | 14 | $ | 1,463 | $ | — | $ | 45 | $ | 1,470 | |||||||||||||||||||||||||||||||
| Cross-currency swaps | Other current liabilities | — | 267 | 2,713 | — | 322 | 2,720 | |||||||||||||||||||||||||||||||||||||
| Foreign exchange forward contracts | Other current liabilities | — | 3 | 134 | — | — | 127 | |||||||||||||||||||||||||||||||||||||
| Total derivatives | $ | — | $ | 284 | $ | — | $ | 367 |
The pre-tax effect of the Company’s cash flow hedging instruments on other comprehensive income is summarized in the following table:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Interest rate swaps | $ | 18 | $ | (14) | $ | 31 | $ | (40) | ||||||||||||||||||
| Foreign exchange forward contracts | — | 6 | (3) | 11 | ||||||||||||||||||||||
| Total | $ | 18 | $ | (8) | $ | 28 | $ | (29) |
The Company expects approximately $9 million of pre-tax unrealized losses related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of June 30, 2026 to be reclassified into earnings within the next twelve months. For the three and six months ended June 30, 2026 and 2025, the total amount, net of income taxes, of the cash flow hedge effect on the accompanying condensed consolidated statements of income was $(3) million and $2 million, and $(10) million and $1 million respectively.
As of June 30, 2026 and 2025, the Company's cross-currency swaps were designated as a hedge of its net investment in certain foreign subsidiaries. For the three and six months ended June 30, 2026, the Company recorded a $(9) million loss and $55 million gain, respectively, within AOCI as a result of these cross-currency swaps. For the three and six months ended June 30, 2025, the Company recorded a $(267) million loss and $(400) million loss, respectively, within AOCI as a result of these cross-currency swaps. For the three and six months ended June 30, 2026 and 2025, the Company recognized approximately $11 million and $11 million, and $21 million and $23 million, respectively, related to the excluded component as a reduction of interest expense.
As of June 30, 2026, the portion of the Company's foreign currency denominated debt balance (net of original issue discount) designated as a hedge of its net investment in certain foreign subsidiaries totaled €2,992 million ($3,413 million). The amount of foreign exchange gains (losses) related to the net investment hedge included in the cumulative translation adjustment component of AOCI for the three and six months ended June 30, 2026 and 2025 was $40 million and $(246) million, and $100 million and $(390) million, respectively.
6. Fair Value Measurements
The Company records certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is described below. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
-
Level 1 — Quoted prices in active markets for identical assets or liabilities.
-
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
-
Level 3 — Unobservable inputs that are supported by little or no market activity. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
The carrying values of cash, cash equivalents, accounts receivable and accounts payable approximated their fair values as of June 30, 2026 and December 31, 2025 due to their short-term nature. As of June 30, 2026 and December 31, 2025, the fair value of total debt was $16,130 million and $15,935 million, respectively, as determined under Level 2 measurements for these financial instruments.
Recurring Fair Value Measurements
The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of June 30, 2026:
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Marketable securities | $ | 201 | $ | — | $ | — | $ | 201 | ||||||||||||||||||
| Derivatives | — | — | — | — | ||||||||||||||||||||||
| Total | $ | 201 | $ | — | $ | — | $ | 201 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Derivatives | $ | — | $ | 284 | $ | — | $ | 284 | ||||||||||||||||||
| Contingent consideration | — | — | 104 | 104 | ||||||||||||||||||||||
| Total | $ | — | $ | 284 | $ | 104 | $ | 388 |
The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of December 31, 2025:
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Marketable securities | $ | 203 | $ | — | $ | — | $ | 203 | ||||||||||||||||||
| Derivatives | — | — | — | — | ||||||||||||||||||||||
| Total | $ | 203 | $ | — | $ | — | $ | 203 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Derivatives | $ | — | $ | 367 | $ | — | $ | 367 | ||||||||||||||||||
| Contingent consideration | — | — | 105 | 105 | ||||||||||||||||||||||
| Total | $ | — | $ | 367 | $ | 105 | $ | 472 |
Below is a summary of the valuation techniques used in determining fair value:
Marketable securities — The Company values trading and available-for-sale securities using the quoted market value of the securities held.
Derivatives — Derivatives consist of foreign exchange contracts, interest rate swaps, and cross-currency swaps. The fair value of foreign exchange contracts is based on observable market inputs of spot and forward rates or using other observable inputs. The fair value of the interest rate swaps is the estimated amount that the Company would receive or pay to terminate such agreements, taking into account market interest rates and the remaining time to maturities or using market inputs with mid-market pricing as a practical expedient for bid-ask spread. The fair value of the cross-currency swaps is the estimated amount that the Company would receive or pay to terminate such agreements, taking into account the effective interest rates, foreign exchange rates and the remaining time to maturities.
Contingent consideration — The Company values contingent consideration related to business combinations using a weighted probability calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows. Assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenues performance targets and operating forecasts) and the probability of achieving the specific targets. Based on the assessments of the probability of achieving specific targets, as of June 30, 2026 the Company has accrued approximately 73% of the maximum contingent consideration payments that could potentially become payable.
The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the six months ended June 30, 2026:
| (in millions) | Contingent Consideration | |||||||
| Balance as of December 31, 2025 | $ | 105 | ||||||
| Business combinations | 21 | |||||||
| Contingent consideration paid | (11) | |||||||
| Revaluations included in earnings and foreign currency translation adjustments | (11) | |||||||
| Balance as of June 30, 2026 | $ | 104 |
The current portion of contingent consideration is included within accrued expenses and the long-term portion is included within other liabilities on the accompanying condensed consolidated balance sheets. Revaluations of contingent consideration are recognized in other expense, net on the accompanying condensed consolidated statements of income. A change in significant unobservable inputs could result in a higher or lower fair value measurement of contingent consideration.
Non-recurring Fair Value Measurements
As of June 30, 2026, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $21,795 million and were identified as Level 3. These assets are comprised of debt investments and cost and equity method investments of $442 million, goodwill of $16,604 million and other identifiable intangibles, net of $4,749 million.
7. Credit Arrangements
The following is a summary of the Company’s revolving credit facilities as of June 30, 2026:
| Facility | Interest Rates | |||||||
| $2,000 million (revolving credit facility) | U.S. Dollar Term SOFR plus a margin of 1.25% as of June 30, 2026 | |||||||
| $110 million (receivables financing facility) | U.S. Dollar Term SOFR plus a margin of 1.00% plus a 10 basis credit spread adjustment as of June 30, 2026 | |||||||
The following table summarizes the Company’s debt at the dates indicated:
| (dollars in millions) | June 30, 2026 | December 31, 2025 | ||||||||||||
| Revolving Credit Facility due 2030: | ||||||||||||||
| U.S. Dollar denominated borrowings—U.S. Dollar Term SOFR at average floating rates of 4.89% | $ | 800 | $ | 800 | ||||||||||
| Senior Secured Credit Facilities: | ||||||||||||||
| Term A Loan due 2030—Euribor at floating rates of 3.54% | 275 | 290 | ||||||||||||
| Term A Loan due 2030—U.S. Dollar Term SOFR at floating rates of 4.98% | 2,108 | 2,162 | ||||||||||||
| Term B Loan due 2031—U.S. Dollar Term SOFR at floating rates of 5.48% | 1,955 | 1,965 | ||||||||||||
| 5.700% Senior Secured Notes due 2028—U.S. Dollar denominated | 750 | 750 | ||||||||||||
| 6.250% Senior Secured Notes due 2029—U.S. Dollar denominated | 1,250 | 1,250 | ||||||||||||
| 5.0% Senior Notes due 2027—U.S. Dollar denominated | 1,100 | 1,100 | ||||||||||||
| 5.0% Senior Notes due 2026—U.S. Dollar denominated | 1,050 | 1,050 | ||||||||||||
| 6.500% Senior Notes due 2030—U.S. Dollar denominated | 500 | 500 | ||||||||||||
| 6.250% Senior Notes due 2032—U.S. Dollar denominated | 2,000 | 2,000 | ||||||||||||
| 2.25% Senior Notes due 2028—Euro denominated | 821 | 845 | ||||||||||||
| 2.875% Senior Notes due 2028—Euro denominated | 811 | 835 | ||||||||||||
| 1.750% Senior Notes due 2026—Euro denominated | — | 646 | ||||||||||||
| 2.250% Senior Notes due 2029—Euro denominated | 1,027 | 1,057 | ||||||||||||
| 4.625% Senior Notes due 2033—Euro denominated | 1,084 | — | ||||||||||||
| Receivables financing facility due 2027—U.S. Dollar Term SOFR at floating rates of 4.80%: | ||||||||||||||
| Revolving Loan Commitment | 110 | 110 | ||||||||||||
| Term Loan | 440 | 440 | ||||||||||||
| Principal amount of debt | 16,081 | 15,800 | ||||||||||||
| Less: unamortized discount and debt issuance costs | (82) | (76) | ||||||||||||
| Less: current portion | (2,294) | (1,840) | ||||||||||||
| Long-term debt | $ | 13,705 | $ | 13,884 |
Contractual maturities of long-term debt as of June 30, 2026 are as follows:
| (in millions) | ||||||||
| Remainder of 2026 | $ | 1,122 | ||||||
| 2027 | 1,794 | |||||||
| 2028 | 2,526 | |||||||
| 2029 | 2,420 | |||||||
| 2030 | 3,269 | |||||||
| Thereafter | 4,950 | |||||||
| $ | 16,081 |
Senior Secured Credit Facilities
As of June 30, 2026, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $6,333 million, which consisted of $5,138 million principal amounts of debt outstanding (as detailed in the table above), and $1,195 million of available borrowing capacity on the $2,000 million revolving credit facility and standby letters of credit. The revolving credit facility is comprised of a $2,000 million senior secured revolving facility available in U.S. dollars.
Term Loan due 2027
On March 11, 2026, the Company entered into a 364-Day Term A Loan Agreement to borrow $650 million in U.S. Dollar denominated Term A loans due 2027 (the “Term Loan due 2027”). The Term Loan due 2027 bore interest based on the Secured Overnight Financing Rate term rates (“Term SOFR”), plus a margin ranging from 1.125% to 2.00%, with a Term SOFR floor of 0.00% per annum. The proceeds from the Term Loan due 2027 were used to repay approximately €550 million of the 1.750% senior notes due 2026 (the “1.750% Notes”) at maturity, including the payment of fees and expenses related to the offering, and for general corporate purposes. The Term Loan due 2027 was repaid in full on June 11, 2026 with proceeds from the 4.625% senior notes due 2033 described below.
Senior Notes
On June 11, 2026, the Company completed the issuance and sale of €950 million in gross proceeds of 4.625% senior notes due 2033 (the “4.625% Notes”). The 4.625% Notes were issued pursuant to an Indenture, dated June 11, 2026, among the Company, U.S. Bank National Association, as trustee of the Notes, and certain subsidiaries of the Company as guarantors. The net proceeds from the 4.625% Notes offering were used to repay in full the Company’s outstanding Term Loan due 2027, to repay a portion of the existing borrowings under the Company’s revolving credit facility and to pay fees and expenses related to the offering.
The 4.625% Notes are unsecured obligations of the Company, will mature on June 15, 2033, and bear interest at the rate of 4.625% per year, with interest payable semiannually on June 15 and December 15 of each year, beginning on December 15, 2026.
The Company may redeem the 4.625% Notes prior to their final stated maturity, subject to a customary make-whole premium, at any time prior to June 15, 2029 (subject to a customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 1.02313% to 0.000%.
On March 16, 2026, the proceeds from the Term Loan due 2027 were used to repay all of the Company’s outstanding €550 million 1.750% Notes. The Company’s obligations with respect to the 1.750% Notes were discharged on the same day as the notes were repaid in full.
Restrictive Covenants
The Company’s debt agreements provide for certain covenants and events of default customary for similar instruments, including a covenant not to exceed a specified ratio of consolidated senior secured net indebtedness to Consolidated EBITDA, as defined in the senior secured credit facility agreement and a covenant to maintain a specified minimum interest coverage ratio. If an event of default occurs under any of the Company’s or the Company’s subsidiaries’ financing arrangements, the creditors under such financing arrangements will be entitled to take various actions, including the acceleration of amounts due under such arrangements, and in the case of the lenders under the revolving credit facility and term loans, other actions permitted to be taken by a secured creditor. The Company’s long-term debt arrangements contain other usual and customary restrictive covenants that, among other things, place limitations on the Company’s ability to declare dividends. As of June 30, 2026, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements.
8. Contingencies
The Company and its subsidiaries are involved in legal and tax proceedings, claims and litigation arising in the ordinary course of business. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. For those matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, the Company has recorded an accrual in the consolidated financial statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any.
However, even in many instances where the Company has recorded an estimated liability, the Company is unable to predict with certainty the final outcome of the matter or whether resolution of the matter will materially affect the Company’s results of operations, financial position or cash flows. As additional information becomes available, the Company adjusts its assessments and estimates of such liabilities accordingly.
The Company routinely enters into agreements with third parties, including its clients and suppliers, all in the normal course of business. In these agreements, the Company sometimes agrees to indemnify and hold harmless the other party for any damages such other party may suffer as a result of potential intellectual property infringement and other claims. The Company has not accrued a liability with respect to these matters generally, as the exposure is considered remote.
Based on its review of the latest information available, management does not expect the impact of pending legal and tax proceedings, claims and litigation, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or financial position. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which it is resolved.
9. Stockholders’ Equity
Preferred Stock
The Company is authorized to issue 1.0 million shares of preferred stock, $0.01 per share par value. No shares of preferred stock were issued or outstanding as of June 30, 2026 or December 31, 2025.
Equity Repurchase Program
On May 7, 2026, the Company's Board of Directors increased the stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") with respect to the repurchase of the Company's common stock by an additional $2,000 million, which increased the total amount that has been authorized under the Repurchase Program to $15,725 million. The Repurchase Program does not obligate the Company to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.
During the six months ended June 30, 2026, the Company repurchased 5.5 million shares of its common stock for $950 million under the Repurchase Program. As of June 30, 2026, the Company had remaining authorization to repurchase up to $2,819 million of its common stock under the Repurchase Program. In addition, from time to time, the Company has repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.
10. Business Combinations
The Company completed individually and in the aggregate immaterial acquisitions during the six months ended June 30, 2026. The Company’s assessment of fair value, including the valuation of certain identified intangibles, and the purchase price allocation related to these acquisitions 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 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:
| (in millions) | June 30, 2026 | |||||||
| Assets acquired: | ||||||||
| Cash and cash equivalents | $ | 14 | ||||||
| Accounts receivable | 36 | |||||||
| Other assets | 92 | |||||||
| Goodwill | 135 | |||||||
| Other identifiable intangibles | 87 | |||||||
| Liabilities assumed: | ||||||||
| Other liabilities | (86) | |||||||
| Deferred income taxes, long-term | (38) | |||||||
| Net assets acquired (1) | $ | 240 | ||||||
(1) Net assets acquired includes contingent consideration and deferred purchase price of $26 million.
The portion of goodwill deductible for income tax purposes was preliminarily assessed as $4 million.
The following table provides a summary of the preliminary estimated fair value of certain intangible assets acquired:
| (in millions) | Amortization Period | June 30, 2026 | |||||||||||||||||||||||||||
| Other identifiable intangibles: | |||||||||||||||||||||||||||||
| Customer relationships | 10 | - | 15 | years | $ | 73 | |||||||||||||||||||||||
| Backlog | 1 | year | 6 | ||||||||||||||||||||||||||
| Software and related assets | 3 | - | 9 | years | 4 | ||||||||||||||||||||||||
| Non-compete agreements | 3 | years | 3 | ||||||||||||||||||||||||||
| Databases | 3 | years | 1 | ||||||||||||||||||||||||||
| Total Other identifiable intangibles | $ | 87 |
11. Restructuring
The Company has continued to take restructuring actions in 2026 to align its resources and reduce overcapacity to adapt to changing market conditions and integrate acquisitions. These actions include consolidating functional activities, eliminating redundant positions, and aligning resources with customer requirements. These restructuring actions are expected to continue throughout 2026 and into 2027.
The following amounts were recorded for the restructuring plans:
| (in millions) | Severance and Related Costs | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 31 | ||||||||||||||||||
| Expense, net of reversals | 114 | |||||||||||||||||||
| Payments | (77) | |||||||||||||||||||
| Foreign currency translation and other | (1) | |||||||||||||||||||
| Balance as of June 30, 2026 | $ | 67 |
The reversals were due to changes in estimates primarily resulting from the redeployment of staff and higher than expected voluntary terminations. Restructuring costs are not allocated to the Company’s reportable segments as they are not part of the segment performance measures regularly reviewed by management. The Company expects that the majority of the restructuring accruals as of June 30, 2026 will be paid in 2026 and 2027.
12. Income Taxes
The Company's effective income tax rate was 19.9% and 17.3% in the second quarter of 2026 and 2025, respectively. The Company's effective income tax rate was 18.9% and 18.1% in the first six months of 2026 and 2025, respectively. The effective income tax rate in the second quarter and in the first six months of 2026 and 2025 was impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.
On December 12, 2022, the European Union member states agreed to implement the Organization for Economic Cooperation and Development’s (“OECD”) Pillar Two global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2025. In January 2026, the OECD released Administrative Guidance establishing a “side‑by‑side” system that is intended to reduce the compliance burden of calculating the Pillar Two top-up-tax amounts for jurisdictions with similar regimes with minimum tax requirements for fiscal years beginning on or after January 1, 2026, subject to adoption by relevant jurisdictions. This is achieved by deeming a top-up tax amount of zero as it relates to Income Inclusion Rules and Undertaxed Profits Rules for Multinational Enterprise groups with an ultimate parent entity in such jurisdictions; however, this guidance does not affect the application of local minimum or qualified domestic top‑up taxes in foreign jurisdictions. During the six months ended June 30, 2026, the Company evaluated enacted and substantively enacted Pillar Two legislation and performed calculations under applicable safe harbor frameworks to identify jurisdictions with effective tax rates below 15%, and any resulting top‑up tax was recorded as a period cost in the annual effective tax rate. The Company continues to monitor global developments and is assessing the potential impact of these rules on its income tax provision.
13. Accumulated Other Comprehensive (Loss) Income
Below is a summary of the components of AOCI:
| (in millions) | Foreign Currency Translation | Derivative Instruments | Defined Benefit Plans | Income Taxes | Total | |||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | (1,126) | $ | (43) | $ | 40 | $ | 186 | $ | (943) | ||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (19) | 15 | (1) | (26) | (31) | |||||||||||||||||||||||||||
| Reclassification adjustments | — | 13 | — | (3) | 10 | |||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | (1,145) | $ | (15) | $ | 39 | $ | 157 | $ | (964) |
Below is a summary of the adjustments for amounts reclassified from AOCI into the condensed consolidated statements of income and the affected financial statement line item:
| (in millions) | Affected Financial Statement Line Item | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
| Derivative instruments: | ||||||||||||||||||||||||||||||||
| Interest rate swaps | Interest expense | $ | (1) | $ | 1 | $ | (3) | $ | 2 | |||||||||||||||||||||||
| Foreign exchange forward contracts | Revenues | (2) | 2 | (10) | — | |||||||||||||||||||||||||||
| Total before income taxes | (3) | 3 | (13) | 2 | ||||||||||||||||||||||||||||
| Income taxes | — | 1 | (3) | 1 | ||||||||||||||||||||||||||||
| Total net of income taxes | $ | (3) | $ | 2 | $ | (10) | $ | 1 |
14. Segments
The following table presents the Company’s operations by reportable segment. The Company was previously managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Effective January 1, 2026, the Company updated its segment reporting to align with industry evolution, its updated operating model, and how internal reporting is provided to the chief operating decision maker ("CODM"). As a result, the Contract Sales & Medical Solutions segment, which had become more closely related operationally to the Technology & Analytics Solutions segment commercial offerings, was incorporated into the Technology & Analytics Solutions segment, which is renamed Commercial Solutions. Additionally, Real-World Late Phase and certain other Real-World offerings that had become more closely related operationally to the clinical research business, were moved from the Technology & Analytics Solutions segment to the Research & Development Solutions segment. The Company is reflecting the recast of segment information for the three and six months ended June 30, 2025 on this basis in the table below.
The Company is now managed through two reportable segments, Commercial Solutions and Research & Development Solutions. Commercial Solutions provides mission critical information, advanced analytics, technology solutions, health care provider services (including contract sales), and patient engagement services to the Company’s life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research, clinical trial and real-world research related services.
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, 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 CODM, to assess the Company’s performance.
For both 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.
The Company’s reportable segment information is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Commercial Solutions | $ | 1,793 | $ | 1,651 | $ | 3,547 | $ | 3,223 | ||||||||||||||||||
| Research & Development Solutions | 2,575 | 2,366 | 4,972 | 4,623 | ||||||||||||||||||||||
| Total revenues | 4,368 | 4,017 | 8,519 | 7,846 | ||||||||||||||||||||||
| Cost of revenues, exclusive of depreciation and amortization | ||||||||||||||||||||||||||
| Commercial Solutions | 1,132 | 1,042 | 2,253 | 2,022 | ||||||||||||||||||||||
| Research & Development Solutions | 1,801 | 1,652 | 3,476 | 3,203 | ||||||||||||||||||||||
| Total cost of revenues, exclusive of depreciation and amortization | 2,933 | 2,694 | 5,729 | 5,225 | ||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||
| Commercial Solutions | 242 | 230 | 494 | 467 | ||||||||||||||||||||||
| Research & Development Solutions | 248 | 241 | 498 | 471 | ||||||||||||||||||||||
| Total selling, general and administrative expenses reportable segments | 490 | 471 | 992 | 938 | ||||||||||||||||||||||
| Segment profit | ||||||||||||||||||||||||||
| Commercial Solutions | 419 | 379 | 800 | 734 | ||||||||||||||||||||||
| Research & Development Solutions | 526 | 473 | 998 | 949 | ||||||||||||||||||||||
| Total segment profit | 945 | 852 | 1,798 | 1,683 | ||||||||||||||||||||||
| General corporate and unallocated expenses | (84) | (38) | (84) | (79) | ||||||||||||||||||||||
| Depreciation and amortization | (292) | (276) | (580) | (541) | ||||||||||||||||||||||
| Restructuring costs | (63) | (32) | (114) | (61) | ||||||||||||||||||||||
| Total income from operations | 506 | 506 | 1,020 | 1,002 | ||||||||||||||||||||||
| Interest income | (7) | (10) | (17) | (21) | ||||||||||||||||||||||
| Interest expense | 197 | 182 | 389 | 347 | ||||||||||||||||||||||
| Loss on extinguishment of debt | 3 | — | 3 | 4 | ||||||||||||||||||||||
| Other expense, net | 12 | 11 | 16 | 26 | ||||||||||||||||||||||
| Income before income taxes and equity in earnings (losses) of unconsolidated affiliates | $ | 301 | $ | 323 | $ | 629 | $ | 646 |
15. Earnings Per Share
The following table presents the computation of basic and diluted earnings per share:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in millions, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| Net income attributable to IQVIA Holdings Inc. | $ | 256 | $ | 266 | $ | 530 | $ | 515 | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
| Basic weighted average common shares outstanding | 166.1 | 171.8 | 167.2 | 173.7 | ||||||||||||||||||||||
| Effect of dilutive stock options and share awards | 1.2 | 1.4 | 1.4 | 1.6 | ||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 167.3 | 173.2 | 168.6 | 175.3 | ||||||||||||||||||||||
| Earnings per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | 1.54 | $ | 1.55 | $ | 3.17 | $ | 2.96 | ||||||||||||||||||
| Diluted | $ | 1.53 | $ | 1.54 | $ | 3.14 | $ | 2.94 |
Stock-based awards will have a dilutive effect under the treasury method when the respective period's average market value of the Company's common stock exceeds the exercise proceeds. Performance awards are included in diluted earnings per share based on if the performance targets have been met at the end of the reporting period.
For the three and six months ended June 30, 2026 and 2025, the weighted average number of outstanding stock-based awards not included in the computation of diluted earnings per share because they are subject to performance conditions that have not been met at the end of the reporting period or the effect of including such stock-based awards in the computation would be anti-dilutive was 2.8 million and 3.6 million, and 2.5 million and 3.0 million, respectively.
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