IQVIA falls on weak annual forecast, AI concerns

Shares of contract research firm IQVIA Holdings IQV.N fall 8% to $186.56 after forecasting annual profit below Wall Street estimates, and its CEO defended the co's AI strategy

CEO Ari Bousbib pushed back on analyst concerns that new AI tools could displace IQVIA's services, stating the co's vast proprietary healthcare data assets cannot be replicated by general-purpose AI

IQV expects 2026 adjusted earnings of $12.55 to $12.85 per share, below analysts' avg estimate of $12.95 apiece, citing nearly $80 mln in higher interest expenses

Stock recently traded at 15.5 times expected earnings, vs an avg forward PE of 19.8 over the past five years, suggesting shares may be undervalued, per LSEG data

"We still think IQV generates too much profit/cash flow, as a clear market leader in an improving market, to not have a positive risk/reward skew," said Leerink Partners analyst Michael Cherny

Shares up ~15% in 2025