UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________________________

FORM 10-Q

_________________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to             .

Commission File Number: 001-35907

_________________________________________________________

IQVIA HOLDINGS INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________

Delaware	27-1341991
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

2400 Ellis Rd., Durham, North Carolina 27703

(Address of principal executive office and Zip Code)

(919) 998-2000

(Registrant’s telephone number, including area code)

_________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes x    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No x

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered
Common Stock, par value $0.01 per share	IQV	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

Class	Number of Shares Outstanding
Common Stock $0.01 par value	182.3 million shares outstanding as of July 16, 2024

IQVIA HOLDINGS INC.

FORM 10-Q

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION		3
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023	4
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
PART II—OTHER INFORMATION		35
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	36
Item 6.	Exhibits	37
SIGNATURES		38

2

PART I—FINANCIAL INFORMATION

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)	2024		2023		2024		2023
Revenues	$	3,814	$	3,728	$	7,551	$	7,380
Cost of revenues, exclusive of depreciation and amortization	2,488		2,443		4,932		4,841
Selling, general and administrative expenses	509		482		1,017		995
Depreciation and amortization	269		259		533		512
Restructuring costs	28		20		43		37
Income from operations	520		524		1,026		995
Interest income	(12)		(4)		(23)		(10)
Interest expense	163		169		329		310
Other income, net	(67)		(16)		(56)		(42)
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates	436		375		776		737
Income tax expense	75		81		124		152
Income before equity in earnings (losses) of unconsolidated affiliates	361		294		652		585
Equity in earnings (losses) of unconsolidated affiliates	2		3		(1)		1
Net income	$	363	$	297	$	651	$	586
Earnings per share attributable to common stockholders:
Basic	$	1.99	$	1.61	$	3.58	$	3.17
Diluted	$	1.97	$	1.59	$	3.53	$	3.12
Weighted average common shares outstanding:
Basic	182.2		184.4		182.0		185.1
Diluted	184.3		186.7		184.3		187.6

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Net income	$	363	$	297	$	651	$	586
Comprehensive income adjustments:
Unrealized gains on derivative instruments, net of income tax expense of $4,$8,$16,$11	15		22		49		32
Defined benefit plan adjustments, net of income tax expense of $—, $—,$—,$—	—		—		—		1
Foreign currency translation, net of income tax expense (benefit) of $13,$(3),$50,$(32)	(42)		(44)		(111)		(34)
Reclassification adjustments:
Reclassifications on derivative instruments included in net income, net of income tax (expense) of $(4),$(3),$(7),$(11)	(11)		(7)		(20)		(32)
Comprehensive income	$	325	$	268	$	569	$	553

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions, except per share data)	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,545	$	1,376
Trade accounts receivable and unbilled services, net	3,255		3,381
Prepaid expenses	191		141
Income taxes receivable	41		32
Investments in debt, equity and other securities	133		120
Other current assets and receivables	457		546
Total current assets	5,622		5,596
Property and equipment, net	503		523
Operating lease right-of-use assets	265		296
Investments in debt, equity and other securities	106		105
Investments in unconsolidated affiliates	181		134
Goodwill	14,477		14,567
Other identifiable intangibles, net	4,608		4,839
Deferred income taxes	158		166
Deposits and other assets, net	478		455
Total assets	$	26,398	$	26,681
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	3,313	$	3,564
Unearned income	1,811		1,799
Income taxes payable	185		116
Current portion of long-term debt	1,167		718
Other current liabilities	144		294
Total current liabilities	6,620		6,491
Long-term debt, less current portion	12,091		12,955
Deferred income taxes	149		202
Operating lease liabilities	192		223
Other liabilities	632		698
Total liabilities	19,684		20,569
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized as of June 30, 2024 and December 31, 2023, $0.01 par value, 258.0 shares issued and 182.3 shares outstanding as of June 30, 2024; 257.2 shares issued and 181.5 shares outstanding as of December 31, 2023	11,061		11,028
Retained earnings	5,343		4,692
Treasury stock, at cost, 75.7 and 75.7 shares as of June 30, 2024 and December 31, 2023, respectively	(8,741)		(8,741)
Accumulated other comprehensive loss	(949)		(867)
Total stockholders’ equity	6,714		6,112
Total liabilities and stockholders’ equity	$	26,398	$	26,681

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

IQVIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Six Months Ended June 30,
(in millions)	2024		2023
Operating activities:
Net income	$	651	$	586
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	533		512
Amortization of debt issuance costs and discount	11		8
Stock-based compensation	104		125
Losses (earnings) from unconsolidated affiliates	1		(1)
Gain on investments, net	(12)		(10)
Benefit from deferred income taxes	(80)		(70)
Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income	187		(134)
Change in other operating assets and liabilities	(285)		(197)
Net cash provided by operating activities	1,110		819
Investing activities:
Acquisition of property, equipment and software	(288)		(324)
Acquisition of businesses, net of cash acquired	(221)		(444)
Purchases of marketable securities, net	—		(4)
Investments in unconsolidated affiliates, net of payments received	(49)		(13)
Investments in debt and equity securities	(2)		(36)
Proceeds from sale of property, equipment and software	25		—
Other	—		3
Net cash used in investing activities	(535)		(818)
Financing activities:
Proceeds from issuance of debt	—		1,250
Payment of debt issuance costs	—		(18)
Repayment of debt and principal payments on finance leases	(86)		(77)
Proceeds from revolving credit facility	375		1,559
Repayment of revolving credit facility	(585)		(1,784)
Payments related to employee stock incentive plans	(60)		(58)
Repurchase of common stock	—		(619)
Contingent consideration and deferred purchase price payments	(10)		(71)
Net cash (used in) provided by financing activities	(366)		182
Effect of foreign currency exchange rate changes on cash	(40)		(17)
Increase in cash and cash equivalents	169		166
Cash and cash equivalents at beginning of period	1,376		1,216
Cash and cash equivalents at end of period	$	1,545	$	1,382

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

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		Total
Balance, December 31, 2023	257.2	(75.7)	$	3	$	11,025	$	4,692	$	(8,741)	$	(867)	$	6,112
Issuance of common stock	0.7	—	—		(61)		—		—		—		(61)
Stock-based compensation	—	—	—		49		—		—		—		49
Net income	—	—	—		—		288		—		—		288
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		34		34
Foreign currency translation, net of tax	—	—	—		—		—		—		(69)		(69)
Reclassification adjustments, net of tax	—	—	—		—		—		—		(9)		(9)
Balance, March 31, 2024	257.9	(75.7)	$	3	$	11,013	$	4,980	$	(8,741)	$	(911)	$	6,344
Issuance of common stock	0.1	—	—		1		—		—		—		1
Stock-based compensation	—	—	—		44		—		—		—		44
Net income	—	—	—		—		363		—		—		363
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		15		15
Foreign currency translation, net of tax	—	—	—		—		—		—		(42)		(42)
Reclassification adjustments, net of tax	—	—	—		—		—		—		(11)		(11)
Balance, June 30, 2024	258.0	(75.7)	$	3	$	11,058	$	5,343	$	(8,741)	$	(949)	$	6,714

(in millions)	Common Stock Shares	Treasury Stock Shares	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Total
Balance, December 31, 2022	256.4	(70.7)	$	3	$	10,895	$	3,334	$	(7,740)	$	(727)	$	5,765
Issuance of common stock	0.5	—	—		(58)		—		—		—		(58)
Repurchase of common stock	—	(0.7)	—		—		—		(129)		—		(129)
Stock-based compensation	—	—	—		69		—		—		—		69
Net income	—	—	—		—		289		—		—		289
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		10		10
Defined benefit plan adjustments, net of tax	—	—	—		—		—		—		1		1
Foreign currency translation, net of tax	—	—	—		—		—		—		10		10
Reclassification adjustments, net of tax	—	—	—		—		—		—		(25)		(25)
Balance, March 31, 2023	256.9	(71.4)	$	3	$	10,906	$	3,623	$	(7,869)	$	(731)	$	5,932
Issuance of common stock	0.1	—	—		—		—		—		—		—
Repurchase of common stock, net of tax	—	(2.5)	—		—		—		(495)		—		(495)
Stock-based compensation	—	—	—		43		—		—		—		43
Net income	—	—	—		—		297		—		—		297
Unrealized gains on derivative instruments, net of tax	—	—	—		—		—		—		22		22
Foreign currency translation, net of tax	—	—	—		—		—		—		(44)		(44)
Reclassification adjustments, net of tax	—	—	—		—		—		—		(7)		(7)
Balance, June 30, 2023	257.0	(73.9)	$	3	$	10,949	$	3,920	$	(8,364)	$	(760)	$	5,748

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

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 advanced analytics, technology solutions and clinical research services to the life sciences industry. With approximately 88,000 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, 2024. 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, 2023. The balance sheet as of December 31, 2023 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, 2024

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements. The new guidance requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included in the reported measure of segment profit or loss. It does not change the definition of a segment or the guidance for determining reportable segments. The new guidance is effective for the Company in the annual period beginning January 1, 2024 and in 2025 for interim periods. Adoption of this ASU will result in additional disclosure, but it will not impact the Company’s consolidated financial position, results of operations or cash flows.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this ASU require additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be effective for the Company in the annual period beginning January 1, 2025. The Company is assessing the impacts of this ASU on its disclosures within the consolidated financial statements.

8

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, 2024 and 2023:

	Three Months Ended June 30, 2024
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	783	$	1,014	$	66	$	1,863
Europe and Africa		569		557		52		1,178
Asia-Pacific		143		576		54		773
Total revenues		$	1,495	$	2,147	$	172	$	3,814

	Three Months Ended June 30, 2023
(in millions)	Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas	$	772	$	979	$	70	$	1,821
Europe and Africa	531		536		49		1,116
Asia-Pacific	153		581		57		791
Total revenues	$	1,456	$	2,096	$	176	$	3,728

	Six Months Ended June 30, 2024
(in millions)		Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas		$	1,526	$	2,000	$	139	$	3,665
Europe and Africa		1,131		1,092		112		2,335
Asia-Pacific		291		1,150		110		1,551
Total revenues		$	2,948	$	4,242	$	361	$	7,551

	Six Months Ended June 30, 2023
(in millions)	Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Total
Revenues:
Americas	$	1,507	$	1,965	$	150	$	3,622
Europe and Africa	1,087		1,027		96		2,210
Asia-Pacific	306		1,130		112		1,548
Total revenues	$	2,900	$	4,122	$	358	$	7,380

No individual customer represented 10% or more of consolidated revenues for the three and six months ended June 30, 2024 or 2023.

9

Transaction Price Allocated to the Remaining Performance Obligations

As of June 30, 2024, approximately $32.8 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 80% 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, 2024		December 31, 2023
Trade accounts receivable	$	1,357	$	1,473
Unbilled services	1,938		1,942
Trade accounts receivable and unbilled services	3,295		3,415
Allowance for doubtful accounts	(40)		(34)
Trade accounts receivable and unbilled services, net	$	3,255	$	3,381

Unbilled services and unearned income were as follows:

(in millions)	June 30, 2024		December 31, 2023		Change
Unbilled services	$	1,938	$	1,942	$	(4)
Unearned income	(1,811)		(1,799)		(12)
Net balance	$	127	$	143	$	(16)

Unbilled services, which is comprised of approximately 69% and 68% of unbilled receivables and 31% and 32% of contract assets as of June 30, 2024 and December 31, 2023, respectively, decreased by $4 million as compared to December 31, 2023. 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 $12 million over the same period resulting in a decrease of $16 million in the net balance of unbilled services and unearned income between June 30, 2024 and December 31, 2023. 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, 2024.

Bad debt expense recognized on the Company’s trade accounts receivable was immaterial for the three and six months ended June 30, 2024 and 2023.

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, 2024, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $380 million of customer invoices on a non-recourse basis and received approximately $370 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.

10

4. Goodwill

The following is a summary of goodwill by reportable segment for the six months ended June 30, 2024:

(in millions)	Technology & Analytics Solutions		Research & Development Solutions		Contract Sales & Medical Solutions		Consolidated
Balance as of December 31, 2023	$	11,976	$	2,439	$	152	$	14,567
Business combinations	147		—		—		147
Impact of foreign currency fluctuations and other	(223)		(8)		(6)		(237)
Balance as of June 30, 2024	$	11,900	$	2,431	$	146	$	14,477

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, 2024						December 31, 2023
		Assets		Liabilities		Notional		Assets		Liabilities		Notional
Derivatives designated as hedging instruments:
Interest rate swaps	Other current assets, other assets and other current liabilities	$	9	$	9	$	2,493	$	13	$	51	$	3,300
Cross-currency swaps	Other current liabilities	—		1		2,743		—		108		2,750
Foreign exchange forward contracts	Other current assets and other current liabilities	2		—		118		2		—		121
Total derivatives		$	11	$	10			$	15	$	159

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)	2024		2023		2024		2023
Interest rate swaps	$	2	$	18	$	38	$	(5)
Foreign exchange forward contracts	2		2		—		5
Total	$	4	$	20	$	38	$	—

The Company expects approximately $33 million of pre-tax unrealized gains related to its foreign exchange contracts and interest rate derivatives included in accumulated other comprehensive (loss) income (“AOCI”) as of June 30, 2024 to be reclassified into earnings within the next twelve months. For the three and six months ended June 30, 2024 and 2023, the total amount, net of income taxes, of the cash flow hedge effect on the accompanying condensed consolidated financial statements of income was $11 million and $7 million, and $20 million and $32 million, respectively.

As of June 30, 2024, the Company's cross-currency swaps were designated as a hedge of its net investment in certain foreign subsidiaries. For the six months ended June 30, 2024, the Company recorded a gain of $107 million within AOCI as a result of these cross-currency swaps. The Company recognized approximately $9 million and $18 million related to the excluded component as a reduction of interest expense for the three and six months ended June 30, 2024, respectively.

As of June 30, 2024, 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 €2,688 million ($2,881 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 six months ended June 30, 2024 and 2023 was $88 million and $(92) million, respectively.

11

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, 2024 and December 31, 2023 due to their short-term nature. As of June 30, 2024 and December 31, 2023, the fair value of total debt was $13,111 million and $13,597 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, 2024:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	156	$	—	$	—	$	156
Derivatives	—		11		—		11
Total	$	156	$	11	$	—	$	167
Liabilities:
Derivatives	$	—	$	10	$	—	$	10
Contingent consideration	—		—		65		65
Total	$	—	$	10	$	65	$	75

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, 2023:

(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	146	$	—	$	—	$	146
Derivatives	—		15		—		15
Total	$	146	$	15	$	—	$	161
Liabilities:
Derivatives	$	—	$	159	$	—	$	159
Contingent consideration	—		—		106		106
Total	$	—	$	159	$	106	$	265

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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, 2024, the Company has accrued approximately 22% 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, 2024:

(in millions)	Contingent Consideration
Balance as of December 31, 2023	$	106
Business combinations	28
Contingent consideration paid	(9)
Revaluations included in earnings and foreign currency translation adjustments	(60)
Balance as of June 30, 2024	$	65

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 income, 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, 2024, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled $19,349 million and were identified as Level 3. These assets are comprised of debt investments and cost and equity method investments of $264 million, goodwill of $14,477 million and other identifiable intangibles, net of $4,608 million.

7. Credit Arrangements

The following is a summary of the Company’s revolving credit facilities as of June 30, 2024:

Facility	Interest Rates
$2,000 million (revolving credit facility)	U.S. Dollar Term SOFR plus a margin of 1.25% plus a 10 basis credit spread adjustment as of June 30, 2024
$110 million (receivables financing facility)	U.S. Dollar Term SOFR plus a margin of 0.90% plus a 11 basis credit spread adjustment as of June 30, 2024

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The following table summarizes the Company’s debt at the dates indicated:

(dollars in millions)	June 30, 2024		December 31, 2023
Revolving Credit Facility due 2026:
U.S. Dollar denominated borrowings—U.S. Dollar Term SOFR at average floating rates of —%	$	—	$	100
Senior Secured Credit Facilities:
Term A Loan due 2026—U.S. Dollar Term SOFR at average floating rates of 6.69%	1,234		1,270
Term A Loan due 2026—Euribor at average floating rates of 4.97%	289		306
Term A Loan due 2027—U.S. Dollar Term SOFR at average floating rates of 6.69%	1,125		1,156
Term B Loan due 2025—Euribor at average floating rates of 5.72%	559		576
Term B Loan due 2031—U.S. Dollar Term SOFR at average floating rates of 7.34%	1,493		1,500
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
2.875% Senior Notes due 2025—Euro denominated	450		464
2.25% Senior Notes due 2028—Euro denominated	772		795
2.875% Senior Notes due 2028—Euro denominated	762		785
1.750% Senior Notes due 2026—Euro denominated	589		607
2.250% Senior Notes due 2029—Euro denominated	965		993
Receivables financing facility due 2024—U.S. Dollar Term SOFR at average floating rates of 6.34%:
Revolving Loan Commitment	—		110
Term Loan	440		440
Principal amount of debt	13,328		13,752
Less: unamortized discount and debt issuance costs	(70)		(79)
Less: current portion	(1,167)		(718)
Long-term debt	$	12,091	$	12,955

Contractual maturities of long-term debt as of June 30, 2024 are as follows:

(in millions)
Remainder of 2024	$	524
2025	1,176
2026	3,105
2027	2,084
2028	2,299
Thereafter	4,140
	$	13,328

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Senior Secured Credit Facilities

As of June 30, 2024, the Company’s Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities of up to $6,695 million, which consisted of $4,700 million principal amounts of debt outstanding (as detailed in the table above), and $1,995 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 $1,175 million senior secured revolving facility available in U.S. dollars, a $600 million senior secured revolving facility available in U.S. dollars, Euros, Swiss Francs and other foreign currencies, and a $225 million senior secured revolving facility available in U.S. dollars and Yen.

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, 2024, 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. The following is a summary of certain legal matters involving the Company.

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On February 13, 2014, a group of approximately 1,200 medical doctors and 900 private individuals filed a civil lawsuit with the Seoul Central District Court against IMS Korea and two other defendants, the Korean Pharmaceutical Association (“KPA”) and the Korean Pharmaceutical Information Center (“KPIC”). The civil lawsuit alleges KPA and KPIC collected their personal information in violation of applicable privacy laws without the necessary consent through a software system installed on pharmacy computer systems in Korea, and that personal information was transferred to IMS Korea and sold to pharmaceutical companies. On September 11, 2017, the District Court issued a final decision that the encryption in use by the defendants since June 2014 was adequate to meet the requirements of the Korean Personal Information Protection Act (“PIPA”) and the sharing of non-identified information for market research purposes was allowed under PIPA. The District Court also found an earlier version of encryption was insufficient to meet PIPA requirements, but no personal data had been leaked or re-identified. The District Court did not award any damages to plaintiffs. Approximately 280 medical doctors and 200 private individuals appealed the District Court decision. On May 3, 2019, the Appellate Court issued a final decision in which it concluded all of the non-identified information transferred by KPIC to IMS Korea for market research purposes violated PIPA, but did not award any damages to plaintiffs (affirming the District Court’s decision on this latter point). On May 24, 2019, approximately 247 plaintiffs appealed the Appellate Court’s decision to the Supreme Court. On July 11, 2024, the Supreme Court dismissed plaintiffs’ appeal. The Supreme Court's decision in favor of IMS Korea is final and conclusive.

On July 23, 2015, indictments were issued by the Seoul Central District Prosecutors’ Office in South Korea against 24 individuals and companies alleging improper handling of sensitive health information in violation of, among others, South Korea’s PIPA. IMS Korea and two of its employees were among the individuals and organizations indicted. Although there is no assertion that IMS Korea used patient identified health information in any of its offerings, prosecutors allege that certain of IMS Korea’s data suppliers should have obtained patient consent when they converted sensitive patient information into non-identified data and that IMS Korea had not taken adequate precautions to reduce the risk of re-identification. On February 14, 2020, the Seoul Central District Court acquitted IMS Korea and its two employees of the charges of improper handling of sensitive health information, and the Prosecutor's Office appealed. On December 23, 2021, the appellate court affirmed the judgment of the Seoul Central District Court. The Prosecutor's Office appealed to the Supreme Court. On July 11, 2024, the Supreme Court dismissed the appeal by the Prosecutor’s Office. The Supreme Court's decision in favor of IMS Korea is final and conclusive.

On January 10, 2017, Quintiles IMS Health Incorporated and IMS Software Services Ltd. (collectively “IQVIA Parties”), filed a lawsuit in the U.S. District Court for the District of New Jersey against Veeva Systems, Inc. (“Veeva”) alleging Veeva unlawfully used IQVIA Parties intellectual property to improve Veeva data offerings, to promote and market Veeva data offerings and to improve Veeva technology offerings. IQVIA Parties seek injunctive relief, appointment of a monitor, the award of compensatory and punitive damages and reimbursement of all litigation expenses, including reasonable attorneys’ fees and costs. On March 13, 2017, Veeva filed counterclaims alleging anticompetitive business practices in violation of the Sherman Act and state laws. Veeva claims damages in excess of $200 million, and is seeking punitive damages and litigation costs, including attorneys’ fees. The Company believes the counterclaims are without merit, rejects all counterclaims raised by Veeva and intends to vigorously defend IQVIA Parties’ position and pursue its claims against Veeva. Since the initial filings, the parties have filed additional litigations against each other, primarily concerning the use of IQVIA data with various other Veeva products. Trial has been scheduled for early 2025.

On May 7, 2021, the Court issued an order and opinion (the “Order”) in which it found significant evidence that Veeva had (1) misappropriated IQVIA data and unlawfully used it to improve Veeva data offerings, (2) engaged in a cover-up by deleting significant evidence of its theft of IQVIA’s trade secrets, and (3) improperly withheld certain evidence under privilege in furtherance of a crime and/or fraud against IQVIA. The Court imposed five sanctions against Veeva, including ordering three separate adverse inference instructions be issued to the jury and that IQVIA be permitted to present evidence to the jury of Veeva’s destruction efforts. Veeva appealed the Order. On March 30, 2024, the Court denied Veeva’s appeal with regard to its rejected privilege claims, while reserving ruling on the appropriate sanctions to be imposed for a later time.

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, 2024 or December 31, 2023.

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Equity Repurchase Program

As of June 30, 2024, the total stock repurchase authorization under the Company's equity repurchase program (the "Repurchase Program") was $11,725 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, 2024, the Company did not repurchase any shares of its common stock under the Repurchase Program. As of June 30, 2024, the Company had remaining authorization to repurchase up to $2,363 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 several individually immaterial acquisitions during the six months ended June 30, 2024. 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, 2024
Assets acquired:
Cash and cash equivalents	$	15
Accounts receivable	63
Other assets	47
Goodwill	147
Other identifiable intangibles	106
Liabilities assumed:
Other liabilities	(98)
Deferred income taxes, long-term	(14)
Net assets acquired (1)	$	266

(1) Net assets acquired includes contingent consideration and deferred purchase price of $30 million.

The portion of goodwill deductible for income tax purposes was preliminarily assessed as $88 million.

The following table provides a summary of the preliminary estimated fair value of certain intangible assets acquired:

(in millions)	Amortization Period				June 30, 2024
Other identifiable intangibles:
Customer relationships	10	-	13	years	$	82
Software and related assets			5	years	14
Non-compete agreements	3	-	5	years	6
Backlog			1	year	4
Total Other identifiable intangibles					$	106

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11. Restructuring

The Company has continued to take restructuring actions in 2024 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 2024 and into 2025.

The following amounts were recorded for the restructuring plans:

(in millions)	Severance and Related Costs
Balance as of December 31, 2023	$	36
Expense, net of reversals	43
Payments	(36)
Foreign currency translation and other	(1)
Balance as of June 30, 2024	$	42

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, 2024 will be paid in 2024 and 2025.

12. Income Taxes

The Company's effective income tax rate was 17.2% and 21.6% in the second quarter of 2024 and 2023, and 16.0% and 20.6% in the first six months of 2024 and 2023, respectively. The effective income tax rate in the second quarter and in the first six months of 2024 was favorably impacted compared to the second quarter and first six months of 2023 due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions. The effective income tax rate in the second quarter and in the first six months of 2024 and 2023 was also favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards. For the second quarter of 2024 and 2023 this impact was $3 million and $2 million, respectively, and for the first six months of 2024 and 2023 this impact was $12 million and $10 million, respectively.

Numerous foreign jurisdictions have agreed to implement the Organization for Economic Co-operation and Development’s (“OECD”) Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024. The Company has evaluated the effect of this for the second quarter of 2024 and does not expect any material impacts for 2024. The Company will continue to monitor as additional jurisdictions enact Pillar 2 legislation.

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, 2023	$	(969)	$	(34)	$	3	$	133	$	(867)
Other comprehensive (loss) income before reclassifications	(61)		65		—		(66)		(62)
Reclassification adjustments	—		(27)		—		7		(20)
Balance as of June 30, 2024	$	(1,030)	$	4	$	3	$	74	$	(949)

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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,
		2024		2023		2024		2023
Derivative instruments:
Interest rate swaps	Interest expense	$	15	$	2	$	30	$	18
Foreign exchange forward contracts	Revenues	—		8		(3)		25
Total before income taxes		15		10		27		43
Income taxes		4		3		7		11
Total net of income taxes		$	11	$	7	$	20	$	32

14. Segments

The following table presents the Company’s operations by reportable segment. The Company is managed through three reportable segments, Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions provides mission critical information, technology solutions and real world insights and services to the Company's life science clients. Research & Development Solutions, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions provides health care provider (including contract sales) and patient engagement services to both biopharmaceutical clients and the broader healthcare market.

Certain costs are not allocated to our segments and are reported as general corporate and unallocated expenses. These costs primarily consist of stock-based compensation and expenses related to integration activities and acquisitions. 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 operating decision maker to assess the Company’s performance. The Company’s reportable segment information is presented below:

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	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Revenues
Technology & Analytics Solutions	$	1,495	$	1,456	$	2,948	$	2,900
Research & Development Solutions	2,147		2,096		4,242		4,122
Contract Sales & Medical Solutions	172		176		361		358
Total revenues	3,814		3,728		7,551		7,380
Cost of revenues, exclusive of depreciation and amortization
Technology & Analytics Solutions	909		876		1,798		1,734
Research & Development Solutions	1,431		1,417		2,826		2,803
Contract Sales & Medical Solutions	148		150		308		304
Total cost of revenues, exclusive of depreciation and amortization	2,488		2,443		4,932		4,841
Selling, general and administrative expenses
Technology & Analytics Solutions	225		210		454		435
Research & Development Solutions	223		211		444		423
Contract Sales & Medical Solutions	15		14		31		29
General corporate and unallocated	46		47		88		108
Total selling, general and administrative expenses	509		482		1,017		995
Segment profit
Technology & Analytics Solutions	361		370		696		731
Research & Development Solutions	493		468		972		896
Contract Sales & Medical Solutions	9		12		22		25
Total segment profit	863		850		1,690		1,652
General corporate and unallocated	(46)		(47)		(88)		(108)
Depreciation and amortization	(269)		(259)		(533)		(512)
Restructuring costs	(28)		(20)		(43)		(37)
Total income from operations	$	520	$	524	$	1,026	$	995

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)	2024		2023		2024		2023
Numerator:
Net income	$	363	$	297	$	651	$	586
Denominator:
Basic weighted average common shares outstanding	182.2		184.4		182.0		185.1
Effect of dilutive stock options and share awards	2.1		2.3		2.3		2.5
Diluted weighted average common shares outstanding	184.3		186.7		184.3		187.6
Earnings per share attributable to common stockholders:
Basic	$	1.99	$	1.61	$	3.58	$	3.17
Diluted	$	1.97	$	1.59	$	3.53	$	3.12

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.

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For the three and six months ended June 30, 2024 and 2023, 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 1.1 million and 1.2 million, and 1.0 million and 1.1 million, respectively.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement for Forward-Looking Information

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our “2023 Form 10-K”).

In addition to historical condensed consolidated financial information, the following discussion contains or incorporates by reference forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts but reflect, among othe