Iqvia Earnings: Near-Term Headwinds From Trial Delays, but Positive Long-Term Outlook

Narrow-moat Iqvia delivered solid third-quarter results, highlighted by revenue of nearly $3.9 billion representing 4% growth versus the prior year. The technology and analytics solutions, or TAS, business continued to rebound from macroeconomic challenges that had impacted its customers earlier this year (which only grew 0.6% in the first quarter of 2024). In the third quarter, the TAS business delivered $1.55 billion in revenue, increasing 8.6% year over year. We maintain our fair value estimate of $268 per share. We view shares as undervalued, currently trading in 4-star territory at a 22% discount to our fair value estimate.