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Durham, North Carolina-based IQVIA Holdings Inc. (IQV) provides healthcare research services. Valued at $28 billion by market cap, the company offers analytics, technology solutions, and clinical research services to the life sciences industry which helps them in the clinical development and commercialization of medical treatments that improve healthcare outcomes for patients.
Shares of this contract research giant have underperformed the broader market over the past year. IQV has declined 11.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. In 2026, IQV’s stock fell 24.1%, compared to the SPX’s marginal rise on a YTD basis.
Narrowing the focus, IQV’s underperformance is also apparent compared to the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained about 9.1% over the past year. Moreover, the ETF’s 1.9% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
IQVIA's underperformance was driven by margin compression and concerns about sustainability of gains. Additionally, acquisitions expanded capabilities, but operating margin declined due to pass-through revenue growth and product mix changes.
On Feb. 5, IQV shares tumbled 10.7% after reporting its Q4 results. Its adjusted EPS of $3.42 surpassed Wall Street expectations of $3.40. The company’s revenue was $4.4 billion, beating Wall Street forecasts of $4.2 billion. IQV expects full-year adjusted EPS in the range of $12.55 to $12.85, and revenue in the range of $17.2 billion to $17.4 billion.
For fiscal 2026, ending in December, analysts expect IQV’s EPS to grow 6.9% to $11.56 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 22 analysts covering IQV stock, the consensus is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
The configuration has been consistent over the past three months.
On Feb. 17, TD Cowen kept a “Hold” rating on IQV and lowered the price target to $174, implying a potential upside of 1.7% from current levels.
The mean price target of $240.65 represents a 40.7% premium to IQV’s current price levels. The Street-high price target of $290 suggests an ambitious upside potential of 69.5%.
