IQVIA backs AI strategy as analysts question impact on business

By Kamal Choudhury and Sahil Pandey

Feb 5 (Reuters) – Healthcare data and clinical research provider IQVIA Holdings on Thursday defended its AI strategy against analyst concerns that recent technology advances could displace the company’s services, after it forecast annual profit below Wall Street expectations.

The questions, posed during an earnings call, came after a six-day selloff wiped out nearly $830 billion in market value from software and services stocks, triggered by new AI tools from companies like Anthropic that are increasingly competing with established enterprise businesses.

Shares of IQVIA fell over 8% in late morning trading.

Chief Executive Ari Bousbib repeatedly pushed back on suggestions that AI could threaten IQVIA’s core business, calling such fears “really frustrating” and stating that its AI push is an overall positive development.

“It’s really hard to disprove a generic assertion… like AI is going to displace your business. It’s exactly the opposite,” Bousbib said, adding that IQVIA has “the largest proprietary healthcare information assets in the world” that cannot be replicated by general-purpose AI models.

“Given this week’s worries about AI and its impact on drug development and professional services, investors will be focused on better understanding the impact (if any) on IQV as well as how the company is using these tools to win share and execute for clients,” said Evercore ISI analyst Elizabeth Anderson.

Bousbib emphasized that the company’s proprietary data assets cannot be replaced by AI models and remain “more valuable than ever.”

“Given recent AI erosion to consulting/tech businesses, that should be a salve,” Jefferies analyst David Windley said.

IQVIA expects 2026 adjusted earnings of $12.55 to $12.85 per share, below analysts’ average estimate of $12.95, according to LSEG data, weighed down by nearly $80 million in higher interest expenses from financing activities.

Revenue is projected to be in the range of $17.15 billion to $17.35 billion, compared to analysts’ expectation of $17.07 billion.

For the fourth quarter, IQVIA earned profit of $3.42 per share, on revenue of $4.36 billion, both above analysts’ estimates.

(Reporting by Sahil Pandey and Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)