By Kamal Choudhury and Sahil Pandey
Feb 5 (Reuters) – Healthcare data and clinical research provider IQVIA Holdings on Thursday defended its AI strategy against analysts’ fears that recent technological advances could replace the company’s services, after it “forecast annual profit below Wall Street expectations.”
The questions, asked during an earnings conference call, came after a six-day sell-off 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 companies.
IQVIA shares fell more than 8% in late morning trading.
Chief Executive Ari Bousbib has repeatedly pushed back against suggestions that AI could threaten IQVIA’s core business, calling those fears “really frustrating” and saying its push toward AI is an overall positive development.
“It’s very difficult to refute a generic claim… that AI is going to supplant your business. It’s exactly the opposite,” Bousbib said, adding that IQVIA has “the largest proprietary health information assets in the world” that cannot be replicated by general-purpose AI models.
“Given this week’s concerns about AI and its impact on drug development and professional services, investors will be working to better understand the impact (if any) on IQV as well as how the company uses these tools to gain share and execute for customers,” 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 the recent erosion of AI in consulting and technology companies, this should be a balm,” said David Windley, an analyst at Jefferies.
IQVIA expects adjusted earnings of $12.55 to $12.85 per share for 2026, lower than analysts’ average estimate of $12.95, according to LSEG data, weighed down by nearly $80 million in higher interest costs related to financing activities.
Revenue is expected to be between $17.15 billion and $17.35 billion, compared to $17.07 billion expected by analysts.
For the fourth quarter, IQVIA earned $3.42 per share on revenue of $4.36 billion, both above analyst estimates.
(Reporting by Sahil Pandey and Kamal Choudhury in Bengaluru; editing by Shailesh Kuber)