Feb 5 (Reuters) - Healthcare data and clinical research provider IQVIA Holdings IQV.N on Thursday forecast annual profit below Wall Street expectations, weighed down by higher interest costs, even as strong fourth-quarter results underscored improving demand from pharmaceutical clients.
The results come amid persistent challenges facing contract research and analytics companies, as cautious biotech funding and longer decision cycles continue in some markets.
The company expects 2026 adjusted earnings in the range of $12.55 to $12.85 per share, falling far short of analysts' average estimate of $12.95 per share, according to LSEG data.
The forecast includes a nearly $80 million increase in interest expense from financing activities completed in 2025 and expected refinancing in 2026, the company said.
Industry peer Thermo Fisher Scientific TMO.N last week forecast annual profit below estimates, citing ongoing weakness in demand from biotech and pharmaceutical customers.
"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.
IQVIA also projected revenue of $17.15 billion to $17.35 billion for the full year, compared to $17.07 billion analysts had expected.
For the fourth quarter ended December 31, IQVIA earned an adjusted profit of $3.42 per share on revenue of $4.36 billion, surpassing analysts' estimates of $3.40 per share and $4.24 billion, respectively.
IQVIA's research & development solutions unit, which provides clinical trial services, posted revenue of $2.33 billion, exceeding estimates of $2.29 billion.
The company also announced that effective January 1, it reorganized its business segments, combining its contract sales operations with its technology and analytics unit into a new "Commercial Solutions" segment, while shifting certain real-world research offerings into the R&D segment.
(Reporting by Sahil Pandey and Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)
((Sahil.Pandey@thomsonreuters.com;))