I rate Veeva Systems Inc. ( VEEV ) as a buy, as the company keeps delivering growth in revenue and EPS, beating analysts' consensus and raising its guidance for FY2026. The market seems to have exaggerated when Veeva informed themA curious investing mind focused on strong-moat companies across various industries. Admirer of Buffett and Munger's investing style. Long term horizon. I am also a Contributor in Yahoo Finance Community (beta stage). Featured contributor on Yahoo Finance ticker pages for CSW Indus ...

Core Viewpoint - Veeva Systems Inc. (VEEV) is rated as a buy due to its consistent revenue and EPS growth, surpassing analysts' expectations and increasing guidance for FY2026 [1] Financial Performance - The company has shown strong financial performance, with revenue and EPS growth that exceeds market expectations [1] - Veeva has raised its guidance for FY2026, indicating confidence in future performance [1] Market Reaction - The market's reaction to Veeva's recent announcements appears to be exaggerated, suggesting potential mispricing of the stock [1]

Core Insights - The 2025 Veeva Commercial Summit Europe highlighted the significant role of AI in the pharma and life sciences industry, with executives discussing its evolving landscape and expressing excitement for its short-term and long-term potential [1][2] Group 1: AI Adoption and Implementation - The complexity and potential of AI have rapidly expanded, leading to widespread implementation across the life sciences industry to enhance efficiency [2] - Decision-makers are urged to identify the best use cases for AI in daily operations while acknowledging current pitfalls to ensure trust and accuracy [3] Group 2: Agentic AI - Agentic AI is emerging as a notable technology within the pharma sector, capable of autonomously performing tasks without human intervention [4] - Companies like Bayer are exploring the gradual adoption of agentic AI, with a focus on reducing manual workloads for administrative tasks [5] - There is a need for full trust in AI before granting it autonomy, with a preference for augmented AI as a preliminary step [6] Group 3: Integration and Future-Proofing - For agentic AI to be effective in life sciences, it must be deeply integrated into daily workflows rather than merely layered on top [6] - AI systems should be designed to be future-proof to keep pace with the rapid evolution of technology [7]

Core Insights - Veeva Systems' international operations are crucial for understanding its financial resilience and growth potential, especially given its extensive global presence [1][2][3] Revenue Performance - The total revenue for Veeva Systems in the recent quarter reached $811.24 million, reflecting a 16% increase from the same quarter last year [4] - Revenue contributions from different regions include: - Middle East, Africa, and Latin America: $18.3 million (2.3% of total revenue), a decrease of 2.52% from expectations [5] - Europe: $238.26 million (29.4% of total revenue), exceeding expectations by 4.94% [6] - Asia Pacific: $71.14 million (8.8% of total revenue), falling short of projections by 2.77% [7] Future Projections - Analysts project Veeva to report $809 million in total revenue for the current fiscal quarter, a 12.2% increase year-over-year, with regional contributions expected to be: - Middle East, Africa, and Latin America: $18.69 million (2.3%) - Europe: $229.46 million (28.4%) - Asia Pacific: $72.63 million (9%) [8] - For the full year, total revenue is expected to reach $3.16 billion, a 14.9% increase from the previous year, with regional contributions anticipated as follows: - Middle East, Africa, and Latin America: $72.76 million (2.3%) - Europe: $906.36 million (28.7%) - Asia Pacific: $281.3 million (8.9%) [9] Market Dynamics - Veeva's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting the company's prospects [10] - The company's performance in international markets is influenced by global interconnections and geopolitical factors, which are critical for analysts adjusting earnings predictions [10][11]

Core Insights - Roche Pharmaceuticals has chosen to extend its partnership with Veeva Systems by adopting Veeva Vault CRM, which is expected to enhance customer engagement through AI capabilities [1][2]. Company Overview - Veeva Systems provides industry cloud solutions for life sciences, offering software, data, and business consulting services to over 1,500 customers, including major biopharmaceutical companies and emerging biotech firms [3]. Partnership Details - The partnership extension will implement Vault CRM across Roche's global Pharma organization, aiming to create more personalized interactions and provide insights to better support healthcare professionals and patients [2]. - Veeva AI, which includes various agentic AI features, will be integrated into the Vault CRM platform, with specific agents like Free Text Agent, Voice Agent, Pre-call Agent, and Media Agent expected to be available in December 2025 [2].

Investment Rating - The report maintains a "Buy" rating for Veeva Systems, suggesting to seize buying opportunities after recent price declines [2][4][8]. Core Insights - Veeva Systems reported strong Q3 FY26 results, with total revenue reaching $811.2 million, representing a 16% year-over-year increase, exceeding market expectations [2][12]. - The company raised its Q4 guidance due to accelerated transactions and strong performance across multiple business lines, particularly in AI and CRM [3][4]. - Veeva's AI initiatives are progressing, with the first AI agents for CRM and commercial content set to launch in December, and further expansion into R&D and quality areas planned for FY26 [3][4]. Financial Performance - Q3 FY26 total revenue was $811.2 million, surpassing the forecast by $9.6 million, with subscription revenue at $682.5 million and professional services at $128.7 million [12]. - Adjusted operating profit margin reached 45%, reflecting a solid profitability performance [2][12]. - The company’s gross margin remained stable at 75%, indicating strong operational efficiency [2]. Market Position and Valuation - Veeva's stock demonstrated resilience, with a smaller decline compared to peers in the AI SaaS sector, highlighting its robust fundamentals [4]. - The intrinsic value of Veeva is estimated at $350.3 per share, indicating a potential upside of approximately 29.5% from the current price of $270.5 [8][28]. - The report notes that Veeva's adjusted P/E ratios for FY26E and FY27E are 44.5x and 38.2x, respectively, which are below the industry average, suggesting a favorable valuation [29]. Growth Outlook - The company aims for a revenue target of $6 billion by 2030, supported by strong demand in the life sciences sector and high customer retention rates [3][4]. - Veeva's growth is expected to be driven by its expanding AI capabilities and the increasing adoption of its cloud solutions in the pharmaceutical industry [3][4].

Core Insights - Veeva Systems (VEEV) recently reported its third-quarter results, which led to a slight decline in stock price due to lower return on invested capital (ROIC) and customer relations compared to previous periods [1] Group 1: Company Performance - The decline in Veeva's stock price is attributed to a decrease in ROIC and customer relations, indicating potential challenges in maintaining previous performance levels [1] - The focus is on identifying high-caliber companies that can reinvest capital effectively for impressive returns, with an emphasis on long-term capital compounding [1] Group 2: Investment Strategy - The investment approach is conservative, with occasional pursuit of opportunities that present a favorable risk-reward ratio, aiming for substantial upside while limiting downside risk [1] - A long-term perspective is maintained to potentially achieve higher returns compared to market indices, especially in a rapidly changing investment landscape [1]

Financial Performance - Total revenues for the three months ended October 31, 2025, were $811,236,000, representing a 16% increase from $699,207,000 in the same period of 2024[18] - Subscription services revenue reached $682,498,000 for the three months ended October 31, 2025, up 17.5% from $580,850,000 year-over-year[18] - Net income for the three months ended October 31, 2025, was $236,203,000, a 27% increase compared to $185,808,000 in the prior year[18] - Operating income for the nine months ended October 31, 2025, was $670,493,000, up 33% from $503,012,000 in the same period of 2024[18] - For the three months ended October 31, 2025, net income was $236,203,000, an increase from $185,808,000 for the same period in 2024, representing a growth of 27.1%[21] - For the nine months ended October 31, 2025, net income reached $664,702,000, compared to $518,513,000 in 2024, marking a 28.2% increase[24] - Cash provided by operating activities for the nine months ended October 31, 2025, was $1,308,378,000, up from $1,020,507,000 in 2024, reflecting a growth of 28.2%[24] - Total revenues for the nine months ended October 31, 2025, increased by $334 million, with $300 million attributed to growth in subscription services revenue[105] Assets and Equity - Total assets increased to $8,097,151,000 as of October 31, 2025, compared to $7,339,756,000 as of January 31, 2025[15] - Cash and cash equivalents rose to $1,660,137,000 as of October 31, 2025, from $1,118,785,000 as of January 31, 2025[15] - Total stockholders' equity increased to $7,040,631,000 as of October 31, 2025, compared to $5,832,373,000 as of January 31, 2025[15] - The fair value of total financial assets as of October 31, 2025, was $5,490,139, with cash equivalents of $505,249[43] Expenses - Research and development expenses for the three months ended October 31, 2025, were $191,883,000, a 11% increase from $172,411,000 in the same period of 2024[18] - Stock-based compensation expense for the nine months ended October 31, 2025, was $354,444,000, compared to $322,146,000 in 2024, an increase of 10.0%[24] - Sales and marketing expenses for the three months ended October 31, 2025 increased to $110,552 thousand, a 12% increase from $98,695 thousand in 2024, maintaining 14% of total revenues[118] - General and administrative expenses for the three months ended October 31, 2025 decreased by 5% to $68,483 thousand from $72,359 thousand in 2024[121] Revenue Sources - R&D Solutions accounted for approximately 53% of total revenues for the nine months ended October 31, 2025, indicating a growing trend in this segment[80] - The geographic mix of subscription services revenues for the three months ended October 31, 2025, was 60% from North America, 28% from Europe, and 12% from other locations[103] - The increase in subscription services revenue for the nine months ended October 31, 2025, included $181 million from R&D Solutions and $119 million from Commercial Solutions[106] Customer and Market Dynamics - The company served 1,477 customers as of January 31, 2025, an increase from 1,432 customers in 2024, with 730 customers using Commercial Solutions and 1,125 using R&D Solutions[82] - Approximately 41% of total revenues in fiscal year 2025 came from customers outside North America, highlighting the company's international exposure[184] - The top 10 customers accounted for 28% of total revenues in fiscal years 2025 and 2024, and 29% in 2023, indicating revenue concentration risks[181] Regulatory and Compliance Risks - The company faces significant competition in the life sciences industry, particularly from Salesforce and IQVIA, which could adversely affect business and operating results[172] - Nearly all revenues are generated from the life sciences industry, making the company vulnerable to adverse factors affecting this sector, such as regulatory changes and government funding[166] - Regulatory changes, including drug pricing reforms from the Inflation Reduction Act, could negatively impact revenues and demand for the company's products[205] - The company is subject to significant data protection obligations under the EU GDPR and UK GDPR, with potential penalties for non-compliance[213] Future Outlook - The company expects revenues from R&D Solutions to increase as a percentage of both subscription services revenues and total revenues in the future[80] - The company anticipates operating expenses to rise in the future, primarily driven by employee compensation-related costs[113] - The company expects cash flows from operating activities to increase in the fiscal year ending January 31, 2026, due to the OBBBA, which restored the option to deduct certain domestic R&D expenditures[141][142]

Core Insights - Major U.S. equities indexes experienced gains, driven by comments from a Federal Reserve official suggesting a potential interest rate cut in December [1] Company Performance - Ross Stores (ROST) emerged as the best-performing stock in the S&P 500, with shares increasing by 7% after surpassing earnings and revenue estimates, and raising its outlook due to strong customer demand [2] - Gap Inc. saw its shares rise by 8% following better-than-expected results and an optimistic guidance, attributed to robust demand across its brands [2] - Intuit (INTU) reported a 6% surge in shares, benefiting from strong quarterly results and increased demand for its artificial intelligence tools [3] - Veeva Systems (VEEV) experienced a decline of over 10% as it warned of reduced usage of its Vault CRM system by biopharmaceutical firms [4] Market Trends - Oil futures declined while gold prices increased, indicating a shift in commodity markets [4] - The yield on the 10-year Treasury note decreased to 4.08%, reflecting changes in investor sentiment [4] - The U.S. dollar showed mixed performance against major currencies, gaining against the euro but losing ground to the pound and yen [4]

Company Overview - Veeva Systems Inc. is a significant player in the cloud-based software industry, primarily serving the life sciences sector with solutions that enhance operational efficiency [1] - Competitors include Oracle and Salesforce, which also provide cloud-based solutions across various industries [1] Financial Performance - Barclays set a price target of $305 for Veeva, indicating a potential price increase of approximately 12.75% from the current price of $270.50 [2][6] - The Q3 2026 earnings call featured key executives and attracted analysts from major financial institutions, reflecting strong interest in Veeva's financial performance and outlook [3][6] - The stock price has decreased by 0.92% or $2.50, currently at $270.50 [3] Market Dynamics - Veeva's stock has shown volatility, with a daily trading range between $269.30 and $277.61 [4] - Over the past year, the stock reached a high of $310.50 and a low of $201.54, indicating dynamic market conditions [4][6] - The company's market capitalization is approximately $44.34 billion, underscoring its substantial presence in the industry [4] Trading Activity - Today's trading volume for Veeva is 1,706,950 shares, suggesting active investor interest influenced by the company's performance and strategic direction discussed in the earnings call [5]