PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Veeva's unaudited condensed consolidated financial statements, including balance sheets, income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Provides a snapshot of Veeva's financial position at specific dates, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Cash and cash equivalents | $1,930,431 | $1,118,785 | | Short-term investments | $4,473,282 | $4,031,442 | | Total current assets | $6,994,588 | $6,308,802 | | Total assets | $7,999,427 | $7,339,756 | | Deferred revenue | $1,107,696 | $1,273,978 | | Total liabilities | $1,360,888 | $1,507,383 | | Total stockholders' equity | $6,638,539 | $5,832,373 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details Veeva's financial performance over specific periods, including revenues, gross profit, operating income, and net income Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $789,081 | $676,181 | $1,548,124 | $1,326,526 | | Gross profit | $593,828 | $505,809 | $1,179,047 | $982,270 | | Operating income | $195,908 | $166,487 | $429,640 | $321,659 | | Net income | $200,309 | $171,041 | $428,499 | $332,705 | | Diluted Net income per share | $1.19 | $1.04 | $2.56 | $2.02 | | Total stock-based compensation | $121,966 | $108,376 | $234,176 | $204,287 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in Veeva's equity over periods, including net income, stock issuance, and stock-based compensation Changes in Stockholders' Equity (in thousands, except share data) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Balances at beginning of period | $6,211,098 | $4,889,381 | $5,832,373 | $4,644,824 | | Issuance of common stock (options) | $141,692 | $6,400 | $182,297 | $34,834 | | Shares withheld (net settlement) | $(26,373) | $(16,630) | $(46,783) | $(41,588) | | Stock-based compensation expense | $122,723 | $109,435 | $235,734 | $208,861 | | Net income | $200,309 | $171,041 | $428,499 | $332,705 | | Balances at end of period | $6,638,539 | $5,184,698 | $6,638,539 | $5,184,698 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for specified periods Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1,115,591 | $856,390 | | Net cash used in investing activities | $(441,379) | $(386,220) | | Net cash provided by (used in) financing activities | $136,069 | $(7,656) | | Net change in cash, cash equivalents, and restricted cash | $811,646 | $461,262 | | Cash, cash equivalents, and restricted cash at end of period | $1,932,609 | $1,167,932 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Summary of Business and Significant Accounting Policies](index=8&type=section&id=Note%201.%20Summary%20of%20Business%20and%20Significant%20Accounting%20Policies) Outlines Veeva's core business and the key accounting principles applied in its financial reporting - Veeva is a leading provider of industry cloud solutions for the global life sciences industry, offering cloud software, data, and business consulting from R&D through commercialization[27](index=27&type=chunk) - New accounting pronouncements (ASU 2023-09 and ASU 2024-03) will modify disclosures but are not expected to materially impact financial position or results of operations[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 2. Short-Term Investments](index=9&type=section&id=Note%202.%20Short-Term%20Investments) Details the composition and fair value of Veeva's short-term investment portfolio Short-Term Investments (Available-for-sale securities, in thousands) | Category | July 31, 2025 (Estimated fair value) | January 31, 2025 (Estimated fair value) | | :-------------------------- | :----------------------------------- | :------------------------------------ | | Certificates of deposit | $20,103 | $64,093 | | Asset-backed securities | $401,501 | $530,011 | | Commercial paper | $23,835 | $74,575 | | Corporate notes and bonds | $2,675,213 | $2,206,956 | | Foreign government bonds | $214,017 | $176,103 | | Municipal securities | $61,739 | $67,831 | | U.S. agency obligations | $13,413 | $24,709 | | U.S. treasury securities | $1,063,461 | $887,164 | | **Total** | **$4,473,282** | **$4,031,442** | Short-Term Investments by Contractual Maturity (in thousands) | Maturity | July 31, 2025 | January 31, 2025 | | :------------------- | :------------ | :--------------- | | Due in one year or less | $930,144 | $1,066,558 | | Due in greater than one year | $3,543,138 | $2,964,884 | | **Total** | **$4,473,282**| **$4,031,442** | [Note 3. Deferred Costs](index=10&type=section&id=Note%203.%20Deferred%20Costs) Explains the nature and amortization of deferred costs, primarily sales commissions - Deferred costs, primarily deferred sales commissions, remained **stable at $26 million** as of July 31, 2025, and January 31, 2025[36](index=36&type=chunk) Amortization Expense for Deferred Costs (in thousands) | Period | Amortization Expense | | :--------------------------------- | :------------------- | | Three months ended July 31, 2025 | $4,000 | | Three months ended July 31, 2024 | $4,000 | | Six months ended July 31, 2025 | $8,000 | | Six months ended July 31, 2024 | $8

Core Insights - Veeva Systems has announced a collaboration with Amgen to enhance clinical trial innovation, utilizing the Veeva Clinical Platform to improve efficiencies in the clinical trial process [1][2][3] Group 1: Collaboration Details - Amgen aims to leverage advanced technology through this collaboration to enhance its end-to-end trial operations, which is expected to expedite the delivery of innovative treatments to patients [2] - The Veeva Clinical Platform will serve as the backbone for standardized and connected processes, facilitating faster delivery of life-saving drugs [3] Group 2: Veeva Clinical Platform Overview - The Veeva Clinical Platform is a comprehensive and connected solution that encompasses various clinical operations and data applications, including CTMS, EDC, clinical workbench, RTSM, eCOA, eTMF, and more [4] - This platform is designed to streamline clinical trials from initiation to completion, automating data flow and enhancing operational efficiency [4] Group 3: Company Background - Veeva Systems provides industry-specific cloud solutions for life sciences, serving over 1,500 customers, including major biopharmaceutical companies and emerging biotech firms [5] - The company is committed to innovation, product excellence, and balancing the interests of all stakeholders, including customers, employees, and shareholders [5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $789 million, with non-GAAP operating income of $353 million, exceeding guidance [7] - The company raised its full-year billings guidance by $35 million, aligning with the revenue increase [16] Business Line Data and Key Metrics Changes - R&D subscriptions and services showed larger upside compared to previous models, indicating strong performance in this segment [20] - Commercial subscriptions remained flat quarter-over-quarter, with Crossix highlighted as a strong performer [72] Market Data and Key Metrics Changes - The resolution of the lawsuit with IQVIA is expected to unlock significant opportunities in the commercial area, enhancing product offerings and customer satisfaction [11][14] - The company has nine top 20 customers committed to Vault CRM, compared to three for Salesforce, indicating a strong competitive position [51] Company Strategy and Development Direction - The company is focusing on Veeva AI as a transformative element for both Veeva and the industry, with plans to monetize AI through industry-specific agents [7][27] - The resolution with IQVIA allows for greater integration of data into Veeva's products, enhancing the overall commercial suite [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $6 billion revenue target over the next five years, with no material changes expected in the quality segment [22] - The macro environment remains stable, with customers effectively navigating uncertainty and continuing to build pipelines [121] Other Important Information - The company is working on a platform-first approach for horizontal software, with CRM as the first application to be developed [63] - The integration of AI into the Vault platform is expected to create significant value for the industry over time, although material revenue contributions are not anticipated until 2026 or 2027 [29][30] Q&A Session Summary Question: Resolution of the lawsuit with IQVIA - Management noted that the resolution was due to changes in the industry and a mutual understanding that collaboration would benefit customers [11] Question: Confidence in billings guidance - Management indicated that annual billings are a better indicator of performance, and they are pleased with the increase in guidance [16] Question: Evolution of quality cloud - Management confirmed that quality cloud is receiving elevated focus and is expected to be a significant area of growth [20] Question: AI opportunities - Management discussed the potential for AI to enhance productivity and efficiency across various applications, with a focus on deep industry-specific agents [27][46] Question: Customer reaction to IQVIA resolution - Customer feedback has been overwhelmingly positive, with many exploring new possibilities for integration [34] Question: R&D subscription growth - Management attributed the growth to broad-based execution and a stable environment [40] Question: Resistance to change in Compass product suite - Management acknowledged some resistance but expressed confidence in overcoming these challenges as customers adapt [116]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $789 million, with non-GAAP operating income of $353 million, exceeding guidance [6][7]. - The company expressed confidence in its $6 billion revenue plan over the next five years, indicating strong performance and growth potential [22]. Business Line Data and Key Metrics Changes - R&D subscriptions and services showed significant upside, indicating a broad-based growth across all areas [19][40]. - The resolution of the lawsuit with IQVIA is expected to enhance the commercial cloud offerings, particularly in integrating IQVIA data into Veeva's products [12][14]. Market Data and Key Metrics Changes - The company reported strong execution across its business segments, with no specific areas of weakness despite macroeconomic uncertainties [124]. - The commercial cloud segment is anticipated to benefit from the resolution with IQVIA, allowing for a more comprehensive solution for customers [73][86]. Company Strategy and Development Direction - Veeva is focusing on enhancing its AI capabilities, with plans to integrate AI agents into its existing platforms, which is expected to create significant value for the industry over time [28][30]. - The company aims to leverage its structural advantages in the life sciences sector to lead in industry-specific cloud applications and AI agents [46][48]. Management's Comments on Operating Environment and Future Outlook - Management noted that while there is elevated uncertainty in the macro environment, customer engagement remains strong, and the pipeline is building effectively [124]. - The company does not expect immediate revenue contributions from the IQVIA resolution but sees it as a long-term growth driver [90]. Other Important Information - The company is working on refining its migration tooling to facilitate customer transitions to the Vault CRM, with over 20 customers already migrated and 300 more planned [106]. - Veeva's business consulting services are seen as a critical component in driving AI adoption and helping customers navigate changes in workflows [111][115]. Q&A Session Summary Question: What led to the resolution of the lawsuit with IQVIA? - The resolution was driven by changes in the industry landscape and a mutual recognition that collaboration would benefit both companies and their customers [12][14]. Question: How does the resolution with IQVIA unlock new opportunities? - It removes previous barriers to integrating IQVIA data into Veeva's products, enhancing the commercial cloud offerings and allowing for more comprehensive solutions [14][73]. Question: What is the outlook for R&D subscription growth? - R&D subscriptions are expected to continue growing, supported by strong execution across all areas and a stable environment [40][76]. Question: How does Veeva plan to leverage AI in its offerings? - Veeva plans to integrate AI agents into its platforms, enhancing productivity and creating new revenue opportunities over time [28][30]. Question: What is the customer reaction to the IQVIA resolution? - Customer feedback has been overwhelmingly positive, as the resolution alleviates previous integration issues and opens up new possibilities for collaboration [34][36]. Question: What are the expectations for commercial subscriptions moving forward? - The company anticipates continued strength in commercial subscriptions, particularly driven by the Crossix product, despite some flatness in the recent quarter [74][76]. Question: How does Veeva differentiate itself in the AI space? - Veeva's structural advantage lies in its deep industry-specific applications, allowing for seamless integration of AI agents into existing workflows [94][96].

Financial Performance & Growth (FY2025 & FY2026 Guidance) - Total revenue for FY2025 reached $2.747 billion, with a year-over-year growth of 16%[8] - The company projects total revenue for FY2026 to be between $3.134 billion and $3.140 billion, indicating an anticipated growth of approximately 14%[8, 28] - Subscription revenue for FY2026 is guided at approximately $2.657 billion[28] - Non-GAAP operating income for FY2026 is projected to be around $1.388 billion, with a margin of approximately 44%[14, 28] - Normalized billings for FY2026 are expected to be approximately $3.355 billion, representing a year-over-year growth of about 13%[20, 28] - Non-GAAP cash from operations for FY2026 is guided at approximately $1.330 billion[24, 28] Q2'26 Results & Q3'26 Guidance - Total revenue for Q2'26 was $789.1 million, a 17% increase year-over-year[37] - Subscription revenue for Q2'26 was $659.2 million, reflecting a 17% year-over-year growth[37] - The company anticipates total revenue for Q3'26 to be between $790 million and $793 million[31] - Subscription revenue for Q3'26 is projected to be approximately $671 million[31] - Non-GAAP operating income for Q3'26 is expected to be between $348 million and $350 million[31] Additional Considerations - The company standardized termination for convenience (TFC) rights in customer contracts, which had a one-time impact on revenue and operating income in FY2024, but no impact after FY2025[48, 51]

"It's exciting to see our vision of connected software, data, and business consulting for life sciences becoming a reality," said CEO Peter Gassner. "I am especially excited about the power of Veeva AI and Veeva Data Cloud to enable transformational change for life sciences from clinical to commercial." Exhibit 99.1 FOR IMMEDIATE RELEASE Veeva Announces Fiscal 2026 Second Quarter Results Total Revenues of $789.1M, up 17% Year Over Year Subscription Services Revenues of $659.2M, up 17% Year Over Year PLEASAN ...

Core Viewpoint - Analysts expect Veeva Systems to report quarterly earnings of $1.90 per share, reflecting a year-over-year increase of 17.3%, with revenues projected at $767.61 million, up 13.5% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2] Revenue Projections - Analysts forecast 'Revenues- Subscription services' to reach $649.25 million, indicating a year-over-year change of +15.7% [4] - 'Revenues- Professional services and other' are expected to be $118.36 million, reflecting a +3% change from the prior year [4] - 'Revenues- Professional services and other- Veeva R&D Solutions' is projected to reach $72.75 million, with a year-over-year change of +4.2% [4] - 'Revenues- Subscription services- Veeva R&D Solutions' is estimated at $342.74 million, showing a year-over-year change of +18.4% [5] - 'Revenues- Subscription services- Veeva Commercial Solutions' is expected to be $306.25 million, indicating a +12.7% change from the previous year [5] - 'Revenues- Professional services and other- Veeva Commercial Solutions' is projected at $45.59 million, reflecting a +1.2% change from the prior year [6] Gross Margin Estimates - The 'Non-GAAP Gross Margin- Professional Services and other' is expected to be 29.7%, down from 31.9% year-over-year [6] - The average prediction for 'Non-GAAP Gross Margin- Subscription services' is 86.8%, slightly up from 86.5% year-over-year [7] Stock Performance - Veeva shares have decreased by -3.1% over the past month, contrasting with a +1.1% increase in the Zacks S&P 500 composite [7]

Core Insights - Veeva Systems is hosting the Veeva R&D and Quality Summit on September 3-4, 2025, in Boston, featuring leaders from major biopharmaceutical companies like BeOne Medicines, Intercept Pharmaceuticals, Merck, and Pfizer to discuss advancements in clinical, regulatory, safety, and quality processes [1][5] Group 1: Event Highlights - The summit will showcase over 100 sessions focused on the latest advancements in life sciences, including strategies for accelerating development and manufacturing by connecting systems and processes [3] - Key topics include improving trial oversight and collaboration among sites, sponsors, and CROs [4] Group 2: Innovations and Technologies - Veeva will highlight its advancements in software, data, and business consulting, particularly the integration of Veeva AI into the Vault Platform, which provides secure access to data and workflows [2] - The event will feature discussions on how customers can leverage Veeva AI to create custom agents tailored to their needs [2] Group 3: Industry Engagement - The summit aims to foster an environment of openness where industry leaders can share experiences and ideas to expedite the delivery of medicines to patients [5] - More than 2,000 attendees are expected, all of whom are life sciences professionals [6] Group 4: Company Overview - Veeva Systems is recognized as a global leader in cloud software for the life sciences industry, serving over 1,000 customers, including large biopharmaceutical companies and emerging biotechs [7]

Company Performance - Veeva Systems closed at $279.18, with a daily increase of +1.36%, outperforming the S&P 500's gain of 0.32% [1] - The stock has decreased by 1.39% over the past month, underperforming the Medical sector's loss of 2.75% and the S&P 500's gain of 3.08% [1] Upcoming Earnings - The upcoming earnings report is scheduled for August 27, 2025, with projected EPS of $1.9, reflecting a 17.28% increase year-over-year [2] - Revenue is anticipated to be $767.61 million, indicating a 13.52% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are expected to be $7.64 per share, marking a +15.76% change from the previous year [3] - Revenue for the year is projected at $3.1 billion, representing a +12.78% increase from last year [3] Analyst Estimates - Changes in analyst estimates are crucial as they reflect short-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Veeva Systems at 2 (Buy) [6] Valuation Metrics - Veeva Systems has a Forward P/E ratio of 36.03, which is a premium compared to the industry average of 22.73 [7] - The company has a PEG ratio of 1.55, which is lower than the Medical Info Systems industry's average PEG ratio of 2.83 [7] Industry Ranking - The Medical Info Systems industry ranks in the top 30% of all industries, with a Zacks Industry Rank of 72 [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Veeva Systems Inc. (VEEV) is positioned for growth due to its strong product portfolio and solid first-quarter fiscal 2026 performance, despite concerns over rising operational costs [1][12]. Financial Performance - Veeva's shares have increased by 31.7% year-to-date, outperforming the industry growth of 19.9% and contrasting with the S&P 500's decline of 8.5% [2]. - The company has a market capitalization of $46.1 billion and anticipates a growth rate of 26.2% over the next five years, with a trailing four-quarter average earnings surprise of 10% [3]. Product and Service Developments - Veeva continues to drive the adoption of its next-gen Vault CRM, with 20 new customers, particularly from small and mid-sized biotech firms [5]. - The introduction of AI-driven innovations, such as CRM Voice Control and MLR Bot, aims to enhance efficiency and compliance [6]. - Veeva's Data Cloud solutions are gaining traction, with significant contracts and partnerships, including a long-term collaboration with Walgreens Boots Alliance [7][9]. Strategic Initiatives - The company has secured key deals, including Boehringer Ingelheim's migration to Veeva Vault CRM and partnerships to enhance generative AI capabilities [9]. - Veeva's first-quarter fiscal 2026 results exceeded expectations, driven by strong performance in subscription and professional services [10]. Cost Management - Operating costs have risen, with general and administrative expenses increasing by 12.3% year-over-year in the first quarter of fiscal 2026 [12]. - Total operating expenses increased by 9.4% year-over-year, with expectations for further increases due to employee compensation-related costs [13]. Future Outlook - The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased by 3 cents to $7.64, with second-quarter revenue estimates indicating a 13.5% improvement year-over-year [14].