Core Insights - Veeva Systems Inc. reported better-than-expected earnings for the first quarter, with adjusted earnings per share of $1.97, surpassing the analyst consensus estimate of $1.77 [1] - Quarterly sales reached $759 million, reflecting a 17% year-over-year increase, exceeding the Street view of $731.91 million [1] Financial Outlook - For the fiscal second quarter ending July 31, Veeva expects total revenue between $766 million and $769 million, slightly above the Street view of $765.34 million [2] - The company projects non-GAAP operating income between $335 million and $337 million, and adjusted diluted EPS between $1.89 and $1.90, also above the Street view of $1.88 [2] - For the full fiscal year ending January 31, 2026, Veeva anticipates total revenue between $3.09 billion and $3.10 billion, aligning with the Street view of $3.09 billion [3] - The projected non-GAAP operating income is approximately $1.36 billion, with adjusted diluted EPS around $7.63, compared to the Street view of $7.56 [3] Stock Performance - Following the earnings announcement, Veeva shares surged by 18.1%, trading at $277.04 [3] Analyst Ratings and Price Targets - Barclays analyst Saket Kalia maintained an Overweight rating and raised the price target from $285 to $300 [6] - Morgan Stanley analyst Craig Hettenbach maintained an Underweight rating and increased the price target from $201 to $210 [6] - Piper Sandler analyst Brent Bracelin maintained an Overweight rating and raised the price target from $255 to $325 [6] - Raymond James analyst Brian Peterson maintained an Outperform rating and increased the price target from $285 to $310 [6]

Core Insights - Veeva Systems, Inc. reported strong financial results for the first quarter of fiscal 2026, with adjusted earnings per share (EPS) of $1.97, a 31.3% increase year-over-year, surpassing the Zacks Consensus Estimate by 13.22% [1] - The company's total revenues reached $759 million, exceeding the Zacks Consensus Estimate by 4.3% and reflecting a 17% year-over-year growth [2] Revenue Breakdown - Subscription services revenues increased by 18.9% year-over-year to $634.8 million, driven by both established and newer solutions, outperforming projections of $595.8 million [3] - Professional services and other revenues rose 6.8% year-over-year to $124.3 million, exceeding the projected $102.3 million [4] Margin Performance - Gross profit improved by 18.2% year-over-year to $585.2 million, with gross margin expanding by 380 basis points to 77.1%, surpassing the projected 72.4% [5] - Operating profit totaled $233.7 million, a 50.6% increase from the prior year, with operating margin expanding by 690 basis points to 30.8%, exceeding the projected 22.8% [7] Financial Position - At the end of the first quarter, Veeva Systems had cash and cash equivalents and short-term investments of $6.07 billion, up from $5.15 billion at the end of fiscal 2025 [8] - Net cash provided by operating activities was $877.2 million, compared to $763.5 million a year ago [8] Guidance and Outlook - For the second quarter of fiscal 2026, Veeva expects total revenues between $766 million and $769 million, with adjusted EPS projected in the range of $1.89-$1.90, both above the Zacks Consensus Estimates [9][10] - The company has raised its fiscal 2026 revenue guidance to between $3,090 million and $3,100 million, up from the previous guidance of $3,040 million to $3,055 million [11] - Subscription revenues for fiscal 2026 are now expected to be approximately $2,625 million, an increase from the previous estimate of $2,585 million [12] - Adjusted EPS for fiscal 2026 is now projected to be $7.63, up from the previous guidance of $7.32 [13] Strategic Developments - Veeva Systems announced the introduction of Veeva AI, set for initial release in December 2025, aimed at enhancing operational efficiency in life sciences [16] - The company showcased its innovation at the Commercial Summit, highlighting upcoming AI capabilities and expanding its connected commercial data offerings [17] Market Performance - Following the earnings report, Veeva's shares gained 16.4% in after-market trading, with a year-to-date increase of 11.5%, outperforming the industry and S&P 500 [14]

Core Viewpoint - Veeva Systems reported strong Q1 fiscal year 2026 results, leading to a 16% surge in stock price, but its high valuation raises questions about investment attractiveness at current levels [1][2][12]. Financial Performance - Veeva Systems achieved earnings of $1.97 per share on revenue of $759 million, surpassing consensus estimates of $1.74 and $728 million [1]. - The company experienced a year-over-year sales growth of 17%, with subscription services revenue growing 19% to $635 million, exceeding market expectations [1]. - Over the last three years, Veeva's revenues have grown at an average rate of 14.1%, compared to 5.5% for the S&P 500 [5]. Profitability Metrics - Veeva's operating income over the last four quarters was $770 million, resulting in an operating margin of 27%, significantly higher than the S&P 500's 13.2% [6]. - The company's operating cash flow during this period was $1.2 billion, indicating a high OCF margin of 42.2% compared to 14.9% for the S&P 500 [6]. - Veeva's net income for the last four quarters was $781 million, reflecting a net income margin of 27.3%, compared to 11.6% for the S&P 500 [6]. Valuation Comparison - Veeva Systems has a price-to-sales (P/S) ratio of 16, significantly higher than the S&P 500's 3.0 [4]. - The company's price-to-free cash flow (P/FCF) ratio stands at 41, compared to 20.5 for the S&P 500 [4]. - Veeva's price-to-earnings (P/E) ratio is 58.1, while the S&P 500's is 26.4, indicating a premium valuation [4]. Financial Stability - Veeva's debt was reported at $77 million, with a market capitalization of $38 billion, resulting in a low Debt-to-Equity Ratio of 0.2% [7][8]. - Cash and cash equivalents amount to $4.1 billion, constituting 52.8% of total assets of $7.8 billion, compared to 13.8% for the S&P 500 [8]. Market Resilience - VEEV stock has shown vulnerability during market downturns, with a 55.7% decline during the Inflation Shock of 2022, compared to a 25.4% decline in the S&P 500 [10]. - During the Covid Pandemic in 2020, VEEV stock fell 26.8%, while the S&P 500 experienced a peak-to-trough decline of 33.9% [11]. Investment Outlook - Despite strong performance metrics, Veeva's high valuation multiples suggest limited upside potential at current stock levels, prompting a recommendation to wait for a pullback before investing [12].

Core Insights - Veeva Systems reported revenue of $759.04 million for the quarter ended April 2025, reflecting a year-over-year increase of 16.7% and surpassing the Zacks Consensus Estimate by 4.27% [1] - The company's EPS for the quarter was $1.97, up from $1.50 in the same quarter last year, resulting in an EPS surprise of 13.22% compared to the consensus estimate of $1.74 [1] Financial Performance Metrics - Non-GAAP Gross Margin for Professional Services and other was reported at 33.6%, exceeding the average estimate of 26.6% by nine analysts [4] - Non-GAAP Gross Margin for Subscription services was 88.1%, higher than the estimated 86% by nine analysts [4] - Subscription services revenue reached $634.77 million, surpassing the average estimate of $615.93 million and showing an 18.9% year-over-year increase [4] - Professional services and other revenue was $124.28 million, exceeding the average estimate of $112.07 million, with a year-over-year change of 6.8% [4] - Veeva R&D Solutions generated $77.71 million in revenue, compared to the estimated $64.87 million, marking a 14.9% increase year-over-year [4] - Subscription services revenue from Veeva R&D Solutions was $329.36 million, slightly above the estimate of $328.16 million, reflecting a 20.8% year-over-year increase [4] - Subscription services revenue from Veeva Commercial Solutions was $305.41 million, exceeding the average estimate of $287.80 million, with a year-over-year change of 16.9% [4] - Professional services and other revenue from Veeva Commercial Solutions was $46.57 million, slightly below the average estimate of $46.98 million, showing a year-over-year decline of 4.5% [4] Stock Performance - Veeva's shares have returned +2.8% over the past month, while the Zacks S&P 500 composite has increased by +7.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Veeva Systems reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][3]. Financial Performance - Quarterly earnings were $1.97 per share, surpassing the Zacks Consensus Estimate of $1.74 per share, and up from $1.50 per share a year ago, representing a 31.33% increase [1][2]. - The company achieved revenues of $759.04 million for the quarter, exceeding the Zacks Consensus Estimate by 4.27% and up from $650.34 million in the same quarter last year, indicating a year-over-year growth of 16.73% [3]. Earnings Surprises - The earnings surprise for the recent quarter was 13.22%, following a previous surprise of 10.13% in the prior quarter [2]. Market Performance - Veeva shares have increased approximately 13.2% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.7% [4]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.79, with expected revenues of $754.53 million, and for the current fiscal year, the EPS estimate is $7.30 on revenues of $3.05 billion [8]. - The Zacks Rank for Veeva is currently 3 (Hold), indicating expected performance in line with the market in the near future [7]. Industry Context - Veeva operates within the Medical Info Systems industry, which is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [9].

Financial Data and Key Metrics Changes - Total revenue for the quarter was $759 million, with a non-GAAP operating margin of 46% [9] - The company achieved its calendar 2025 revenue run rate goal of $3 billion [9] Business Line Data and Key Metrics Changes - The Vault CRM business is performing well, with over 80 customers live, and the expectation to reach about 200 customers live in the next year [13][14] - Crossix is a significant growth driver, with over 30% year-over-year growth, particularly in the usage-based area [32][41] Market Data and Key Metrics Changes - The macro environment is more uncertain compared to 90 days ago, but there has been no material change in financial results or pipeline [9][18] - The company is seeing strong growth in its R&D business, with guidance for the year at 19% [31] Company Strategy and Development Direction - The company is focusing on horizontal CRM applications, with plans to have first customers by the end of the year [22][24] - The AI initiative, Veeva.ai, is expected to significantly enhance efficiency in the life sciences industry, with a potential 15% increase in efficiency by 2030 [57][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the macro environment but emphasizes that the subscription-based model provides insulation from short-term pressures [68][88] - There is optimism about the company's ability to navigate the current environment effectively, with ongoing projects and contract renewals proceeding as expected [68][88] Other Important Information - The company is excited about the integration of AI into core applications, which is expected to create significant value for customers [59][90] - The Commercial Summit revealed positive customer sentiment and excitement around new product offerings, particularly in the CRM space [96][100] Q&A Session Summary Question: Customer migration to Vault CRM - Management noted that the migration to Vault CRM is driven by its superior capabilities compared to Veeva CRM, with a mix of new customers and migrations contributing to growth [12][14] Question: Impact of macroeconomic factors on revenue - Management indicated that while there is uncertainty in the macro environment, it has not yet impacted financial results or pipeline, and they remain optimistic about the year ahead [18][68] Question: Horizontal CRM strategy - The company is excited about the horizontal CRM market and is focusing on customer success and product excellence, with plans to identify specific customer segments [22][24] Question: Drivers of Crossix's growth - Crossix's growth is attributed to a broader product offering and a strategic approach to integrating with CRM products, leading to higher value deals [41][42] Question: AI integration and customer feedback - Initial feedback on Veeva.ai has been positive, with customers appreciating the practical applications of AI in enhancing productivity and engagement [90][99] Question: CRM conversion pace among top pharma companies - Management is pleased with the progress among top 20 pharma companies, noting that customers are happy with Veeva CRM and are making decisions at their own pace [108][110] Question: Focus on ROI and budget priorities - There is a continued focus on execution and digital marketing, with customers becoming more systematic in their approach to commercial strategies [112][113]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $759 million, with a non-GAAP operating margin of 46%, marking a strong start to the year and exceeding guidance [9][10] - The company achieved its calendar 2025 revenue run rate goal of $3 billion [9] Business Line Data and Key Metrics Changes - The Vault CRM is performing well, with over 80 customers live, and the company expects to reach about 200 customers live on Vault CRM within a year [13][14] - Crossix has shown strong growth, with a year-over-year growth rate exceeding 30%, driven by usage-based areas of the business [32][42] Market Data and Key Metrics Changes - The macro environment remains uncertain, but there has been no material change in financial results or pipeline at this time [9][18] - The company is seeing strong demand for its digital marketing capabilities, particularly in the Crossix segment, which is gaining market share [40][42] Company Strategy and Development Direction - The company is focusing on horizontal CRM applications, with plans to have first customers by the end of the year [22][24] - Veeva is committed to integrating AI deeply into its core applications, aiming to enhance efficiency in the life sciences industry by approximately 15% over the next few years [58][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased uncertainty in the macro environment but has not seen a significant impact on business operations or customer pipelines [68][70] - The company remains optimistic about its subscription-based business model, which is less susceptible to short-term market fluctuations [88][90] Other Important Information - The company is excited about the potential of Veeva.ai, which aims to provide significant value to customers by automating various tasks [100][101] - The recent Commercial Summit highlighted positive customer sentiment and the growing maturity of the Vault CRM product [96][98] Q&A Session Summary Question: Customer migration to Vault CRM - Management noted that the number of customers migrating to Vault CRM has increased, with reasons for migration including better product features and AI integration [12][14] Question: Impact of macroeconomic factors on revenue - Management indicated that while there is uncertainty in the macro environment, it has not yet affected financial results or pipeline [17][70] Question: Horizontal CRM strategy - The company is excited about the horizontal CRM market and is focusing on customer success and product excellence [22][24] Question: Drivers of growth in Crossix - Crossix's growth is attributed to an expanded product offering and a strategic approach to customer engagement [40][42] Question: AI integration in life sciences - Management expressed confidence in the potential of AI to enhance operational efficiency and provide significant value to customers [58][60] Question: Customer feedback on new products - Initial feedback from customers regarding new products, including Veeva.ai, has been positive, indicating a strong demand for integrated solutions [90][100]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $759 million, with a non-GAAP operating margin of 46%, exceeding guidance [7] - The company achieved a revenue run rate goal of $3 billion for calendar year 2025 [7] Business Line Data and Key Metrics Changes - Vault CRM is performing well, with over 80 customers live, and the expectation to reach about 200 customers live in the next year [12][13] - Crossix is highlighted as a significant growth driver, with strong performance in marketing and optimization, growing over 30% year-over-year [32][43] Market Data and Key Metrics Changes - The macro environment is described as more uncertain compared to the previous quarter, but no material changes in financial results or pipeline have been observed [7][17] - The company is seeing strong growth in its R&D business, with guidance for the year set at 19% [32] Company Strategy and Development Direction - The company is focusing on horizontal CRM applications, with plans to have first customers by the end of the year [22][25] - The AI initiative, Veeva.ai, is expected to significantly enhance efficiency in the life sciences industry, with a target of increasing efficiency by 15% over the next few years [58][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the macro environment but emphasizes that the business remains insulated due to long-term subscription contracts [68][85] - There is optimism regarding the integration of AI into core applications, which is expected to provide substantial value to customers [60][88] Other Important Information - The company is committed to maintaining a disciplined approach to acquisitions, focusing on synergistic opportunities in horizontal applications [121] - The recent Commercial Summit indicated strong customer sentiment and excitement around new product offerings, particularly in CRM and AI [91][96] Q&A Session Summary Question: Customer migration to Vault CRM - Management noted that the migration to Vault CRM is driven by its superior capabilities compared to Veeva CRM, with a mix of new customers and migrations contributing to growth [12][14] Question: Impact of macroeconomic factors on revenue - Management stated that while there is uncertainty in the macro environment, it has not yet impacted financial results or pipeline, with ongoing projects proceeding as expected [17][70] Question: Horizontal CRM strategy - The company is excited about the potential of horizontal CRM applications, with plans to identify customer segments and product areas [22][25] Question: Drivers of Crossix's growth - Crossix's growth is attributed to its expanded product offerings and the increasing demand for digital marketing effectiveness among clients [32][43] Question: AI integration and customer feedback - Initial customer feedback on Veeva.ai has been positive, with expectations that it will enhance operational efficiency and provide significant value [88][96] Question: CRM conversion pace among top pharma companies - Management indicated that progress with top 20 pharma companies is on track, with no urgency to migrate as customers are satisfied with existing solutions [107][109] Question: Customer focus on ROI and budget priorities - There is a noted increase in focus on digital marketing and analytics among pharma executives, reflecting a systematic approach to commercial strategies [111]

Financial Performance & Growth (FY2025 & FY2026 Guidance) - Total revenue for FY2025 reached $2.747 billion[8], with a year-over-year growth of 16%[8] - Subscription revenue for FY2025 was $2.285 billion[8], representing a 20% increase year-over-year[8] - Services revenue remained flat at $462 million in FY2025[8], showing 0% year-over-year growth[8] - The company projects total revenue for FY2026 to be between $3.09 billion and $3.1 billion[8], indicating an approximate 13% growth[8] - Non-GAAP operating income for FY2025 was $1.152 billion[15], with a margin of 42%[15], and is projected to reach approximately $1.36 billion in FY2026[15], with a margin of ~44%[15] - Normalized billings for FY2025 amounted to $2.951 billion[21], with an anticipated increase to ~$3.32 billion in FY2026[21], reflecting a growth of approximately 12%[21] - Non-GAAP cash from operations for FY2025 was $1.081 billion[25], and is projected to be ~$1.21 billion for FY2026[25] Q1'26 Results & Q2'26 Guidance - Total revenue for Q1'26 reached $759 million[12], demonstrating a 17% year-over-year growth[12] - Subscription revenue for Q1'26 was $634.8 million[38], a 19% increase year-over-year[38] - Services revenue for Q1'26 was $124.3 million[38], up 7% year-over-year[38] - For Q2'26, the company anticipates total revenue between $766 million and $769 million[32], with subscription revenue around $649 million[32] and services revenue between $117 million and $120 million[32] - Non-GAAP operating income for Q1'26 was $349.9 million[38], representing a margin of 46.1%[38]

Core Insights - Veeva Systems Inc. reported total revenues of $759.0 million for the first quarter of fiscal 2026, representing a 17% increase year over year [1][6] - Subscription services revenues reached $634.8 million, up 19% from the previous year [1][6] - The company achieved a revenue run rate goal of $3 billion for 2025, indicating strong growth and innovation [6] Financial Performance - Operating income for the first quarter was $233.7 million, a 51% increase from $155.2 million a year ago [6] - Non-GAAP operating income was $349.9 million, up 34% from $260.9 million year over year [6] - Net income for the quarter was $228.2 million, a 41% increase compared to $161.7 million in the same period last year [6] - Non-GAAP net income was $327.8 million, reflecting a 33% increase from $247.0 million year over year [6] - Fully diluted net income per share was $1.37, compared to $0.98 a year ago, while non-GAAP fully diluted net income per share was $1.97, up from $1.50 [6] Strategic Initiatives - Veeva AI is set to enhance productivity and automation in the life sciences sector, with its first release planned for December 2025 [6] - The company showcased innovations at the Commercial Summit, including AI Agents aimed at improving operational efficiency [6] - Veeva expanded its commercial data offerings with the launch of Veeva CRM Pulse, enhancing its data cloud capabilities [6] Guidance and Outlook - For the fiscal second quarter ending July 31, 2025, Veeva expects total revenues between $766 million and $769 million [6] - The company anticipates non-GAAP operating income between $335 million and $337 million for the same period [6] - For the fiscal year ending January 31, 2026, Veeva projects total revenues between $3,090 million and $3,100 million [6]