Revenue Performance - Total revenues for Q1 FY2026 were $759.0 million, representing a 17% increase year over year from $650.3 million[4] - Subscription services revenues for Q1 FY2026 were $634.8 million, up 19% year over year from $534.0 million[4] - Total revenues for the three months ended April 30, 2025, increased to $759,043, up 16.7% from $650,345 in the same period of 2024[17] - Subscription services revenues rose to $634,768, representing a 18.9% increase from $533,955 year-over-year[17] - Full-year FY2026 revenue guidance is projected between $3,090 million and $3,100 million[8] Income and Profitability - Operating income for Q1 FY2026 was $233.7 million, a 51% increase from $155.2 million in the same quarter last year[4] - Non-GAAP operating income for Q1 FY2026 was $349.9 million, up 34% year over year from $260.9 million[4] - Net income for Q1 FY2026 was $228.2 million, an increase of 41% compared to $161.7 million in Q1 FY2025[4] - Non-GAAP net income for Q1 FY2026 was $327.8 million, reflecting a 33% increase from $247.0 million year over year[4] - Operating income improved to $233,732, up 50.6% from $155,172 in the same quarter of 2024[17] - Net income for the quarter was $228,190, a 41.1% increase compared to $161,664 in the prior year[17] - The diluted net income per share on a GAAP basis rose to $1.37, up from $0.98 in the prior year, marking a 39.8% increase[29] Cash Flow and Financial Position - Cash flows from operating activities reached $877,158, an increase of 14.9% from $763,516 in the previous year[20] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,967,160, up from $1,200,379 a year earlier[20] Expenses - Research and development expenses increased to $184,033, up 13.1% from $162,711 year-over-year[17] - Stock-based compensation expenses totaled $112,210, an increase from $95,911 in the same period of 2024[17] - Sales and marketing expenses on a GAAP basis were $98.6 million, slightly up from $97.3 million in Q1 2024[29] - General and administrative expenses on a GAAP basis increased to $68.8 million from $61.3 million in the same quarter last year[29] - Stock-based compensation expense for the quarter was $112.2 million, compared to $95.9 million in the prior year[29] Margins - The gross margin on total revenues improved to 77.1%, compared to 73.3% in the same quarter of 2024[26] - The operating margin on a GAAP basis improved to 30.8% from 23.9% year-over-year, while the non-GAAP operating margin increased to 46.1% from 40.1%[29] Strategic Initiatives - Veeva achieved its 2025 revenue run rate goal of $3 billion in the quarter, marking a significant milestone[6] - Veeva AI initiative is set to launch in December 2025, aiming to enhance productivity and automation in the life sciences industry[6] Guidance - Guidance for Q2 FY2026 includes total revenues expected between $766 million and $769 million[8]

Core Viewpoint - Veeva Systems Inc. is positioned for growth due to its strong product portfolio and strategic deals, despite concerns over rising operational costs [1][10]. Company Performance - Veeva Systems has a market capitalization of $37.91 billion and anticipates a 26.2% growth over the next five years, with a trailing four-quarter average earnings surprise of 7.92% [2]. - The company’s shares have increased by 13.2% year-to-date, outperforming the industry growth of 11.6% and the S&P 500 Composite's decline of 1.8% [1]. Product and Innovation - The company is driving migration to its next-gen Vault CRM, with 20 new customers in Q4, particularly from small and mid-sized biotech firms [4]. - Veeva has introduced AI-driven innovations such as CRM Voice Control and MLR Bot to enhance efficiency and compliance [5]. - Its Data Cloud solutions are gaining traction, with Compass supporting over 100 brands and Pulse securing its first seven-figure deal [6]. Strategic Partnerships - Veeva has secured key deals, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM and a partnership with Walgreens Boots Alliance to improve patient outcomes [7]. Financial Results - Veeva Systems reported better-than-expected results in Q4 fiscal 2025, with both earnings and revenues exceeding Zacks Consensus Estimates [8]. - The company experienced a strong finish to the year by strengthening partnerships across various customer segments [9]. Cost Concerns - Rising operational costs are a concern, with general and administrative expenses increasing by 20.6% year-over-year in Q4 fiscal 2025 [10]. - Total operating expenses rose by 9.3% year-over-year, with expectations for further increases in fiscal 2025 due to employee compensation-related costs [11]. Estimate Trends - There is a positive estimate revision trend for fiscal 2026, with the Zacks Consensus Estimate for EPS moving to $7.30 and revenues for Q1 fiscal 2026 expected to improve by 11.9% year-over-year [12].

Group 1: Marvell Technology Group Ltd. (MRVL) - Marvell Technology has seen its stock price drop 50% from January peaks ahead of its Q1 FY26 earnings release due to disappointing revenue forecasts and broader semiconductor sector weakness [2][3] - The company's valuation needed a reset after trading as high as 83X forward earnings last year, and it is currently trading at a 30% discount to its 10-year median [3][6] - Marvell's data center revenue surged 78% in Q4, driven by the AI spending boom, and it is projected to grow revenue by 44% this year and 18% next year [4][6] - Despite the recent downturn, Wall Street remains bullish on Marvell, with 25 of 31 brokerage recommendations rated as "Strong Buys" [7] Group 2: Veeva Systems (VEEV) - Veeva Systems, a cloud-based software company for the pharmaceutical and life sciences industries, has averaged 25% revenue growth over the last decade and its stock has surged 760% [9][12] - The company trades 30% below its 2021 peaks, with concerns about slowing growth and valuation impacting its stock price [12][20] - Veeva's revenue grew by 16% in fiscal 2025, driven by a 20% increase in subscription services, and it is projected to grow revenue by 11% this year and 12% next year [16][18] - The company has $5.1 billion in cash and equivalents, with minimal debt, allowing it to pursue growth opportunities and acquisitions [21]

Core Insights - Veeva Systems (VEEV) is expected to report quarterly earnings of $1.74 per share, reflecting a 16% increase year over year, with revenues projected at $727.99 million, an 11.9% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between these revisions and short-term price performance [3] Revenue Projections - Analysts forecast 'Revenues- Subscription services' to reach $615.93 million, indicating a 15.4% increase year over year [5] - 'Revenues- Professional services and other' are expected to be $112.07 million, suggesting a decline of 3.7% year over year [5] - 'Revenues- Professional services and other- Veeva R&D Solutions' is projected at $64.87 million, reflecting a decrease of 4.1% from the prior year [5] - 'Revenues- Subscription services- Veeva R&D Solutions' is expected to reach $328.16 million, indicating a 20.4% increase year over year [6] - 'Revenues- Subscription services- Veeva Commercial Solutions' is projected at $287.80 million, suggesting a 10.1% increase compared to the previous year [6] - 'Revenues- Professional services and other- Veeva Commercial Solutions' is estimated at $46.98 million, indicating a decline of 3.7% from the prior year [7] Gross Margin Estimates - The estimated 'Non-GAAP Gross Margin- Professional Services and other' is 26.6%, down from 28.6% in the same quarter of the previous year [7] - The average prediction for 'Non-GAAP Gross Margin- Subscription services' is 86.0%, slightly up from 85.9% year over year [8] Stock Performance - Over the past month, Veeva shares have returned +3.4%, compared to a +10.7% change in the Zacks S&P 500 composite [9] - VEEV currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9]

Group 1: Market Overview - The average stock market return over the past few decades is around 10%, making broader equities competitive compared to other asset classes [1] - Investing in companies with market-beating potential is key, particularly those with a history of outperforming the market [1] Group 2: Intuitive Surgical - Intuitive Surgical has achieved a compound annual growth rate (CAGR) of 26.1% over the past 10 years, turning an initial investment of $1,000 into $10,140, compared to $3,320 for the S&P 500 [4] - The company is the leader in the robotic-assisted surgery (RAS) market, primarily driven by its da Vinci system, which is approved for various surgical procedures [5][6] - Intuitive Surgical has a first-mover advantage with an installed base of 10,189 da Vinci systems, reflecting a 15% year-over-year increase [8] - The aging global population is expected to increase surgical procedure volumes, benefiting Intuitive Surgical's growth prospects [10] Group 3: Competitive Landscape for Intuitive Surgical - Competition is increasing with Medtronic and Johnson & Johnson entering the RAS market, but Intuitive Surgical may still deliver market-beating returns [7] - High switching costs for healthcare facilities favor Intuitive Surgical, as they prefer to stick with their initial choice of equipment due to training and repair services [9] Group 4: Veeva Systems - Veeva Systems has achieved a CAGR of 24.2% over the past decade, turning an initial investment of $1,000 into $8,734 [11] - The company focuses on providing cloud-based services specifically for the healthcare industry, which has unique demands and regulatory constraints [12] - Veeva Systems benefits from high switching costs, as clients rely on its services for daily operations and regulatory compliance [14] - The total addressable market (TAM) for Veeva Systems is estimated at $20 billion, of which it has captured about 14%, with continued growth expected in the life sciences sector [15]

Core Insights - Veeva Systems has introduced Veeva Basics, a pre-configured and pre-validated software solution that is currently utilized by over 75 biotech companies to enhance efficiency and reduce costs across clinical, regulatory, and quality functions [1][2] - The adoption of Veeva Basics indicates a transition from fragmented entry-level tools to comprehensive, best-of-breed solutions that can support the growth of biotech companies [1][2] Group 1: Product Features and Benefits - Veeva Basics is designed for fast-growing companies, allowing for quick deployment and adoption regardless of company size, with solutions available for clinical, regulatory, and quality needs [2] - The introduction of Veeva CTMS Basics and Submissions Publishing Basics aims to provide biotechs with tools to manage clinical trials and regulatory submissions effectively [6] - The applications built on the Vault Platform enable customers to scale their technology infrastructure as their business grows [2] Group 2: Market Reception and Testimonials - Biotech leaders have praised Veeva Basics as a game changer, providing smaller companies access to modern applications typically reserved for larger organizations, thus ensuring they remain compliant with evolving regulatory requirements [3] - Users have reported that Veeva eTMF Basics enhances control over data and processes, facilitating inspection readiness and driving innovation in clinical trials [3] - The global support and training associated with Veeva Basics have been highlighted as key factors in maximizing the value derived from the software, resulting in significant time and resource savings [3] Group 3: Company Overview - Veeva Systems is recognized as the global leader in cloud software for the life sciences industry, serving over 1,000 customers, including major biopharmaceutical companies and emerging biotechs [4] - The company is committed to innovation, product excellence, and balancing the interests of all stakeholders, including customers, employees, and shareholders [4]

Group 1: Event Overview - Veeva Systems announced the 2025 Veeva Commercial Summit scheduled for May 13-14 in Boston, featuring keynote speakers from leading biopharma companies [1][2] - The summit will focus on innovations and strategies for coordinated customer engagement through AI and data alignment [1][3] Group 2: Keynote Highlights - Veeva CEO Peter Gassner will present on the integration of AI into the Vault Platform and Veeva applications, highlighting ongoing innovations in Veeva Commercial Cloud and Veeva Data Cloud [2] - Other presenters include representatives from ANI Pharmaceuticals, Gamida Cell, NewAmsterdam Pharma, Orchard Therapeutics, and Sobi, sharing best practices for emerging biotechs [2] Group 3: Industry Impact - The summit aims to enhance collaboration among sales, marketing, and medical teams to create more effective customer-centric experiences [3] - Veeva Commercial Summit is recognized as one of the largest industry events in North America for commercial and medical affairs leaders [3] Group 4: Company Background - Veeva Systems is a global leader in cloud software for the life sciences industry, serving over 1,000 customers, including major biopharmaceutical companies and emerging biotechs [4] - The company is committed to balancing the interests of all stakeholders, including customers, employees, and shareholders [4] Group 5: Company Strategies - AstraZeneca is standardizing analytics across its brands to enhance marketing reach and performance [6] - Bayer is focusing on customer-centric engagement through Vault CRM [6] - Boehringer Ingelheim is connecting scientific insights to drive personalized conversations with key opinion leaders [6] - Eli Lilly is streamlining workflows and aligning global teams to deliver impactful experiences at scale [6] - Johnson & Johnson and Madrigal are building modern data foundations for greater efficiency and field impact [6]

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.When I last wrote about Veeva (NYSE: VEEV ) in January, I reiterated my "buy" rating on the stock while making it my software pick for 2025.Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growt ...

Core Insights - Veeva Systems has launched Veeva AI, an initiative to integrate AI into the Veeva Vault Platform and applications, aimed at automating industry-specific functions and enhancing productivity across various sectors from clinical to commercial [1][5] - Veeva AI utilizes large language models (LLMs) to create application-specific AI Agents and AI Shortcuts, enabling life sciences companies to streamline tasks and improve employee efficiency [1][2] Veeva AI Features - Veeva AI Agents can be quickly deployed with high impact due to their understanding of Veeva application context, application-specific prompts, and secure access to application data and workflows [2] - Customers have the flexibility to configure Veeva-delivered AI Agents or develop custom AI Agents tailored to specific use cases, accessible via a chatbot interface or AI API [2] User Empowerment - Veeva AI Shortcuts allow end users to set up personal AI-powered automations for frequent tasks, such as workflow assistance, generating insights, or conducting research [3] Strategic Vision - Veeva's CEO, Peter Gassner, emphasized that the integration of GenAI with core applications will significantly enhance productivity for knowledge workers by providing human-like capabilities to derive insights from complex data [4] - Veeva AI is designed to be LLM agnostic, supporting various major LLMs, and ensuring customer data security regardless of the LLM used [4] Market Positioning - The first release of Veeva AI is scheduled for December 2025, with a subscription model aimed at promoting broad and thoughtful industry adoption [5] - Veeva serves over 1,000 customers in the life sciences sector, including major biopharmaceutical companies and emerging biotechs, highlighting its leadership in cloud software solutions [6]

Company Performance - Veeva Systems (VEEV) closed at $227.11, reflecting a -0.26% change from the previous day, underperforming the S&P 500's gain of 0.74% [1] - The stock has decreased by 4.11% over the last month, which is better than the Medical sector's loss of 7.7% and the S&P 500's loss of 4.77% [1] Upcoming Earnings - Veeva Systems is expected to report an EPS of $1.74, representing a 16% increase from the same quarter last year [2] - The consensus estimate for revenue is $727.99 million, up 11.94% from the prior-year quarter [2] Full-Year Estimates - The full-year Zacks Consensus Estimates predict earnings of $7.30 per share and revenue of $3.05 billion, indicating year-over-year changes of +10.61% and +10.99%, respectively [3] - Recent revisions in analyst estimates are crucial as they reflect near-term business trends and convey analysts' confidence in the company's performance [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] - Veeva Systems currently holds a Zacks Rank of 2 (Buy), with a recent consensus EPS projection moving 1.18% higher in the past 30 days [5] Valuation Metrics - Veeva Systems has a Forward P/E ratio of 31.2, which is a premium compared to its industry's Forward P/E of 24.39 [6] - The company has a PEG ratio of 1.19, significantly lower than the Medical Info Systems industry's average PEG ratio of 2.92 [6] Industry Overview - The Medical Info Systems industry, part of the Medical sector, has a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]