Veeva(US:VEEV) ZACKS·2025-05-28 16:50Core 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].