Veeva(US:VEEV) ZACKS·2025-05-29 15:11Core 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]