Reasons to Add Veeva Systems Stock to Your Portfolio for Now

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].