Veeva(US:VEEV)2025-11-23 12:23Investment Rating - The report maintains a "Buy" rating for Veeva Systems, suggesting to seize buying opportunities after recent price declines [2][4][8]. Core Insights - Veeva Systems reported strong Q3 FY26 results, with total revenue reaching $811.2 million, representing a 16% year-over-year increase, exceeding market expectations [2][12]. - The company raised its Q4 guidance due to accelerated transactions and strong performance across multiple business lines, particularly in AI and CRM [3][4]. - Veeva's AI initiatives are progressing, with the first AI agents for CRM and commercial content set to launch in December, and further expansion into R&D and quality areas planned for FY26 [3][4]. Financial Performance - Q3 FY26 total revenue was $811.2 million, surpassing the forecast by $9.6 million, with subscription revenue at $682.5 million and professional services at $128.7 million [12]. - Adjusted operating profit margin reached 45%, reflecting a solid profitability performance [2][12]. - The company’s gross margin remained stable at 75%, indicating strong operational efficiency [2]. Market Position and Valuation - Veeva's stock demonstrated resilience, with a smaller decline compared to peers in the AI SaaS sector, highlighting its robust fundamentals [4]. - The intrinsic value of Veeva is estimated at $350.3 per share, indicating a potential upside of approximately 29.5% from the current price of $270.5 [8][28]. - The report notes that Veeva's adjusted P/E ratios for FY26E and FY27E are 44.5x and 38.2x, respectively, which are below the industry average, suggesting a favorable valuation [29]. Growth Outlook - The company aims for a revenue target of $6 billion by 2030, supported by strong demand in the life sciences sector and high customer retention rates [3][4]. - Veeva's growth is expected to be driven by its expanding AI capabilities and the increasing adoption of its cloud solutions in the pharmaceutical industry [3][4].