Veeva Systems Inc. (VEEV) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid fourth-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.This Zacks Rank #3 (Hold) company’s shares have risen 13.2% in the year-to-date period compared with 11.6% growth of the industry. The S&P 500 Composite has decreased 1.8% during the said time frame.The renown ...

Core Viewpoint - Veeva Systems Inc. is positioned for growth due to a strong product portfolio and strategic deals, despite concerns over rising operational costs [1][11]. Company Performance - Veeva's shares have increased by 4.9% year-to-date, outperforming the industry decline of 1.6% and the S&P 500's decrease of 8.9% [1]. - The company has a market capitalization of $35.88 billion and anticipates a growth rate of 26.2% over the next five years [2]. Growth Drivers - Veeva's robust product portfolio includes the next-gen Vault CRM, with 20 new customers acquired in the fourth quarter, particularly from small and mid-sized biotech firms [3]. - The introduction of AI-driven innovations such as CRM Voice Control and MLR Bot aims to enhance efficiency and compliance [4]. - Veeva's Data Cloud solutions are gaining traction, with Compass supporting over 100 brands and Pulse securing its first seven-figure deal [5]. - Strategic partnerships, including Boehringer Ingelheim's commitment to Veeva Vault CRM and a collaboration with Walgreens Boots Alliance, are expected to enhance market presence [6][8]. Financial Results - Veeva reported better-than-expected results for the fourth quarter of fiscal 2025, with both earnings and revenues exceeding consensus estimates [9]. - The company experienced a 20.6% year-over-year increase in general and administrative expenses, with total operating expenses rising by 9.3% [11][12]. Future Outlook - The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased by 4 cents to $7.30, with first-quarter fiscal 2026 revenues expected to reach $727.9 million, reflecting an 11.9% year-over-year improvement [13].