VEEV

Image source: The Motley Fool. Wednesday, Aug. 26, 2026 at 5:00 p.m. ET Senior Director, Investor Relations - Gunnar Hansen Chief Executive Officer - Peter Gassner EVP, Strategy - Paul Shawah Chief Financial Officer - Brian Van Wagener perator: Hello, everyone. Thank you for joining us, and welcome to the Veeva Systems Fiscal 2027 Second Quarter Results Conference Call. [Operator Instructions] I will now hand the conference over to Gunnar Hansen, Senior Director, Investor Relations. Gunnar, please go ahead. Gunnar Hansen: Good afternoon, and welcome to Veeva's Fiscal 2027 Second Quarter Earnings Conference Call for the quarter ended July 31, 2026. As a reminder, we posted prepared remarks on Veeva's Investor Relations website just after 1:00 p.m. Pacific today. We hope you've had a chance to read them before the call. Today's call will be used primarily for Q&A. With me today for Q&A are Peter Gassner, our Chief Executive Officer; Paul Shawah, EVP, Strategy; and Brian Van Wagener, our Chief Financial Officer. During this call, we may make forward-looking statements regarding trends, our strategies and the anticipated performance of the business, including guidance regarding future financial results. These forward-looking statements will be used based on our current views and expectations and are subject to various risks and uncertainties. Our actual results may differ materially. Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-Q. Forward-looking statements made during the call are being made as of today, August 26, 2026, based on the facts available to us today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Veeva disclaims any obligation to update or revise any forward-looking statements. We may discuss guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum. On the call, we may also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. With that, thank you for joining us, and I'll turn the call over to Peter. Peter Gassner: Thank you, Gunnar, and welcome, everyone, to the call. Q2 was another strong quarter, delivering results ahead of our guidance. Total revenue in the quarter was $928 million with non-GAAP operating income of $416 million. Execution was exceptional this quarter as we made strong progress in many key areas. It was our best CRM quarter ever. We also are accelerating rapidly in AI overall and especially with Veeva Falcon. And our focused acquisition strategy is working, bringing great people and capabilities to Veeva. It's an exciting time. AI is enabling the next big chapter for Veeva and the industry. We'll now open up the call to your questions. Operator: [Operator Instructions] Your first question comes from the line of Joe Vruwink with Baird. Joseph Vruwink: I think it's evident over the past few months that biopharma R&D spending is headed in a positive direction, and that also is showing up at Veeva. As pipelines move forward, what are you finding the mentality to be at customers around assessing and adopting something that's brand new with thinking about the Vault application agents or even Veeva Falcon. I'm interested in levels of early interest taking place amidst what seems like a busier environment and whether that's a reflection of the value customers are seeing pretty quickly when they start looking at the new Veeva offerings. Peter Gassner: I'll take that one. Yes, there are a lot of things going on, right? The funding environment is relatively good. There's a lot of changes with AI and science is moving ahead. So there's a lot of priorities for the customers. And so when that happens, they can't do all things at once, and they generally try to pick some things that they can do and that are high priority. Your question was related to Falcon. I think Falcon, there is a lot of interest right now because it's very clear that's high priority. Quick cost savings and compliance and efficiency, that's high on everybody's priority. So I think there's a lot of interest in Falcon. We are the rate limiter right now. We have to get that product ready, start working with the early adopters, but interest in Falcon is very high. Joseph Vruwink: That's great. And then maybe as you think about how customers can now engage with Veeva in an AI framework, you have the application agents, you have Falcon, you have a custom development framework that you've introduced. Are any of those modes of engagement maybe becoming larger or a bigger piece of the conversation? And do any of those modes matter more or less as you think about how your financial model evolves and what the impact might end up being to Veeva? Peter Gassner: Yes, it is a major change for Veeva. So Falcon is agentic labor. That's something different than we've done before, right? We've done cloud software, data consulting. Now we have this fourth thing, agentic labor. So it is transforming the discussion. There are 2 different things you could do with Veeva. You can do some agentic labor; you can do core applications. That was never the case before. The important point is Veeva, it fits very well. It's a structural advantage for Veeva to both have the agentic labor across multiple areas in life sciences and have the core applications across multiple of those areas in life sciences. So that's why I feel like we're very well positioned and the conversations are very rich. Gosh, I just hope we got to get that product going as soon as we can. If we had our early adopters live and successful right now, I don't want to be hyperbole, but Falcon would be flying off the shelf if that was the case because one thing to know is there's not an extensive Falcon implementation. There's not a data mapping from one system to the other. There's not a cutover process. There's not ETL to do. So this implementation of full value is faster with Falcon, but the tech underneath it is newer, and we have to get our motion down there. If you can tell -- I hope you can tell, I'm pretty excited about Falcon. I really think we're on to something. Operator: Your next question comes from the line of Brian Peterson with Raymond James. Brian Peterson: Congrats on a strong quarter. So the Commercial segment was really strong this quarter. I know you called out record results. Could you maybe unpack what drove that acceleration in the subscription line item? Would love to get some more color there. Brian Van Wagener: Yes. This is Brian. I'll take that one. Commercial subs, yes, very strong quarter. I think the culmination of many quarters of execution, but you see them showing up in the results here, up about 13% year-over-year. Even when we back out Crossix, it's double digits in the rest of commercial. So it's quite a broad-based strength in the commercial offering across CRM, content, data, Crossix, Ostro most recently. So we feel very good about the execution. Crossix continues to be a strong performer with a lot of headroom for growth. We're continuing to see growth in CRM, which I think a lot of the conversation has been, is that going to go down? It's actually going up. And we're continuing to see a lot of room to continue growing in a healthy market in Crossix as well as the other areas. Brian Peterson: Great. I appreciate the color. I just want to follow up on Aspen. I know you guys are excited about that as well. How should we be thinking about that market opportunity and some of the investments that you're taking to kind of enable that revenue stream? Peter Gassner: Aspen, I think it's very early, right? That's the thing to know. This is a start-up inside of Veeva. It's moving very rapidly. It's on 90-day plans. So we have a core market that we're going after, the horizontal CRM in a new way, in a new way that really enables AI and is built on modern technology. So the thing to know that it is very agile now. So we're -- what we're focused on is getting the product right, working with our early adopter customers. I'm 100% convinced that there's a market for what we're making in Aspen. Can we execute well enough? That's always the hard thing in a start-up. Can you do it? Can you do it better than your competition? And what kind of luck do you have along the way? That plays into it. I've done the start-up thing before starting Veeva. I've done the start-up thing when we started Vault inside of Veeva. We're doing it again, and I have lots of friends that have done it. And it's just like that. Can you execute well, really, really well? And what kind of luck do you have on the way? But sometimes you're wondering whether the market is there or not. You could say maybe we were wondering that when we were getting new markets going 18 months ago, et cetera. Right now, we have enough product, and we're working with some early customers. We're 100% clear that the market is there, 100% clear. It's just whether we can execute and we'll see. So your question was about how to size the investment as well. That's very small on the Veeva scale. It's not something that Brian, our CFO, notices really on the Veeva scale because you have to keep that very small when you're working with early customers and you're iterating an early product. And actually, these days, you keep it smaller than normal because the pace of the development is faster with AI. You actually need a smaller amount of developers, very, very, very skilled as well. So it's not a financial drain on the company. It's not a focused drain, and it's certainly not any kind of revenue that's figured into our plans at this time. Operator: Your next question comes from the line of Ken Wong with Oppenheimer. Hoi-Fung Wong: I wanted to circle back on Falcon, Peter. It was great to hear the customer interest. Also great to hear it's not an extensive implementation process. But what I didn't get a sense for was as you're trying to introduce virtual labor to your customers, is that a different counterparty that you're selling to versus maybe the CMO or the CIO? And then secondarily, how difficult do you expect it to be to maybe work through the inner politics of shifting kind of the budgets from an IT wallet to maybe an HR labor wallet? Any help in helping us think through that? Peter Gassner: Ken, great question. Now I'll be able to tell you this definitively now in a couple of years when we're selling lots of Falcon and I'll be able to give you the readout. So I'm going to gauge into the future and tell you what we know so far. First off, it's actually going to be an easier selling cycle because IT is really not involved in the agentic labor. That's not something they're involved in because it's not like that. If you're selling a solution to safety, this is about the budget of the safety team. So it's really the head of the unit, the business unit and the head of the sort of the operations of that business unit. So that's super clear. And the other question is, yes, it is a very related buyer. This is actually -- we have not hit the case for Falcon where we're selling into a buyer that we are not selling into because we're always selling into the business side with our business applications, now sometimes more or less. For example, in the areas of Falcon where Falcon is playing, for example, safety, clinical regulatory, that's always been somewhat more of a business sell, IT involved, but somewhat more of a business sell. CRM is the most IT heavy sale that we have in general. So the areas where we're doing Falcon, they were ready, I would say, on the average, 60% of business sell. And those are people that we've been selling into for 10 years. Hoi-Fung Wong: Understood. And then, Brian, just a follow-up on some of the investments. It sounds like with Aspen, it might be sort of small upfront. But as we think about you guys ramping on Falcon, ramping on Aspen, ramping on some Vault agents, Vault AI, I mean, should we expect maybe an uptick in terms of sales investments, R&D investments? Anything we should be thinking about relative to how you guys are spending today. Brian Van Wagener: As Peter talked about, Ken, we're very excited about Falcon and the path that it can be on. But you've also seen us over time consistently think about both growth and profitability. And so it's not different entering a new market like Falcon. Maybe the dynamics of the market are very slightly different. But it's the same overall approach that we're taking there. And so we scale investment as we scale revenue, there's certainly nothing material that I would call out for this fiscal year. It's all factored into the guidance that we've updated for FY '27. And as we get another couple of quarters ahead and gain in the future of next year, we'll factor that into our guidance for next year. Operator: Your next question comes from the line of Saket Kalia with Barclays. Ryan Powderly-Gross: This is Ryan Powderly on for Saket tonight. Peter, maybe my first for you. From the customers that are planning to transition to Salesforce away from Veeva CRM, what do you hear from those customers? What are they saying right now about the decision? And do you think longer term; it could be possible for Veeva to win some of those back? Peter Gassner: Yes, Ryan, I do -- there's a handful of customers, large customers that did select Salesforce, many of them even 2 years ago. Those projects are -- they're having troubles, right? They're not going smooth, and we have some project delays because it turns out you -- the product is very deep, and you need that. So yes, I think we can win back some of those customers, maybe some of them completely. Others have been in some certain regions and not others. I think the bulk of that win back would probably be in 2027 and 2028 because Veeva CRM, they have that backstop until the end of 2029. So this is the time when it starts really to get real, right? Because during 2029, there's no more backstop of, oh, we can keep using Veeva CRM because they know they have to go to Vault CRM. Yes, we're very optimistic about that. And the best thing we can do there to help that is really focus on our existing customers that did decide to go with us for CRM and make them very successful and improve the product. And for the customers that didn't choose Veeva, we have a good relationship with them, and they've told us that, hey -- we said, hey, we want to be your plan B, and they really embrace that, and that's the way they view that because these customers have businesses to run, right? They got to get their medicines to patients. It's great. They love having a backup option if their plan A doesn't work out. Ryan Powderly-Gross: Really interesting. I appreciate that. Brian, maybe my follow-up for you. Could you just talk a little bit about what you're seeing on the R&D subscription line? And maybe specifically, where you see Veeva in the journey between some of the, let's call them, old guard products versus some of the newer growth areas that you're investing in, just as we think about that revenue mix shift and how it's evolving? Brian Van Wagener: Yes. It's a great question, Ryan, because we're right in the middle of that transition that you pointed to. And I think very pleased with the progress and the execution that we're making. But the old guard that you're referring to would be things like, I guess, eTMF, and CTMS, and QDOC, and QMS and our regulatory suite that has fueled a lot of the growth in R&D to date. And a lot of the growth as you look out over the next few years to 2030 and beyond is being driven by a different set of products, EDC, eCOA, RTSM, Safety, and LIMS. And these are big, very strategic products with a ton of headroom, but they're very early. So we're excited about that. We're executing really well against that. But there's a little bit of a changing of the guards that's happening there. And the S curves don't stack up exactly. So you see some of that factored into the guidance for the balance of the year. But we're very confident and excited about the long-term trajectory of the R&D business and obviously pleased to be raising the guide again here in Q2. Operator: Your next question comes from the line of Alexei Gogolev with JPMorgan. Alexei Gogolev: I wanted to go back to the Falcon discussion. So with 5 Falcon early adopters and first go-lives expected this year, what are the key readiness gates you must clear? And how do you expect the human in the loop requirement to evolve by workflow type? Peter Gassner: I'm sorry, Alexei, there was a breakup and it said, what are the key you have to clear, and I didn't hear the word in the middle. Alexei Gogolev: Peter, I was talking about the key readiness gates you must clear and how do you expect the human in the loop requirement to evolve by workflow type? Peter Gassner: The key sort of regulatory hurdles, if I heard correctly. Yes. Agentic labor is like human labor in a way. It's nondeterministic. So you have to prove that you have the right training and guardrails around humans, and that's the same thing we have to do around our agents and the human -- we provide for that human in the loop with Falcon as well because you can see the outcome of what the agent did and does inside of the Vault application. So from what we can see, it's working very well. It's not. This approach is completely similar to what customers are doing today on certain internal projects. The difference is they would like to be able to do it at scale in a very repeatable motion. So I would guess 3 years ago, we would probably have to be teaching the customers a lot about what is AI, what is the agentic labor, how do you do this? How do you do that? That's -- we really don't have to do that so much anymore. The customers know how to deal with it. They just want a partner that can scale it across multiple areas. Alexei Gogolev: And also on the data cloud topic, so you added 14 Data Cloud customers. Where is Data Cloud proving most differentiated? And how are you positioning connected data as a prerequisite for AI outcomes in commercial workflows? Peter Gassner: So we don't position Data Cloud as a prerequisite for AI. It's more of an accelerator. The cleaner your data is, the better your AI processes are going to work, especially in certain areas. What's working well for us in Data Cloud is OpenData, so clean reference data. Now that's a hard project to do because it involves changing a lot of things in downstream systems. But we have some momentum there, and I think that's going to continue. We have strong momentum in Compass for certain therapeutic areas of complex therapies, where our Compass products can see different things in the flow of complex products in the U.S. that other people -- other offerings can't see. And then we're -- we have real market leadership with our Link product and Link Key People, and we're expanding there with the add-on products of Link. So Link Medical Insights, Link Key Accounts for the U.S., Link Workflow for Congresses. So overall, data is not a thing that can accelerate very, very fast. It's not like selling fast fashion on Instagram, right? That can accelerate fast and then disappear. Data is not like that. It's a long, slow grind, but we're certainly happy with our progress, and it's very synergistic with Veeva. If you look at what Veeva -- why is Veeva being successful? We have a very synergistic product plan. We have software applications that work with our data and consulting that knows about our software and data. And we have agents that work with our applications that are known by our consulting and that leverage our data. So it's not a random set of products. It's -- we're building the industry cloud and the more our customers realize it, the more benefits they get because things fit together. Operator: Your next question comes from the line of David Windley with Jefferies. David Windley: I wanted to ask, Peter, on Falcon quickly, are your early adopters exclusively sponsors or OEMs? Or are you also seeing some service providers approach you to adopt Falcon capabilities? Peter Gassner: Our early adopters are with sponsors. Now we have had some interest with service providers. And I say that carefully, interest, they're interested. But we really haven't engaged heavily there yet because you have to be focused when you start working with your first customers. Service providers will have similar needs to sponsors, but not the same. So we're focusing on the sponsors first, and I fully expect over time that this will be useful for outsourced service providers, but we have to work on the sponsors first. David Windley: Great. And pivoting for my follow-up, a lot of moving parts in China over the course of this year, maybe over the course of the last several years, regulatorily, drug development-wise, et cetera. How do you see the China market as an opportunity for Veeva right now? Peter Gassner: Yes, China is certainly moving fast. I mean when we look at my tech career standing, it's over 30 years here, it's just astounding the transformation in China and what it means for the global economy and what can be accomplished and the whole notion of a parallel tech stack in China. So yes, it's moved so fast and it continues. And it's great to see that from my perspective. It brings variety. So our opportunities there, we have quite a few products that are made by our Veeva China team in China for China. So we have our China CRM suite, and that's gaining market share that's written on the China tech stack, et cetera. We have our data products made in China specific for the China market. And there's other things that we can do in China, there in China for China. But one of the big benefits is those products fit with our global products. For example, China CRM fits with our global PromoMats products. So there's a synergy there. China is good business for us, and we're proud to do that in China, and it's profitable for us there and it's growing, but it's also synergistic with our global business because our global customers when they have their headquarters in the U.S. or Japan or Europe, they want a team, a global Veeva team that can help them with China also. So it's very synergistic. We really love our China business. Operator: Your next question comes from the line of Rishi Jaluria with RBC. Rishi Jaluria: Nice to see continued strength in the business. I want to start with a question on Aspen and the pricing model. I think the publicly posted pricing model is really interesting and compelling as application software companies are, kind of, figure out, kind of, the pivot to more consumption, et cetera, and you're talking about charging per human or per agent. Can you maybe walk us through how you see that pricing model starting, how the puts and takes of that? And what lessons or learnings can, kind of, be picked up from that as you see more Falcon adoption, more AI adoption within the broader Veeva suite and trying to, kind of, price accordingly for this new AI world? And then I've got a quick follow-up. Peter Gassner: Yes. So cloud software, we've got to remember, it hasn't been around for 50 years, right? I was working on it in the early days of Salesforce.com, and that was not even 25 years ago, right? It was -- for me, it was 23 years ago. So very early. And the pricing model sort of arrived and the technology model arrived and the way we do things arrived. And you see that all in the first-generation big cloud companies, big cloud application companies. There's a way you do things, right? So Aspen is taking a different approach that may or may not prove effective. It's to say, well, it's a different approach, a different technical stack, a different approach there and a different pricing approach. It's just much more simple. You get your productivity, $50, $50 a user a month. So it's not this crazy price and you can't -- you don't know what it is and you have to haggle with your sales rep for discounts. And if you're big companies this and that and 14 different editions, no. It's more like modeled off of Amazon Web Services. There's a price, okay? And it's a good product. You can buy it. You don't have to buy it. It's a good product. So we will lean into that. And then there's, of course, usage overage, okay. Let's say you buy 5 users is $50 a month and you put a terabyte of data in there for some reason. Well, okay. Well, that's not anything that anybody thought about. So there are the overage charges that you will pay monthly on the overage. So you kind of -- it's a mix -- you get -- I would say we're shooting for mostly predictable because that's -- at the end of the day, large businesses would really want mostly predictable, but you have to have this escape hatch to say, yes, I can't use unlimited compute because that's kind of -- that doesn't make sense. So now we're also going to listen to our early customers, and we're a very customer-friendly company and if there's a better way to do it, we'll certainly do that. We're after authentically customer success. You got to remember; we're a public benefit corporation. We're after success for our customers, the industries we serve and Veeva, and our investors. So the thing is make it simple, get rid of all this noise that has built up in the systems over time. Rishi Jaluria: All right. No, that's really helpful. And then maybe just thinking through as Falcon and kind of your AI products grow, can you talk a little bit about under the hood, what, sort of, the AI stack looks like? And maybe more importantly, as these become a bigger portion of the business, drive greater usage and, obviously, as you pointed out, Peter, greater customer success, how should we be thinking about the impact on margins, both gross margins as well as free cash flow margins? And is there an opportunity over time to leverage more multimodality and even some of the open weight models as they improve to control some of that potential gross margin headwind? Peter Gassner: Yes. Again, I don't really want to make predictions on Falcon because it's early. But in general, I don't think we're going to have a gross margin problem. I think the gross margins will be roughly similar to our software. And here's why when we really go deep into Falcon and we have what we call Falcon copies where we have the real customer data that we're testing the agents with and developing the agents with; we know what's going on. So more and more and more of that work goes into the deterministic software, and we use the nondeterministic models, the Anthropic models, et cetera, when we need to. So it's not -- a lot of this value is going into the agent. And then I believe everybody knows that the cost of these models are going to go down versus whether they're with better hardware or open weight models or et cetera, et cetera. The current cost of the models is not sustainable, not based on what we're doing, but based on this notion of what software development is doing, eating up 50% of the tokens in the world and hundreds of billions of dollars. Somebody is going to build a better mousetrap for that over time, and that will compress the prices. That's our belief. But even if that wouldn't happen, I think Falcon would be a great business because we're pushing a lot of things into the deterministic layer. Operator: Your next question comes from the line of Tyler Radke with Citi. Tyler Radke: Brian, just going back to your comments on the R&D side of the business and talking about kind of the stacking of those S curves. I was wondering if you could just be a bit more precise in terms of the timing and when you see the kind of the growth inflection happening from those S curves. And if you were to just sort of stack rank those products you mentioned, what sort of have the biggest opportunity to be the next $500 million or $1 billion products within R&D? Brian Van Wagener: Yes. Thanks for the question, Tyler. I think we are excited really about all of those products, all the 5 that I mentioned, EDC, eCOA, RTSM, Safety, LIMS, every one of those is very large and very strategic in their area. A few of them are around clinical, Safety is its own big space, LIMS is in quality. So each of these is very significant opportunities and at slightly different stages as you look across them, but all of them pretty early. And so I think that's what gives us the confidence as we look out to 2030, for example, that we're on track for those goals is we're making great progress in the product, great progress in the execution, great progress getting customers live and happy and successful and reference selling. We don't put exact timing on that, right? We don't generally talk year-by-year, so I'm not going to give guidance out beyond this year. But I think we feel very confident in the trajectory that we're on with those products in R&D. Tyler Radke: Got it. And then in terms of Aspen and sort of your broader ambitions across industries, outside of your traditional segments. Like, just can you just remind us of, sort of, the ICP there? Is it smaller organizations? Or how do you -- I mean, clearly, such a broad opportunity. So how do you start and prioritize that and staff it? Peter Gassner: For clarity, ICP, what is ICP? Tyler Radke: Like the ideal customer profile. Peter Gassner: Okay. I'll take that one. Yes, the ideal customer profile when you're just starting out is really a nimble type of company that really wants to work with you. And I think in this area, we're going to probably get a lot of young tech start-ups, right? Because they're doing some really innovative in what they're doing, and they don't really want to do the same old thing in CRM for core account contact opportunity management. So I think we have early indications that there'll be great companies to work with. But we'll see. Again, I'll let you know a lot more in the year. Operator: Your next question comes from the line of Jailendra Singh with Truist. Jailendra Singh: I want to go back to Falcon discussion and the 5 early adopters there. It seems one of them is a top 20 pharma company. Based on your conversations with these top pharma companies around Falcon, do you believe that the work will be shifting to Falcon is something they were outsourcing to other partners with the CROs? Or should we think about something they were doing in-house and now they are leveraging Falcon for that? And related to that, any incremental color on the pricing of the Falcon product? Peter Gassner: In terms of where the labor is done or where it will be displaced, I think there'll be a combination of internal and outsourced, although generally not the CROs. That's not what I see. It's a different type of outsourcing, some of it from the CROs, but not most of it. And then in terms of the pricing, it's very early for that. I know we've been in discussions with customers, and their desire is for predictability. That's for sure, right? They want predictability for that because for one thing, they get that predictability when they either hire or outsource labor. It's quite predictable, and it's better for them. It's actually better for us, too. So -- but what gets in the way of that a little bit is, well, Falcon is quite early now. So it can do certain things, but it can't do the things that it will do 3 years from now. So how do you have a fixed price when your capabilities are rapidly improving? So I think with some of our customers, we'll end up having enterprise license agreements, enterprise subscription agreement for the labor based on the size of their company or their function, but it will probably escalate over time. It will be lower in the beginning when Falcon is less mature. So if you want a teenage Falcon, it costs you x. And if you want a Falcon and it's 25-year-old, it costs you a bit more. I think it's going to be like that. But again, this is the type of thing you work out with the early adopters. The nice thing here and the structural advantage that we have is this is the same buyer facing the same business problems as our applications. These are people we know deeply. The trust is there. You will hear people say business moves at the speed of trust, and there's a lot to that. And we have the trust with these customers. So we'll get to the right story pretty quickly. All this hinges on having a product that works well and that's really where our focus is. I would say our early signs are good. When I talk to the engineering and the product management people on Falcon, there's an optimism. You'll see even the pessimistic ones saying like, oh, my goodness, this could really work. And in some early test runs, it's like, wow, we tested this against the humans, what the humans did, and Falcon is already better than what the humans did. So there's a sense of optimism, but it's too early to declare success. We have to be very paranoid and pessimistic because we're going into something we haven't done before. Veeva has never done agentic labor and the whole motion is new. That's why the leader of Falcon reports right to me. This is a complete new market and a new motion for Veeva. So we don't have all the answers yet. Jailendra Singh: That makes sense. My quick follow-up on other point you raised in your prepared remarks, and somebody asked it earlier about the focus on CRM win backs among top 20 companies that did not select Vault CRM. I understand your point that you want to share success stories with them. But just curious, have there been any developments or conversations with customers who have picked Salesforce that is driving that confidence that these opportunities are more actionable? Or is it more around delays in rollout by Salesforce that's giving you confidence of opening up window? Just curious, like, it seems like you're a lot more exclusive this time around than in the past. Paul Shawah: Yes. It's based on our execution and what we're seeing with Salesforce as well. I think Peter alluded to earlier how Salesforce has been struggling with some of the larger projects that they have, and they don't really have any customers live. And when you look at what Veeva is doing, it contrasts pretty significantly. We have over 180 customers live. We have customers that are turning AI on. We had a big milestone in CRM this quarter where one of our top 20 turned AI on in CRM for their entire field force. So really significant milestone. So the contrast between how Veeva is executing and what we're seeing on the other side is very significant. As Peter mentioned, we're very close with these customers. They buy a lot of products from Veeva. We have deep relationships. We stay very close with them. And that's what gives us the confidence, our execution, our innovation, getting customers live, that trust. And that's why you hear the bullishness and the confidence in those win backs. Just more broadly in the overall market, we're executing very, very well in CRM. It's really clear that we are the market leader. We're going to maintain the market leadership position. And just to kind of paint the kind of what we view as the end state, we see Veeva maintaining over 70% share in the CRM space, which means we'll continue to execute. We'll continue to drive innovation for our customers. We feel really good about how CRM is playing out. Peter Gassner: You asked about our customer interactions there. Yes, we have customer interactions, lots of people at Veeva deal with these customers, and I personally do at times, too. And the common thing you might hear is from a customer is we're not ready to make that decision yet, right? So they're open to it, they're looking to it, they're not ready yet. So that's -- those types of things give us confidence. Operator: Your next question comes from the line of Craig Hettenbach with Morgan Stanley. Craig Hettenbach: Great discussion around all the AI developments. Peter, from a macro perspective, after a couple of volatile years, whether it was IRA, MFN, pricing, tariffs, the backdrop has steadied. So I'm curious, outside of agentic in your customer discussions, what are they most focused on? What areas in terms of they leaning into investments that you're seeing in the business? Peter Gassner: Yes, Craig, it is interesting. We think things have steadied. It is an interesting comment on the world, right? We have 2 kinds of major wars going on. We've got a complete tech disruption in AI that's going on. And I think what happened is the life sciences industry has gotten used to, hey, the world is going to have a lot of moving parts. And they're just moving forward. So I think it's -- you're good to point this out. They're not being disrupted by the disruptions. If we would have something really catastrophic in the future, that can always disrupt things. So for example, if we had a major, major shift in interest rates, well, life sciences is a capital-intensive industry that can do things. If major escalations in war, that can do things. But so far, the industry seems to be executing pretty well and focusing on the jobs to get done. Craig Hettenbach: Got it. And then just on my follow-up for the EDC segment. Compared to 1 or 2 years ago, as that was ramping, that got a lot of attention. Can you just maybe give us an update on just how those ramping deals are progressing and then just the opportunity to capture additional top 20 over time? Peter Gassner: Yes. EDC is one of the larger areas, and it's certainly a long implementation cycle. So some of our wins are still ramping. And we're working with the other ones. We have -- I believe it's 9 out of the top 20. Most of the other ones are with Medidata, not all. And we're working on those over time, but it's not the right time for all customers to change out all systems at one time, getting back to -- they have many other things to do. I would go back to the structural advantage we have. In the Development Cloud, applications all on a common platform and then with Falcon as well, the structural advantage with Falcon is more things to bring to the same buyer. And especially in clinical, having the Clinical Operations, Clinical Data Management and our Site Solutions. The Site Solutions is very strategic to us, and we're introducing eSource there. So I think confident on EDC over time. It just takes a while, and that's something that I think you'll see progress in the couple of year -- in the next couple of years there. Operator: Your next question comes from the line of Andrew DeGasperi with BNP Paribas. Andrew DeGasperi: I just wanted to ask, one, first, I think you're coming up to the 1-year anniversary of your partnership with IQVIA and the settlement with them. So I just wanted to understand how is that going. Have you seen any momentum because we haven't heard much from that deal? And I wanted to know if you -- is it going ahead of expectations or in line or below? Peter Gassner: We're really happy with that IQVIA partnership, gosh, that's -- and I discussed with the management team of IQVIA, and I can represent that they represent to me that they're very happy with the partnership as well. So yes, and customers are especially appreciative of it, right, much less hassle working with Veeva and IQVIA. I think great things are going to come out of that partnership. They're already starting to come, and I think there's more to come. When you look at it, IQVIA and Veeva, we are both major players to the life sciences industry. We are the 2 major players. I think it's fair to say, by far. And AI is transforming the industry. And for AI, you need services, you need data, you need software. So the more Veeva and IQVIA can collaborate, the better it is for the industry, helps the industry grow, helps Veeva grow, helps IQVIA grow. So I couldn't be more happy with that. If you ask me, I feel 500% better about our IQVIA relationship now than I did 2 years ago. It's probably the best thing that happened to our company 12 months ago, and that was just outstanding. So super happy with that. Andrew DeGasperi: And then I'm curious about the double-digit growth you mentioned in the Commercial Cloud business, even excluding Crossix. And I just want to unpack that, like, in terms of the -- did it come from PromoMats and some of the other marketing tools? Or was there something unique about the CRM side that gave you -- was giving you that acceleration? Brian Van Wagener: Not really any one factor that I'd point to, Andrew. And I think that's part of what actually makes us feel so much excitement and the results is that it was CRM. It was add-ons and new customers and content. It was new customers and brands in Data Cloud. It was continued growth in Crossix on both the measurement and the audiences side. It really was broad-based growth around commercial. And I think -- I guess what I'd point to is some of what Peter and Paul have mentioned is that full commercial story and full capability of all those products on one platform from one provider really resonating in the market and driving growth. So very strong quarter from commercial. Operator: [Operator Instructions] Our next question comes from the line of Dylan Becker with William Blair. Dylan Becker: Maybe, Peter, if we touch on the strength in consulting and services, I know that there's kind of several components to that. But how would you classify, kind of, the value of efficiency of, kind of, being able to do more with the same, kind of, amount of your existing resources versus the efficiency gains you're seeing there, enabling your customers to go faster and capitalize on, kind of, more of the AI opportunities, meet their, kind of, increasing willingness, if that makes sense? Because it does seem like that's another area. I know it's not perfectly correlated to the subscription side but continues to see healthy momentum in driving that change management for a lot of these enterprises. Peter Gassner: I think that the big benefit for Veeva that we will hopefully see over time here is that by more tech enabling our consulting and our specialized services, our software will become more valuable. So for example, if somebody wanted to buy our EDC and if it took $1 billion to implement, nobody would buy it. But if it took $10 in a week, everybody would buy it. So the faster you can have your implementations go and the more accurate, the less cost, the more valuable your applications become. So that's the big driver. Yes, it probably means growth for us in services because people will buy more services. But it's about customer success and the industry success and driving our application business. I overall think it will be a renaissance for services and consulting companies as we go forward because I think this notion of tech-enabled services, specialized tech-enabled services is really going to drive growth rather than going to generalists that say, hey, I have people that can do a lot of things. No, you have a job to get done. You'll probably go to the specialist that has a tech-enabled service that can get that done. And I think that will actually lead many companies to do more with partners rather than doing it internally because they can get the outcome quicker and better with a tech-enabled service. Operator: Your next question comes from the line of Tamjid Chowdhury with Guggenheim Securities. Tamjid Md Moinuddin Chowdhury: I guess, Peter, I wanted to ask you a question on a recent management change. It was announced that Tom Schwenger will be leaving the company to go to a long-standing partner of yours. And we understand that he played a pivotal role in many of the company's top 20 biopharma wins. So how should we be thinking about the current transition of his responsibilities and maybe the impact of his exit on the relationship he has helped curate over the years, if any? Peter Gassner: Yes. Tom, of course, sad to see Tom go. Tom was at Accenture before he came to Veeva many years ago and was a great Veeva partner at Accenture. And Tom is going to go on to be a CEO of a services type partner, and we think that he will be a great partner for us there now. So all good there. Those relationships don't go away that Tom has. So he will keep those. And in terms of Veeva, when a customer -- especially when you mention CRM, gosh, that's a business-critical decision that lasts for 10 years, that's involved. There's many, many people involved in that, and there's a product involved with that. So I don't -- that won't -- Tom's departure won't have effect on our CRM business because that's more of a -- it's an enduring long-standing thing. It's different than maybe consulting type work or something like that. This is a product attachment. So that's not going to affect our business. Operator: Your next question comes from the line of Billy Fitzsimmons with Piper Sandler. William Fitzsimmons: Congrats on the 2 big top 20 biopharma wins for Vault CRM in the quarter. Could you give a little more color on how those deals played out? What ultimately drove them to Veeva over Salesforce? And for the top 20 vendors that have not decided yet, has your level of confidence changed in potentially winning those versus, say, 90 days ago? Paul Shawah: Yes. So first, we're excited about the exceptional quarter that we had, and that was one of the headlines. You heard us talk about 3 large companies, 2 in the top 20, really selecting Vault CRM, Biogen selecting Vault CRM. And then, of course, we have Regeneron as well. The why is pretty simple, and I think we touched on it on this call, right? It goes back to trust, so they trust Veeva to be able to deliver. And then product, product excellence. The product is working. We are delivering on the promise of all the innovations that we've told the market we would execute on, and that's playing out in the marketplace. So it's trust and it's great product. I mean it's really -- it simply comes down to those 2 things. In terms of the remaining top 20 commitments that are out there, there's only 2 left. So we have 12 of top 20, and there are 2 remaining, and they'll play out by the end of this year, but we feel good about both of them. They still need to be finalized, but we like our chances in both, and we'll update you as things play out. Operator: Your next question comes from the line of Ryan MacDonald with Needham & Company. Ryan MacDonald: Congrats on a nice quarter. Peter, an emerging trend that we've been seeing across large health care and life sciences organizations within the industry this year is one in which customers want to embrace AI, but they don't want to take the risk on a new and unproven entrant that offers AI for only a specific point solution or a niche use case as they don't have the time to evaluate hundreds of new vendors. It sounds like they'd rather consume AI from the incumbent platform vendors that they're already deeply embedded with. So one, are you getting this sort of same feedback from your customers? And two, does this dynamic create an opportunity for you to perhaps ramp up the M&A activity, acquire similar types of AI point solutions like Copli and sell it into your existing base faster than what one of these smaller AI solutions could do on their own? Peter Gassner: Sorry, I was giving a great answer on mute. The customers want to be out of the experimentation phase. They definitely want to be out of that. So some months ago, when we first introduced Falcon that had customers come up to me personally, we were at an event and they said, oh, thank goodness, you're announcing that because that's -- thank goodness you're announcing that because that's -- I didn't want to evaluate all these small vendors. So now that you have an offering that helps me not have to go and look at all these small vendors. So yes, it's absolutely what customers want. In terms of acquisitions, we may find others that are a cultural fit, but we'll be very discerning. Copli was an excellent acquisition for us. And by the way, the Falcon M, which is now Falcon MLR, that is maybe -- our sales cycles there are probably more advanced than in any other part. That market is very ripe for things. But in these other areas, we're getting started, and we're making a lot of progress with Falcon. So if we're going to do an acquisition there, it would be more for talent acquisition and not for product because we've put a real good base in the Falcon product and Falcon platform. I don't think we'll need acquisitions for products anymore. We did look at some when we were just starting Falcon. We looked at a number, I would say, in at least 20 companies to look at. We found one that was the right fit of culture, product and that of willingness to be acquired. And we found that in Copli. So it's sometimes like that. For Falcon, I don't actually expect us to find another acquisition that fits, and we're not dependent on any acquisition, but we'll see what happens. Operator: Your next question comes from the line of Gabriela Borges with Goldman Sachs. Gabriela Borges: This is Grayson on for Gabriela. Just one on Aspen. What are the specific customer problems that Aspen is aiming to solve that maybe the existing horizontal CRM platforms struggle with? And what are the milestones that you would point investors to watch for over the next year? Peter Gassner: In terms of milestones, I think it's probably just the things that we say on our earnings calls and things like that, that would be -- there's not going to really be visible milestones, I would say. We'll probably give you updates when the time is there. And your other question was basically how will things be better? Is that what the question? If you could rephrase that again? Gabriela Borges: Yes. Just what are the specific customer problems that you're aiming to solve with Aspen versus what some of the existing horizontal CRM platforms struggle with today? Peter Gassner: Yes. A couple. One is price, price being unpredictable, getting out of control, that would be one. The other one would be just sort of dependability of the vendors, right, that you can really count on the vendor to be on your side. Scalability of the vendor, right? Sometimes they want something that really works for a small company but can scale up to a very large. Now in the market, you have to pick like, do I want something that works for a small company? Or do I get something that's too big for me now, but I can scale up. Other things are just like data entry. The existing CRM systems really, if you get into them like, okay, they require a heck of a lot of data entry. Most of that with AI doesn't need to be done anymore. And then I just think there's just this other fundamental thing of better CRM system. And that's just the details of a fundamentally better data model, better business logic, better just details, like how do you handle multicurrency? How do you handle forecasting? How do you handle implementation so that you can get the CRM you want for your company in 3 months rather than getting half of what you want in 3 years. So I was on the Board of Zoom for many, many years, and Zoom was a very small company when I joined and very few investors wanted to invest in Zoom because they thought, well, there's already Webex, there's all these other things. But Eric had an idea, but mine will be fundamentally better, better, better. And that's the same idea here. Now that's unusual that, that could be disruptive. But I think in this case, it will be better, nicer, less expensive, more predictable, faster. I think all those things add up. Operator: Our last question comes from the line of Scott Schoenhaus with KeyBanc. Scott Schoenhaus: I wanted to drill more into Crossix. From 90 days ago, are you seeing from your purview, from Crossix, are you seeing pharma marketing advertising budgets become better than they were 90 days ago? And do you think that AI is helping to act as a catalyst for pharma budgets, not only across Crossix, but the overall pharma digital advertising space? Paul Shawah: Yes. We continue to see strength in the pharma marketing budgets and spend on digital, and that's playing out in Crossix. We had good -- another strong quarter of performance in Crossix. AI, what role is that playing? I think that's a nice long-term benefit and driver of what we're doing in Crossix as companies. You probably heard us talk a little bit about helping companies become an agentic commercial, engage with doctors via AI. They're turning more and more to AI. And as that becomes a more important channel, Crossix becomes more important in terms of measuring and understanding and optimizing against that spend. So yes, absolutely, AI is a nice -- will be a nice tailwind for the foreseeable future for Crossix. Operator: We have reached the end of the Q&A session. I will now turn the call back to Peter Gassner for closing remarks. Peter Gassner: Thank you, everyone, for joining the call today, and thank you to our customers for your continued partnership and to the Veeva team for your outstanding work in the quarter. I'm looking forward to speaking with you again on our upcoming Investor Day on November 5. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Veeva Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Veeva Systems wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Veeva Systems. The Motley Fool has a disclosure policy. Veeva (VEEV) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

Veeva Systems (VEEV) just reported quarterly results that came in ahead of analyst expectations and paired them with higher guidance, putting fresh attention on how its AI focused life sciences cloud products are performing. The company reported second quarter revenue of US$927.96 million compared with US$789.08 million a year earlier. Net income was US$273.43 million compared with US$200.31 million a year ago, with diluted earnings per share of US$1.66 versus US$1.19. For the first six months of the fiscal year, Veeva Systems posted revenue of US$1.81b compared with US$1.55b a year earlier. Net income for the same period was US$534.37 million compared with US$428.5 million, and diluted earnings per share were US$3.22 versus US$2.56. Alongside these earnings, management issued guidance for the third quarter ending October 31, 2026, calling for total revenue between US$932 million and US$935 million. For the fiscal year ending January 31, 2027, the company expects total revenue between US$3.68b and US$3.69b. These figures came with management commentary highlighting AI as a key driver across Veeva Falcon and the broader Vault AI suite. For investors, the combination of guidance, current revenue scale and emphasis on AI based products helps frame how Veeva Systems is positioning itself within life sciences software. Veeva Systems' earnings beat and higher guidance arrived alongside a sharp re-rating in the share price, with a 1-day share price return of 15.2% and a 30-day share price return of 40.22% lifting the stock to US$282.13. That recent surge contrasts with a more modest 1-year total shareholder return of 3.6% and a 5-year total shareholder return that declined 10.7%, which suggests the latest AI driven contract wins and guidance update have recently shifted how the market is pricing the company’s growth and risk profile. Ride the momentum from Veeva Systems' AI driven contracts to compare it with other potential breakout opportunities in 74 profitable AI stocks that aren't just burning cash. After a 40% climb in 30 days and only a small discount to analyst targets and intrinsic value estimates, the real question is whether Veeva Systems is now priced for perfection or still reflecting lingering market caution. At a last close of $282.13 versus a narrative fair value of $383.14, the most followed view on Veeva Systems suggests there is still a meaningful valuation gap. Read the complete narrative. Want to see what is baked into that $383.14 fair value for Veeva Systems? The key ingredients are long run earnings power, measured revenue expansion and disciplined margins that underpin the cash flow profile behind this narrative. Result: Fair Value of $383.14 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Veeva Systems narrative still faces pressure points, including slower technology spending after large pharma mergers and the risk that Falcon adoption or pricing falls short of expectations. Find out about the key risks to this Veeva Systems narrative. The narrative fair value of $383.14 suggests Veeva Systems is 26.4% undervalued, yet the current P/E of 45.2x tells a different story. It is higher than the global Healthcare Services industry at 27.9x and also above a fair ratio of 32x, which implies less room for error if growth expectations ease. How comfortable are you paying a premium multiple for a stock already priced well above its own fair ratio? See what the numbers say about this price — find out in our valuation breakdown. Curious whether the current optimism around Veeva Systems matches your own read of the numbers and risks described here? Take a closer look at the underlying data, pressure test your thesis, and then review the 3 key rewards. If Veeva Systems has sharpened your focus, do not stop here. Use the Simply Wall St screener to surface other clear opportunities that could fit your portfolio. Target resilient balance sheets by scanning companies in the list of solid balance sheet and fundamentals (50 results). This group combines financial strength with more room for careful analysis. Hunt for quality at a discount by checking the 46 high quality undervalued stocks, which highlights stocks priced below their assessed worth based on underlying fundamentals. Add fresh ideas to your watchlist by reviewing the 20 high quality undiscovered gems. These companies may not be widely followed but still show solid financial characteristics. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VEEV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $2.35 for the second quarter of fiscal 2027, which increased 18.1% from the year-ago figure of $1.99. Adjusted EPS beat the Zacks Consensus Estimate by 5.9%. GAAP EPS in the fiscal second quarter was $1.66, up 39.5% from the year-ago period’s $1.37. VEEV’s second-quarter revenues rose 17.6% to $928 million and topped the consensus estimate by 2.7%. Growth reflected strength across subscriptions and services, while Vault CRM ended the quarter with more than 180 customers live. Shares of the company surged more than 9% in yesterday’s after-market trading. The stock gained 9.7% in the year-to-date period compared with the industry’s growth of 7.7%. The S&P 500 Index has increased 11.6% in the same time frame. Image Source: Zacks Investment Research The fiscal second-quarter revenue growth was driven by strength across Subscription services and Professional services and other revenues. Subscription services revenues increased 16.3% year over year to $766.8 million. Professional services and other revenues advanced 24.1% year over year to $161.2 million. In the quarter under review, Veeva Systems’ gross profit increased 17.2% year over year to $695.9 million. However, the gross margin contracted 30 basis points (bps) to 75%. Sales and marketing expenses increased 15.8% year over year to $126.7 million. Research and development expenses rose 15.7% year over year to $222.9 million, while general and administrative expenses declined 25.6% year over year to $71.3 million. Total operating expenses of $420.9 million increased 5.8% year over year. Operating profit totaled $275 million, up 40.4% from the prior-year quarter. The operating margin in the fiscal second quarter expanded 480 bps to 29.6%. VEEV’s Financial Position The company exited second-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.24 billion compared with $7.31 billion at the fiscal first quarter of 2027-end. Cumulative net cash provided by operating activities at the end of the quarter was $1.37 billion compared with $1.12 billion a year ago. Veeva Systems has issued its financial outlook for the fiscal third quarter and raised its guidance for fiscal 2027. For the fiscal third quarter, the company expects total revenues in the range of $932-$935 million. Subscription revenues are projected to be approximately $782 million, while Professional services and other revenues are anticipated between $150 million and $153 million. Adjusted EPS is projected between $2.33 and $2.34. For fiscal 2027, Veeva Systems now expects revenues between $3.682 billion and $3.687 billion. Subscription revenues are projected to be approximately $3.08 billion, comprising Commercial Solutions subscription revenues of around $1.405 billion and R&D and Quality Solutions subscription revenues of approximately $1.675 billion. Professional services and other revenues are expected in the range of $602-$607 million. Adjusted EPS is now expected to be approximately $9.21. Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote Veeva Systems exited the second quarter of fiscal 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company also raised its fiscal 2027 outlook. Strong execution across Commercial Solutions and R&D and Quality Solutions, along with continued momentum in newer growth areas, remained encouraging. Veeva Systems continued to make notable progress with Vault CRM. The platform recorded its best quarter ever, with more than 180 customers live, including five top 20 biopharmas. In August, two additional top 20 biopharmas and one large enterprise biopharma committed to Vault CRM, taking total top 20 commitments to 12 globally. A top 20 biopharma also deployed Vault CRM and Agentic Call Report across its entire U.S. field team during the quarter. The company also advanced its AI strategy. Veeva Falcon, its agentic labor platform for clinical, regulatory and safety functions, now has five early adopters and remains on track for initial go-lives this year. Veeva Systems also acquired Copli and launched Veeva Falcon MLR to automate content reviews. Vault AI added new standard agents, enhanced existing agents and introduced advanced tools for custom agent development in August. Management noted that customer interest in Falcon remains high, although product readiness and work with early adopters remain key near-term priorities. Momentum across Development Cloud and Quality Cloud also remained strong. A large enterprise biopharma selected Veeva EDC, extending its existing eTMF, CTMS and Study Startup foundation. Veeva Safety surpassed 100 customers and secured its second top 20 biopharma win for Safety Workbench. The Quality business added more than 30 customers, supported by at least 20 wins each across QualityDocs, QMS and Training. These developments underscore Veeva Systems’ continued expansion across clinical, safety and quality applications. VEEV carries a Zacks Rank #4 (Sell) at present. Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO. Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here. GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%. West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%. WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%. The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%. COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $928 million in Q2 fiscal 2027. Non-GAAP Operating Income: $416 million for the quarter. CRM Performance: Best CRM quarter ever recorded. AI Progress: Accelerating momentum in AI, particularly with Veeva Falcon. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veeva Systems Inc (NYSE:VEEV) delivered a strong Q2 with total revenue of $928 million and non-GAAP operating income of $416 million, exceeding guidance. The company achieved its best-ever CRM quarter, with notable wins including two TOP20 biopharma customers (Lilly and Biogen) selecting Vault CRM, bringing the total to 12 of TOP20. Veeva Falcon, the company's agentic AI product, is generating high customer interest, with early adopters showing promising results and a faster implementation process compared to traditional software. Commercial subscription revenue grew 13% year-over-year, with broad-based strength across CRM, content, data, and Crossix, even excluding Crossix's contribution. The partnership with IQVIA is progressing well, with both companies expressing satisfaction, and it is expected to drive further growth in the life sciences industry. The company is confident in winning back customers who chose Salesforce, citing Salesforce's struggles with large projects and Veeva's strong execution and customer trust. Veeva's R&D segment is transitioning to new growth products like EDC, eCOA, RTSM, Safety, and LIMS, which are early but have significant long-term potential. The company's focus on tech-enabled services is expected to enhance the value of its software, leading to faster implementations and increased customer success. Veeva's China business is growing and synergistic with its global offerings, providing a competitive advantage in that market. The company's pricing model for Aspen is simple and predictable, modeled after AWS, which could attract customers seeking transparency and ease of use. Veeva Systems Inc (NYSE:VEEV) faces execution risks with Falcon, as it is a new market and motion for the company, and the product is still in early stages with only five early adopters. The company acknowledges that some customers have chosen Salesforce, and while it expects to win some back, this is not guaranteed and may take until 2027-2028. R&D growth is experiencing a 'changing of the guards' as older products like ETMF and CTMF mature, while newer products are still ramping, which could create a temporary growth slowdown. The company's Aspen product is very early-stage, and there is uncertainty about whether it can execute well enough to compete with established horizontal CRM platforms. Falcon's pricing is still being determined, and the company is working with customers to find a model that balances predictability with the product's rapidly improving capabilities. The company faces potential gross margin pressure from AI models, although it believes it can mitigate this by pushing more work into deterministic software. There are only two remaining TOP20 CRM decisions left, and while Veeva is confident, these are not yet finalized, and there is no guarantee of winning both. The departure of Tom Schwenger, a key executive, could potentially impact some customer relationships, although the company downplays this risk. The company is not dependent on acquisitions for Falcon, but it may need to be selective in M&A to find cultural fits, which could limit growth opportunities. Macro uncertainties, such as interest rates and geopolitical tensions, could still disrupt the life sciences industry and impact Veeva's business. Warning! GuruFocus has detected 3 Warning Sign with P. Is VEEV fairly valued? Test your thesis with our free DCF calculator. Q: What drove the record performance in the commercial segment, and can you unpack the strength in the subscription line item?A: Brian Van Wagener (CFO) noted that commercial subscriptions were up about 13% year over year, with double-digit growth even when excluding Crossix. The strength was broad-based across CRM, content, data, Crossix, and Ostra. He highlighted that Crossix continues to be a strong performer with significant headroom, and CRM is growing despite prior concerns, reflecting a healthy market and strong execution. Q: How is customer interest in Veeva Falcon and the new AI offerings, and what is the mentality of customers adopting these new technologies?A: Peter Gassner (CEO) stated that interest in Falcon is very high, as it offers quick cost savings, compliance, and efficiency. He noted that Veeva is currently the rate limiter, needing to get the product ready and work with early adopters. He emphasized that Falcon represents a new category of "agentic labor" for Veeva, distinct from its cloud software, data, and consulting offerings, and that the company is well-positioned due to its structural advantages across multiple life sciences areas. Q: Can you provide an update on the Aspen product, its market opportunity, and the level of investment being made?A: Peter Gassner (CEO) described Aspen as a startup inside Veeva, moving rapidly on 90-day plans. He is 100% convinced there is a market for the product, which targets horizontal CRM with modern technology and AI capabilities. The investment is very small on Veeva's scale and not a financial drain. He noted that the pricing model is simple ($50 per user per month) and modeled after AWS, with overage charges for excessive usage, aiming for predictability while allowing for flexibility. Q: What are the key regulatory hurdles for Falcon, and how will human-in-the-loop requirements evolve?A: Peter Gassner (CEO) explained that agentic labor is non-deterministic, so Veeva must prove proper training and guardrails, similar to human labor. Falcon provides for human-in-the-loop by allowing visibility into agent outcomes within Vault applications. He noted that customers are already familiar with AI concepts and are looking for a partner that can scale agentic labor across multiple areas, rather than needing extensive education. Q: How is the Data Cloud performing, and where is it proving most differentiated?A: Peter Gassner (CEO) stated that Data Cloud is positioned as an accelerator for AI, not a prerequisite. It is proving differentiated in open data (clean reference data), Compass for complex therapies, and the Lync product for key people and medical insights. He described data as a long, slow grind rather than a fast-moving trend, but noted it is highly synergistic with Veeva's broader product plan, including software, data, consulting, and agents. Q: Are the early adopters of Falcon exclusively sponsors, or are service providers also showing interest?A: Peter Gassner (CEO) confirmed that early adopters are sponsors, though there has been some interest from service providers. Veeva is focusing on sponsors first because their needs differ from service providers, and the company must remain focused when working with initial customers. He expects Falcon to eventually be useful for outsourced service providers, but the priority is on sponsors for now. Q: How should we think about the impact of Falcon and AI products on gross margins and free cash flow margins?A: Peter Gassner (CEO) stated that he does not expect a gross margin problem, with margins likely similar to software. He explained that much of the work goes into deterministic software, using non-deterministic models only when needed. He also noted that model costs are expected to decline over time due to better hardware and open-weight models, which would further support margins. He emphasized that even without cost declines, Falcon would be a great business due to the deterministic layer. Q: Can you provide more color on the R&D subscription line and the transition between older products and newer growth areas?A: Brian Van Wagener (CFO) acknowledged that Veeva is in the middle of a transition, with older products like ETMF, CTMF, QDOX, and QMS fueling growth to date. The next wave of growth will come from newer products like EDC, eCOA, RTSM, Safety, and LIMS, which are large and strategic but still early. He noted that the S-curves don't stack up exactly, which is factored into guidance, but expressed confidence in the long-term trajectory of the R&D business. Q: What is the ideal customer profile for Aspen, and how is Veeva prioritizing its go-to-market?A: Peter Gassner (CEO) indicated that the ideal customer profile for Aspen is nimble companies, likely young tech startups, that want innovative CRM solutions rather than traditional offerings. He noted early indications that these companies will be great partners, but said more details will be available in a year as the product matures and early adopters provide feedback. Q: How is the partnership with IQVIA progressing, and what impact has it had on the business?A: Peter Gassner (CEO) expressed strong satisfaction with the IQVIA partnership, noting that both companies are happy with the collaboration. He highlighted that customers appreciate the reduced hassle of working with both Veeva and IQVIA, and that the partnership is already yielding benefits. He described it as one of the best things to happen to Veeva in the past 12 months, with great potential for future collaboration in AI, data, and services. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Veeva Systems Inc. VEEV used its fiscal second-quarter 2027 earnings call to emphasize accelerating AI development through Veeva Falcon and strengthening Vault CRM adoption across large biopharma customers. Management balanced enthusiasm around new AI markets with execution caution, while stronger operating results supported higher fiscal 2027 guidance. Founder and CEO Peter Gassner said customer interest in Falcon, Veeva’s agentic labor platform, is high as customers prioritize efficiency, compliance and cost savings. He added that Veeva is currently the rate limiter as the product moves through early adoption. A Baird analyst asked about early demand. Gassner said the company has five early adopters and expects initial go-lives this year, while noting Falcon avoids much of the implementation work associated with traditional software projects. A Truist analyst pressed on pricing. Gassner said customers want predictability and discussed enterprise subscription structures that could rise as Falcon capabilities mature, while stressing that product readiness remains the priority.Veeva CRM Execution Raises Competitive Stakes Gassner called the second quarter Veeva’s best CRM quarter ever. More than 180 Vault CRM customers are live, while August commitments brought the number of top 20 biopharmas committed to Vault CRM to 12. A Barclays analyst asked about customers that previously selected Salesforce. Gassner said some large projects are facing delays and implementation problems and said Veeva could win some of those customers back in 2027 and 2028. CFO Brian Van Wagener said Commercial subscription revenues rose about 13% year over year and remained in double digits excluding Crossix. He described strength across CRM, content, Data Cloud, Crossix and other offerings. Non-GAAP earnings were $2.35 per share, which beat the Zacks Consensus Estimate of $2.22. Revenues were $928 million compared with the Zacks Consensus Estimate of $904.07 million. Total revenues increased 18% year over year. Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote Veeva expects fiscal third-quarter revenues in the range of $932 million-$935 million and non-GAAP earnings in the band of $2.33-$2.34. Fiscal 2027 revenue guidance is $3.682 billion-$3.687 billion, with non-GAAP earnings of about $9.21. Van Wagener said the R&D business is shifting from older drivers such as eTMF, CTMS, QDocs, QMS and regulatory products toward EDC, eCOA, RTSM, Safety and LIMS. A Citi analyst asked when those newer products could create a clearer growth inflection. Van Wagener declined to provide year-by-year timing but said all five are large, strategic opportunities at relatively early stages. Van Wagener added that the product S-curves do not line up perfectly, which is reflected in the balance-of-year outlook, while management remains confident in the longer-term R&D trajectory. Gassner described Aspen, Veeva’s horizontal CRM initiative, as a start-up inside the company. He said the investment is small relative to Veeva and no Aspen revenues are included in current plans. An RBC analyst asked about pricing. Gassner said Aspen is designed around a simpler $50-per-user monthly price, with usage overages while keeping spending mostly predictable. Asked by Citi about the early customer profile, Gassner pointed to nimble companies, including young technology start-ups. Veeva is focused on product quality and early-customer iteration rather than near-term contribution. Management’s tone was confident on CRM execution and customer demand for AI, but more measured on how quickly Falcon and Aspen can scale. Gassner repeatedly tied the opportunity to product readiness and successful customer go-lives. Van Wagener said investment will scale with revenues and there is nothing material to call out for fiscal 2027 beyond what is already included in guidance. VEEV carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of A, Momentum Score of A and a VGM Score of B. The Style Scores favor growth and momentum characteristics, but Zacks methodology places greater weight on the Rank for near-term prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks research emphasizes that favorable Style Scores complement, rather than override, a weak Zacks Rank. The Rank can change as analyst earnings estimates are revised following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Veeva Systems (VEEV) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.22 per share. This compares to earnings of $1.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.86%. A quarter ago, it was expected that this provider of cloud-based software services for the life sciences industry would post earnings of $2.13 per share when it actually produced earnings of $2.24, delivering a surprise of +5.16%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Veeva, which belongs to the Zacks Medical Info Systems industry, posted revenues of $927.96 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.64%. This compares to year-ago revenues of $789.08 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Veeva shares have added about 10.6% since the beginning of the year versus the S&P 500's gain of 12.2%. While Veeva has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Veeva was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.28 on $918.02 million in revenues for the coming quarter and $9.05 on $3.64 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Phreesia (PHR), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2. This developer of health care software is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +1000%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Phreesia's revenues are expected to be $129.63 million, up 10.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report Phreesia, Inc. (PHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Total Revenues of $928.0M, up 18% Year Over YearSubscription Revenues of $766.8M, up 16% Year Over Year PLEASANTON, Calif., Aug. 26, 2026 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2026. "AI is opening up the next big chapter for Veeva and life sciences," said CEO Peter Gassner. "Vault CRM had its best quarter ever and Veeva Falcon accelerated rapidly. By bringing together deep industry applications, agents, data, and consulting, we are helping the industry drive new efficiencies from clinical to commercial and deliver better outcomes for patients." Fiscal 2027 Second Quarter Results: Revenues: Total revenues for the second quarter were $928.0 million, up from $789.1 million one year ago, an increase of 18% year over year. Subscription revenues for the second quarter were $766.8 million, up from $659.2 million one year ago, an increase of 16% year over year. Operating Income and Non-GAAP Operating Income:(1) Second quarter operating income was $275.0 million, compared to $195.9 million one year ago, an increase of 40% year over year. Non-GAAP operating income for the second quarter was $415.9 million, compared to $352.6 million one year ago, an increase of 18% year over year. Net Income and Non-GAAP Net Income:(1) Second quarter net income was $273.4 million, compared to $200.3 million one year ago, an increase of 37% year over year. Non-GAAP net income for the second quarter was $387.4 million, compared to $333.4 million one year ago, an increase of 16% year over year. Net Income per Share and Non-GAAP Net Income per Share:(1) For the second quarter, fully diluted net income per share was $1.66, compared to $1.19 one year ago, while non-GAAP fully diluted net income per share was $2.35, compared to $1.99 one year ago. "Second quarter results exceeded guidance on all metrics and our view for the full year improved across the board," said CFO Brian Van Wagener. "We continue to execute well across the business while also accelerating innovation and progress in new growth areas." Recent Highlights: Vault CRM Leadership Grows with More Top 20 Wins, Go-lives, and AI Adoption – Vault CRM leadership grew with more than 180 customers live, including five top 20 biopharmas. In August, two top 20 biopharmas and one large enterprise biopharma committed to Vault CRM, bringing total top 20 commitments to 12 globally. As the industry's fastest path to agentic CRM, a top 20 biopharma deployed Vault CRM and the Agentic Call Report across its full U.S. field team in the quarter. Major AI Milestones for Vault AI and Falcon, and Agentic MLR Launches – Veeva AI advanced rapidly across all areas. Development of Veeva Falcon, the agentic labor platform for clinical, regulatory, and safety, is moving quickly with five early adopters and on track for initial go-lives this year. The company also acquired Copli in the quarter and launched Veeva Falcon MLR to automate content reviews. August marked a major milestone for Vault AI with new standard agents, broader capabilities for existing agents, and advanced tools for custom agent development. Delivering the Connected Foundation for R&D and Quality – Development Cloud and Quality Cloud saw broad adoption, deepening relationships with new and existing customers. In clinical, a large enterprise biopharma selected Veeva EDC, building on its existing eTMF, CTMS, and Study Startup foundation. Veeva Safety surpassed 100 total customers while securing its second top 20 biopharma win for Safety Workbench. In Quality, Veeva added more than 30 new customers, driven by 20 or more wins each across QualityDocs, QMS, and Training. Financial Outlook: Veeva is providing guidance for its fiscal third quarter ending October 31, 2026 as follows: Total revenues between $932 and $935 million. Non-GAAP operating income between $417 and $420 million.(2) Non-GAAP fully diluted net income per share between $2.33 and $2.34.(2) Veeva is providing updated guidance for its fiscal year ending January 31, 2027 as follows: Total revenues between $3,682 and $3,687 million. Non-GAAP operating income of about $1,640 million.(2) Non-GAAP fully diluted net income per share of approximately $9.21.(2) Conference Call Information Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, August 26, 2026, and a replay of the call will be available on Veeva's investor relations website. About Veeva Systems Veeva delivers the industry cloud for life sciences with applications, agents, data, and consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com. Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts. Forward-looking Statements This release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance, provided as of August 26, 2026, about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 33 and 34 in our filing on Form 10-Q for the period ended April 30, 2026 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision. Non-GAAP Financial Measures In Veeva's public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures. Excess tax benefit (deficiency). Excess tax benefits (deficiencies) from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva finds it useful to exclude excess tax benefits (deficiencies) when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits (deficiencies), Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva's management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva's management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva's revenues earned during the periods presented and will contribute to Veeva's future period revenues as well. Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results. Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures. There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva's management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below. View original content to download multimedia:https://www.prnewswire.com/news-releases/veeva-announces-fiscal-2027-second-quarter-results-302860933.html

For the quarter ended July 2026, Veeva Systems (VEEV) reported revenue of $927.96 million, up 17.6% over the same period last year. EPS came in at $2.35, compared to $1.99 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $904.07 million, representing a surprise of +2.64%. The company delivered an EPS surprise of +5.86%, with the consensus EPS estimate being $2.22. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Veeva performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Non-GAAP Gross Margin- Professional services and other: 31.5% versus the six-analyst average estimate of 29.8%. Non-GAAP Gross Margin- Subscription services: 86.6% versus the six-analyst average estimate of 86.3%. Revenues- Subscription services: $766.76 million versus the seven-analyst average estimate of $753.97 million. The reported number represents a year-over-year change of +16.3%. Revenues- Professional services and other: $161.2 million versus the seven-analyst average estimate of $150.02 million. The reported number represents a year-over-year change of +24.1%. Revenues- Professional services and other- Veeva R&D Solutions: $101.46 million compared to the $95.17 million average estimate based on four analysts. The reported number represents a change of +23.4% year over year. Revenues- Subscription services- Veeva R&D Solutions: $419.38 million versus $411.97 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.3% change. Revenues- Subscription services- Veeva Commercial Solutions: $347.39 million versus the four-analyst average estimate of $342.25 million. The reported number represents a year-over-year change of +13%. Revenues- Professional services and other- Veeva Commercial Solutions: $59.74 million compared to the $55.35 million average estimate based on four analysts. The reported number represents a change of +25.2% year over year. View all Key Company Metrics for Veeva here>>> Shares of Veeva have returned +22.7% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Veeva Systems Inc.? Here are five stocks we like better. Veeva exceeded guidance in fiscal 2027 Q2, reporting $928 million in revenue and $416 million in non-GAAP operating income. Management raised its full-year outlook, with commercial subscription revenue up approximately 13% year over year. Commercial-cloud growth was broad-based across CRM, content, data products, Crossix and Ostro. Veeva cited strong CRM momentum, including Vault CRM selections from Eli Lilly, Biogen and Regeneron, and sees potential to win back customers that encountered challenges with Salesforce implementations. Falcon AI is emerging as a major growth focus, with strong customer interest in AI agents designed to improve efficiency, compliance and costs. Veeva is also investing in newer clinical products such as EDC, eCOA, RTSM, Safety and LIMS, while developing its horizontal CRM initiative, Aspen. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth Veeva Systems (NYSE:VEEV) reported fiscal 2027 second-quarter revenue of $928 million and non-GAAP operating income of $416 million, with Chief Executive Officer Peter Gassner saying results exceeded the company’s guidance. Management highlighted record CRM performance, broad commercial-cloud momentum and growing customer interest in its AI offerings. The quarter ended July 31, 2026, and the company said it raised its guidance for the fiscal year. Chief Financial Officer Brian Van Wagener said commercial subscription revenue increased about 13% year over year, with double-digit growth even excluding Crossix. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Down 20%+, These 3 Software Stocks Are Boosting Buybacks Van Wagener said commercial-cloud growth was not driven by a single offering. Instead, performance was broad-based across CRM, content, data products, Crossix and Ostro. Crossix continued to have “a lot of headroom for growth,” he said, while CRM revenue continued to grow despite prior investor concerns that the category could decline. Veeva’s commercial performance also reflected new customers and brands in Data Cloud, growth in Crossix measurement and audiences, and demand for CRM add-ons and content products, according to Van Wagener. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Veeva Systems: Increasing NDR and Other Wins Paul Shawah, Veeva’s executive vice president of strategy, said the company had an “exceptional” CRM quarter, citing Vault CRM selections by Eli Lilly, Biogen and Regeneron. He attributed the wins to customer trust in Veeva’s ability to deliver and to product performance. Shawah said Veeva has commitments from 12 of the top 20 biopharma companies, with two remaining decisions expected by the end of the year. Management also discussed customers that previously chose Salesforce over Veeva CRM. Gassner said a handful of large customers selected Salesforce, in some cases about two years ago, but those implementations have encountered delays and challenges because of the complexity of the product. He said Veeva believes it could win back some of those customers, potentially in full or in selected regions, with most potential win-backs occurring in 2027 and 2028. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding “We want to be your plan B,” Gassner said of Veeva’s discussions with those customers. Veeva CRM remains available as a backstop through the end of 2029, he noted. Gassner described Veeva Falcon as a new category for the company: “agentic labor.” Unlike Veeva’s traditional cloud software, data and consulting businesses, Falcon is intended to perform work through AI agents. He said customer interest is high, particularly because organizations see potential for cost savings, compliance improvements and greater efficiency. However, Gassner said Veeva is currently the limiting factor because it needs to further prepare the product and work with early adopters. He emphasized that Falcon deployments should not require the extensive data mapping, system cutovers or extract-transform-load work often associated with enterprise software implementations. Veeva expects Falcon sales to be directed primarily toward business-unit leaders and operations executives rather than IT departments. Gassner said the company’s initial focus is on life-sciences sponsors, though service providers have also expressed interest. He said Falcon could eventually be used by outsourced service providers, but Veeva is prioritizing sponsor use cases first. On regulatory requirements, Gassner said agentic labor is non-deterministic and therefore requires training and guardrails similar to those used for human workers. Falcon includes human-in-the-loop capabilities that let users review an agent’s work within a Vault application, he said. Management did not provide detailed Falcon pricing. Gassner said customers want predictable costs, and Veeva could use enterprise subscription agreements based on the size of a customer or its functional organization. Pricing could increase as Falcon’s capabilities mature, he added. Gassner said he expects Falcon’s gross margins to be broadly similar to Veeva’s software margins over time. He said Veeva is placing more functionality in deterministic software layers and expects AI-model costs to decline over time through hardware improvements, open-weight models or other technology advances. Van Wagener said Veeva’s R&D business is in the middle of a transition from established products toward newer growth offerings. Earlier growth was supported by products including eTMF, CTMS, QualityDocs, Veeva QMS and the company’s regulatory suite. Looking further out, Veeva sees growth opportunities in Veeva EDC, eCOA, RTSM, Safety and LIMS. Van Wagener described each as a large and strategic market opportunity, though all remain relatively early in their development cycles. He said the timing of their growth curves does not align exactly, which is reflected in the company’s outlook for the rest of the fiscal year. Gassner said Veeva has EDC relationships with nine of the top 20 biopharma companies. He characterized EDC implementations as long-cycle projects and said the company expects continued progress over the next several years. Veeva is also expanding its clinical portfolio with site solutions and eSource capabilities. Veeva also discussed Aspen, its emerging horizontal CRM initiative. Gassner called Aspen a startup within Veeva, operating with small investment levels and focused on early customers and rapid product iteration. He said the company is targeting nimble technology startups initially and is confident there is demand for a new approach to horizontal CRM. Aspen’s public pricing model is designed to be simpler and more predictable than traditional enterprise software pricing, according to Gassner. The company has discussed a price of $50 per user per month, with potential overage charges for unusual levels of data storage or compute usage. Gassner said Aspen aims to address concerns around unpredictable pricing, vendor dependability, scalability, heavy data-entry requirements and lengthy CRM implementations. He said AI could reduce much of the data entry required in existing CRM systems. In Data Cloud, Veeva said OpenData, Compass and Link are key areas of progress. Gassner described OpenData as clean reference data, Compass as particularly useful in certain complex-therapy markets, and Link as a market-leading product with expansion opportunities in medical insights, key accounts and congress workflows. While data products tend to grow gradually, he said they are strategically valuable because they work alongside Veeva’s applications, consulting services and AI agents. Management also said its partnership with IQVIA has been productive. Gassner said customers appreciate reduced friction in working with the two companies and that greater collaboration across software, data and services could benefit the life-sciences industry. Veeva Systems (NYSE: VEEV) is a cloud software company that develops industry-specific applications and data solutions for the global life sciences sector. Founded in 2007 and headquartered in Pleasanton, California, Veeva focuses on helping pharmaceutical, biotechnology, medical device and consumer health companies manage regulated content, clinical and regulatory processes, quality systems, and commercial operations in a compliant, cloud-native environment. The company completed its initial public offering in 2013 and has since expanded its product suite and international footprint. Veeva's product portfolio centers on its Vault platform and related application suites, which provide content and data management, clinical trial and regulatory workflows, quality management, and structured commercial capabilities such as customer relationship management and promotional content management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Veeva Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.