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Veeva Systems
(NYSE:VEEV)
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Rating:80Outperform
Price Target:
$324.00
▲(31.29% Upside)
Action:Reiterated
Date:08/28/26
VEEV scores well primarily due to strong profitability, cash conversion, and an exceptionally conservative balance sheet. Technicals are supportive with a clear uptrend, though momentum is somewhat extended. The main drag is valuation (P/E ~45) combined with slower recent growth, partially offset by a positive earnings call featuring raised guidance and solid subscription momentum.
Positive Factors
High-margin profitability
Veeva’s high gross, operating, and net margins indicate strong software economics and pricing power. Because its subscription platform serves regulated life sciences workflows, these margins can remain durable as customers expand usage across applications.
Negative Factors
Material revenue growth deceleration
The sharp slowdown suggests Veeva is entering a more mature phase, making sustained rapid expansion harder to achieve. Slower top-line growth could limit operating leverage, reduce the pace of customer acquisition benefits, and increase reliance on newer products.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin profitability
Veeva’s high gross, operating, and net margins indicate strong software economics and pricing power. Because its subscription platform serves regulated life sciences workflows, these margins can remain durable as customers expand usage across applications.
Read all positive factors
Veeva Systems Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Analyzes profit generated from different business segments, highlighting which areas are most lucrative and where there might be room for improvement or strategic focus.
Analyzes profit generated from different business segments, highlighting which areas are most lucrative and where there might be room for improvement or strategic focus.
Data provided by:
The Fly
The FlyVeeva Systems (VEEV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.78B
Dividend YieldN/A
Average Volume (3M)2.10M
Price to Earnings (P/E)45.4
Beta (1Y)0.91
Revenue Growth16.50%
EPS Growth24.67%
CountryUS
Employees7,928
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)6.21
Shares Outstanding162,443,300
10 Day Avg. Volume1,351,106
30 Day Avg. Volume2,100,069
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)4.63
Price to Sales (P/S)10.44
P/FCF Ratio24.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$289.14Price Target Upside17.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)9.07
Revenue Forecast (FY)$3.65B
Veeva Systems Business Overview & Revenue Model
Company Description
Veeva Systems Inc. is a leading provider of cloud-based software solutions, exclusively dedicated to the global life sciences industry. Its extensive operational presence spans across North America, Europe, the Asia Pacific region, the Middle East...
How the Company Makes Money
Veeva primarily makes money by selling subscription-based cloud software and related services to life sciences customers. The company’s revenue model is centered on: (1) Subscription revenue from software products: Customers pay recurring fees (ty...
Veeva Systems Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Positive
The call communicated a predominantly positive operational and financial performance: revenue of $928M, non-GAAP operating income of $416M (~44.8% margin), strong commercial subscription growth (~13% YoY), record CRM results, and meaningful early traction in AI (Falcon) and Data Cloud. Management raised guidance and highlighted selective, disciplined investments (Aspen) and a healthy IQVIA partnership. Key risks centered on execution and timing for agentic AI (product readiness, onboarding capacity, pricing models), potential model-compute cost pressure, and staggered timing of R&D product ramps. Overall, highlights (strong revenue/profitability, CRM wins, AI interest, Data Cloud additions, guidance raise) materially outweigh the manageable near-term execution and timing lowlights.Positive Updates
Strong Quarter — Revenue and Profitability
Total revenue of $928 million and non-GAAP operating income of $416 million in Q2 FY2027, implying a non-GAAP operating margin of ~44.8%, with results coming in ahead of guidance.
Negative Updates
Falcon — Early-Stage Risks and Capacity Constraints
Falcon is promising but early: Veeva describes itself as the 'rate limiter' — constrained product readiness and onboarding capacity for early adopters could limit near-term monetization and require careful execution of human-in-loop, training and regulatory guardrails.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Quarter — Revenue and Profitability
Total revenue of $928 million and non-GAAP operating income of $416 million in Q2 FY2027, implying a non-GAAP operating margin of ~44.8%, with results coming in ahead of guidance.
Read all positive updates
Company Guidance
Management said it has raised and updated FY‑2027 guidance (with no material incremental investments for the fiscal year beyond what is already factored in), while reporting Q2 results of $928 million total revenue and $416 million non‑GAAP operating income; Commercial subscriptions were up about 13% year‑over‑year (double‑digit ex‑Crossix), Crossix remains a strong performer, Data Cloud added 14 customers, and Veeva has over 180 CRM customers live. They noted five Falcon early adopters with first go‑lives expected this year, described Aspen as a small, 90‑day‑paced investment not yet included in revenue plans, and said they will scale sales/R&D spend with revenue and revisit guidance for the next fiscal year after a few more quarters (while watching CRM win‑backs and product rollouts into 2027–2029).Veeva Systems Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.46B | 3.20B | 2.75B | 2.36B | 2.16B | 1.85B |
| Gross Profit | 2.59B | 2.41B | 2.05B | 1.69B | 1.55B | 1.35B |
| EBITDA | 1.37B | 1.24B | 958.76M | 620.65M | 538.22M | 539.76M |
| Net Income | 1.01B | 908.91M | 714.14M | 525.71M | 487.71M | 427.39M |
Balance Sheet | ||||||
| Total Assets | 9.06B | 8.98B | 7.34B | 5.91B | 4.80B | 3.82B |
| Cash, Cash Equivalents and Short-Term Investments | 7.24B | 6.56B | 5.15B | 4.03B | 3.10B | 2.38B |
| Total Debt | 151.69M | 95.86M | 75.78M | 55.77M | 60.98M | 54.59M |
| Total Liabilities | 1.63B | 1.76B | 1.51B | 1.27B | 1.09B | 904.83M |
| Stockholders Equity | 7.43B | 7.21B | 5.83B | 4.64B | 3.72B | 2.91B |
Cash Flow | ||||||
| Free Cash Flow | 1.64B | 1.39B | 1.07B | 885.14M | 766.96M | 750.25M |
| Operating Cash Flow | 1.67B | 1.42B | 1.09B | 911.34M | 780.47M | 764.46M |
| Investing Cash Flow | -1.12B | -1.10B | -700.14M | -1.08B | -1.01B | -346.15M |
| Financing Cash Flow | -667.24M | -9.33M | 26.11M | -16.19M | -19.38M | -4.14M |
Veeva Systems Technical Analysis
Positive
246.78
Price Trends
202.80
Positive
183.88
Positive
199.05
Positive
Market Momentum
13.73
Positive
65.93
Neutral
59.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEEV, the sentiment is Positive. The current price of 246.78 is above the 20-day moving average (MA) of 233.25, above the 50-day MA of 202.80, and above the 200-day MA of 199.05, indicating a bullish trend. The MACD of 13.73 indicates Positive momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEEV.
Veeva Systems Risk Analysis
Veeva Systems disclosed 43 risk factors in its most recent earnings report. Veeva Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veeva Systems Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $11.33B | 40.64 | 16.36% | ― | 8.42% | -70.89% | |
80 Outperform | $39.78B | 45.43 | 13.36% | ― | 16.50% | 24.67% | |
73 Outperform | $40.87B | 17.53 | 12.94% | 0.97% | 10.88% | 68.89% | |
72 Outperform | $16.45B | 15.31 | 32.64% | ― | 19.50% | 143.45% | |
67 Neutral | $4.05B | 93.49 | -123.75% | ― | 19.67% | ― | |
67 Neutral | $42.65B | -883.90 | -4.39% | ― | 26.02% | 81.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
VEEV
Veeva Systems
282.13
9.80
3.60%
ROP
Roper Technologies
422.69
-99.31
-19.02%
PTC
PTC
158.95
-56.08
-26.08%
WK
Workiva
77.60
-3.15
-3.90%
TEAM
Atlassian
185.62
8.84
5.00%
DOCU
DocuSign
63.80
-11.71
-15.51%
Veeva Systems Corporate Events
Business Operations and StrategyExecutive/Board Changes
Veeva Systems Announces New Executive Vice President Appointment
Neutral
Aug 20, 2026
On August 20, 2026, Veeva Systems Inc. announced that Dan Rizzo will be appointed executive vice president of Sales, Consulting, and Services, effective October 2, 2026. He will take over responsibilities from Thomas D. Schwenger, who has served a...
Executive/Board ChangesShareholder Meetings
Veeva Systems Shareholders Back Board and Auditor Appointments
Positive
Jun 18, 2026
At the June 17, 2026 annual meeting, Veeva Systems shareholders voted on director elections and the ratification of the company’s independent auditor, with voting rights extended to holders of its Class A common stock as of April 20, 2026. A...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.