Veeva Systems (VEEV) AI Stock Analysis

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Veeva Systems

(NYSE:VEEV)

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Rating:80Outperform

Price Target:$350.00▲(14.84% 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 profitability and cash conversionVeeva converts its subscription-oriented software model into strong profitability, with high gross and net margins supported by recurring customer revenue. Cash flow closely tracks earnings, giving the company durable capacity to fund product development, strategic investments, and growth without relying heavily on external capital.

Negative Factors

Material revenue growth decelerationThe sharp slowdown in revenue growth indicates that Veeva is operating from a more mature base and faces a tougher path to reacceleration. Even with strong margins, slower expansion can limit operating leverage, reduce the pace of market penetration, and increase dependence on successful new products.

Veeva Systems Key Performance Indicators (KPIs)

Gross Profit by SegmentAnalyzes profit generated from different business segments, highlighting which areas are most lucrative and where there might be room for improvement or strategic focus.

Chart Insights

Subscription gross profit is the engine of Veeva’s margin expansion—steady, accelerating growth driven by Vault CRM, RTSM and Crossix momentum and underpinning the company’s high operating leverage; management’s FY‑27 outlook calls for ~13% subscription growth. Professional services remain small and lumpy, boosting revenue during migration waves but adding quarter-to-quarter volatility. Near-term headwinds include tougher Crossix comps and EDC timing variability, but the sales pipeline, study-by-study expansion and early AI/content automation should sustain subscription-driven gross-profit upside over time.

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Veeva Systems (VEEV) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $49.35B
Dividend Yield: ―
Average Volume (3M): 1.63M
Price to Earnings (P/E): 49.1
Beta (1Y): 0.93
Revenue Growth: 16.50%
EPS Growth: 24.67%
Country: US
Employees: 7,928
Sector: Healthcare
Sector Strength: 51
Industry: Software - Application

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, A...

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 (typic...

Veeva Systems Earnings Call Summary

Earnings Call Date:Aug 26, 2026(Q2-2027)|% Change Since:24.44%|Next Earnings Date:Nov 26, 2026

Earnings Call SentimentPositive

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.

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

High-quality financial profile: strong profitability (TTM gross margin ~75%, net margin ~29%), solid operating margins, very conservative leverage (debt-to-equity ~0.02), and strong cash conversion (FCF-to-net income ~0.99). Main offsets are material growth deceleration (TTM revenue growth ~4%) and a recent TTM free-cash-flow decline (~9% YoY).

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
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	1.30B	1.24B	958.76M	625.17M	546.76M	549.28M
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

Technical Analysis SentimentNeutral

Last Price304.77

Price Trends

50DMA290.65Positive

100DMA251.72Positive

200DMA212.65Positive

Market Momentum

MACD4.15Positive

RSI51.68Neutral

STOCH47.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEEV, the sentiment is Neutral. The current price of 304.77 is below the 20-day moving average (MA) of 312.46, above the 50-day MA of 290.65, and above the 200-day MA of 212.65, indicating a neutral trend. The MACD of 4.15 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 47.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

1 New Risk

1.Evolving expectations and disclosure requirements related to environmental, social and governance matters expose us to risks that could adversely affect our reputation and performance.Q4, 2023

Veeva Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

VEEV against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCU	82Outperform	$14.51B	47.99	17.74%	―	8.59%	20.88%
ROP	82Outperform	$46.99B	18.88	13.53%	0.76%	9.24%	73.95%
VEEV	80Outperform	$49.47B	49.08	14.00%	―	16.50%	24.67%
PTC	76Outperform	$21.35B	22.11	28.34%	―	-0.21%	43.61%
TEAM	63Neutral	$37.43B	435.54	8.00%	―	26.59%	―
WK	62Neutral	$3.64B	61.74	-157.37%	―	18.80%	―
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

VEEV and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
VEEV	Veeva Systems Inc	304.77	11.41	3.89%
ROP	Roper Technologies	477.70	32.50	7.30%
PTC	PTC Inc.	196.14	16.53	9.20%
WK	Workiva Inc.	69.77	-21.26	-23.35%
TEAM	Atlassian Corporation Plc	152.44	0.65	0.43%
DOCU	Docusign	80.15	12.39	18.29%

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 as p...

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.

Date of analysis: Aug 28, 2026

Veeva Systems AI Stock Analysis