Veeva Systems Inc. (VEEV) Earnings

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Oct 2026upcoming

Next quarter

Expected to report Nov 19, 2026 — estimated from last year’s reporting date.

Consensus is $1.68 EPS for Oct 2026 across 7 estimates, ranging $1.58 to $1.75.

VEEV Jul 2026

Reported Aug 26, 2026 · after the close

: 3.70%
: +15.20%

: $1.62
: $1.68
: —
: $927.96M

Reported results

: $927.96M; from $789.08M
: 75.00%; from 75.26%
: $275.02M; from $195.91M
: 29.64%; from 24.83%
: $273.43M; from $200.31M
: $1.66; from $1.19

Highlights

Revenue: Fiscal Q2 revenue was $928.0 million, up 18% year over year and 5% from $882.9 million in Q1; subscription revenue increased 16% year over year to $766.8 million.
Earnings: GAAP diluted EPS was $1.66, versus $1.19 a year ago and $1.57 in Q1, while reported EPS exceeded the $1.62 consensus by 3.7%; non-GAAP diluted EPS was $2.35, up from $1.99.
Profitability: GAAP operating income rose 40% year over year to $275.0 million, lifting operating margin to 29.6% from 24.8%; non-GAAP operating income increased 18% to $415.9 million, with a 44.8% margin.
R&D and Quality: Subscription revenue from R&D and Quality Solutions increased 19% to $419.4 million, contributing $68 million of the $108 million year-over-year subscription increase.
Commercial Solutions: Commercial subscription revenue grew 13% to $347.4 million, with Vault CRM reaching more than 180 live customers and 12 top-20 biopharma commitments after three additional commitments in August.
AI expansion: Veeva Falcon had five early adopters and was on track for initial go-lives in 2026; the company acquired Ostro for $90 million, or $70 million net of cash, and launched Falcon MLR for automated content reviews.
Guidance: Fiscal Q3 revenue is guided to $932-$935 million and non-GAAP diluted EPS to $2.33-$2.34; full-year revenue guidance is now $3.682-$3.687 billion and non-GAAP EPS approximately $9.21.
Cash and capital allocation: Cash, cash equivalents, and short-term investments totaled $7.2 billion at quarter-end; six-month operating cash flow was $1.366 billion, while the company repurchased $467 million of stock and had $1.4 billion remaining under its authorization.

Analysis

Veeva’s fiscal Q2 was a clean beat with continued high-teens growth and stronger GAAP profitability. Revenue of $928.0 million rose 18% from $789.1 million a year ago and 5% sequentially from $882.9 million, while GAAP diluted EPS of $1.66 exceeded the $1.62 consensus by 3.7%. Net income reached $273.4 million, up 37% year over year and 5% from $260.9 million in Q1. Non-GAAP diluted EPS was $2.35, versus $1.99 a year ago.

The print was defined by broad subscription expansion, especially in R&D and Quality, alongside renewed momentum in Vault CRM and a more aggressive AI product cycle. Subscription revenue grew 16% to $766.8 million, with R&D and Quality up 19% and Commercial up 13%; professional services grew faster, up 24% to $161.2 million. Operating leverage was visible despite continued investment: GAAP operating margin expanded to 29.6% from 24.8% a year ago, while non-GAAP margin was broadly stable at 44.8%. Management said Q2 exceeded guidance on all metrics and improved its full-year outlook across the board, while highlighting Vault CRM adoption, Falcon’s five early adopters, and the Ostro acquisition as building blocks for newer growth areas.

Revenue and earnings

Top line: Total revenue was $928.0 million, up 18% year over year from $789.1 million and 5% sequentially from $882.9 million. Subscription revenue was $766.8 million, or 83% of total revenue, compared with $659.2 million a year earlier.
Profit: GAAP operating income rose 40% to $275.0 million, and net income increased 37% to $273.4 million from $200.3 million. Sequentially, operating income increased less than 1% from $273.1 million, while net income rose 5% from $260.9 million.
Per share: GAAP diluted EPS was $1.66, compared with $1.19 a year earlier and $1.57 in Q1. The company’s reported EPS exceeded the $1.62 consensus by $0.06, or 3.7%; non-GAAP diluted EPS was $2.35 versus $1.99 a year ago.

Vault CRM and AI

Commercial momentum centered on the migration to Vault CRM and the expansion of Veeva’s AI platform. Vault CRM had more than 180 customers live, including five top-20 biopharmas. Two additional top-20 biopharmas and one large enterprise biopharma committed in August, taking total top-20 commitments to 12. A top-20 customer also deployed Vault CRM and the Agentic Call Report across its full U.S. field team during the quarter.

Falcon, Veeva’s agentic labor platform for clinical, regulatory, and safety work, had five early adopters and was on track for initial go-lives during 2026. Veeva also launched Falcon MLR for automated content reviews, expanded standard and existing Vault AI agents, and added custom-agent development tools. The quarter’s Ostro acquisition adds an AI-driven patient and physician engagement platform for $90 million of consideration, or $70 million net of cash acquired.

R&D and Quality

Subscription growth: R&D and Quality Solutions subscription revenue rose 19% year over year to $419.4 million, versus 13% growth for Commercial Solutions to $347.4 million. R&D and Quality accounted for $68 million of the $107.6 million increase in subscription revenue.
Clinical adoption: A large enterprise biopharma selected Veeva EDC on top of an existing eTMF, CTMS, and Study Startup foundation, indicating continued cross-selling of the connected Development Cloud.
Safety and Quality: Veeva Safety exceeded 100 total customers and won its second top-20 biopharma customer for Safety Workbench. Quality added more than 30 customers, including at least 20 wins each across QualityDocs, QMS, and Training.

Margins and investment

The GAAP margin comparison benefited from the absence of the $30.6 million litigation settlement-related charge recorded in the year-ago quarter. Even so, the underlying business continued to absorb investment in product development and infrastructure. Research and development expense increased 16% to $222.9 million, driven primarily by $24 million of additional employee compensation costs, while sales and marketing expense rose 16% to $126.7 million.

GAAP gross margin was steady at 75.0%, with subscription gross margin at 86.2% and professional-services gross margin at 21.6%. Non-GAAP operating income increased 18% to $415.9 million, and non-GAAP operating margin was 44.8%, essentially unchanged from 44.7% a year earlier. Total stock-based compensation was $136.8 million in the quarter, up from $122.0 million.

Guidance and capital

Outlook: Fiscal Q3 revenue is expected at $932-$935 million, with non-GAAP operating income of $417-$420 million and non-GAAP diluted EPS of $2.33-$2.34. Updated fiscal-year revenue guidance is $3.682-$3.687 billion, with non-GAAP operating income of approximately $1.640 billion and EPS of approximately $9.21.
Liquidity: Cash and cash equivalents were $1.812 billion and short-term investments were $5.431 billion at July 31, for a combined $7.2 billion. Six-month operating cash flow was $1.366 billion, up from $1.116 billion a year earlier.
Repurchases: Veeva repurchased 2.66 million shares for approximately $467 million during the first six months, including 1.41 million shares for $246 million in Q2. The company had $1.4 billion remaining under its $2 billion authorization.
Acquisition and spending: Investing cash outflow was $452 million for the first six months, including $81.8 million of acquisition spending, primarily associated with Ostro.

Veeva Systems Inc.

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