Veeva Systems — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance

• Total revenues were $928.0 million for the quarter, an 18% increase year-over-year from $789.1 million.
• Subscription revenues were $766.8 million, a 16% increase year-over-year from $659.2 million.
• Operating income was $275.0 million, a 40% increase year-over-year from $195.9 million.
• Non-GAAP operating income was $415.9 million, an 18% increase year-over-year from $352.6 million.
• Net income was $273.4 million, a 37% increase year-over-year from $200.3 million.
• Non-GAAP net income was $387.4 million, a 16% increase year-over-year from $333.4 million.
• Fully diluted net income per share was $1.66, compared to $1.19 in the prior year period.
• Non-GAAP fully diluted net income per share was $2.35, compared to $1.99 in the prior year period.
• Gross margin on total revenues was 75.0% on a GAAP basis and 77.1% on a non-GAAP basis.
• Operating margin was 29.6% on a GAAP basis and 44.8% on a non-GAAP basis.
• Cash and cash equivalents were $1,812.0 million as of July 31, 2026, compared to $1,421.2 million as of January 31, 2026.
• Deferred revenue was $1,310.5 million as of July 31, 2026, down from $1,488.8 million as of January 31, 2026.
• Net cash provided by operating activities was $1,365.8 million for the six months ended July 31, 2026.
• Net cash used in investing activities was $452.3 million for the six months ended July 31, 2026, including $81.8 million in acquisitions.
• Net cash used in financing activities was $521.8 million for the six months ended July 31, 2026, primarily driven by $472.7 million in stock repurchases.

Guidance and Future Outlook

• Fiscal third quarter (ending October 31, 2026) total revenue guidance is $932 to $935 million.
• Fiscal third quarter non-GAAP operating income guidance is $417 to $420 million.
• Fiscal third quarter non-GAAP fully diluted net income per share guidance is $2.33 to $2.34.
• Fiscal year 2027 total revenue guidance is $3,682 to $3,687 million.
• Fiscal year 2027 non-GAAP operating income guidance is approximately $1,640 million.
• Fiscal year 2027 non-GAAP fully diluted net income per share guidance is approximately $9.21.
• Management stated that second quarter results exceeded guidance on all metrics and the full-year view improved across the board.

Business Segments and Product Lines

• Vault CRM had more than 180 customers live, including five top 20 biopharmas, with total top 20 commitments reaching 12 globally.
• Two top 20 biopharmas and one large enterprise biopharma committed to Vault CRM in August.
• A top 20 biopharma deployed Vault CRM and the Agentic Call Report across its full U.S. field team during the quarter.
• Veeva Falcon, the agentic labor platform for clinical, regulatory, and safety, has five early adopters and is on track for initial go-lives in 2026.
• Veeva acquired Copli during the quarter.
• Veeva Falcon MLR was launched to automate content reviews.
• Veeva Safety surpassed 100 total customers and secured its second top 20 biopharma win for Safety Workbench.
• Veeva Quality added more than 30 new customers, driven by wins in QualityDocs, QMS, and Training.
• A large enterprise biopharma selected Veeva EDC, building on existing eTMF, CTMS, and Study Startup foundations.
• Development Cloud and Quality Cloud saw broad adoption deepening relationships with new and existing customers.

Market and Competitive Landscape

• Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs.
• The company positions itself as the industry cloud for life sciences, providing applications, agents, data, and consulting.
• AI is described as opening the next big chapter for Veeva and the life sciences industry.

Risks and Challenges

• Forward-looking statements involve assumptions that may prove incorrect, with a significant risk that actual results could differ materially from guidance.
• Risks include issues related to product performance, availability, security, or privacy.
• Competitive factors, customer decisions, and priorities may impact performance.
• Developments in the life sciences industry, including regulatory, funding, or policy changes, pose risks.
• Macroeconomic and geopolitical events, such as trade policy changes, inflation, currency fluctuations, interest rates, and conflicts, may negatively impact performance.
• Challenges in hiring, retaining, and adequately compensating talented employees are noted.

Management Commentary and Tone

• CEO Peter Gassner stated, "AI is opening up the next big chapter for Veeva and life sciences," highlighting Vault CRM's best quarter ever and the rapid acceleration of Veeva Falcon.
• CFO Brian Van Wagener noted that results exceeded guidance on all metrics and the full-year view improved across the board, citing strong execution and acceleration in new growth areas.
• Management emphasized bringing together deep industry applications, agents, data, and consulting to drive efficiencies from clinical to commercial.

Other Key Points

• Veeva acquired Copli during the second quarter.
• The company repurchased $472.7 million of common stock during the six months ended July 31, 2026.
• Veeva is a Public Benefit Corporation committed to balancing the interests of all stakeholders.
• Material non-public information is disclosed via the ir.veeva.com website to comply with Regulation FD.
• GAAP targets for operating income and fully diluted net income per share for the third quarter and full year 2027 were not provided due to the difficulty in estimating stock-based compensation expense.