Veeva Systems (VEEV) Surpassed Expectations in Q2

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the "Liberation Day" announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was 0.84%, and its shares gained 51.52% of their value over the last 52 weeks.  On July 25, 2025, Veeva Systems Inc. (NYSE:VEEV) stock closed at $290.41 per share, with a market capitalization of $47.456 billion.

Conestoga Capital Advisors stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its second quarter 2025 investor letter:

"Veeva Systems Inc. (NYSE:VEEV) is a vertical SaaS company for the life sciences industry with a wide range of integrated cloud-based software applications and services. VEEV reported a strong start to their fiscal year, materially outperforming expectations across the board. The company added 28 new Vault CRM customers during the quarter, marking over 80 customers live vs. only a handful a year ago. Additionally, VEEV now expects about 200 Vault CRM customers by next year."

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter, which was 60 in the previous quarter. The first quarter marked a solid beginning for Veeva Systems Inc. (NYSE:VEEV), with results surpassing expectations. The total revenue for the quarter reached $759 million, and the non-GAAP operating margin remained robust. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Veeva Systems Inc. (NYSE:VEEV) and shared the list of best cloud stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.