Veeva Systems (VEEV) Rose as Its Revenues and Earnings Bested Expectations

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equities saw double-digit returns as global economic activity expanded. Growth indexes outperformed the value counterparts in the quarter. The global risk factors like Beta, Momentum, and Residual Volatility were highly rewarded, while Earnings Quality, Value, and Growth were detracted. Further, in U.S. small and mid-cap growth indexes, better returns came from stocks with either high valuations, negative earnings, or low returns on equity. Against this backdrop, the strategy returned 11.79% (gross) and 11.56% (net) compared to an 18.20% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy 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 -0.14%, and its shares gained 24.85% of their value over the last 52 weeks. On September 10, 2025, Veeva Systems Inc. (NYSE:VEEV) stock closed at $274.60 per share, with a market capitalization of $45.009 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its second quarter 2025 investor letter:

"The strategy received a 24% boost from Veeva Systems Inc. (NYSE:VEEV) which offers cloud-based systems for the life sciences industries, from R&D to commercialization. Veeva’s revenues and earnings bested expectations with some of the strongest dollar-value results in the company’s history. Commercial subscription revenue growth accelerated, driven by Veeva’s Crossix platform that provides anonymized data analytics for health care marketing. Veeva also recently announced new AI-embedded features for its Vault suite of customer relationship management applications."

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the second quarter, which was 55 in the previous quarter. In the second quarter Veeva Systems Inc. (NYSE:VEEV) reported strong results surpassing the guidance with total revenue reaching $789 million. 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 a bullish thesis on the company. 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.