Veeva Systems Inc. (VEEV): A Bull Case Theory

We came across a bullish thesis on Veeva Systems Inc. on LongTermValue Research’s Substack. In this article, we will summarize the bulls’ thesis on VEEV. Veeva Systems Inc.'s share was trading at $203.92 as of January 30th. VEEV’s trailing and forward P/E were 40.93 and 24.33  respectively according to Yahoo Finance.

Veeva Systems (VEEV) is a leading vertical SaaS company focused on life sciences, providing cloud-based applications across commercialization, drug development, and regulatory workflows. Originally known for its CRM business, which today accounts for roughly 20% of revenue, Veeva has expanded into a suite of over 50 products, embedding itself in compliance-heavy processes with high switching costs.

This structural moat, driven by audit trails, data integrity, and operational stickiness, makes the business difficult to displace and highly durable. Recent concerns around CRM, particularly the migration from Salesforce’s platform to Veeva’s Vault, have created a >25% drawdown in the stock, but the impact is largely concentrated in a small set of top pharma customers and does not materially affect overall economics.

Veeva’s growth trajectory remains strong, with a five-year revenue CAGR of 17%, FCF margins of ~40%, and near-perfect FCF/net income conversion, supported by a $6.4 billion net cash position. AI initiatives provide a clear upside, particularly in pharmacovigilance and electronic trial master file workflows, where automation can deliver measurable productivity gains and economic value. Early adoption of AI in clinical and commercial workflows, combined with the potential for monetizable AI modules, positions Veeva as a leader in vertical-market AI solutions. Strategic partnerships, such as with IQVIA, further expand opportunities to cross-sell and accelerate adoption.

With durable growth, high margins, and a defensible market position, Veeva offers an attractive risk/reward profile. Near-term catalysts include AI adoption and CRM stabilization, while medium-term drivers encompass R&D expansion and full CRM re-capture. Even with transient churn or macro risks, VEEV trades at undemanding multiples of 17–16x 2026–2027 FCF, implying significant upside. A re-rating toward historical multiples as competitive fears abate and AI-driven growth materializes could drive the stock toward a $400 price target, representing 83% upside and a 27% IRR to mid-2028.

Previously, we covered a bullish thesis on Veeva Systems Inc. (VEEV) by Francesco Ferrari in March 2025, which highlighted its high-margin recurring revenue, strong cash flows, and $5 billion net cash position. VEEV’s stock price has depreciated by approximately 14.90% since our coverage due to CRM-related volatility. LongTermValue Research shares a similar perspective but emphasizes AI adoption, product expansion, and Veeva’s structural moat.

Veeva Systems Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held VEEV at the end of the third quarter which was 61 in the previous quarter. While we acknowledge the potential of 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.

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Disclosure: None.