Veeva Systems (VEEV) Traded Lower Despite Impressive Results

Brown Capital Management, an investment management company, released its fourth quarter 2025 investor letter for “The Brown Capital Management Small Company Fund”. A copy of the letter can be downloaded here. In the fourth quarter of 2025, the Small Company Fund (Investor shares) fell 1.50%, behind the Russell 2000® Growth index's 1.22% gain. Real estate and telecommunications businesses led the benchmark's performance for the quarter. The Fund was down 11.46% in 2025, significantly lagging the Index’s 13.01% return. The firm’s investment decisions are driven by company fundamentals, and its holdings performed well in terms of revenue and earnings growth in 2025. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, The Brown Capital Management Small Company Fund highlighted stocks like Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) is a technology company that provides a cloud-based software platform for the life sciences industry. On February 20, 2026, Veeva Systems Inc. (NYSE:VEEV) stock closed at $180.31 per share. One-month return of Veeva Systems Inc. (NYSE:VEEV) was -19.57%, and its shares lost 20.26% over the past 52 weeks. Veeva Systems Inc. (NYSE:VEEV) has a market capitalization of $29.64 billion.

The Brown Capital Management Small Company Fund stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its fourth quarter 2025 investor letter:

"Among the detractors from performance in the fourth quarter of 2025 was Veeva Systems Inc. (NYSE:VEEV). Veeva Systems provides cloud-based software to the global life-sciences industry, including the fields of biotechnology and pharmaceuticals. The company’s products include the core Veeva Customer Relationship Management (CRM) solution, and Veeva Vault, the regulated content-management and collaboration solution. Veeva’s cloud CRM solution offers superior functionality and integration relative to competitors and has garnered a dominant market position. The company’s Vault content management platform offers an open-ended opportunity to sell into the clinical side of life sciences companies. Veeva has been successful in launching innovative solutions like eTMF (electronic Trial Master File), CTMS (Clinical Trial Management System) and CDMS (Clinical Data Management System), regulatory, quality and safety management solutions. Veeva’s clients include many of the largest global pharmaceutical companies, including GlaxoSmithKline, AstraZeneca, Eli Lilly, Merck, Novartis and others.

Despite reporting impressive results in which all financial metrics came in ahead of guidance and consensus, the company underperformed for the quarter. Veeva announced it expects to retain about 14 of the top 20 pharma clients as they transition to the next generation CRM product. We view any loss of a top customer as a negative, but we view the stock price reaction to the announcement as overdone. We think Veeva remains an EGC with strong long-term revenue and earnings growth potential."

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 74 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the fourth quarter, compared to 57 in the previous quarter. 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 Conestoga Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q4 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.