VEEV Stock Up as Q1 Earnings & Revenues Beat Estimates, Margin Rise

Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $1.97 for the first quarter of fiscal 2026, which increased 31.3% from the year-ago figure of $1.50. Adjusted EPS surpassed the Zacks Consensus Estimate by 13.22%. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

GAAP EPS in the fiscal first quarter was $1.37, up 39.8% from the year-ago period’s 98 cents.

VEEV’s Revenue Details

In the quarter under review, the company’s revenues totaled $759 million, outpacing the Zacks Consensus Estimate by 4.3%. On a year-over-year basis, the top line improved 17%.

The fiscal first-quarter top line was driven by Veeva Systems’ robust segmental performance.

Segmental Analysis of VEEV

Veeva Systems derives revenues from two operating segments — Subscription services and Professional services and other.

In the fiscal first quarter, Subscription services revenues improved 18.9% from the year-ago quarter to $634.8 million. Per management, this uptick was driven by both its established and newer solutions. Our projection for fiscal first-quarter revenues was $595.8 million.

Professional services and other revenues were up 6.8% year over year to $124.3 million. Our projection for fiscal first-quarter revenues was $102.3 million.

Q1 Margin Performance by VEEV

In the quarter under review, Veeva Systems’ gross profit improved 18.2% year over year to $585.2 million. The gross margin expanded 380 basis points (bps) to 77.1%. We had projected 72.4% of gross margin for the fiscal first quarter.

Sales and marketing expenses increased 1.4% year over year to $98.6 million. Research and development (R&D) expenses rose 13.1% year over year to $184 million, while general and administrative expenses increased 12.3% year over year to $68.8 million. Total operating expenses of $351.5 million increased 9.4% year over year.

Operating profit totaled $233.7 million, which increased 50.6% from the prior-year quarter. The operating margin in the fiscal first quarter expanded by a huge 690 bps to 30.8%. We had projected a 22.8% operating margin for the fiscal first quarter.

Veeva Systems Inc. Price, Consensus and EPS Surprise

Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote

VEEV’s Financial Position

The company exited first-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $6.07 billion compared with $5.15 billion at the fiscal 2025-end.

Net cash provided by operating activities at the end of the quarter was $877.2 million compared with $763.5 million a year ago.

Guidance Provided by VEEV

Veeva Systems has issued its updated financial outlook for fiscal 2026 and provided its estimates for the second quarter of fiscal 2026.

For the fiscal second quarter, the company expects total revenues between $766 million and $769 million. The Zacks Consensus Estimate is currently pegged at $754.5 million.

Subscription revenues and Professional services and other revenues are estimated to be approximately $649 million and $117 million-$120 million, respectively, for the fiscal second quarter.

For the fiscal second quarter, adjusted EPS is projected to be in the range of $1.89-$1.90. The Zacks Consensus Estimate is pegged at $1.79.

Veeva Systems now expects revenues for fiscal 2026 between $3,090 million and $3,100 million compared with the previous guidance of $3,040 million and $3,055 million. The Zacks Consensus Estimate is currently pegged at $3.05 billion.

For fiscal 2026, Subscription revenues are now expected to be approximately $2,625 compared with the previous guidance of $2,585 million. This consists of Commercial Solutions’ subscription revenues of around $1,225 million and R&D Solutions’ subscription revenues of approximately $1,400 million.

Professional services and other revenues for fiscal 2026 are now expected to be between $465 million and $475 million.

Adjusted EPS for fiscal 2026 is now expected to be $7.63 compared with the previous guidance of $7.32. The Zacks Consensus Estimate is pegged at $7.30.

Our Take on Veeva’s Q1 Results

Veeva Systems exited the first quarter of fiscal 2026 with better-than-expected results, wherein both earnings and revenues beat their respective consensus estimate. The uptick in the overall top line and bottom line and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well. Shares of the company gained 16.4% during after-market trading yesterday. The stock gained 11.5% in the year-to-date period compared with the industryand the S&P 500’s growth of 13.8% and 0.2%, respectively.

Per management, during the first quarter of fiscal 2026, Veeva Systems achieved a major milestone by surpassing its 2025 revenue run rate goal of $3 billion. This achievement highlights strong execution and continued momentum across both its Commercial and R&D Solutions. With a solid foundation now in place, Veeva Systems is well-positioned to make progress toward its long-term 2030 objective of doubling revenue while deepening its positive impact across the life sciences industry.

Veeva Systems also announced a significant step forward in its artificial intelligence strategy with the introduction of Veeva AI. Set for an initial release in December 2025, Veeva AI will embed intelligent automation and productivity tools directly into its applications and Vault Platform. Features will include AI Agents and user-defined AI Shortcuts tailored to specific workflows in clinical and commercial functions. This initiative complements other key developments like the Veeva Direct Data API and the Veeva AI Partner Program, which are collectively aimed at transforming operational efficiency across life sciences.

Further showcasing innovation, Veeva Systems hosted its Commercial Summit in May, where it highlighted upcoming AI capabilities such as CRM Bot, Voice Control, Compliant Free Text, and MLR Bot—tools expected to significantly boost productivity in commercial operations. The company also expanded its connected commercial data offerings with the launch of Veeva CRM Pulse, enhancing the Veeva Data Cloud with segmentation and targeting insights. With over 80 Vault CRM customers currently live and expectations to reach 200 next year, including three top 20 biopharmas, Veeva Systems continues to strengthen its position as a leader in connected software and data solutions.

VEEV’s Zacks Rank and Stocks to Consider

VEEV carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO.

CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%.

Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank of 1.

Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.

AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite’s 10.5% growth. AngioDynamics’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%.

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