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

We came across a bullish thesis on Veeva Systems Inc. (VEEV) on Compounding Your Wealth’s Substack. In this article, we will summarize the bulls’ thesis on VEEV. Veeva Systems Inc. (VEEV)'s share was trading at $279.70 as of 30^th May. VEEV’s trailing and forward P/E were 59.38 and 37.74 respectively according to Yahoo Finance.

Veeva Systems delivered a strong Q1 FY2026 performance, with revenue reaching $759 million, up 16.7% year-over-year and surpassing estimates by 4.3%. Subscription services grew 18.9% to $634.8 million, while professional services rose 6.8%. Gross margin improved to 79.2%, but non-GAAP operating margin declined to 30.8% due to higher investments. EPS of $1.97 beat expectations by 13.2%. Billings increased 16.1%, and net new ARR more than doubled. Customer acquisition cost payback improved significantly, and share dilution was minimal.

Veeva achieved its $3 billion annual revenue run rate ahead of schedule, driven by strong growth in Crossix and Vault CRM. Over 80 customers are now live on Vault CRM, with plans to reach 200 by FY2027. Four top 20 pharma firms have committed to the platform, highlighting its integration of sales, marketing, and medical functions.

Clinical products continue to gain traction, with 19 of the top 20 pharma companies using eTMF and nine adopting EDC. Development Cloud is expected to grow 19% in FY2026, supported by cross-sell momentum. Data Cloud, especially Crossix and Compass, is expanding through deeper adoption and differentiated data sourcing. Veeva is also investing in a new Horizontal CRM initiative aimed at large enterprises, competing with incumbents like Salesforce.

AI is central to Veeva’s strategy, with embedded agents across CRM, safety, and regulatory functions promising significant industry efficiency gains by 2030. Customer sentiment remains positive, supported by a robust product roadmap. Veeva modestly raised its FY2026 guidance, reflecting strong execution and growing demand across verticals.

Previously, we have covered Veeva Systems Inc. (VEEV) in March 2025 wherein we summarized a bullish thesis by Francesco Ferrari on Substack. The author highlighted Veeva Systems as a resilient, high-quality cloud software provider with strong recurring revenue and financials, making it a compelling investment. Since our last coverage, the stock is up 20.4% as of 30^th May.

Veeva Systems Inc. (VEEV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held VEEV at the end of the first quarter which was 60 in the previous quarter. While we acknowledge the potential of VEEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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