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Salesforce, Inc. CRM and Veeva Systems Inc. VEEV are two well-known names in the cloud customer relationship management (CRM) market. Both companies offer tools that help businesses manage customer relationships, but they serve very different markets. Salesforce is a global provider across industries, while Veeva focuses only on the life sciences sector, including pharmaceutical and biotech companies.
As investors search for sustainable winners in enterprise tech, a deeper look into each company’s fundamentals, growth outlook and valuation helps determine which of these CRM stocks offers stronger long-term potential.
Salesforce continues to dominate the CRM market, outpacing rivals like Microsoft, Oracle and SAP. Over the years, Salesforce has built a strong and interconnected platform. The acquisition of Informatica, Zoomin and Own Company shows its intent to move beyond its position as a CRM software maker and become a broader enterprise software provider focused on artificial intelligence (AI), data and collaboration.
AI is now central to Salesforce’s growth plan. Since rolling out Einstein GPT in 2023, the company has embedded generative AI into its platform to help businesses automate processes, improve decisions and offer better customer experiences. As AI adoption rises across industries, Salesforce is well-placed to benefit from the same.
Its latest innovation, Agentforce, reflects that momentum. Paired with its Data Cloud, Agentforce has already hit $100 million in annualized revenues just two quarters after launch. More than 4,000 customers are using it for various tasks in sales, service and marketing. Data Cloud is also expanding fast, with annual recurring revenues growing more than 120% year over year. Salesforce’s broader strategy of bringing apps, data and AI agents under one umbrella gives it a strong edge.
However, Salesforce’s biggest challenge right now is slowing sales growth. For years, the company has delivered double-digit revenue increases. However, that pace has now cooled to single digits. In the first quarter of fiscal 2026, revenues rose just 7.7% from a year ago, and non-GAAP earnings per share (EPS) grew by only 5.7%.
Salesforce Inc. price-consensus-eps-surprise-chart | Salesforce Inc. Quote
This slowdown reflects cautious enterprise spending amid economic uncertainty and geopolitical pressures. Analysts anticipate that this trend will persist, with mid-to-high single-digit revenue growth expected for fiscal 2026 and 2027.
Veeva Systems takes a different approach. It focuses only on life sciences companies, which gives it a niche advantage. Its software supports everything from clinical trials to marketing and sales in pharmaceutical and biotech firms. This tight focus allows Veeva Systems to build highly specialized tools that are hard to replace.
In the first quarter of fiscal 2026, VEEV’s non-GAAP EPS soared 31.3% year over year on 16.7% higher revenues. It also delivered an impressive operating margin of 46.1%, 600 basis points higher than the year-ago quarter.
Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote
One of Veeva Systems’ strongest products is Vault CRM, which is now used by more than 80 customers and is expected to reach 200 by next year. Unlike general CRM platforms, Vault CRM is designed specifically for regulatory and healthcare needs. The company is also expanding into areas like data analytics through Crossix and Compass, as well as adding AI tools built into its core software.
Veeva Systems’ biggest advantage is its integration within the life sciences workflow. Even when the broader economy is uncertain, pharmaceutical companies still need to run clinical trials and comply with regulations. Hence, the demand for Veeva’s products stays strong.
Overall, Veeva Systems’ strong margins, steady customer growth and deep industry focus make it a reliable long-term player. It may not grow as fast as broader tech names during boom cycles, but it tends to be more stable and consistent. Analysts anticipate that the company’s revenues will grow in double-digit percentages in fiscal 2026 and 2027.
Veeva Systems seems better positioned for growth. The Zacks Consensus Estimate for VEEV’s fiscal 2026 revenues and EPS implies year-over-year growth of 12.7% and 14.6%, respectively. The consensus mark for Salesforce’s fiscal 2026 revenues and EPS indicates a year-over-year increase of 8.6% and 10.8%, respectively.
On the valuation front, Veeva Systems trades at 35.92 times forward earnings compared to 22.98 times for Salesforce. While Veeva Systems looks more expensive, its higher growth momentum justifies the premium. Salesforce’s lower valuation reflects its risks, including slowing sales growth and macroeconomic headwinds.
Year to date, Veeva Systems stock has risen 34%, while Salesforce shares have fallen 18.9%. This difference shows how investors are weighing the risks and rewards of each company.
Both Salesforce and Veeva Systems are strong companies with good business models, but they are at different points in their growth paths. Salesforce is more mature and is facing growth challenges, while Veeva Systems continues to grow at a steady pace within a focused market. Veeva Systems’ specialized tools, strong margins and loyal customer base in life sciences give it a competitive edge.
For long-term investors who want consistent performance and strong industry positioning, Veeva Systems looks like the smarter buy today, even at a higher valuation.
Currently, Veeva Systems carries a Zacks Rank #2 (Buy), making the stock a must-pick compared to Salesforce, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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