VEEV Rises 29% in 3 Months: Should You Buy the Stock Now or Wait?

Veeva Systems VEEV has been on a strong upswing, with its stock climbing nearly 29% over the past three months. The rally followed the company’s solid earnings for the first quarter of fiscal 2026, where revenues came in at $759 million, marking a 17% year-over-year increase. Investors were also encouraged by the company’s strong 46% adjusted operating margin, highlighting Veeva Systems’ ability to grow efficiently while maintaining healthy profitability. The company is now on track to meet the Zacks Consensus Estimate of $3.09 billion in revenues for fiscal 2026, reinforcing confidence in its long-term growth trajectory.

A major part of that growth is coming from the rollout of Vault CRM, Veeva Systems' next-generation customer relationship management platform. Over 80 customers are already live, and, per management, the number is expected to more than double by the end of 2026. Veeva Systems is also preparing to launch new AI features designed to streamline workflows and improve productivity across its platform. At the same time, its data and analytics tools, such as Crossix and CRM Pulse, are experiencing strong adoption. These developments continue to strengthen Veeva Systems’ position as a trusted digital partner in the life sciences space.

VEEV Shares Outperform Sector, Industry & Peers

Veeva Systems’ shares have outperformed the Zacks Medical Market sector and its industry peers, which include IQVIA IQV, Certara CERT and Health Catalyst HCAT, in the past three months.

VEEV stock has rallied 29.5% over the trailing three months, while CERT and IQV shares have gained 12.4% and 3.5%, respectively. HCAT shares have lost 1.7% during the same period. The broader sector has remained flat over the same timeframe.

VEEV has also outperformed the Zacks Medical Information System industry, which has improved 12.3% over the trailing three months.

Let's delve deeper and determine the best course of action for your portfolio regarding the VEEV stock.

Developments Propelling Veeva Systems’ Growth

Vault CRM Adoption is Picking Up Pace: Veeva Systems’ next-generation Vault CRM platform is emerging as an important contributor to its long-term growth plans. Unlike a routine product update, Vault CRM represents a shift toward a more integrated and flexible architecture built entirely on Veeva’s Vault system. The platform is designed to support more complex compliance needs and evolving commercial workflows across the life sciences industry. As larger pharmaceutical companies begin to implement it at scale, Vault CRM could play a growing role in supporting Veeva Systems’ recurring revenue base.

AI Features Aim to Boost Platform Value: Veeva Systems is preparing to launch its first wave of AI-driven tools later this year, which are expected to enhance the functionality and efficiency of its platform. The upcoming features include the MLR Bot for faster content review and approval, the CRM Bot for assisting field reps, Voice for hands-free system navigation, and AI Agents for task automation across workflows. These tools are being integrated directly into Veeva Systems’ core applications, making them easier to adopt within existing processes. By streamlining repetitive tasks and supporting faster decision-making, the AI rollout may improve user productivity and deepen the platform’s role in day-to-day operations across life sciences teams.

Data and Analytics Capabilities Expand Competitive Edge: Veeva Systems continues to make progress in its data and analytics offerings, with strong momentum behind products like Crossix and CRM Pulse. Crossix is gaining popularity as pharmaceutical companies focus more on measuring the impact of their digital campaigns. Meanwhile, CRM Pulse is helping commercial teams better understand and engage with healthcare professionals. These tools extend beyond operational support, enabling strategic decision-making and becoming increasingly central to how clients manage their businesses. This growing reliance on Veeva Systems’ data solutions strengthens its position in a highly competitive market.

VEEV’s Sales & EPS Growth

Veeva Systems is poised for a strong growth phase in fiscal 2026, with sales projected to rise 12.7% in fiscal 2026 and 11.7% in fiscal 2027. On the profitability front, earnings per share is expected to increase 15.8% in fiscal 2026, followed by an 8.9% rise in fiscal 2027, suggesting improved operational efficiency and better cost management.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Key Challenge for Veeva Systems

Market Saturation: The life sciences industry, Veeva Systems' primary market for its CRM solutions, is facing increasing saturation as digital transformation and CRM adoption have become widespread across pharmaceutical and biotech companies. Many large enterprises have already implemented Veeva Systems CRM software or similar solutions, leaving fewer untapped opportunities for new customer acquisition. Additionally, as smaller biotech firms and generics manufacturers enter the market, they may seek more cost-effective or niche CRM alternatives rather than Veeva Systems’ premium offerings.

This saturation, combined with heightened competition from both traditional CRM providers and emerging AI-powered platforms, could limit Veeva Systems’ ability to maintain its historical CRM sales growth rates. Moreover, the industry’s consolidation through mergers and acquisitions may further reduce the number of potential clients, making upselling and expanding market share increasingly challenging.  

VEEV Shares Look Overvalued

VEEV stock is not so cheap, as suggested by the Value Score of D.

Veeva Systems is currently trading at a forward price-to-sales (P/S) ratio of 14.1X, which is more than double the industry average of 5.81X.

How to Play VEEV Stock Now

Veeva Systems continues to demonstrate strong execution across its core platforms while steadily expanding into AI and advanced data analytics. The company’s solid fundamentals, improving customer adoption trends, and consistent profitability provide a strong foundation for long-term growth. While the pace of CRM migration and broader macro factors may introduce some variability, the business remains well-positioned to benefit from the digital transformation in life sciences.

With a Zacks Rank #2 (Buy), Veeva Systems presents a compelling opportunity for investors looking to add a high-quality, cloud-focused healthcare technology stock to their portfolios. 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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