Veeva Systems (NYSE: VEEV) posts 16% Q1 growth and lifts 2027 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Veeva Systems reported strong fiscal 2027 first quarter results with double‑digit growth and higher profitability. Total revenues were $882.9 million, up 16% year over year, driven by subscription revenues of $730.2 million, up 15%. GAAP operating income rose to $273.1 million and non-GAAP operating income to $395.4 million. GAAP net income was $260.9 million, while non-GAAP net income reached $371.1 million, with diluted GAAP EPS of $1.57 and non-GAAP diluted EPS of $2.24.
The company highlighted rapid progress in its Veeva AI initiatives, including Ostro’s conversational AI, Vault AI expansion, and the planned Veeva Falcon platform. Management stated that first quarter results exceeded guidance on all metrics and issued increased guidance for fiscal 2027, with projected revenues of $3,635–$3,645 million and non-GAAP EPS of about $9.05.
Positive
- Double‑digit top‑line and bottom‑line growth: Q1 total revenue grew 16% year over year to $882.9 million, with subscription revenue up 15%, while GAAP net income rose 14% and non-GAAP net income 13%, indicating healthy demand and strong profitability.
- High margins and strong cash generation: Non-GAAP operating margin reached 44.8%, and net cash provided by operating activities was $1,127.1 million for the quarter, supporting a robust financial position.
- Raised full‑year guidance: Management increased fiscal 2027 outlook to $3,635–$3,645 million in revenue and about $1,610 million in non-GAAP operating income, with non-GAAP EPS around $9.05.
- Progress on AI and product adoption: Rapid advancement of Veeva AI, Ostro’s deployment across more than 50 brands, upcoming Vault AI and Veeva Falcon releases, and 27 new Vault CRM customers signal momentum in next‑generation offerings.
Negative
- None.
Insights
Veeva posted solid double‑digit growth, high margins, and raised full‑year guidance.
Veeva Systems delivered fiscal 2027 Q1 revenues of $882.9M, up 16% year over year, with subscription revenues of $730.2M growing 15%. GAAP operating margin was roughly 31%, while non-GAAP operating margin was about 44.8%, indicating a highly profitable model.
GAAP net income reached $260.9M and non-GAAP net income $371.1M, with diluted non-GAAP EPS of $2.24 versus $1.97 a year earlier. Management noted results exceeded guidance on all metrics and emphasized broad-based growth and profitability.
The company guided Q2 revenues to $902–$905M and raised fiscal 2027 revenue guidance to $3.635–$3.645B, with non-GAAP operating income of about $1.61B and non-GAAP EPS near $9.05. Subsequent filings may provide additional detail on execution against this outlook.
Veeva is pushing aggressively into AI and “agentic” workflows across its cloud platform.
Management framed this quarter as an inflection in its AI strategy. Veeva AI, including the March acquisition Ostro, is now supporting compliant conversational AI for more than 50 brands. Vault AI is planned to extend across all Vault applications in August 2026, deepening AI integration in content and data workflows.
The company also introduced Veeva Falcon, a platform for agentic labor in clinical, regulatory, and safety, with an early adopter release targeted for November 2026. Alongside Agentic Commercial initiatives in Vault CRM, Veeva reported 27 new Vault CRM customers and more than 150 customers live, underscoring growing adoption of its next-generation AI-enabled products.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue Q1 2027: $882.9 million
Subscription revenue Q1 2027: $730.2 million
GAAP net income Q1 2027: $260.9 million
+5 more
8 metrics
Total revenue Q1 2027
$882.9 million
Three months ended April 30, 2026; up 16% year over year
Subscription revenue Q1 2027
$730.2 million
Three months ended April 30, 2026; up 15% year over year
GAAP net income Q1 2027
$260.9 million
Three months ended April 30, 2026; up 14% year over year
Non-GAAP net income Q1 2027
$371.1 million
Three months ended April 30, 2026; up 13% year over year
Non-GAAP diluted EPS Q1 2027
$2.24 per share
Three months ended April 30, 2026; prior year $1.97
Operating cash flow Q1 2027
$1,127.1 million
Net cash provided by operating activities, three months ended April 30, 2026
FY 2027 revenue guidance
$3,635–$3,645 million
Fiscal year ending January 31, 2027 outlook
FY 2027 non-GAAP EPS guidance
≈$9.05 per share
Fiscal year ending January 31, 2027 outlook
Key Terms
non-GAAP operating income, stock-based compensation, Deferred revenue, Agentic Commercial, +2 more
6 terms
non-GAAP operating income financial
"Non-GAAP operating income for the first quarter was $395.4 million, compared to $349.9 million one year ago"
Non-GAAP operating income is a measure of a company's profit from its core business activities, calculated by excluding certain expenses or income that are not part of regular operations. It provides a clearer picture of how well the business is performing by focusing on ongoing operations, helping investors compare companies more consistently and make better-informed decisions.
stock-based compensation financial
"Includes stock-based compensation as follows: Cost of subscription ... Total stock-based compensation $119,259"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Deferred revenue financial
"Deferred revenue | 1,476,539 | | | 1,488,819"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
Agentic Commercial technical
"Leading the Industry with Agentic Commercial – At Commercial Summit in May, Veeva shared its vision for Agentic Commercial"
agentic labor technical
"Veeva Falcon, the new platform delivering agentic labor for clinical, regulatory, and safety, is planned for early adopter release in November"
Agentic labor is work where employees take initiative, make decisions, and shape how tasks get done rather than simply following orders. For investors, it matters because workplaces that encourage this kind of self-directed effort often generate faster problem‑solving, innovation, and adaptability—like a small team where each person freely fixes issues instead of waiting for instructions—affecting productivity, growth prospects, and the predictability of future returns.
Public Benefit Corporation regulatory
"As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders"
A public benefit corporation is a legal type of company that pledges to pursue a specific public good—such as environmental protection, worker welfare or community development—alongside earning profits for shareholders. Like a restaurant that promises to source local ingredients while still trying to turn a profit, this structure lets managers weigh social goals against financial returns, which can influence strategy, risk profile and investor expectations about how decisions are made.
Earnings Snapshot
Total revenue: $882.9M · Guidance included
Fiscal 2027 first quarter (three months ended April 30, 2026)
Total revenue
$882.9M
+16% year over year
Subscription revenue
$730.2M
+15% year over year
GAAP net income
$260.9M
+14% year over year
Non-GAAP net income
$371.1M
+13% year over year
Non-GAAP diluted EPS
$2.24
up from $1.97 prior year
Guidance
Q2 2027 revenue $902–$905M, non-GAAP operating income $392–$395M, non-GAAP EPS $2.21–$2.22; FY 2027 revenue $3.635–$3.645B, non-GAAP operating income ≈$1.61B, non-GAAP EPS ≈$9.05.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________________________________________
FORM 8-K
_____________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 3, 2026
_____________________________________________________________________________
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________
| (State or other jurisdiction of incorporation of organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (925 ) 452-6500
Not Applicable
(Former name or former address, if changed since last report)
_____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
par value $0.00001 per share | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||
Item 2.02. Results of Operations and Financial Condition.
On June 3, 2026, Veeva Systems Inc. (“Veeva”) issued a press release announcing its results for its first quarter ended April 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release titled “Veeva Announces Fiscal 2027 First Quarter Results,” dated June 3, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Veeva Systems Inc. | |||||||||||
| Dated: | June 3, 2026 | By: | /s/ BRIAN VAN WAGENER | ||||||||
Brian Van Wagener Chief Financial Officer (Principal Financial Officer) | |||||||||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2027 First Quarter Results
Total Revenues of $882.9M, up 16% Year Over Year
Subscription Revenues of $730.2M, up 15% Year Over Year
PLEASANTON, CA — June 3, 2026 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its first quarter ended April 30, 2026.
"Our rapid progress with Veeva AI sets the foundation as we enter the next chapter of our industry cloud," said CEO Peter Gassner. "We are moving from an industry-specific application company to an industry-specific application and AI agent company. This is a major transformation for Veeva and the industry that will help our customers bring the right medicines to patients faster."
Fiscal 2027 First Quarter Results:
•Revenues: Total revenues for the first quarter were $882.9 million, up from $759.0 million one year ago, an increase of 16% year over year. Subscription revenues for the first quarter were $730.2 million, up from $634.8 million one year ago, an increase of 15% year over year.
•Operating Income and Non-GAAP Operating Income:(1) First quarter operating income was $273.1 million, compared to $233.7 million one year ago, an increase of 17% year over year. Non-GAAP operating income for the first quarter was $395.4 million, compared to $349.9 million one year ago, an increase of 13% year over year.
•Net Income and Non-GAAP Net Income:(1) First quarter net income was $260.9 million, compared to $228.2 million one year ago, an increase of 14% year over year. Non-GAAP net income for the first quarter was $371.1 million, compared to $327.8 million one year ago, an increase of 13% year over year.
•Net Income per Share and Non-GAAP Net Income per Share:(1) For the first quarter, fully diluted net income per share was $1.57, compared to $1.37 one year ago, while non-GAAP fully diluted net income per share was $2.24, compared to $1.97 one year ago.
“Our first quarter results exceeded guidance on all metrics, reflecting another quarter of broad-based growth and profitability,” said CFO Brian Van Wagener. “We’re pleased with the raised fiscal 2027 guidance and energized by the large and growing opportunity ahead.”
Recent Highlights:
•Advancing Industry AI with Rapid Progress Across Veeva AI – Veeva significantly advanced its industry AI strategy this quarter. Ostro, acquired in March, is delivering compliant, conversational AI for more than 50 brands. Vault AI is on track to expand to all Vault applications in August. Veeva Falcon, the new platform delivering agentic labor for clinical, regulatory, and safety, is planned for early adopter release in November.
| © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. |  | 1 | ||||||
•Leading the Industry with Agentic Commercial – At Commercial Summit in May, Veeva shared its vision for Agentic Commercial, leveraging AI to help biopharmas bring the right medicines to more patients. With capabilities like the Agentic Call Report in Vault CRM and Ostro’s conversational AI on brand websites, biopharmas can now generate and act on Commercial Evidence. In Vault CRM, the industry’s fastest path to Agentic CRM success, Veeva added 27 new Vault CRM customers in the quarter and now has more than 150 customers live.
•Bringing Agentic Labor to Veeva Development Cloud – Veeva expanded its leadership with multiple enterprise biopharma wins across clinical, regulatory, and safety. Additionally, Veeva showcased its AI strategy at the recent European R&D and Quality Summit in Copenhagen, generating strong customer interest in Vault AI and Veeva Falcon to drive productivity and speed in drug development.
Financial Outlook:
Veeva is providing guidance for its fiscal second quarter ending July 31, 2026 as follows:
•Total revenues between $902 and $905 million.
•Non-GAAP operating income between $392 and $395 million.(2)
•Non-GAAP fully diluted net income per share between $2.21 and $2.22.(2)
Veeva is providing updated guidance for its fiscal year ending January 31, 2027 as follows:
•Total revenues between $3,635 and $3,645 million.
•Non-GAAP operating income of about $1,610 million.(2)
•Non-GAAP fully diluted net income per share of approximately $9.05.(2)
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, June 3, 2026, and a replay of the call will be available on Veeva's investor relations website.
| What: | Veeva Systems Fiscal 2027 First Quarter Results Conference Call | ||||
| When: | Wednesday, June 3, 2026 | ||||
| Time: | 2:00 p.m. PT (5:00 p.m. ET) | ||||
| Online Registration: | https://events.q4inc.com/analyst/423437130?pwd=ckfYa8Xa | ||||
| Webcast: | ir.veeva.com | ||||
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the second fiscal quarter ending July 31, 2026 or the fiscal year ending January 31, 2027 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 2 | ||||||
About Veeva Systems
Veeva delivers the industry cloud for life sciences with cloud software, AI, data, and business consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of June 3, 2026, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 13 and 14 in our filing on Form 10-K for the period ended January 31, 2026 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-K and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
###
Investor Relations Contact: | Media Contact: | |||||||
Gunnar Hansen | Maria Scurry | |||||||
Veeva Systems Inc. | Veeva Systems Inc. | |||||||
267-460-5839 | 781-366-7617 | |||||||
ir@veeva.com | pr@veeva.com | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 3 | ||||||
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| April 30, 2026 | January 31, 2026 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,896,580 | $ | 1,421,233 | |||||||
| Short-term investments | 5,416,139 | 5,139,581 | |||||||||
| Accounts receivable, net | 568,020 | 1,259,737 | |||||||||
| Unbilled accounts receivable | 59,752 | 50,609 | |||||||||
| Prepaid expenses and other current assets | 122,770 | 126,470 | |||||||||
| Total current assets | 8,063,261 | 7,997,630 | |||||||||
| Property and equipment, net | 73,484 | 70,261 | |||||||||
| Deferred costs, net | 28,686 | 29,961 | |||||||||
| Lease right-of-use assets | 82,060 | 75,626 | |||||||||
| Goodwill | 488,161 | 439,877 | |||||||||
| Intangible assets, net | 55,508 | 30,314 | |||||||||
| Deferred income taxes | 272,665 | 273,417 | |||||||||
| Other long-term assets | 65,733 | 62,257 | |||||||||
| Total assets | $ | 9,129,558 | $ | 8,979,343 | |||||||
Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 40,657 | $ | 37,644 | |||||||
| Accrued compensation and benefits | 52,572 | 45,857 | |||||||||
| Accrued expenses and other current liabilities | 50,974 | 45,885 | |||||||||
| Income tax payable | 67,897 | 6,698 | |||||||||
| Deferred revenue | 1,476,539 | 1,488,819 | |||||||||
| Lease liabilities | 13,131 | 12,153 | |||||||||
| Total current liabilities | 1,701,770 | 1,637,056 | |||||||||
| Deferred income taxes | 1,148 | 558 | |||||||||
Long-term lease liabilities | 89,936 | 83,706 | |||||||||
| Other long-term liabilities | 32,350 | 43,271 | |||||||||
| Total liabilities | 1,825,204 | 1,764,591 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock | 2 | 2 | |||||||||
| Additional paid-in capital | 2,699,707 | 2,843,089 | |||||||||
| Accumulated other comprehensive (loss) income | (19,792) | 8,160 | |||||||||
| Retained earnings | 4,624,437 | 4,363,501 | |||||||||
| Total stockholders’ equity | 7,304,354 | 7,214,752 | |||||||||
Total liabilities and stockholders’ equity | $ | 9,129,558 | $ | 8,979,343 | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 4 | ||||||
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
| Three months ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
Subscription(3) | $ | 730,175 | $ | 634,768 | |||||||
Professional services and other(4) | 152,773 | 124,275 | |||||||||
| Total revenues | 882,948 | 759,043 | |||||||||
Cost of revenues(5): | |||||||||||
Cost of subscription | 99,103 | 78,346 | |||||||||
| Cost of professional services and other | 121,821 | 95,478 | |||||||||
| Total cost of revenues | 220,924 | 173,824 | |||||||||
| Gross profit | 662,024 | 585,219 | |||||||||
Operating expenses(5): | |||||||||||
| Research and development | 208,323 | 184,033 | |||||||||
| Sales and marketing | 111,117 | 98,628 | |||||||||
| General and administrative | 69,472 | 68,826 | |||||||||
| Total operating expenses | 388,912 | 351,487 | |||||||||
| Operating income | 273,112 | 233,732 | |||||||||
| Other income, net | 74,418 | 65,089 | |||||||||
| Income before income taxes | 347,530 | 298,821 | |||||||||
Income tax provision | 86,594 | 70,631 | |||||||||
| Net income | $ | 260,936 | $ | 228,190 | |||||||
| Net income per share: | |||||||||||
| Basic | $ | 1.60 | $ | 1.40 | |||||||
| Diluted | $ | 1.57 | $ | 1.37 | |||||||
Weighted-average shares used to compute net income per share: | |||||||||||
| Basic | 163,345 | 162,749 | |||||||||
| Diluted | 165,989 | 166,229 | |||||||||
| Other comprehensive income: | |||||||||||
Net change in unrealized (loss) gain on available-for-sale investments | $ | (27,451) | $ | 17,367 | |||||||
| Net change in cumulative foreign currency translation loss | (501) | (38) | |||||||||
| Comprehensive income | $ | 232,984 | $ | 245,519 | |||||||
(3) Includes subscription revenues from the following product areas: | |||||||||||
| Veeva Commercial Solutions | $ | 337,866 | $ | 305,411 | |||||||
Veeva R&D and Quality Solutions | 392,309 | 329,357 | |||||||||
Total subscription | $ | 730,175 | $ | 634,768 | |||||||
(4) Includes professional services and other revenues from the following product areas: | |||||||||||
| Veeva Commercial Solutions | $ | 57,573 | $ | 46,567 | |||||||
Veeva R&D and Quality Solutions | 95,200 | 77,708 | |||||||||
| Total professional services and other | $ | 152,773 | $ | 124,275 | |||||||
(5) Includes stock-based compensation as follows: | |||||||||||
| Cost of revenues: | |||||||||||
Cost of subscription | $ | 1,761 | $ | 1,715 | |||||||
| Cost of professional services and other | 14,151 | 12,769 | |||||||||
| Research and development | 51,563 | 47,949 | |||||||||
| Sales and marketing | 24,594 | 22,321 | |||||||||
| General and administrative | 27,190 | 27,456 | |||||||||
| Total stock-based compensation | $ | 119,259 | $ | 112,210 | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 5 | ||||||
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three months ended April 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 260,936 | $ | 228,190 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 11,587 | 9,822 | ||||||||||||
| Reduction of lease right-of-use assets | 3,279 | 3,265 | ||||||||||||
| Accretion of discount on short-term investments | (1,788) | (2,509) | ||||||||||||
| Stock-based compensation | 119,259 | 112,210 | ||||||||||||
| Amortization of deferred costs | 4,900 | 4,043 | ||||||||||||
| Deferred income taxes | 14,337 | (27,418) | ||||||||||||
| Other, net | (1,777) | 4,327 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | 696,614 | 522,686 | ||||||||||||
| Unbilled accounts receivable | (9,143) | (7,672) | ||||||||||||
| Deferred costs | (3,625) | (4,055) | ||||||||||||
| Prepaid expenses and other current and long-term assets | (7,984) | (4,501) | ||||||||||||
| Accounts payable | 4,473 | 7,743 | ||||||||||||
| Accrued expenses and other current liabilities | 8,923 | (8,720) | ||||||||||||
| Income tax payable | 61,199 | 82,345 | ||||||||||||
| Deferred revenue | (32,963) | (41,361) | ||||||||||||
| Lease liabilities | (2,460) | (2,543) | ||||||||||||
| Other long-term liabilities | 1,349 | 1,306 | ||||||||||||
| Net cash provided by operating activities | 1,127,116 | 877,158 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Purchases of short-term investments | (982,315) | (667,100) | ||||||||||||
| Maturities and sales of short-term investments | 670,835 | 620,903 | ||||||||||||
| Long-term assets | (1,751) | (5,910) | ||||||||||||
| Acquisitions, net of cash acquired | (75,480) | — | ||||||||||||
| Net cash used in investing activities | (388,711) | (52,107) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Proceeds from exercise of common stock options | 2,939 | 40,605 | ||||||||||||
| Repurchases of common stock | (226,947) | — | ||||||||||||
| Taxes paid related to net share settlement of equity awards | (38,518) | (20,225) | ||||||||||||
| Net cash (used in) provided by financing activities | (262,526) | 20,380 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (532) | 766 | ||||||||||||
| Net change in cash, cash equivalents, and restricted cash | 475,347 | 846,197 | ||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,423,412 | 1,120,963 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,898,759 | $ | 1,967,160 | ||||||||||
| Supplemental disclosures of other cash flow information: | ||||||||||||||
| Excess tax (deficiency) benefit from employee stock plans | $ | (4,092) | $ | 2,579 | ||||||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 6 | ||||||
Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefit (deficiency). Excess tax benefits (deficiencies) from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva finds it useful to exclude excess tax benefits (deficiencies) when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits (deficiencies), Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
•Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial
measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 7 | ||||||
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
| Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis) | Three months ended April 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities on a GAAP basis | $ | 1,127,116 | $ | 877,158 | |||||||
Excess tax deficiency (benefit) from employee stock plans | 4,092 | (2,579) | |||||||||
| Net cash provided by operating activities on a non-GAAP basis | $ | 1,131,208 | $ | 874,579 | |||||||
| Net cash used in investing activities on a GAAP basis | $ | (388,711) | $ | (52,107) | |||||||
| Net cash (used in) provided by financing activities on a GAAP basis | $ | (262,526) | $ | 20,380 | |||||||
| Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) | Three months ended April 30, | ||||||||||
| 2026 | 2025 | ||||||||||
Cost of subscription revenues on a GAAP basis | $ | 99,103 | $ | 78,346 | |||||||
| Stock-based compensation expense | (1,761) | (1,715) | |||||||||
| Amortization of purchased intangibles | (674) | (1,012) | |||||||||
Cost of subscription revenues on a non-GAAP basis | $ | 96,668 | $ | 75,619 | |||||||
Gross margin on subscription revenues on a GAAP basis | 86.4 | % | 87.7 | % | |||||||
| Stock-based compensation expense | 0.2 | 0.3 | |||||||||
| Amortization of purchased intangibles | 0.2 | 0.1 | |||||||||
Gross margin on subscription revenues on a non-GAAP basis | 86.8 | % | 88.1 | % | |||||||
| Cost of professional services and other revenues on a GAAP basis | $ | 121,821 | $ | 95,478 | |||||||
| Stock-based compensation expense | (14,151) | (12,769) | |||||||||
| Amortization of purchased intangibles | — | (134) | |||||||||
| Cost of professional services and other revenues on a non-GAAP basis | $ | 107,670 | $ | 82,575 | |||||||
| Gross margin on professional services and other revenues on a GAAP basis | 20.3 | % | 23.2 | % | |||||||
| Stock-based compensation expense | 9.2 | 10.3 | |||||||||
| Amortization of purchased intangibles | — | 0.1 | |||||||||
| Gross margin on professional services and other revenues on a non-GAAP basis | 29.5 | % | 33.6 | % | |||||||
| Gross profit on a GAAP basis | $ | 662,024 | $ | 585,219 | |||||||
| Stock-based compensation expense | 15,912 | 14,484 | |||||||||
| Amortization of purchased intangibles | 674 | 1,146 | |||||||||
| Gross profit on a non-GAAP basis | $ | 678,610 | $ | 600,849 | |||||||
| Gross margin on total revenues on a GAAP basis | 75.0 | % | 77.1 | % | |||||||
| Stock-based compensation expense | 1.8 | 1.9 | |||||||||
| Amortization of purchased intangibles | 0.1 | 0.2 | |||||||||
| Gross margin on total revenues on a non-GAAP basis | 76.9 | % | 79.2 | % | |||||||
| Research and development expense on a GAAP basis | $ | 208,323 | $ | 184,033 | |||||||
| Stock-based compensation expense | (51,563) | (47,949) | |||||||||
| Research and development expense on a non-GAAP basis | $ | 156,760 | $ | 136,084 | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 8 | ||||||
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
| Three months ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales and marketing expense on a GAAP basis | $ | 111,117 | $ | 98,628 | |||||||
| Stock-based compensation expense | (24,594) | (22,321) | |||||||||
| Amortization of purchased intangibles | (2,331) | (2,795) | |||||||||
| Sales and marketing expense on a non-GAAP basis | $ | 84,192 | $ | 73,512 | |||||||
| General and administrative expense on a GAAP basis | $ | 69,472 | $ | 68,826 | |||||||
| Stock-based compensation expense | (27,190) | (27,456) | |||||||||
| General and administrative expense on a non-GAAP basis | $ | 42,282 | $ | 41,370 | |||||||
| Operating expense on a GAAP basis | $ | 388,912 | $ | 351,487 | |||||||
| Stock-based compensation expense | (103,347) | (97,726) | |||||||||
| Amortization of purchased intangibles | (2,331) | (2,795) | |||||||||
| Operating expense on a non-GAAP basis | $ | 283,234 | $ | 250,966 | |||||||
| Operating income on a GAAP basis | $ | 273,112 | $ | 233,732 | |||||||
| Stock-based compensation expense | 119,259 | 112,210 | |||||||||
| Amortization of purchased intangibles | 3,005 | 3,941 | |||||||||
| Operating income on a non-GAAP basis | $ | 395,376 | $ | 349,883 | |||||||
| Operating margin on a GAAP basis | 30.9 | % | 30.8 | % | |||||||
| Stock-based compensation expense | 13.5 | 14.8 | |||||||||
| Amortization of purchased intangibles | 0.4 | 0.5 | |||||||||
| Operating margin on a non-GAAP basis | 44.8 | % | 46.1 | % | |||||||
| Net income on a GAAP basis | $ | 260,936 | $ | 228,190 | |||||||
| Stock-based compensation expense | 119,259 | 112,210 | |||||||||
| Amortization of purchased intangibles | 3,005 | 3,941 | |||||||||
Income tax effect on non-GAAP adjustments(6) | (12,063) | (16,513) | |||||||||
| Net income on a non-GAAP basis | $ | 371,137 | $ | 327,828 | |||||||
| Diluted net income per share on a GAAP basis | $ | 1.57 | $ | 1.37 | |||||||
| Stock-based compensation expense | 0.72 | 0.68 | |||||||||
| Amortization of purchased intangibles | 0.02 | 0.02 | |||||||||
Income tax effect on non-GAAP adjustments(6) | (0.07) | (0.10) | |||||||||
| Diluted net income per share on a non-GAAP basis | $ | 2.24 | $ | 1.97 | |||||||
________________________
(6) For the three months ended April 30, 2026 and 2025, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 9 | ||||||
FAQ
How did Veeva Systems (VEEV) perform in fiscal 2027 first quarter?
Veeva Systems delivered strong fiscal 2027 first quarter results. Total revenue was $882.9 million, up 16% year over year, with subscription revenue of $730.2 million, up 15%. GAAP net income reached $260.9 million and non-GAAP net income was $371.1 million.
What guidance did Veeva Systems (VEEV) give for fiscal 2027 Q2?
For the fiscal second quarter ending July 31, 2026, Veeva guided total revenues between $902 million and $905 million. It expects non-GAAP operating income between $392 million and $395 million and non-GAAP diluted net income per share between $2.21 and $2.22.
Did Veeva Systems (VEEV) raise its full-year fiscal 2027 guidance?
Yes. Veeva provided updated fiscal 2027 guidance with total revenues projected between $3,635 million and $3,645 million. It targets non-GAAP operating income of about $1,610 million and non-GAAP diluted net income per share of approximately $9.05 for the year.
How is Veeva Systems advancing its AI strategy in life sciences?
Veeva advanced its AI strategy through Veeva AI, Ostro, Vault AI, and Veeva Falcon. Ostro delivers compliant conversational AI for over 50 brands, Vault AI is planned across all Vault apps in August, and Veeva Falcon targets agentic labor for clinical, regulatory, and safety workflows.
What were Veeva’s key profitability and margin metrics in fiscal 2027 Q1?
In fiscal 2027 Q1, Veeva generated GAAP operating income of $273.1 million and non-GAAP operating income of $395.4 million. Non-GAAP operating margin was 44.8%, while non-GAAP gross margin on total revenues was 76.9%, indicating a highly profitable cloud software business.