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Veeva Systems (NYSE: VEEV) posts strong Q2, sets 2027 revenue goals

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Veeva Systems Inc. (VEEV) reported strong fiscal 2027 second quarter results for the period ended July 31, 2026. Total revenues were $927.963 million, up 18% year over year, driven by subscription revenues of $766.764 million, up 16%.

GAAP operating income was $275.018 million and non-GAAP operating income was $415.883 million. GAAP net income reached $273.429 million, with diluted EPS of $1.66; non-GAAP net income was $387.412 million, or $2.35 per diluted share. For the first six months, net cash provided by operating activities was $1.366 billion.

Management highlighted momentum in AI and cloud platforms, including Vault CRM, Veeva Falcon, and Vault AI, plus an acquisition of Copli and continued growth in Development and Quality Clouds. Guidance calls for Q3 revenues of $932–$935 million and full-year revenues of $3.682–$3.687 billion, with strong non-GAAP profitability.

Positive

  • Q2 revenue grew 18% year over year to $927.963 million, with subscription revenue up 16%, indicating broad-based demand across Veeva’s cloud solutions.
  • GAAP net income rose 37% year over year to $273.429 million, while non-GAAP net income increased 16% to $387.412 million, reflecting scalable profitability.
  • Operating cash flow for the first six months was $1.366 billion, providing significant financial flexibility for investment, acquisitions, and shareholder returns.
  • Management issued Q3 revenue guidance of $932–$935 million and full-year revenue guidance of $3.682–$3.687 billion, alongside strong non-GAAP operating income and EPS targets, signaling confidence in continued growth.

Negative

  • None.

Filing Explained

As of July 31, Veeva reported cash of $1,812,012 thousand and six-month common-stock repurchases of $472,673 thousand.

This Form 8-K, a report for specified material events, furnishes Veeva Systems’ fiscal 2027 second-quarter results and related financial statements as of August 26, 2026. The disclosed structural effect is a six-month common-stock repurchase cash outflow, alongside reported cash and investments.

For the six months ended July 31, 2026, the company reported $472,673 thousand of common-stock repurchases in financing activities. At July 31, it reported $1,812,012 thousand of cash and cash equivalents and $5,430,935 thousand of short-term investments.

The repurchase amount shows cash used for the buyback, but the filing does not state the number of shares repurchased, so the ownership effect on existing holders cannot be sized from this disclosure alone.

Veeva defines its non-GAAP measures as figures not prepared under U.S. GAAP and excludes items including stock-based compensation; it says those measures should be considered with, not instead of, GAAP results.

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, or exhibit attachments filed with this report.
Total revenues Q2 2027 $927.963 million Three months ended July 31, 2026; up 18% year over year from $789.081 million
Subscription revenues Q2 2027 $766.764 million Three months ended July 31, 2026; up 16% year over year from $659.183 million
GAAP net income Q2 2027 $273.429 million Three months ended July 31, 2026; up from $200.309 million a year ago
Non-GAAP net income Q2 2027 $387.412 million Three months ended July 31, 2026; up from $333.406 million a year ago
Diluted EPS Q2 2027 (GAAP) $1.66 Three months ended July 31, 2026; compared to $1.19 a year earlier
Operating cash flow first six months $1,365.825 million Net cash provided by operating activities for six months ended July 31, 2026
Q3 2027 revenue guidance $932–$935 million Guidance for fiscal third quarter ending October 31, 2026
Fiscal 2027 revenue guidance $3,682–$3,687 million Guidance for year ending January 31, 2027
non-GAAP operating income financial
"Non-GAAP operating income for the second quarter was $415.9 million"
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"
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 | 1,310,498"
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.
Operating margin financial
"Operating margin on a GAAP basis | 29.6 %"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
Public Benefit Corporation regulatory
"As a Public Benefit Corporation, Veeva is committed to balancing"
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.
Total revenues $927.963 million up 18% year over year from $789.081 million
Subscription revenues $766.764 million up 16% year over year from $659.183 million
GAAP net income $273.429 million up from $200.309 million a year earlier
Non-GAAP net income $387.412 million up from $333.406 million a year earlier
GAAP diluted EPS $1.66 up from $1.19 in the prior-year quarter
Non-GAAP diluted EPS $2.35 up from $1.99 in the prior-year quarter
Guidance

For Q3 2027, Veeva guides to total revenues of $932–$935 million, non-GAAP operating income of $417–$420 million, and non-GAAP diluted EPS of $2.33–$2.34. For fiscal 2027, it expects total revenues of $3.682–$3.687 billion, non-GAAP operating income of about $1.640 billion, and non-GAAP diluted EPS of approximately $9.21.

FAQ

How did Veeva Systems (VEEV) perform in fiscal 2027 Q2?
Veeva reported Q2 total revenues of $927.963 million, up 18% year over year, and subscription revenues of $766.764 million, up 16%. GAAP net income was $273.429 million with diluted EPS of $1.66, and non-GAAP EPS was $2.35.

What profitability did VEEV report for fiscal 2027 Q2?
Veeva posted GAAP operating income of $275.018 million and non-GAAP operating income of $415.883 million. GAAP net income was $273.429 million and non-GAAP net income was $387.412 million, reflecting strong operating leverage.

What guidance did Veeva Systems (VEEV) give for fiscal 2027 Q3?
For Q3 ending October 31, 2026, Veeva expects total revenues between $932 and $935 million, non-GAAP operating income between $417 and $420 million, and non-GAAP diluted EPS between $2.33 and $2.34.

What is VEEV’s full-year fiscal 2027 outlook?
For the year ending January 31, 2027, Veeva guides to total revenues of $3.682–$3.687 billion, non-GAAP operating income of about $1.640 billion, and non-GAAP diluted EPS of approximately $9.21.

How strong is Veeva Systems’ (VEEV) cash generation?
For the first six months of fiscal 2027, Veeva generated $1.365825 billion of net cash from operating activities on a GAAP basis, underscoring robust cash flow from its subscription-heavy business model.

Which VEEV products showed notable momentum this quarter?
Veeva reported strong traction in Vault CRM with more than 180 customers live and 12 top 20 biopharma commitments, rapid progress in Veeva Falcon and Vault AI, and broad adoption across Development Cloud and Quality Cloud.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →
False000139305200013930522026-08-262026-08-26

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): August 26, 2026
_____________________________________________________________________________
Veeva logo 1 for sec.jpg
Veeva Systems Inc.
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________
Delaware
001-36121
20-8235463
(State or other jurisdiction of
incorporation of organization)
(Commission File Number)
(IRS Employer
Identification No.)

4280 Hacienda Drive
Pleasanton, California 94588
(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 classTrading SymbolName of each exchange on which registered
Class A Common Stock,
par value $0.00001 per share		VEEVNew York Stock Exchange
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 August 26, 2026, Veeva Systems Inc. (“Veeva”) issued a press release announcing its results for its second quarter ended July 31, 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 Second Quarter Results,” dated August 26, 2026.
104Cover 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:August 26, 2026By:
/s/ BRIAN VAN WAGENER
Brian Van Wagener
Chief Financial Officer
(Principal Financial Officer)





Exhibit 99.1
pa01.jpg
FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2027 Second Quarter Results
Total Revenues of $928.0M, up 18% Year Over Year
Subscription Revenues of $766.8M, up 16% Year Over Year

PLEASANTON, CA — August 26, 2026 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2026.
“AI is opening up the next big chapter for Veeva and life sciences,” said CEO Peter Gassner. “Vault CRM had its best quarter ever and Veeva Falcon accelerated rapidly. By bringing together deep industry applications, agents, data, and consulting, we are helping the industry drive new efficiencies from clinical to commercial and deliver better outcomes for patients.”
Fiscal 2027 Second Quarter Results:
•Revenues: Total revenues for the second quarter were $928.0 million, up from $789.1 million one year ago, an increase of 18% year over year. Subscription revenues for the second quarter were $766.8 million, up from $659.2 million one year ago, an increase of 16% year over year.
•Operating Income and Non-GAAP Operating Income:(1) Second quarter operating income was $275.0 million, compared to $195.9 million one year ago, an increase of 40% year over year. Non-GAAP operating income for the second quarter was $415.9 million, compared to $352.6 million one year ago, an increase of 18% year over year.
•Net Income and Non-GAAP Net Income:(1) Second quarter net income was $273.4 million, compared to $200.3 million one year ago, an increase of 37% year over year. Non-GAAP net income for the second quarter was $387.4 million, compared to $333.4 million one year ago, an increase of 16% year over year.
•Net Income per Share and Non-GAAP Net Income per Share:(1) For the second quarter, fully diluted net income per share was $1.66, compared to $1.19 one year ago, while non-GAAP fully diluted net income per share was $2.35, compared to $1.99 one year ago.
“Second quarter results exceeded guidance on all metrics and our view for the full year improved across the board,” said CFO Brian Van Wagener. “We continue to execute well across the business while also accelerating innovation and progress in new growth areas.”
Recent Highlights:
•Vault CRM Leadership Grows with More Top 20 Wins, Go-lives, and AI Adoption – Vault CRM leadership grew with more than 180 customers live, including five top 20 biopharmas. In August, two top 20 biopharmas and one large enterprise biopharma committed to Vault CRM, bringing total top 20 commitments to 12 globally. As the industry's fastest path to agentic CRM, a top 20 biopharma deployed Vault CRM and the Agentic Call Report across its full U.S. field team in the quarter.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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1

•Major AI Milestones for Vault AI and Falcon, and Agentic MLR Launches – Veeva AI advanced rapidly across all areas. Development of Veeva Falcon, the agentic labor platform for clinical, regulatory, and safety, is moving quickly with five early adopters and on track for initial go-lives this year. The company also acquired Copli in the quarter and launched Veeva Falcon MLR to automate content reviews. August marked a major milestone for Vault AI with new standard agents, broader capabilities for existing agents, and advanced tools for custom agent development.
•Delivering the Connected Foundation for R&D and Quality – Development Cloud and Quality Cloud saw broad adoption, deepening relationships with new and existing customers. In clinical, a large enterprise biopharma selected Veeva EDC, building on its existing eTMF, CTMS, and Study Startup foundation. Veeva Safety surpassed 100 total customers while securing its second top 20 biopharma win for Safety Workbench. In Quality, Veeva added more than 30 new customers, driven by 20 or more wins each across QualityDocs, QMS, and Training.
Financial Outlook:
Veeva is providing guidance for its fiscal third quarter ending October 31, 2026 as follows:
•Total revenues between $932 and $935 million.
•Non-GAAP operating income between $417 and $420 million.(2)
•Non-GAAP fully diluted net income per share between $2.33 and $2.34.(2)
Veeva is providing updated guidance for its fiscal year ending January 31, 2027 as follows:
•Total revenues between $3,682 and $3,687 million.
•Non-GAAP operating income of about $1,640 million.(2)
•Non-GAAP fully diluted net income per share of approximately $9.21.(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, August 26, 2026, and a replay of the call will be available on Veeva's investor relations website.
What:
Veeva Systems Fiscal 2027 Second Quarter Results Conference Call
When:Wednesday, August 26, 2026
Time:2:00 p.m. PT (5:00 p.m. ET)
Online Registration: https://events.q4inc.com/analyst/883220744?pwd=7dXQ6ZuG
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 third fiscal quarter ending October 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.
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2

About Veeva Systems
Veeva delivers the industry cloud for life sciences with applications, agents, data, and 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 August 26, 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 33 and 34 in our filing on Form 10-Q for the period ended April 30, 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-Q 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.
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3

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31,
2026		January 31,
2026
Assets
Current assets:
Cash and cash equivalents$1,812,012 $1,421,233 
Short-term investments5,430,935 5,139,581 
Accounts receivable, net496,677 1,259,737 
Unbilled accounts receivable68,970 50,609 
Prepaid expenses and other current assets137,633 126,470 
Total current assets7,946,227 7,997,630 
Property and equipment, net79,483 70,261 
Deferred costs, net27,835 29,961 
Lease right-of-use assets129,320 75,626 
Goodwill492,991 439,877 
Intangible assets, net55,647 30,314 
Deferred income taxes268,250 273,417 
Other long-term assets60,470 62,257 
Total assets$9,060,223 $8,979,343 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$35,977 $37,644 
Accrued compensation and benefits42,188 45,857 
Accrued expenses and other current liabilities49,634 45,885 
Income tax payable3,018 6,698 
Deferred revenue1,310,498 1,488,819 
Lease liabilities14,635 12,153 
Total current liabilities1,455,950 1,637,056 
Deferred income taxes2,056 558 
Long-term lease liabilities
137,060 83,706 
Other long-term liabilities33,708 43,271 
Total liabilities1,628,774 1,764,591 
Stockholders’ equity:
Common stock
2 2 
Additional paid-in capital2,579,728 2,843,089 
Accumulated other comprehensive (loss) income(46,147)8,160 
Retained earnings4,897,866 4,363,501 
Total stockholders’ equity7,431,449 7,214,752 
Total liabilities and stockholders’ equity
$9,060,223 $8,979,343 


© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2026202520262025
Revenues:
Subscription(3)
$766,764 $659,183 $1,496,939 $1,293,951 
Professional services and other(4)
161,199 129,898 313,972 254,173 
Total revenues927,963 789,081 1,810,911 1,548,124 
Cost of revenues(5):
Cost of subscription
105,677 93,830 204,780 172,176 
Cost of professional services and other126,335 101,423 248,156 196,901 
Total cost of revenues232,012 195,253 452,936 369,077 
Gross profit695,951 593,828 1,357,975 1,179,047 
Operating expenses(5):
Research and development222,918 192,677 431,241 376,710 
Sales and marketing126,701 109,439 237,818 208,067 
General and administrative71,314 95,804 140,786 164,630 
Total operating expenses420,933 397,920 809,845 749,407 
Operating income275,018 195,908 548,130 429,640 
Other income, net74,512 69,456 148,930 134,545 
Income before income taxes349,530 265,364 697,060 564,185 
Income tax provision
76,101 65,055 162,695 135,686 
Net income$273,429 $200,309 $534,365 $428,499 
Net income per share:
Basic$1.68 $1.23 $3.28 $2.63 
Diluted$1.66 $1.19 $3.22 $2.56 
Weighted-average shares used to compute net income per share:
Basic162,344 163,496 162,836 163,129 
Diluted165,057 167,685 166,072 167,272 
Other comprehensive income:
Net change in unrealized (loss) gain on available-for-sale investments
$(26,490)$(11,300)$(53,941)$6,067 
Net change in cumulative foreign currency translation gain (loss)135 390 (366)352 
Comprehensive income$247,074 $189,399 $480,058 $434,918 
(3) Includes subscription revenues from the following product areas:
Veeva Commercial Solutions$347,389 $307,523 $685,255 $612,934 
Veeva R&D and Quality Solutions
419,375 351,660 811,684 681,017 
Total subscription
$766,764 $659,183 $1,496,939 $1,293,951 
(4) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions$59,742 $47,703 $117,315 $94,270 
Veeva R&D and Quality Solutions
101,457 82,195 196,657 159,903 
Total professional services and other$161,199 $129,898 $313,972 $254,173 
(5) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription
$2,224 $1,941 $3,985 $3,656 
Cost of professional services and other15,939 14,804 30,090 27,573 
Research and development62,220 53,388 113,783 101,337 
Sales and marketing27,886 25,392 52,480 47,713 
General and administrative28,534 26,441 55,724 53,897 
Total stock-based compensation$136,803 $121,966 $256,062 $234,176 
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six months ended July 31,
20262025
Cash flows from operating activities
Net income$534,365 $428,499 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization22,458 19,948 
Reduction of lease right-of-use assets7,038 6,316 
Accretion of discount on short-term investments(2,841)(4,535)
Stock-based compensation256,062 234,176 
Amortization of deferred costs9,805 8,205 
Deferred income taxes26,529 31,699 
Other, net(1,127)(1,414)
Changes in operating assets and liabilities:
Accounts receivable768,314 593,032 
Unbilled accounts receivable(18,361)(9,587)
Deferred costs(7,679)(7,721)
Prepaid expenses and other current and long-term assets(21,394)(21,232)
Accounts payable(652)3,361 
Accrued expenses and other current liabilities(1,578)23,763 
Income tax payable(3,945)(5,362)
Deferred revenue(200,001)(180,888)
Lease liabilities(4,426)(5,300)
Other long-term liabilities3,258 2,631 
Net cash provided by operating activities1,365,825 1,115,591 
Cash flows from investing activities
Purchases of short-term investments(1,706,632)(1,452,857)
Maturities and sales of short-term investments1,345,987 1,023,691 
Long-term assets(9,773)(12,213)
Acquisitions, net of cash acquired(81,833)— 
Net cash used in investing activities(452,251)(441,379)
Cash flows from financing activities
Proceeds from exercise of common stock options17,143 182,297 
Repurchases of common stock(472,673)— 
Taxes paid related to net share settlement of equity awards(66,304)(46,228)
Net cash (used in) provided by financing activities(521,834)136,069 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(831)1,365 
Net change in cash, cash equivalents, and restricted cash390,909 811,646 
Cash, cash equivalents, and restricted cash at beginning of period1,423,412 1,120,963 
Cash, cash equivalents, and restricted cash at end of period$1,814,321 $1,932,609 
Supplemental disclosures of other cash flow information:
Excess tax (deficiency) benefit from employee stock plans$(824)$15,610 
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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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.
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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 July 31,Six months ended July 31,
2026202520262025
Net cash provided by operating activities on a GAAP basis$238,709 $238,433 $1,365,825 $1,115,591 
Excess tax (benefit) deficiency from employee stock plans
(3,268)(13,031)824 (15,610)
Net cash provided by operating activities on a non-GAAP basis$235,441 $225,402 $1,366,649 $1,099,981 
Net cash used in investing activities on a GAAP basis$(63,540)$(389,272)$(452,251)$(441,379)
Net cash (used in) provided by financing activities on a GAAP basis$(259,308)$115,689 $(521,834)$136,069 
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)Three months ended July 31,Six months ended July 31,
2026202520262025
Cost of subscription revenues on a GAAP basis
$105,677 $93,830 $204,780 $172,176 
Stock-based compensation expense(2,224)(1,941)(3,985)(3,656)
Amortization of purchased intangibles(1,072)(1,046)(1,746)(2,058)
Cost of subscription revenues on a non-GAAP basis
$102,381 $90,843 $199,049 $166,462 
Gross margin on subscription revenues on a GAAP basis
86.2 %85.8 %86.3 %86.7 %
Stock-based compensation expense0.3 0.3 0.3 0.3 
Amortization of purchased intangibles0.1 0.1 0.1 0.1 
Gross margin on subscription revenues on a non-GAAP basis
86.6 %86.2 %86.7 %87.1 %
Cost of professional services and other revenues on a GAAP basis$126,335 $101,423 $248,156 $196,901 
Stock-based compensation expense(15,939)(14,804)(30,090)(27,573)
Amortization of purchased intangibles— (139)— (273)
Cost of professional services and other revenues on a non-GAAP basis$110,396 $86,480 $218,066 $169,055 
Gross margin on professional services and other revenues on a GAAP basis21.6 %21.9 %21.0 %22.5 %
Stock-based compensation expense9.9 11.4 9.5 10.8 
Amortization of purchased intangibles— 0.1 — 0.2 
Gross margin on professional services and other revenues on a non-GAAP basis31.5 %33.4 %30.5 %33.5 %
Gross profit on a GAAP basis$695,951 $593,828 $1,357,975 $1,179,047 
Stock-based compensation expense18,163 16,745 34,075 31,229 
Amortization of purchased intangibles1,072 1,185 1,746 2,331 
Gross profit on a non-GAAP basis$715,186 $611,758 $1,393,796 $1,212,607 
Gross margin on total revenues on a GAAP basis75.0 %75.3 %75.0 %76.2 %
Stock-based compensation expense2.0 2.1 1.9 2.0 
Amortization of purchased intangibles0.1 0.1 0.1 0.1 
Gross margin on total revenues on a non-GAAP basis77.1 %77.5 %77.0 %78.3 %
Research and development expense on a GAAP basis$222,918 $192,677 $431,241 $376,710 
Stock-based compensation expense(62,220)(53,388)(113,783)(101,337)
Amortization of purchased intangibles(270)— (270)— 
Research and development expense on a non-GAAP basis$160,428 $139,289 $317,188 $275,373 
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)

Three months ended July 31,Six months ended July 31,
2026202520262025
Sales and marketing expense on a GAAP basis$126,701 $109,439 $237,818 $208,067 
Stock-based compensation expense(27,886)(25,392)(52,480)(47,713)
Amortization of purchased intangibles(2,720)(2,890)(5,051)(5,685)
Sales and marketing expense on a non-GAAP basis$96,095 $81,157 $180,287 $154,669 
General and administrative expense on a GAAP basis$71,314 $95,804 $140,786 $164,630 
Stock-based compensation expense(28,534)(26,441)(55,724)(53,897)
Litigation settlement-related charges— (30,627)— (30,627)
General and administrative expense on a non-GAAP basis$42,780 $38,736 $85,062 $80,106 
Operating expense on a GAAP basis$420,933 $397,920 $809,845 $749,407 
Stock-based compensation expense(118,640)(105,221)(221,987)(202,947)
Amortization of purchased intangibles(2,990)(2,890)(5,321)(5,685)
Litigation settlement-related charges— (30,627)— (30,627)
Operating expense on a non-GAAP basis$299,303 $259,182 $582,537 $510,148 
Operating income on a GAAP basis$275,018 $195,908 $548,130 $429,640 
Stock-based compensation expense136,803 121,966 256,062 234,176 
Amortization of purchased intangibles4,062 4,075 7,067 8,016 
Litigation settlement-related charges— 30,627 — 30,627 
Operating income on a non-GAAP basis$415,883 $352,576 $811,259 $702,459 
Operating margin on a GAAP basis29.6 %24.8 %30.3 %27.8 %
Stock-based compensation expense14.7 15.5 14.1 15.1 
Amortization of purchased intangibles0.5 0.5 0.4 0.5 
Litigation settlement-related charges— 3.9 — 2.0 
Operating margin on a non-GAAP basis44.8 %44.7 %44.8 %45.4 %
Net income on a GAAP basis$273,429 $200,309 $534,365 $428,499 
Stock-based compensation expense136,803 121,966 256,062 234,176 
Amortization of purchased intangibles4,062 4,075 7,067 8,016 
Litigation settlement-related charges— 30,627 — 30,627 
Income tax effect on non-GAAP adjustments(6)
(26,882)(23,572)(38,945)(40,085)
Net income on a non-GAAP basis$387,412 $333,406 $758,549 $661,234 
Diluted net income per share on a GAAP basis$1.66 $1.19 $3.22 $2.56 
Stock-based compensation expense0.83 0.73 1.54 1.40 
Amortization of purchased intangibles0.02 0.02 0.04 0.05 
Litigation settlement-related charges— 0.18 — 0.18 
Income tax effect on non-GAAP adjustments(6)
(0.16)(0.13)(0.23)(0.24)
Diluted net income per share on a non-GAAP basis$2.35 $1.99 $4.57 $3.95 
________________________
(6) For the three and six months ended July 31, 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.
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