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 , /PRNewswire/ -- 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.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. ___________ (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. 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 [email protected] [email protected] 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 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 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 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. 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 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%. 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