Summary
Veeva Systems reported fiscal 2026 first quarter total revenues of $759.0 million, up 17% from $650.3 million the year before. Gross profit rose 22.8% to $585.2 million, and gross margin climbed to 77.1% from 73.3%, a gain of 3.8 percentage points. Subscription services accounted for 84% of total revenues, so the mix stayed tilted toward recurring revenue. Management described the period as the company's best first quarter ever.
Profitability scaled quickly. Operating income rose 50.6% to $233.7 million and operating margin expanded to 30.8% from 23.9%. Net income reached $228.2 million, up 41.2%, while diluted earnings per share was $1.37, up 39.8% from $0.98. Stock-based compensation was $112.2 million in the quarter against $95.9 million a year earlier, the largest single gap between the GAAP and non-GAAP results. On a non-GAAP basis, operating income was $349.9 million compared with $260.9 million, an increase of 34%, and non-GAAP net income was $327.8 million, up 33%. Non-GAAP diluted earnings per share was $1.97 versus $1.50.
The quarter carried several operational milestones. Veeva crossed its $3 billion revenue run rate goal, a marker management tied to growth across Commercial and R&D Solutions. Veeva AI, a new initiative that embeds artificial intelligence into the company's applications and the Vault Platform, is slated for a first release in December 2025, with application-specific AI Agents and user-defined AI Shortcuts. More than 80 Vault CRM customers are live, and the company points to 200 Vault CRM customers live next year, including three top 20 biopharmas. Veeva also made Veeva CRM Pulse available in March, adding segmentation and targeting to its Data Cloud. The company served 1,477 customers as of January 31, 2025.
Guidance points to steady expansion. For the fiscal second quarter ending July 31, 2025, Veeva expects non-GAAP operating income between $335 million and $337 million and non-GAAP diluted net income per share between $1.89 and $1.90. For the full fiscal year ending January 31, 2026, the company guided non-GAAP operating income of about $1,360 million and non-GAAP diluted net income per share of approximately $7.63. Veeva also issued total revenue guidance for the second quarter and for the full fiscal year, but it does not provide GAAP targets for operating income or fully diluted net income per share because items such as stock-based compensation are hard to estimate.
Cash generation stayed strong. Operating cash flow was $877.2 million, up 14.9%. The company noted the first quarter is seasonally its strongest for cash inflows because of annual subscription billings, and it expects cash flows from operations to be substantially less in each of the remaining quarters. Deferred revenue was $1.25 billion, up 21.1% on the current portion only. Cash, cash equivalents, and short-term investments totaled $6.1 billion as of April 30, 2025, with $66 million held outside the United States.
The risk section reads the way it usually does for Veeva. It lists product performance, availability, security, and privacy issues, competitive factors, customer decisions and priorities, and life sciences industry developments such as regulatory, funding, or policy changes. It also flags macroeconomic and geopolitical events, including trade policy changes, inflation, currency swings, interest rate moves, and geopolitical conflicts, plus the ability to hire, retain, and compensate employees. Management expects R&D Solutions to grow as a larger share of revenue over time, which would shift both the mix and the growth profile.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $759.0M | $720.9M | +5.3% | $650.3M | +16.7% |
| Gross profit | $585.2M | $539.9M | +8.4% | $476.5M | +22.8% |
| Gross margin | 77.1% | 74.9% | +2.2 pp | 73.3% | +3.8 pp |
| Research & development | $184.0M | $181.5M | +1.4% | $162.7M | +13.1% |
| Sales & marketing | $98.6M | $99.2M | -0.6% | $97.3M | +1.4% |
| General & administrative | $68.8M | $70.7M | -2.7% | $61.3M | +12.3% |
| Total operating expenses | $351.5M | $351.5M | +0.0% | $321.3M | +9.4% |
| Operating income (loss) | $233.7M | $188.4M | +24.0% | $155.2M | +50.6% |
| Operating margin | 30.8% | 26.1% | +4.6 pp | 23.9% | +6.9 pp |
| Net income (loss) | $228.2M | $195.6M | +16.6% | $161.7M | +41.2% |
| Net margin | 30.1% | 27.1% | +2.9 pp | 24.9% | +5.2 pp |
| Diluted EPS | $1.37 | $1.18 | +$0.19 | $0.98 | +$0.39 |
| Customers | 1,388 | 1,477 | -6.0% | 1,205 | +15.2% |
Risks
Veeva recently announced Veeva AI, an initiative to add AI across clinical, regulatory, safety, quality, medical, and commercial applications. The filing warns this may lead to reputational harm, regulatory scrutiny under evolving regimes such as the EU AI Act, and significant compliance or development costs if AI use must be limited.
Veeva has begun migrating Veeva CRM customers to Vault CRM on its own Veeva Vault platform and does not intend to renew its Salesforce platform agreement after September 1, 2025. Salesforce is developing a life sciences CRM and has partnered with IQVIA, and the filing says a large Veeva CRM customer recently committed to purchasing Salesforce CRM solutions, while migration disruptions or customer losses could materially harm results.
IQVIA will not consent to customers uploading its healthcare professional or healthcare organization data to Veeva Network, has restricted use in Veeva Nitro, and has stated it will deny all customer requests for new IQVIA data types in Veeva applications, including real world data, real world evidence, and genomics. The filing says these restrictions have negatively affected sales and customer adoption and may continue to harm Veeva.
Veeva's top 10 customers accounted for 28%, 28%, and 29% of total revenues in fiscal years ended January 31, 2025, 2024, and 2023, respectively. The loss of one or more key customers, or their failure to renew or expand subscriptions, could significantly slow revenue growth or cause revenues to decline.
Nearly all of Veeva's revenues are from life sciences customers, exposing it to drug pricing reforms such as the Inflation Reduction Act, proposed reforms from the May 12, 2025 Executive Order, limits on direct-to-consumer advertising that could affect Crossix, and reductions in funding or staffing for FDA, NIH, and Medicaid. These policy changes could reduce demand for Veeva's solutions.
Total revenues grew 16%, 10%, and 16% in fiscal years ended January 31, 2025, 2024, and 2023, while subscription services revenues grew 20%, 10%, and 17%, respectively. The filing says growth rates have declined in the past and may decline in the future, and as costs increase Veeva may not sustain the same level of profitability achieved in the past.
Veeva has been defending against IQVIA's trade secret misappropriation assertions since January 2017 and is in discussions with a non-practicing entity relating to alleged patent infringement. The filing says such claims could require substantial damages, ongoing royalty payments, prevent Veeva from offering services, or force unfavorable terms.
The Washington My Health My Data Act became effective March 21, 2024, and Veeva made modifications to Crossix audience segments that may reduce demand for Crossix products. In China, certain Veeva CRM customers were denied CAC approval to transfer data outside China, and some customers have chosen other CRM providers, with China representing approximately 2% of total revenue.
The sales cycle for a new customer can span 12 months or longer, and Veeva has recently experienced increased scrutiny for certain potential projects, particularly for professional services offerings. The filing says this scrutiny may continue for the foreseeable future and could harm operating results and growth if sales cycles lengthen.
Uncertain macroeconomic and geopolitical factors, including changes in trade policies and tariffs, inflationary pressures, currency fluctuations, interest rate changes, geopolitical conflicts such as the Russian invasion of Ukraine and the Middle East conflict, and recession concerns may cause global economic instability. These factors could disrupt the life sciences industry and negatively impact Veeva's business, financial results, and stock price.
Deferred revenue current portion was $1.25 billion, up 21.1% versus the prior-year quarter, but the filing says changes in deferred revenue, calculated billings, or normalized billings are not precise indicators of underlying business momentum. Many large customers are billed quarterly, so a substantial portion of contract value may not appear in deferred revenue at quarter end.
SaaS KPIs
All quarters →Total Customers
Non-GAAP Operating Margin
Non-GAAP Operating Income
Vault CRM Customers Live
Summary, forecast, risks and KPIs are extracted from VEEVA SYSTEMS INC's SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.