Summary
Veeva Systems reported fiscal 2026 second quarter revenue of $789.1 million, up 16.7% year over year. Gross profit rose 17.4% to $593.8 million. Operating income increased 17.7% to $195.9 million. Net income was $200.3 million, up 17.1%, and diluted EPS came in at $1.19, up 14.4%. Gross margin was 75.3%, up 0.5 percentage points, and operating margin was 24.8%, up 0.2 percentage points. The year-to-date trend looks similar. Revenue for the six months ended July 31, 2025 was $1.55 billion, up 16.7%, and net income was $428.5 million, up 28.8%. Diluted EPS for the year to date was $2.56, up 26.7%. On a non-GAAP basis, second quarter operating income was $352.6 million, up 26%, non-GAAP net income was $333.4 million, up 25%, and non-GAAP diluted EPS was $1.99. Subscription services carried most of the quarter. Growth came from existing customers expanding their use of Veeva Development Cloud and Veeva Quality Cloud products, plus annual inflation adjustments, while Commercial Solutions advanced on broader use of Veeva Commercial Cloud and Veeva Data Cloud.
Cash generation stood out. Operating cash flow for the quarter was $238.4 million, up 156.7% year over year, and operating cash flow for the six months ended July 31, 2025 was $1.12 billion, up 30.3%. Deferred revenue, current portion, was $1.11 billion, up 15.8% year over year. Management cautioned that the first quarter is seasonally the strongest for cash inflows and said operating cash flow should be substantially less in the remaining quarters of the fiscal year. The One Big Beautiful Bill Act is expected to lift operating cash flow for the fiscal year ending January 31, 2026, though the company said it cannot estimate the amounts.
Guidance for the fiscal third quarter ending October 31, 2025 includes non-GAAP operating income of $348 to $350 million and non-GAAP fully diluted net income per share of $1.94 to $1.95. For the full fiscal year ending January 31, 2026, Veeva guided non-GAAP operating income of about $1,388 million and non-GAAP fully diluted net income per share of approximately $7.78. The company also issued revenue guidance for both periods, but did not give GAAP targets for operating income or EPS because items such as stock-based compensation are hard to predict.
Product news centered on AI and Vault CRM. The first Veeva AI agents are planned for release in December for CRM and commercial content. New agents for clinical operations, regulatory, safety, quality, medical, and commercial are planned for 2026, with clinical data targeted for 2027. Vault CRM now has more than 100 customers live, and two top 20 biopharmas went live with it in major markets during the quarter. In August, a seventh top 20 biopharma committed to Vault CRM as its commercial foundation. Veeva also released Patient CRM, and early customers are live on Campaign Manager and Service Center. In clinical and quality, another top 20 biopharma selected Veeva eTMF, Study Startup, and Site Connect, while two top 20 biopharmas selected Veeva Submissions, Submissions Archive, and Registrations. All top 20 biopharmas have now selected Veeva eTMF, 19 of the top 20 have selected QualityDocs, and 18 of the top 20 have selected Submissions. Veeva and IQVIA announced a long-term global partnership and resolved all pending legal disputes in August, letting joint customers use both vendors' products together across commercial and clinical.
Risks include product performance, availability, security, or privacy problems; competitive pressure; shifting customer priorities; life sciences developments such as regulatory, funding, or policy changes; macroeconomic and geopolitical events including trade policy, inflation, currency swings, interest rates, and conflicts; and the ability to hire, retain, and pay employees. The quarter also carried a litigation settlement-related charge that drove general and administrative expenses higher, and the effective tax rate rose on indirect effects of the OBBBA, partly offset by larger excess tax benefits from equity compensation.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $789.1M | $759.0M | +4.0% | $676.2M | +16.7% |
| Gross profit | $593.8M | $585.2M | +1.5% | $505.8M | +17.4% |
| Gross margin | 75.3% | 77.1% | -1.8 pp | 74.8% | +0.5 pp |
| Research & development | $192.7M | $184.0M | +4.7% | $176.4M | +9.2% |
| Sales & marketing | $109.4M | $98.6M | +11.0% | $101.5M | +7.8% |
| General & administrative | $95.8M | $68.8M | +39.2% | $61.4M | +56.1% |
| Total operating expenses | $397.9M | $351.5M | +13.2% | $339.3M | +17.3% |
| Operating income (loss) | $195.9M | $233.7M | -16.2% | $166.5M | +17.7% |
| Operating margin | 24.8% | 30.8% | -6.0 pp | 24.6% | +0.2 pp |
| Net income (loss) | $200.3M | $228.2M | -12.2% | $171.0M | +17.1% |
| Net margin | 25.4% | 30.1% | -4.7 pp | 25.3% | +0.1 pp |
| Diluted EPS | $1.19 | $1.37 | -$0.18 | $1.04 | +$0.15 |
| Customers | 1,388 | 1,388 | ±0.0% | 1,205 | +15.2% |
Risks
Veeva has begun migrating Veeva CRM customers to Vault CRM and does not intend to renew its Salesforce platform agreement after September 1, 2025; under the wind-down, it may not sell Salesforce-platform applications to new customers after that date. Certain customers have chosen or may choose competitor CRM solutions, and Salesforce has announced certain large Veeva CRM customers committed to purchasing its CRM solutions.
Veeva is in discussions with a non-practicing entity regarding alleged patent infringement and has faced competitor trade secret misappropriation claims. General and administrative expenses for the quarter ended July 31, 2025 increased $34 million, primarily due to $31 million in litigation settlement-related charges.
Nearly all revenues come from life sciences customers, exposing Veeva to drug pricing reforms such as the Inflation Reduction Act and the May 12, 2025 Executive Order, government funding and staffing changes, and industry consolidation. These factors could reduce demand for Veeva solutions.
Washington's My Health My Data Act required Veeva to modify Crossix audience segments, which may reduce demand for Crossix products. In China, certain Veeva CRM customers had data-transfer approval requests denied by the CAC and some customers have chosen other CRM providers; China is approximately 2% of total revenue.
Veeva AI adds AI across clinical, regulatory, safety, quality, medical, and commercial offerings, creating risks of reputational harm, regulatory scrutiny, liability, and reduced adoption if users lose confidence in AI outputs. Evolving rules such as the EU AI Act may require changes or limit AI use.
Sales cycles can span 12 months or longer, and Veeva recently experienced increased scrutiny for certain potential projects, particularly professional services offerings, which may continue for the foreseeable future.
Top 10 customers accounted for 28% of total revenues in fiscal year ended January 31, 2025, and loss or non-renewal by a key customer could slow revenue growth or cause revenues to decline.
SaaS KPIs
All quarters →Total Customers
Non-GAAP Operating Margin
Non-GAAP Gross Margin
Vault CRM Customers Live
Non-GAAP Subscription Gross Margin
Summary, forecast, risks and KPIs are extracted from VEEVA SYSTEMS INC's SEC filings for Q2 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.