Summary
Veeva closed fiscal 2025 with steady top-line expansion and much faster profit growth. Fourth quarter total revenues were $720.9 million, up 14.3% year over year, and fiscal year revenues reached $2.75 billion, up 16.2%. Gross profit was $539.9 million in the quarter, up 18.2%, and $2.05 billion for the fiscal year, up 21.4%. Operating income was $188.4 million in the quarter, up 39.3%, and $691.4 million for the fiscal year, up 61.0%. Net income was $195.6 million in the quarter, up 32.7%, and $714.1 million for the fiscal year, up 35.8%. Diluted EPS for the fiscal year was $4.32, up 34.2%.
Margins expanded. Fourth quarter gross margin was 74.9%, up from the prior-year quarter, and fiscal year gross margin was 74.5%, up from the prior fiscal year. Operating margin was 26.1% in the quarter, up from the prior-year quarter, and 25.2% for the fiscal year, up from the prior fiscal year. On a non-GAAP basis, fourth quarter operating income was $307.7 million, up 29%, and non-GAAP net income was $287.9 million, up 27%. Fiscal year non-GAAP operating income was $1,152.3 million, up 37%, and non-GAAP net income was $1,090.4 million, up 38%. Non-GAAP diluted EPS was $1.74 in the quarter and $6.60 for the fiscal year.
Cash generation improved. Fourth quarter operating cash flow was $69.5 million, up 20.4%, and fiscal year operating cash flow was $1.09 billion, up 19.6%. Deferred revenue, current portion only, was $1.27 billion at January 31, 2025, up 21.4% year over year. Veeva ended the year with 1,477 total customers, including 1,125 in R&D Solutions and 730 in Commercial Solutions. The December release of Vault CRM included the full functionality of Veeva CRM and new capabilities, with more than 50 customers live on Vault CRM and eight customers migrated from Veeva CRM. Campaign Manager launched in the quarter after Service Center became available in August. Quality Cloud added 41 new customers and more than 20 existing customers expanded. The fourth top 20 biopharma selected Veeva Safety, and the second top 20 biopharma went live with Veeva Safety in February. A top 20 biopharma took a full Clinical Platform approach, adding six major clinical applications at once in one of Veeva's largest subscription orders ever.
Veeva split guidance between the next quarter and the full fiscal year. For the fiscal first quarter ending April 30, 2025, the company guided to non-GAAP operating income between $307 and $309 million and non-GAAP fully diluted net income per share between $1.74 and $1.75. For the fiscal year ending January 31, 2026, guidance is non-GAAP operating income of about $1,300 million and non-GAAP fully diluted net income per share of approximately $7.32. Veeva also set revenue targets for both periods, but it did not provide GAAP targets for operating income and fully diluted earnings per share because items excluded from non-GAAP results, such as stock-based compensation expense, cannot be reasonably predicted. CFO Brian Van Wagener said execution remains strong and momentum is broad across product areas.
The company lists numerous risks. Veeva cites product performance, availability, security and privacy issues; competitive factors; customer decisions and priorities; and life sciences industry developments, including regulatory, funding, or policy changes. Macroeconomic and geopolitical events also matter, including inflationary pressures, changes in interest rates, changes in trade policy or practices, currency exchange fluctuations, and geopolitical conflicts. The company also flags its ability to hire, retain, and adequately compensate talented employees. In the 10-K, management notes that many R&D applications serve smaller, earlier-stage, pre-commercial companies, and some may not reach commercialization. Veeva presents customer counts net of attrition. Those factors, along with the need to estimate standalone selling prices and acquisition-related intangible values, remain key watch items for future periods.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $720.9M | $699.2M | +3.1% | $630.6M | +14.3% |
| Gross profit | $539.9M | $524.8M | +2.9% | $456.7M | +18.2% |
| Gross margin | 74.9% | 75.1% | -0.2 pp | 72.4% | +2.5 pp |
| Research & development | $181.5M | $172.4M | +5.3% | $163.6M | +11.0% |
| Sales & marketing | $99.2M | $98.7M | +0.5% | $99.2M | -0.0% |
| General & administrative | $70.7M | $72.4M | -2.2% | $58.7M | +20.6% |
| Total operating expenses | $351.5M | $343.5M | +2.3% | $321.4M | +9.3% |
| Operating income (loss) | $188.4M | $181.4M | +3.9% | $135.3M | +39.3% |
| Operating margin | 26.1% | 25.9% | +0.2 pp | 21.4% | +4.7 pp |
| Net income (loss) | $195.6M | $185.8M | +5.3% | $147.4M | +32.7% |
| Net margin | 27.1% | 26.6% | +0.6 pp | 23.4% | +3.8 pp |
| Diluted EPS | $1.18 | $1.13 | +$0.05 | $0.90 | +$0.28 |
| Customers | 1,477 | 1,205 | +22.6% | 1,432 | +3.1% |
Risks
Veeva is migrating Veeva CRM customers from the Salesforce platform to Vault CRM and does not intend to renew its Salesforce agreement when the current term expires on September 1, 2025. Salesforce is developing a life sciences CRM with IQVIA, and a large Veeva CRM customer has committed to purchasing Salesforce CRM, which may cause customer losses and disruptions.
IQVIA will not consent to customers uploading its healthcare professional or organization data to Veeva Network and has restricted use in Veeva Nitro, and has stated it will deny all requests for new IQVIA data types in Veeva applications, including real world data, real world evidence, and genomics. These restrictions have negatively affected sales and customer adoption of Veeva Network and OpenData.
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 those products. China's CAC denied certain Veeva CRM customers' data transfer approval requests, and some customers have chosen other CRM providers; a U.S. DOJ final rule effective April 8, 2025 will limit certain sensitive data transfers to China and other designated countries.
Nearly all revenues come from life sciences customers, and the industry faces accelerated consolidation, drug pricing reforms such as the Inflation Reduction Act, government funding reductions, and reductions in sales representatives. These factors could reduce demand for Veeva CRM and other Commercial Solutions.
Veeva recently began incorporating AI capabilities into certain solutions, exposing it to new or enhanced regulatory scrutiny, reputational harm, and legal liability if AI outputs are perceived as inaccurate or biased. Evolving rules such as the EU AI Act may require significant changes to AI use or increased compliance costs.
Sales cycles for new customers can span 12 months or longer, and Veeva has recently experienced increased scrutiny for certain potential projects, particularly professional services offerings. If cycles lengthen or pursuit of unsuccessful opportunities increases, operating results and growth would be harmed.
Top 10 customers accounted for 28% of total revenues in the fiscal year ended January 31, 2025, unchanged from 28% in the prior fiscal year but down from 29% in fiscal 2023. Loss or nonrenewal of key customers could slow revenue growth or cause revenues to decline.
Uncertain macroeconomic and geopolitical factors, including inflation, interest rate changes, tariffs, and geopolitical conflicts such as the Russian invasion of Ukraine and the regional conflict in the Middle East, may cause instability and disrupt life sciences industry spending. These conditions could delay or reduce customer IT spending.
Historic growth rates are not indicative of future performance, and total revenue growth rates have declined in the past and may decline again. Total revenues grew 16% in fiscal 2025, 10% in fiscal 2024, and 16% in fiscal 2023, while subscription services revenues grew 20%, 10%, and 17%, respectively; increasing costs may pressure profitability.
The effective tax rate increased to 22.3% for fiscal 2025 from 10.6% for fiscal 2024, primarily due to reduced excess tax benefits from equity compensation after CEO stock option exercises in the prior year. Global tax reforms such as OECD Pillar Two could further affect the effective tax rate and cash flows.
Competition for highly skilled employees is intense, and Veeva has experienced and expects to continue experiencing difficulty hiring and retaining qualified employees. If equity award values decline or compensation changes are poorly received, attrition could harm growth prospects.
Veeva has been defending trade secret misappropriation claims by IQVIA since January 2017 and is in discussions with a non-practicing entity regarding alleged patent infringement. These matters could result in significant expenses, damages, or restrictions on offering services.
SaaS KPIs
All quarters →Total Customers
Non-GAAP Operating Margin
Commercial Solutions customers
R&D Solutions customers
Summary, forecast, risks and KPIs are extracted from VEEVA SYSTEMS INC's SEC filings for Q4 FY2025 (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.