Summary
Veeva closed fiscal 2026 with fourth quarter revenue of $836.0 million, up 16% from $720.9 million a year earlier. Full year revenue was $3,195.3 million, up 16% from $2,746.6 million. The MD&A attributes subscription growth mainly to expanding use by existing customers, along with annual price adjustments on Commercial Cloud and Development Cloud products. Veeva ended the year with 1,552 customers, net of attrition, including 1,196 in R&D and Quality Solutions and 767 in Commercial Solutions.
Profitability scaled faster than the top line. Fourth quarter gross profit was $622.5 million, up 15.3%, while gross margin slipped to 74.5% from 74.9%. Operating income rose 30% to $245.9 million, and operating margin reached 29.4%, up from 26.1%. Net income was $244.2 million, up 25% from $195.6 million. Non-GAAP results moved too: operating income of $366.5 million, up 19%, net income of $346.1 million, up 20%, and diluted earnings per share of $2.06 against $1.74.
The full year follows the same shape. Gross margin was 75.5%, up 1.0 percentage point from 74.5%, and operating margin was 28.7%, up 3.5 percentage points from 25.2%. Full year operating income was $916.4 million, up 33%, net income was $908.9 million, up 27%, and diluted earnings per share was $5.44 against $4.32.
Cash generation accelerated. Fourth quarter operating cash flow was $106.8 million, up 53.6% from $69.5 million, and the full year figure was $1,415.2 million, up 29.8% from $1,090.1 million. The MD&A credits the annual increase to higher collections and to the One Big Beautiful Bill Act, which restored immediate expensing of certain domestic research and development costs. Deferred revenue, current portion only, was $1.49 billion at January 31, 2026, up 16.9% from $1.27 billion a year earlier. In January 2026 the board authorized up to $2 billion of share repurchases over two years, and fiscal 2026 buybacks totaled 801,735 shares for about $180 million.
The product story carries the momentum. Vault CRM is live at more than 125 customers, including two top 20 biopharmas in major markets, and 10 top 20 biopharmas have committed to it globally. Management expects about 14 of the top 20 to commit over time. The first Veeva AI Agents for CRM and commercial content shipped in December, several customers are live on them, and more agents are planned across other application areas during 2026. In clinical, a top 20 biopharma named Veeva RTSM its enterprise standard, safety recorded a sixth top 20 win, and Veeva LIMS stays on track for a first top 20 biopharma go-live at two manufacturing sites in 2026.
Guidance for the fiscal first quarter ending April 30, 2026 calls for non-GAAP operating income of $378 million to $381 million and non-GAAP diluted earnings per share of $2.13 to $2.14. For the full fiscal year ending January 31, 2027, Veeva guides to non-GAAP operating income of about $1,590 million and non-GAAP diluted earnings per share of approximately $8.85. The company gives no GAAP targets for operating income or earnings per share because it cannot reasonably predict items such as stock-based compensation, and the effect of those excluded items may be significant. Management repeated its goal of a $6 billion revenue run rate by 2030.
Risks in the filing are broad. They include product performance, availability, security, and privacy issues; competitive factors; customer decisions and priorities; life sciences developments such as regulatory, funding, or policy changes; and macroeconomic and geopolitical events, including trade policy shifts, inflation, currency movement, interest rates, and geopolitical conflicts. Hiring and retention also carry risk. The company notes that many of its R&D applications are used by smaller, earlier-stage, pre-commercial companies, some of which may not reach the commercialization stage.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $836.0M | $811.2M | +3.0% | $720.9M | +16.0% |
| Gross profit | $622.5M | $611.8M | +1.7% | $539.9M | +15.3% |
| Gross margin | 74.5% | 75.4% | -1.0 pp | 74.9% | -0.4 pp |
| Research & development | $198.8M | $191.9M | +3.6% | $181.5M | +9.5% |
| Sales & marketing | $110.2M | $110.6M | -0.3% | $99.2M | +11.1% |
| General & administrative | $67.6M | $68.5M | -1.3% | $70.7M | -4.4% |
| Total operating expenses | $376.6M | $370.9M | +1.5% | $351.5M | +7.1% |
| Operating income (loss) | $245.9M | $240.9M | +2.1% | $188.4M | +30.5% |
| Operating margin | 29.4% | 29.7% | -0.3 pp | 26.1% | +3.3 pp |
| Net income (loss) | $244.2M | $236.2M | +3.4% | $195.6M | +24.8% |
| Net margin | 29.2% | 29.1% | +0.1 pp | 27.1% | +2.1 pp |
| Diluted EPS | $1.46 | $1.40 | +$0.06 | $1.18 | +$0.28 |
Risks
Salesforce's platform agreement for Veeva CRM expired on September 1, 2025, and during the wind-down period ending September 1, 2030 we may not sell to new customers and seat expansion is capped at 150% of seats as of September 1, 2025; Salesforce announced certain large Veeva CRM customers committed to purchasing its CRM solutions and a number of customers informed us of intent to move to Salesforce as their CRM provider.
Veeva AI initiative adds AI across major areas and faces risks of reputational harm and liability if perceived as impacting privacy, security, or efficacy; evolving regulations like the EU AI Act and state laws may require significant changes to our use of AI and increase research and development or compliance costs.
Nearly all revenues are generated by sales to customers in the life sciences industry; factors such as drug pricing reforms in the Inflation Reduction Act, proposed drug pricing limits, reductions in funding or staffing of FDA, NIH, and Medicaid, and consolidation within the industry could reduce demand for our solutions.
Uncertain macroeconomic and geopolitical factors, including changes in trade policies and imposition or threatened imposition of tariffs, worldwide inflationary pressures, currency exchange fluctuations, and geopolitical conflicts like the Russian invasion of Ukraine and the conflict in the Middle East, may cause instability in the global economy and disruptions within the life sciences industry that negatively impact our business.
Data privacy and protection regulations are increasingly complex, including the EU Data Act effective September 12, 2025, which allows EU customers to cancel subscriptions without cause upon notice and after a transition period, and the U.S. DOJ final rule limiting transfers of certain personal data to entities in China; noncompliance could lead to significant fines and reduced demand.
In each of fiscal years ended January 31, 2026, 2025, and 2024, our top 10 customers accounted for 28% of total revenues, and the loss of one or more key customers, or failure to renew or expand user subscriptions, could slow revenue growth or cause revenues to decline.
Sales cycles for new customers may span 12 months or longer and are lengthy and difficult to predict, and we have experienced increased scrutiny for certain potential projects, particularly for professional services offerings, which may continue for the foreseeable future; if sales cycles lengthen, operating results and growth would be harmed.
Competition for highly skilled employees is intense, and we have experienced and expect to continue to experience difficulty in hiring and retaining employees with the appropriate qualifications; our Work Anywhere policy may make it challenging or more costly to maintain employee productivity and collaboration over the long term.
Our effective tax rate increased to 23.9% for fiscal year ended January 31, 2026 from 22.3% for fiscal year ended January 31, 2025, primarily due to indirect effects of the One Big Beautiful Bill Act; additional changes in tax laws, such as the OECD Pillar Two global minimum tax framework, could materially affect our tax rate.
We are aware of a non-practicing entity alleging that we infringed its patents, and competitors have asserted trade secret misappropriation claims against us in the past; such claims could require us to pay substantial damages or ongoing royalties, prevent us from offering services, or require unfavorable terms.
In January 2026, our board authorized a share repurchase program of up to $2 billion; repurchasing shares reduces cash available for working capital, acquisitions, or other uses, and the program may not enhance long-term stockholder value if our stock price declines below repurchase levels.
Changes in deferred revenue, calculated billings, or normalized billings are not precise indicators of underlying business momentum or future revenues because many customers are billed quarterly and changes in renewal dates or billing frequency can affect deferred revenue; any decline in these metrics could adversely affect our stock price.
SaaS KPIs
All quarters →Total Customers
Non-GAAP Operating Margin
Commercial Solutions customers
Summary, forecast, risks and KPIs are extracted from VEEVA SYSTEMS INC's SEC filings for Q4 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.