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On Thursday, Evercore ISI’s analysts adjusted their outlook on Veeva Systems Inc. (NYSE:VEEV), raising the price target to $285 from the previous $240, while maintaining an In Line rating. According to InvestingPro data, Veeva currently trades at a P/E ratio of 53.14, suggesting a premium valuation. The company’s strong financial health score of "GREAT" and robust balance sheet, with more cash than debt, support this premium positioning. The revision follows Veeva’s reported first-quarter earnings, which exceeded market expectations with total revenue reaching $759.0 million, marking a 17% increase year-over-year and surpassing the anticipated $728.1 million. This performance was bolstered by the company’s diverse portfolio and notably by Crossix, a Veeva acquisition that specializes in healthcare marketing analytics.
Veeva Systems announced billings of $714 million for the quarter, which represented a 16% growth and exceeded the forecast of $680.5 million. The adjusted earnings per share (EPS) of $1.97 also outperformed the Street estimates of $1.79. InvestingPro analysis reveals impressive financial metrics, including a healthy gross profit margin of 74.53% and a strong current ratio of 4.51, indicating excellent liquidity management. For deeper insights into Veeva’s financial health and 10+ additional ProTips, consider exploring the comprehensive Pro Research Report. The company highlighted the usage-based segment of Crossix as a key contributor to its quarterly success, in addition to favorable deal timing and duration. Despite some uncertainty in the macroeconomic environment, Veeva has increased its full-year revenue forecast to approximately $3.095 billion, up from the previously estimated $3.047 billion, attributing much of this adjustment to Crossix’s performance and a more favorable foreign exchange environment.
Operational highlights from Veeva’s first quarter include a robust operating margin of 46.1%, significantly higher than the consensus estimate of 42.3%. This figure is also well above the company’s long-term target of 35%, primarily driven by revenue outperformance. Veeva’s customer base expansion was evident as it signed another top 20 biopharmaceutical company for its electronic Trial Master File (eTMF) solution. This brings the company closer to achieving full adoption among the top 20 biopharma companies, demonstrating Veeva’s competitive edge in the market.
Veeva’s Vault Customer Relationship Management (CRM) system continues to see accelerated adoption, with the number of live customers expected to increase from 80 to 200 by next year, including three top 20 biopharma companies. This growth trajectory aligns with the company’s impressive revenue CAGR of 20% over the past five years. InvestingPro subscribers can access detailed growth forecasts and valuation metrics to better understand Veeva’s market position and potential future performance through our comprehensive Pro Research Report, available for 1,400+ top US stocks. Additional commitments are expected in 2025. Furthermore, Veeva is preparing to enter the broader CRM market with a new horizontal offering. A limited release to select customers is anticipated by the end of calendar year 2025, signaling the company’s strategic move towards reinventing traditional enterprise CRM systems.
In other recent news, Veeva Systems reported impressive financial results for the first quarter of fiscal year 2026, exceeding analysts’ expectations. The company announced earnings per share of $1.97, surpassing the projected $1.74, while revenue reached $759 million, outstripping the anticipated $728.32 million. Veeva has raised its billings guidance for the year, indicating confidence in its growth trajectory, particularly in the Crossix segment, which has been a significant revenue driver. The company is optimistic about expanding its Vault CRM customer base and exploring potential AI licensing revenue. Analysts have noted Veeva’s strong operational execution, with firms like Baird highlighting the company’s robust performance in migrating customers to Vault CRM. Veeva’s leadership emphasized their commitment to AI, aiming to enhance life sciences efficiency significantly by 2030. Despite some macroeconomic uncertainties, Veeva’s long-term subscription contracts provide a stable foundation, and the company remains focused on strategic expansions and product innovation.
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