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On Thursday, Raymond (NSE:RYMD) James analyst Brian Peterson adjusted the price target for Veeva Systems (NYSE:VEEV) shares, reducing it to $285 from the previous $300, while keeping an Outperform rating on the stock. The revision follows Veeva Systems’ announcement of a strong fourth quarter performance and a billings outlook for FY26 that exceeded market expectations, leading to a rise in the company’s shares after hours. According to InvestingPro data, analyst targets for the stock range from $195 to $320, with 10 analysts recently revising their earnings estimates upward for the upcoming period.
Peterson highlighted that the company’s broadening product suite is gaining traction with customers, particularly with significant deals in the Clinical and Quality domains. The analyst noted that while some of the billings growth was due to timing, the overall trend was positive. This performance is seen as a testament to Veeva Systems’ expanding influence in the market, supported by a robust 16.2% revenue growth in the last twelve months.
The management team at Veeva Systems expressed confidence in increased activity around their top 20 Vault CRM decisions for the year 2025, which is anticipated to bolster Commercial growth sentiment. This optimism comes at a time when the company is poised to benefit from its strong competitive position and a growing product portfolio. InvestingPro analysis reveals the company’s excellent financial health with a 74.53% gross profit margin and strong liquidity, maintaining a current ratio of 4.51. For deeper insights into Veeva’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Veeva Systems, known for its cloud-based software for the global life sciences industry, has been maintaining a margin profile of over 40%. Peterson’s remarks underline the company’s robust financial health and its ability to offer an attractive risk/reward balance for investors, even amidst challenging market conditions. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with additional ProTips highlighting its strong balance sheet and consistent profitability.
In other recent news, Veeva Systems Inc. reported impressive financial results for the fourth quarter of fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $1.74, exceeding the projected $1.58, while revenue reached $721 million, outpacing the forecast of $699.18 million. These results reflect Veeva’s strong execution of growth strategies and robust demand for its cloud-based solutions. Additionally, Veeva has set a target of $6 billion in revenue by 2030, supported by anticipated subscription growth. In terms of product innovation, Veeva introduced new AI-driven products like Veeva Pulse, demonstrating its commitment to expanding its market presence. Analysts from firms such as Baird and Barclays (LON:BARC) have shown interest in Veeva’s strategic moves, particularly in its clinical development and customer relationship management solutions. The company is also planning to invest further in research and development, particularly in expanding its Veeva Pulse product to additional countries.
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