Veeva Systems falls despite earnings beat and raised guidance

Published 27/08/2025, 22:00
Veeva Systems falls despite earnings beat and raised guidance

Investing.com -- Veeva Systems Inc. (NYSE:VEEV) reported second-quarter earnings that exceeded analyst expectations, but shares tumbled 3.6% as investors appeared disappointed by the absence of a share buyback announcement.

The life sciences cloud software provider posted adjusted earnings per share of $1.99 for the quarter ended July 31, beating the analyst estimate of $1.90. Revenue came in at $789.1 million, surpassing the consensus estimate of $768.26 million and representing a 17% increase YoY.

"We delivered another strong quarter, with results for all metrics outperforming our guidance," said CFO Brian Van Wagener. "The business showed broad-based strength, reflecting our consistent execution and focus on customer success that will enable durable, long-term growth."

Subscription services revenue, which forms the core of Veeva’s business model, grew 17% YoY to $659.2 million. The company’s non-GAAP operating income increased 26% YoY to $352.6 million.

For the third quarter, Veeva forecasts revenue between $790 million and $793 million, above analyst expectations of $779.3 million. The company projects adjusted EPS of $1.94-$1.95, higher than the consensus estimate of $1.89.

Veeva also updated its full-year fiscal 2026 guidance, now expecting total revenue between $3,134 million and $3,140 million, with non-GAAP operating income of approximately $1,388 million.

The company highlighted several achievements during the quarter, including progress with its AI initiatives and significant milestones for its Vault CRM Suite. Veeva also announced a long-term global partnership with IQVIA, resolving all pending legal disputes between the companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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