Veeva Announces Fiscal 2026 Third Quarter Results
Total Revenues of $811.2M, up 16% Year Over Year
Subscription Services Revenues of $682.5M, up 17% Year Over Year
PLEASANTON, Calif., Nov. 20, 2025 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarter ended October 31, 2025.
"Continuing to lead through innovation, Veeva AI delivers on our vision for industry-specific AI that will help the life sciences industry reach new levels of productivity and customer centricity," said CEO Peter Gassner. "Veeva AI is advancing rapidly and our early adopter projects are demonstrating the clear value in deep, specialized AI agents running in Veeva applications."
Fiscal 2026 Third Quarter Results:
"Our third quarter results and increased full-year guidance demonstrate the broad-based strength we see across the business," said CFO Brian Van Wagener. "We are executing well against the large opportunity ahead and are on track toward our 2030 $6 billion revenue run-rate goal."
Recent Highlights:
Financial Outlook:
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2026 as follows:
Veeva is providing updated guidance for its fiscal year ending January 31, 2026 as follows:
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, November 20, 2025, and a replay of the call will be available on Veeva's investor relations website.
What:
Veeva Systems Fiscal 2026 Third Quarter Results Conference Call
When:
Thursday, November 20, 2025
Time:
2:00 p.m. PT (5:00 p.m. ET)
Online Registration:
https://registrations.events/direct/Q4I997064577
Webcast:
ir.veeva.com
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" below for details.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth fiscal quarter ending January 31, 2026 or the fiscal year ending January 31, 2026 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, data, and business consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance, provided as of November 20, 2025, about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 33 and 34 in our filing on Form 10-Q for the period ended July 31, 2025 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
Investor Relations Contact:
Media Contact:
Gunnar Hansen
Maria Scurry
Veeva Systems Inc.
Veeva Systems Inc.
267-460-5839
781-366-7617
ir@veeva.com
pr@veeva.com
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31,
2025
January 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 1,660,137
$ 1,118,785
Short-term investments
4,977,164
4,031,442
Accounts receivable, net
314,227
1,016,356
Unbilled accounts receivable
57,549
40,761
Prepaid expenses and other current assets
102,777
101,458
Total current assets
7,111,854
6,308,802
Property and equipment, net
66,117
55,912
Deferred costs, net
25,304
26,383
Lease right-of-use assets
73,839
63,863
Goodwill
439,877
439,877
Intangible assets, net
32,650
44,460
Deferred income taxes
286,966
343,919
Other long-term assets
60,544
56,540
Total assets
$ 8,097,151
$ 7,339,756
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 32,671
$ 30,447
Accrued compensation and benefits
41,485
39,429
Accrued expenses and other current liabilities
31,707
35,557
Income tax payable
6,020
9,024
Deferred revenue
822,466
1,273,978
Lease liabilities
10,529
9,969
Total current liabilities
944,878
1,398,404
Deferred income taxes
367
587
Long-term lease liabilities
79,267
65,806
Other long-term liabilities
32,008
42,586
Total liabilities
1,056,520
1,507,383
Stockholders' equity:
Common stock
2
2
Additional paid-in capital
2,911,418
2,386,192
Accumulated other comprehensive income (loss)
9,914
(8,416)
Retained earnings
4,119,297
3,454,595
Total stockholders' equity
7,040,631
5,832,373
Total liabilities and stockholders' equity
$ 8,097,151
$ 7,339,756
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended October
31,
Nine months ended October
31,
2025
2024
2025
2024
Revenues:
Subscription services (3)
$ 682,498
$ 580,850
$ 1,976,449
$ 1,676,082
Professional services and other (4)
128,738
118,357
382,911
349,651
Total revenues
811,236
699,207
2,359,360
2,025,733
Cost of revenues (5):
Cost of subscription services
94,171
82,638
266,347
239,577
Cost of professional services and other
105,294
91,751
302,195
279,068
Total cost of revenues
199,465
174,389
568,542
518,645
Gross profit
611,771
524,818
1,790,818
1,507,088
Operating expenses (5):
Research and development
191,883
172,411
568,593
511,551
Sales and marketing
110,552
98,695
318,619
297,524
General and administrative
68,483
72,359
233,113
195,001
Total operating expenses
370,918
343,465
1,120,325
1,004,076
Operating income
240,853
181,353
670,493
503,012
Other income, net
71,933
60,937
206,478
171,239
Income before income taxes
312,786
242,290
876,971
674,251
Income tax provision
76,583
56,482
212,269
155,738
Net income
$ 236,203
$ 185,808
$ 664,702
$ 518,513
Net income per share:
Basic
$ 1.44
$ 1.15
$ 4.06
$ 3.21
Diluted
$ 1.40
$ 1.13
$ 3.96
$ 3.15
Weighted-average shares used to compute net income per share:
Basic
164,049
161,987
163,676
161,707
Diluted
168,935
164,979
167,953
164,838
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments
$ 12,283
$ (738)
$ 18,350
$ 5,576
Net change in cumulative foreign currency translation loss
(372)
(146)
(20)
(1,398)
Comprehensive income
$ 248,114
$ 184,924
$ 683,032
$ 522,691
(3) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions
$ 317,650
$ 278,377
$ 930,584
$ 811,503
Veeva R&D Solutions
364,848
302,473
1,045,865
864,579
Total subscription services
$ 682,498
$ 580,850
$ 1,976,449
$ 1,676,082
(4) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions
$ 47,457
$ 45,855
$ 141,727
$ 139,695
Veeva R&D Solutions
81,281
72,502
241,184
209,956
Total professional services and other
$ 128,738
$ 118,357
$ 382,911
$ 349,651
(5) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services
$ 1,842
$ 1,696
$ 5,498
$ 4,892
Cost of professional services and other
14,789
12,929
42,362
38,640
Research and development
52,791
48,014
154,128
138,741
Sales and marketing
24,509
21,214
72,222
67,928
General and administrative
26,337
34,006
80,234
71,945
Total stock-based compensation
$ 120,268
$ 117,859
$ 354,444
$ 322,146
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine months ended October
31,
2025
2024
Cash flows from operating activities
Net income
$ 664,702
$ 518,513
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
29,654
29,451
Reduction of lease right-of-use assets
9,405
8,348
Accretion of discount on short-term investments
(6,613)
(20,442)
Stock-based compensation
354,444
322,146
Amortization of deferred costs
12,173
11,507
Deferred income taxes
50,185
(91,231)
Other, net
(562)
(465)
Changes in operating assets and liabilities:
Accounts receivable
701,016
595,940
Unbilled accounts receivable
(16,788)
(9,107)
Deferred costs
(11,094)
(10,106)
Prepaid expenses and other current and long-term assets
(6,810)
1,354
Accounts payable
3,190
424
Accrued expenses and other current liabilities
(3,260)
(10,240)
Income tax payable
(3,004)
(1,059)
Deferred revenue
(466,118)
(321,090)
Lease liabilities
(6,170)
(7,131)
Other long-term liabilities
4,028
3,695
Net cash provided by operating activities
1,308,378
1,020,507
Cash flows from investing activities
Purchases of short-term investments
(2,386,193)
(2,206,521)
Maturities and sales of short-term investments
1,471,683
1,537,874
Long-term assets
(22,102)
(15,799)
Net cash used in investing activities
(936,612)
(684,446)
Cash flows from financing activities
Proceeds from exercise of common stock options
239,996
65,104
Taxes paid related to net share settlement of equity awards
(71,281)
(59,800)
Net cash provided by financing activities
168,715
5,304
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
871
(1,346)
Net change in cash, cash equivalents, and restricted cash
541,352
340,019
Cash, cash equivalents, and restricted cash at beginning of period
1,120,963
706,670
Cash, cash equivalents, and restricted cash at end of period
$ 1,662,315
$ 1,046,689
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans
$ 23,302
$ 5,160
Non-GAAP Financial Measures
In Veeva's public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva's management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)
Three months ended October
31,
Nine months ended October
31,
2025
2024
2025
2024
Net cash provided by operating activities on a GAAP basis
$ 192,787
$ 164,117
$ 1,308,378
$ 1,020,507
Excess tax benefits from employee stock plans
(7,692)
(898)
(23,302)
(5,160)
Net cash provided by operating activities on a non-GAAP basis
$ 185,095
$ 163,219
$ 1,285,076
$ 1,015,347
Net cash used in investing activities on a GAAP basis
$ (495,233)
$ (298,226)
$ (936,612)
$ (684,446)
Net cash provided by financing activities on a GAAP basis
$ 32,646
$ 12,960
$ 168,715
$ 5,304
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)
Three months ended October
31,
Nine months ended October
31,
2025
2024
2025
2024
Cost of subscription services revenues on a GAAP basis
$ 94,171
$ 82,638
$ 266,347
$ 239,577
Stock-based compensation expense
(1,842)
(1,696)
(5,498)
(4,892)
Amortization of purchased intangibles
(1,046)
(1,043)
(3,104)
(3,265)
Cost of subscription services revenues on a non-GAAP basis
$ 91,283
$ 79,899
$ 257,745
$ 231,420
Gross margin on subscription services revenues on a GAAP basis
86.2 %
85.8 %
86.5 %
85.7 %
Stock-based compensation expense
0.3
0.3
0.3
0.3
Amortization of purchased intangibles
0.1
0.1
0.2
0.2
Gross margin on subscription services revenues on a non-GAAP basis
86.6 %
86.2 %
87.0 %
86.2 %
Cost of professional services and other revenues on a GAAP basis
$ 105,294
$ 91,751
$ 302,195
$ 279,068
Stock-based compensation expense
(14,789)
(12,929)
(42,362)
(38,640)
Amortization of purchased intangibles
(138)
(139)
(411)
(412)
Cost of professional services and other revenues on a non-GAAP basis
$ 90,367
$ 78,683
$ 259,422
$ 240,016
Gross margin on professional services and other revenues on a GAAP basis
18.2 %
22.5 %
21.1 %
20.2 %
Stock-based compensation expense
11.5
10.9
11.1
11.1
Amortization of purchased intangibles
0.1
0.1
0.1
0.1
Gross margin on professional services and other revenues on a non-GAAP basis
29.8 %
33.5 %
32.3 %
31.4 %
Gross profit on a GAAP basis
$ 611,771
$ 524,818
$ 1,790,818
$ 1,507,088
Stock-based compensation expense
16,631
14,625
47,860
43,532
Amortization of purchased intangibles
1,184
1,182
3,515
3,677
Gross profit on a non-GAAP basis
$ 629,586
$ 540,625
$ 1,842,193
$ 1,554,297
Gross margin on total revenues on a GAAP basis
75.4 %
75.1 %
75.9 %
74.4 %
Stock-based compensation expense
2.1
2.1
2.0
2.1
Amortization of purchased intangibles
0.1
0.1
0.2
0.2
Gross margin on total revenues on a non-GAAP basis
77.6 %
77.3 %
78.1 %
76.7 %
Research and development expense on a GAAP basis
$ 191,883
$ 172,411
$ 568,593
$ 511,551
Stock-based compensation expense
(52,791)
(48,014)
(154,128)
(138,741)
Amortization of purchased intangibles
—
(29)
—
(85)
Research and development expense on a non-GAAP basis
$ 139,092
$ 124,368
$ 414,465
$ 372,725
Three months ended October
31,
Nine months ended October
31,
2025
2024
2025
2024
Sales and marketing expense on a GAAP basis
$ 110,552
$ 98,695
$ 318,619
$ 297,524
Stock-based compensation expense
(24,509)
(21,214)
(72,222)
(67,928)
Amortization of purchased intangibles
(2,610)
(3,544)
(8,295)
(10,558)
Sales and marketing expense on a non-GAAP basis
$ 83,433
$ 73,937
$ 238,102
$ 219,038
General and administrative expense on a GAAP basis
$ 68,483
$ 72,359
$ 233,113
$ 195,001
Stock-based compensation expense
(26,337)
(34,006)
(80,234)
(71,945)
Amortization of purchased intangibles
—
(57)
—
(170)
Litigation settlement-related charges
—
—
(30,627)
(5,000)
General and administrative expense on a non-GAAP basis
$ 42,146
$ 38,296
$ 122,252
$ 117,886
Operating expense on a GAAP basis
$ 370,918
$ 343,465
$ 1,120,325
$ 1,004,076
Stock-based compensation expense
(103,637)
(103,234)
(306,584)
(278,614)
Amortization of purchased intangibles
(2,610)
(3,630)
(8,295)
(10,813)
Litigation settlement-related charges
—
—
(30,627)
(5,000)
Operating expense on a non-GAAP basis
$ 264,671
$ 236,601
$ 774,819
$ 709,649
Operating income on a GAAP basis
$ 240,853
$ 181,353
$ 670,493
$ 503,012
Stock-based compensation expense
120,268
117,859
354,444
322,146
Amortization of purchased intangibles
3,794
4,812
11,810
14,490
Litigation settlement-related charges
—
—
30,627
5,000
Operating income on a non-GAAP basis
$ 364,915
$ 304,024
$ 1,067,374
$ 844,648
Operating margin on a GAAP basis
29.7 %
25.9 %
28.4 %
24.8 %
Stock-based compensation expense
14.8
16.9
15.0
15.9
Amortization of purchased intangibles
0.5
0.7
0.5
0.8
Litigation settlement-related charges
—
—
1.3
0.2
Operating margin on a non-GAAP basis
45.0 %
43.5 %
45.2 %
41.7 %
Net income on a GAAP basis
$ 236,203
$ 185,808
$ 664,702
$ 518,513
Stock-based compensation expense
120,268
117,859
354,444
322,146
Amortization of purchased intangibles
3,794
4,812
11,810
14,490
Litigation settlement-related charges
—
—
30,627
5,000
Income tax effect on non-GAAP adjustments (6)
(15,155)
(20,160)
(55,240)
(57,598)
Net income on a non-GAAP basis
$ 345,110
$ 288,319
$ 1,006,343
$ 802,551
Diluted net income per share on a GAAP basis
$ 1.40
$ 1.13
$ 3.96
$ 3.15
Stock-based compensation expense
0.71
0.71
2.11
1.95
Amortization of purchased intangibles
0.02
0.03
0.07
0.09
Litigation settlement-related charges
—
—
0.18
0.03
Income tax effect on non-GAAP adjustments (6)
(0.09)
(0.12)
(0.33)
(0.35)
Diluted net income per share on a non-GAAP basis
$ 2.04
$ 1.75
$ 5.99
$ 4.87
________________________
(6)
For the three and nine months ended October 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%.
SOURCE Veeva Systems