VEEV Q2 Earnings & Revenues Beat Estimates, Margin Rises, Stock Up

Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $1.99 for the second quarter of fiscal 2026, which increased 22.8% from the year-ago figure of $1.62. Adjusted EPS beat the Zacks Consensus Estimate by 4.74%.GAAP EPS in the fiscal second quarter was $1.19, up 14.4% from the year-ago period’s $1.04.VEEV’s Revenue DetailsIn the quarter under review, the company’s revenues totaled $789.1 million, beating the Zacks Consensus Estimate by 2.8%. On a year-over-year basis, the top line improved 16.7%.The fiscal second-quarter top line was driven by Veeva Systems’ robust segmental performance.Segmental Analysis of VEEVVeeva Systems derives revenues from two operating segments — Subscription services and Professional services and other.In the fiscal second quarter, Subscription services revenues improved 17.4% from the year-ago quarter to $659.2 million. Per management, this uptick was driven by both its established and newer solutions. Our estimate for fiscal second-quarter revenues was $649 million.Professional services and other revenues were up 13% year over year to $129.9 million. Our estimate for fiscal second-quarter revenues was $118.2 million.Q2 Margin Performance by VEEVIn the quarter under review, Veeva Systems’ gross profit improved 17.4% year over year to $593.8 million. The gross margin expanded 50 basis points (bps) to 75.3%. We predicted 73.3% of gross margin for the fiscal second quarter.Sales and marketing expenses increased 7.8% year over year to $109.4 million. Research and development (R&D) expenses rose 9.2% year over year to $192.7 million, while general and administrative expenses increased 56.1% to $95.8 million. Total operating expenses of $397.9 million increased 17.3% year over year.Operating profit totaled $195.9 million, which increased 17.7% from the prior-year quarter. The operating margin in the fiscal second quarter expanded 20 bps to 24.8%. We predicted a 25.1% operating margin for the fiscal second quarter.Veeva Systems Inc. Price, Consensus and EPS Surprise Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. QuoteVEEV’s Financial PositionThe company exited second-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $6.40 billion compared with $6.07 billion at the fiscal first-quarter end.Cumulative net cash provided by operating activities at the end of the quarter was $1.12 billion compared with $856.4 million a year ago.Guidance Provided by VEEVVeeva Systems has issued its updated financial outlook for fiscal 2026 and provided estimates for the third quarter of fiscal 2026.For the fiscal third quarter, the company expects total revenues between $790 million and $793 million. The Zacks Consensus Estimate is currently pegged at $777.5 million.Subscription revenues are estimated to be approximately $671 million and the same for Professional services and other is expected in the range of $119-$122 million for the fiscal third quarter.For the fiscal third quarter, adjusted EPS is anticipated to be in the range of $1.94-$1.95. The Zacks Consensus Estimate is pegged at $1.88.Veeva Systems now expects revenues for fiscal 2026 between $3,134 million and $3,140 million compared with the previous guidance of $3,090 million and $3,100 million. The Zacks Consensus Estimate is currently pegged at $3.1 billion.For fiscal 2026, Subscription revenues are now expected to be approximately $2,657 million compared with the previous guidance of $2,625 million. This consists of Commercial Solutions’ subscription revenues of around $1,246 million and R&D Solutions’ subscription revenues of approximately $1,411 million.Professional services and other revenues for fiscal 2026 are now expected to be between $477 million and $483 million.Adjusted EPS for fiscal 2026 is now expected to be $7.78 compared with the previous guidance of $7.63. The Zacks Consensus Estimate is pegged at $7.64.Our Take on Veeva’s Q1 ResultsVeeva Systems exited the first quarter of fiscal 2026 with better-than-expected results, wherein both earnings and revenues beat their respective consensus estimate. The uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptrend in Professional services and others’ revenues also bodes well. Shares of the company gained 2.4% at yesterday’s market closing. The stock gained 39.7% in the year-to-date period compared with the industry and the S&P 500’s growth of 24.9% and 9.8%, respectively.Image Source: Zacks Investment ResearchPer management, Veeva Systems continues to advance its strategy with the integration of industry-specific artificial intelligence, which is set to bring measurable benefits to customers. Veeva AI, which includes agentic AI in the Vault Platform and application agents across the company’s suite, is progressing rapidly. The first Veeva AI agents are planned for release in December for CRM and commercial content, with further expansion into clinical operations, regulatory, safety, quality, medical and commercial in 2026. Clinical data applications are targeted for 2027, indicating a clear roadmap to deliver long-term value to the life sciences industry.The fiscal second quarter also marked significant milestones for the Vault CRM Suite, which is now scaling effectively across global markets. Two top 20 biopharmas went live with Vault CRM during the quarter, bringing the total number of live customers to more than 100. In August, Veeva Systems secured its seventh top 20 biopharma customer for Vault CRM as its commercial foundation. The company also broadened its CRM Suite with the release of Patient CRM, while early adopters are already live on Campaign Manager and Service Center, highlighting the platform’s growing adoption and expanding use cases.Veeva Systems further strengthened its position as a foundation for drug development and quality in the fiscal second quarter. Another top 20 biopharma adopted its clinical operations solutions, including Veeva eTMF, Study Startup and Site Connect, while two others chose Submissions, Submissions Archive and Registrations. With these wins, all top 20 biopharmas now use Veeva eTMF, 19 have selected Veeva QualityDocs and 18 have adopted Veeva Submissions. Additionally, Veeva Systems announced a long-term global partnership with IQVIA on Aug. 18, resolving all pending legal disputes and enabling joint customers to use both companies’ products and services more seamlessly across commercial and clinical functions.VEEV’s Zacks Rank and Stocks to ConsiderVEEV carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.Revenues of $603.3 million surpassed the consensus mark by 11.5%. Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks