Veeva Systems (VEEV 3.02%), a leading provider of cloud software and data solutions for the life sciences industry, delivered its fiscal second quarter 2026 earnings on Aug. 27, 2025. The standout headline was GAAP revenue of $789.1 million, up 17.0% from the previous year, exceeding the analysts' estimate of $768.45 million. Non-GAAP earnings per share reached $1.99, beating consensus, and Non-GAAP earnings per share grew 22.8% year over year. Profit margins (non-GAAP) improved in Q2 FY2026, with non-GAAP operating margin hitting 44.7%. Performance this quarter reflected robust customer adoption and strong results across both commercial and research and development product lines.
| Metric | Q2 fiscal 2026 (Three months ended July 31, 2025) | Q2 fiscal 2025 (Three months ended July 31, 2024) | Y/Y Change |
|---|---|---|---|
| EPS (Non-GAAP) | $1.99 | $1.62 | 22.8% |
| Revenue (GAAP) | $789.1 million | $676.2 million | 16.7 % |
| Operating Income (Non-GAAP) | $352.6 million | $279.8 million | 26.0 % |
| Net Income (Non-GAAP) | $333.4 million | $267.3 million | 24.7 % |
| Operating Margin (Non-GAAP) | 44.7 % | 41.4 % | 3.3 pp |
| Free Cash Flow (Non-GAAP) | $225.4 million | $91.7 million | 145.8 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report.
Business Overview and Strategic Position
Veeva Systems provides specialized cloud and data platforms for life sciences firms. Its core focus is helping pharmaceutical, biotechnology, and medical device companies manage research data, regulatory needs, marketing, and patient relationships -- all within a secure, compliant environment. By building software specifically for the unique regulatory and operational challenges these companies face, Veeva has become a key technology partner to firms across the healthcare sector.
Recently, Veeva has concentrated on deepening its integrated product suite and expanding into next-generation technologies like artificial intelligence (AI) and advanced data analytics. The company’s Vault platform brings together research, quality, and commercial workflows on a single cloud-based foundation. Critical to its strategy are continued investment in innovation, comprehensive compliance, and maintaining strong customer relationships, notably with the world’s top twenty pharmaceutical companies.
Quarterly Highlights: Financial Results and Operational Progress
The latest quarter saw Veeva outperform expectations across all major metrics. Total revenue rose 17% from the prior year. Subscription services generated $659.2 million (GAAP), and subscription services revenue was up 17% year over year, reflecting steady growth in both commercial and research offerings. R&D Solutions subscription revenue reached $351.7 million (GAAP), up 21.5% year over year. Commercial Solutions subscription revenue reached $307.5 million (GAAP).
Non-GAAP operating income rose 26% to $352.6 million, with non-GAAP net income up 25.0%. The company’s non-GAAP operating margin widened by 3.3 percentage points, reaching 44.7%. Cash generation remained strong. Net cash provided by operating activities on a non-GAAP basis was $225.4 million, up 145.8% year over year, supporting further product investment and a cash balance of over $1.93 billion at quarter's end.
From a product perspective, Veeva continued its transition to Vault CRM (customer relationship management) solutions. This product family comprises cloud-based tools that manage real-world customer engagement and commercial data across global pharmaceutical operations. Two top twenty biopharma companies deployed Vault CRM in major markets, lifting the total customer count to more than 100. Early clients are now running new specialized modules, such as Patient CRM, Campaign Manager, and Service Center.
R&D Solutions products deepened their foothold among leading pharmaceutical firms. All top twenty biopharma companies have selected Veeva’s eTMF (electronic trial master file). The majority also rely on its QualityDocs platform to handle quality management and regulatory paperwork, further boosting the stickiness of its ecosystem across the drug development lifecycle.
The period also included major steps in Veeva's broader data and AI strategy. Management announced the upcoming release of its first “AI agent” tools -- automated assistants embedded within its CRM and commercial content platforms, planned for December 2025. Additional AI features for regulatory, safety, and medical use cases are scheduled for 2026, while new data products for clinical analytics are set to follow in 2027. These timelines show the company’s commitment to pushing AI capabilities specific to life sciences needs.
Expense management remained a mixed picture. Research and development (R&D) costs (GAAP) grew 9.2% year over year. General and administrative (G&A) expenses (GAAP) saw a 56% rise year over year, to $95.8 million, largely due to a one-time $30.6 million litigation charge (GAAP). Excluding this item, G&A expense growth would have still been notable at 25% year over year. Professional services -- project-based consulting and implementation revenue -- remains lower margin than subscription revenue, with a GAAP gross margin of 21.9%, although this too improved from the prior period.
A key development was the resolution of its ongoing legal dispute with IQVIA, a major healthcare data provider, and the announcement of a new global partnership in August 2025. This agreement allows joint customers to integrate both companies’ offerings, reducing friction and potentially creating new sales opportunities.
Looking Ahead: Guidance and Areas to Watch
For the upcoming third quarter, management has guided toward revenue of $790–$793 million, with non-GAAP earnings per share expected between $1.94 and $1.95. For the full year, the outlook calls for revenue of $3,134 to $3,140 million, non-GAAP operating income of about $1,388 million, and non-GAAP fully diluted earnings per share near $7.78. These targets represent sustained double-digit growth and continued investment, especially in AI-powered products and vertical-specific cloud applications.
Looking forward, several factors will shape Veeva’s trajectory. timely launches of new AI products. The competitive landscape remains active, especially after Salesforce and IQVIA’s recent moves in the sector. Veeva’s ability to maintain revenue growth, deliver innovation, and keep operating costs in check will be central to its performance in the quarters ahead.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
