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

Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarterended October31, 2025.

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“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 PeterGassner. “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:

— Revenues:Total revenues for the third quarter were $811.2 million, up from $699.2 millionone year ago, an increase of 16% year over year. Subscription services revenues for the third quarter were $682.5 million, up from $580.9 million one year ago, an increase of 17% year over year.

— Operating Income and Non-GAAP Operating Income:(1)Third quarter operating income was $240.9 million, compared to $181.4 million one year ago, an increase of 33% year over year. Non-GAAP operating income for the third quarter was $364.9 million, compared to $304.0 million one year ago, an increase of 20% year over year.

— Net Income and Non-GAAP Net Income:(1) Third quarter net income was $236.2 million, compared to $185.8 million one year ago, an increase of 27% year over year. Non-GAAP net income for the third quarter was $345.1 million, compared to $288.3 million one year ago, an increase of 20% year over year.

— Net Income per Share and Non-GAAP Net Income per Share:(1) For the third quarter, fully diluted net income per share was $1.40, compared to $1.13 one year ago, while non-GAAP fully diluted net income per share was $2.04, compared to $1.75 one year ago.

“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:

— Veeva AI Progress Continues and Reaches Key Milestones- Veeva AI is progressing rapidly with a focused strategy to deliver deep, industry-specific AI agents that will fundamentally transform productivity and execution for the life sciences industry. The first agents for CRM and commercial content are on track for release in early December, with R&D, quality, and additional commercial agents planned for 2026.

— Leading inCRM with Product Excellence and Customer Success- Veeva Vault CRM had a strong quarter, with 23 new customer additions and now has a total of 115 customers live. The quarter was marked by a significant top 20 biopharma rollout in Japan, demonstrating Vault CRM's depth and capability to handle global complexity. This adds to the success of two top 20 biopharmas live and successful across major regions.

— Early in a Large Development Cloud Opportunity to Transform R&D- Veeva made significant progress advancing Veeva Development Cloud, its largest go-forward opportunity in life sciences. Three top 20biopharmas selected Veeva Development Cloud applications as their enterprise standard in the quarter, including one each for Veeva Study Startup, Veeva Study Training, and Veeva Safety. In safety, the newest area in Development Cloud, the third top 20 biopharma went live in the quarter and Veeva advanced a number of key opportunities as the industry looks to Veeva to help modernize pharmacovigilance.

Financial Outlook:

Veeva is providing guidance for its fiscal fourth quarter ending January31, 2026 as follows:

— Total revenues between $807 and $810 million.

— Non-GAAP operating income of about $350 million.(2)

— Non-GAAP fully diluted net income per share of approximately $1.92.(2)

Veeva is providing updated guidance for its fiscal year ending January31, 2026 as follows:

— Total revenues between $3,166 and $3,169 million.

— Non-GAAP operating income of about $1,417 million.(2)

— Non-GAAP fully diluted net income per share of approximately $7.93.(2)

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 2:00p.m.PT today, November20, 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 CallWhen: Thursday, November 20, 2025Time: 2:00 p.m. PT (5:00 p.m. ET)Online Registration: https://registrations.events/direct/Q4I997064577Webcast: 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 January31, 2026 or the fiscal year ending January31, 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 November20, 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 July31, 2025which 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 ScurryVeeva Systems Inc. Veeva Systems Inc.267-460-5839 781-366-7617ir@veeva.com pr@veeva.comVEEVASYSTEMS INC.CONDENSED CONSOLIDATEDBALANCE SHEETS(In thousands)(Unaudited) October 31, January 31, 2025 2025AssetsCurrent assets:Cash and cash equivalents $ 1,660,137 $ 1,118,785Short-term investments 4,977,164 4,031,442Accounts receivable, net 314,227 1,016,356Unbilled accounts receivable 57,549 40,761Prepaid expenses and other current assets 102,777 101,458Total current assets 7,111,854 6,308,802Property and equipment, net 66,117 55,912Deferred costs, net 25,304 26,383Lease right-of-use assets 73,839 63,863Goodwill 439,877 439,877Intangible assets, net 32,650 44,460Deferred income taxes 286,966 343,919Other long-term assets 60,544 56,540Total assets $ 8,097,151 $ 7,339,756Liabilities and stockholders' equityCurrent liabilities:Accounts payable $ 32,671 $ 30,447Accrued compensation and benefits 41,485 39,429Accrued expenses and other current liabilities 31,707 35,557Income tax payable 6,020 9,024Deferred revenue 822,466 1,273,978Lease liabilities 10,529 9,969Total current liabilities 944,878 1,398,404Deferred income taxes 367 587Long-term lease liabilities 79,267 65,806Other long-term liabilities 32,008 42,586Total liabilities 1,056,520 1,507,383Stockholders' equity:Common stock 2 2Additional paid-in capital 2,911,418 2,386,192Accumulated other comprehensive income (loss) 9,914 (8,416)Retained earnings 4,119,297 3,454,595Total stockholders' equity 7,040,631 5,832,373Total liabilities and stockholders' equity $ 8,097,151 $ 7,339,756VEEVASYSTEMS INC.CONDENSEDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In thousands, except per share data)(Unaudited) Three months ended October Nine months ended October 31, 31, 2025 2024 2025 2024Revenues:Subscription services(3) $ 682,498 $ 580,850 $ 1,976,449 $ 1,676,082Professional services and other(4) 128,738 118,357 382,911 349,651Total revenues 811,236 699,207 2,359,360 2,025,733Cost of revenues(5):Cost of subscription services 94,171 82,638 266,347 239,577Cost of professional services and other 105,294 91,751 302,195 279,068Total cost of revenues 199,465 174,389 568,542 518,645Gross profit 611,771 524,818 1,790,818 1,507,088Operating expenses(5):Research and development 191,883 172,411 568,593 511,551Sales and marketing 110,552 98,695 318,619 297,524General and administrative 68,483 72,359 233,113 195,001Total operating expenses 370,918 343,465 1,120,325 1,004,076Operating income 240,853 181,353 670,493 503,012Other income, net 71,933 60,937 206,478 171,239Income before income taxes 312,786 242,290 876,971 674,251Income tax provision 76,583 56,482 212,269 155,738Net income $ 236,203 $ 185,808 $ 664,702 $ 518,513Net income per share:Basic $ 1.44 $ 1.15 $ 4.06 $ 3.21Diluted $ 1.40 $ 1.13 $ 3.96 $ 3.15Weighted-average shares used to compute net income per share:Basic 164,049 161,987 163,676 161,707Diluted 168,935 164,979 167,953 164,838Other comprehensive income:Net change in unrealized gain (loss) on available-for-sale investments $ 12,283 $ (738) $ 18,350 $ 5,576Net 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 $ 811,503Veeva R&D Solutions 364,848 302,473 1,045,865 864,579Total 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 $ 139,695Veeva R&D Solutions 81,281 72,502 241,184 209,956Total 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 $ 4,892Cost of professional services and other 14,789 12,929 42,362 38,640Research and development 52,791 48,014 154,128 138,741Sales and marketing 24,509 21,214 72,222 67,928General and administrative 26,337 34,006 80,234 71,945Total stock-based compensation $ 120,268 $ 117,859 $ 354,444 $ 322,146VEEVASYSTEMS INC.CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Nine months ended October 31, 2025 2024Cash flows from operating activitiesNet income $ 664,702 $ 518,513Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 29,654 29,451Reduction of lease right-of-use assets 9,405 8,348Accretion of discount on short-term investments (6,613) (20,442)Stock-based compensation 354,444 322,146Amortization of deferred costs 12,173 11,507Deferred income taxes 50,185 (91,231)Other, net (562) (465)Changes in operating assets and liabilities:Accounts receivable 701,016 595,940Unbilled accounts receivable (16,788) (9,107)Deferred costs (11,094) (10,106)Prepaid expenses and other current and long-term assets (6,810) 1,354Accounts payable 3,190 424Accrued 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 3,695Net cash provided by operating activities 1,308,378 1,020,507Cash flows from investing activitiesPurchases of short-term investments (2,386,193) (2,206,521)Maturities and sales of short-term investments 1,471,683 1,537,874Long-term assets (22,102) (15,799)Net cash used in investing activities (936,612) (684,446)Cash flows from financing activitiesProceeds from exercise of common stock options 239,996 65,104Taxes paid related to net share settlement of equity awards (71,281) (59,800)Net cash provided by financing activities 168,715 5,304Effect of exchange rate changes on cash, cash equivalents, and restricted cash 871 (1,346)Net change in cash, cash equivalents, and restricted cash 541,352 340,019Cash, cash equivalents, and restricted cash at beginning of period 1,120,963 706,670Cash, cash equivalents, and restricted cash at end of period $ 1,662,315 $ 1,046,689Supplemental 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.

— Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations,Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.

— Stock-based compensation expenses.Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva's management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.

— Amortization of purchased intangibles.Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva's management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva's revenues earned during the periods presented and will contribute to Veeva's future period revenues as well.

— Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.

— Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP 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.

VEEVASYSTEMS 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 Nine months ended October 31, 31, 2025 2024 2025 2024Net cash provided by operating activities on a GAAP basis $ 192,787 $ 164,117 $ 1,308,378 $ 1,020,507Excess 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 $ 1,015,347Net 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 $ 5,304Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) Three months ended October Nine months ended October 31, 31, 2025 2024 2025 2024Cost of subscription services revenues on a GAAP basis $ 94,171 $ 82,638 $ 266,347 $ 239,577Stock-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 $ 231,420Gross 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 0.3Amortization of purchased intangibles 0.1 0.1 0.2 0.2Gross 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 $ 279,068Stock-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 $ 240,016Gross 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 11.1Amortization of purchased intangibles 0.1 0.1 0.1 0.1Gross 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 $ 1,507,088Stock-based compensation expense 16,631 14,625 47,860 43,532Amortization of purchased intangibles 1,184 1,182 3,515 3,677Gross profit on a non-GAAP basis $ 629,586 $ 540,625 $ 1,842,193 $ 1,554,297Gross 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 2.1Amortization of purchased intangibles 0.1 0.1 0.2 0.2Gross 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 $ 511,551Stock-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 Nine months ended October 31, 31, 2025 2024 2025 2024Sales and marketing expense on a GAAP basis $ 110,552 $ 98,695 $ 318,619 $ 297,524Stock-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 $ 219,038General and administrative expense on a GAAP basis $ 68,483 $ 72,359 $ 233,113 $ 195,001Stock-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 $ 117,886Operating expense on a GAAP basis $ 370,918 $ 343,465 $ 1,120,325 $ 1,004,076Stock-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 $ 709,649Operating income on a GAAP basis $ 240,853 $ 181,353 $ 670,493 $ 503,012Stock-based compensation expense 120,268 117,859 354,444 322,146Amortization of purchased intangibles 3,794 4,812 11,810 14,490Litigation settlement-related charges – – 30,627 5,000Operating income on a non-GAAP basis $ 364,915 $ 304,024 $ 1,067,374 $ 844,648Operating margin on a GAAP basis 29.7% 25.9% 28.4% 24.8%Stock-based compensation expense 14.8 16.9 15.0 15.9Amortization of purchased intangibles 0.5 0.7 0.5 0.8Litigation settlement-related charges – – 1.3 0.2Operating 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 $ 518,513Stock-based compensation expense 120,268 117,859 354,444 322,146Amortization of purchased intangibles 3,794 4,812 11,810 14,490Litigation settlement-related charges – – 30,627 5,000Income 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 $ 802,551Diluted net income per share on a GAAP basis $ 1.40 $ 1.13 $ 3.96 $ 3.15Stock-based compensation expense 0.71 0.71 2.11 1.95Amortization of purchased intangibles 0.02 0.03 0.07 0.09Litigation settlement-related charges – – 0.18 0.03Income 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-GAAPtax rate of 21.0%.

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