TLDR
- Veeva stock surged over 20% after strong Q1 earnings.
- Revenue hit $759 million, exceeding guidance.
- Non-GAAP operating margin reached 46%.
- Vault CRM added over 80 new customers.
- Macro risks remain but growth outlook is positive.
Veeva Systems Inc. (NYSE: VEEV) shares soared over 20% to above $280 as of 2:41 PM EDT following its robust Q1 2026 earnings report released on May 28, 2025.
The company’s total revenue reached $759 million, up from $650 million a year ago, and net income jumped from $162 million to $228 million. Veeva’s momentum comes amid favorable tech-sector trends and investor enthusiasm for AI-driven growth.
Thoughts on Veeva Earnings Report $VEEV:
🟢 Positive
•Revenue rose to $759.0M, up +16.7% YoY, beating estimates by 4.3%
•EPS (non-GAAP) reached $1.97, exceeding estimates by 13.2%
•Subscription revenue grew to $634.8M, up +18.9% YoY, with a gross margin of 88.1%
•Net margin… pic.twitter.com/opT2fs31Cs— Sergey (@SergeyCYW) May 29, 2025
Strong Revenue and Operational Efficiency
Veeva surpassed its revenue guidance, achieving a total of $759 million for the quarter. Its non-GAAP operating margin hit an impressive 46%, reflecting strong operational discipline. The company confirmed it met its $3 billion revenue run rate goal for calendar 2025, reinforcing its solid market position.
Vault CRM, Veeva’s next-generation customer relationship management platform, has already onboarded over 80 customers, with plans to reach 200 by next year. Crossix, part of Veeva’s commercial segment, continues to shine with more than 30% year-over-year growth, signaling strong demand in healthcare analytics.
AI Initiatives Fuel Growth Potential
A key highlight this quarter was the successful rollout of Veeva AI. The initiative is positioned to reshape workflows and efficiencies across the life sciences industry. Management reported positive early results, hinting at long-term benefits and competitive advantages.
Market analysts are increasingly bullish on Veeva’s growth prospects. Forecasts suggest revenue could reach $3.9 billion and earnings could hit $1.1 billion by 2028, driven by AI integration and pharma sector consolidation.
Macroeconomic Challenges and Risks
Despite its strong Q1, Veeva acknowledged macro risks. The uncertain U.S. political environment and potential funding constraints in the small biopharma market could impact future projects. Large pharmaceutical clients may adopt conservative spending approaches, which could slow near-term deal activity.
The company also noted that its horizontal CRM initiative remains in early stages, requiring more development before it can contribute significantly to growth. Some customers continue to prefer custom solutions, creating migration challenges for Veeva’s platform.
Stock Performance and Market Outlook
Veeva has significantly outperformed broader indices, boasting a 40.67% one-year return compared to the S&P 500’s 12.05%. Over the past three years, it delivered a total shareholder return of 39.71%, highlighting its resilience. The recent share price surge brings Veeva close to the analyst consensus target of $262.35, with room for upside as confidence in growth projections builds.
While current valuations carry an 11.3% discount to analyst targets, Veeva’s execution and product momentum suggest further gains may be ahead. Investors are watching closely to see if the company can sustain this trajectory amid broader market uncertainties.
