01—Abstract
Summary
Summary of the 10-Q filed June 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Veeva Systems Inc. reported results for the three months ended April 30, 2025, its first fiscal quarter of fiscal 2026.
Total revenues were $759.0 milliona, up from $650.3 million a year earlier (about 17%, as stated in the filing), driven by subscription services revenue of $634.8 million, up from $534.0 million. Operating income rose to $233.7 million from $155.2 million, and net income was $228.2 million, or $1.37 per diluted share, compared with $161.7 million, or $0.98 per diluted share, in the prior-year quarter. Non-GAAP diluted net income per share was $1.97, versus $1.50 a year earlier.
Net cash provided by operating activities was $877.2 millionb, and cash, cash equivalents and short-term investments totaled $6.1 billion as of April 30, 2025. The company continues its migration of Veeva CRM customers to Vault CRM. The filing states that Veeva does not intend to renew its Salesforce platform agreement, which expires September 1, 2025, followed by a wind-down period through September 1, 2030.
The filing also describes ongoing IQVIA litigation, with cross motions for summary judgment on IQVIA's trade secret claims pending and no ruling issued. On May 30, 2025, the company entered into a confidential settlement agreement with IQVIA in the separate California non-compete matter.
The filing notes that the company expects operating expenses, cost of subscription services and research and development expenses to increase in the near term, primarily due to employee compensation-related costs and hosting fees. The company also flags that the Tax Cuts and Jobs Act requirement to capitalize research and development expenditures is expected to reduce cash flows from operating activities in the fiscal year ending January 31, 2026.
02—Key points
Key Highlights
- Total revenues of $759.0 million, up from $650.3 million, with subscription services revenues of $634.8 million (84% of total revenues).
- Operating income of $233.7 million versus $155.2 million a year earlier; gross margin of 77% compared with 73% in the prior-year quarter.
- Net income of $228.2 million, or $1.37 diluted EPS, versus $161.7 million, or $0.98 diluted EPS; non-GAAP diluted EPS was $1.97 versus $1.50.
- Net cash provided by operating activities of $877.2 million, compared with $763.5 million in the prior-year quarter.
- Cash, cash equivalents and short-term investments totaled $6.1 billion as of April 30, 2025, with $66 million held outside the United States.
- Veeva CRM migration: the company does not intend to renew its Salesforce platform agreement expiring September 1, 2025, and is moving customers to Vault CRM.
- IQVIA litigation remains pending, with summary judgment motions on trade secret claims awaiting a ruling; a separate California non-compete matter with IQVIA was settled on May 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Veeva Systems kept $0.30.
- Revenue$759.0M100.0%
- Cost of revenue−$173.8M22.9%
- Gross profit$585.2M77.1%
- Operating costs−$351.5M46.3%
- Operating income$233.7M30.8%
- Interest, other & tax−$5.5M0.7%
- Net income$228.2M30.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed June 2, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $759.04M$650.35M | +16.7% |
| Cost of Revenue | $173.82M$173.88M | 0.0% |
| Gross Profit | $585.22M$476.46M | +22.8% |
| R&D Expenses | $184.03M$162.71M | +13.1% |
| Operating Expenses | $351.49M$321.29M | +9.4% |
| Operating Income | $233.73M$155.17M | +50.6% |
| Net Income | $228.19M$161.66M | +41.2% |
| EPS (Basic) | $1.40$1.00 | +40.0% |
| EPS (Diluted) | $1.37$0.98 | +39.8% |
| Shares Outstanding (Basic) | 162.75M161.42M | +0.8% |
| Shares Outstanding (Diluted) | 166.23M164.39M | +1.1% |
05—Questions
Frequently Asked Questions
How much did Veeva's revenue grow in the quarter?
Total revenues were $759.0 million for the three months ended April 30, 2025, compared with $650.3 million in the same period a year earlier, an increase of $109 million. The filing states this as approximately 17%. Subscription services revenue increased $101 million of that total growth, with R&D Solutions contributing $57 million and Commercial Solutions contributing $44 million of the subscription increase.
What drove the improvement in profitability?
Operating income rose to $233.7 million from $155.2 million, and gross profit increased to $585.2 million from $476.5 million. Total operating expenses grew to $351.5 million from $321.3 million, with research and development expense up $21 million mainly due to compensation-related costs. Other income, net also increased to $65.1 million from $51.7 million, primarily from higher interest income on larger cash balances.
What is the status of the Salesforce and Vault CRM transition?
The filing states that Veeva has begun migrating its Veeva CRM customers to Vault CRM, built on the Veeva Vault platform. Veeva does not intend to renew its Salesforce platform agreement when the current term expires on September 1, 2025. During the wind-down period through September 1, 2030, Veeva may not sell Salesforce-platform applications to new customers, and existing customers' Salesforce-platform seats may not exceed 150% of their September 1, 2025 levels. The filing notes that some customers have chosen competitors, including Salesforce, and that the migration could cause disruptions.
What are the main legal matters disclosed?
The IQVIA litigation, which began in 2017, includes IQVIA's trade secret claims against Veeva and Veeva's antitrust counterclaims seeking damages exceeding $200 million. Cross motions for summary judgment on the trade secret claims were heard in January 2025, and no ruling had been issued as of the filing. The company also disclosed a confidential settlement agreement with IQVIA dated May 30, 2025, resolving the California non-compete matter. The filing states the company is unable to estimate the amount or range of any gain or loss from the remaining IQVIA lawsuits.
What does the company expect for future costs and cash flows?
The filing states that Veeva expects operating expenses, cost of subscription services, and research and development expenses to increase in the near term, mainly due to employee compensation costs, hosting fees, and product investment. It also states that cash payments for income taxes related to the Tax Cuts and Jobs Act are expected to reduce operating cash flows in the fiscal year ending January 31, 2026, and that the company believes existing cash, cash equivalents and short-term investments will be sufficient for at least the next 12 months.
06—Continue