01—Abstract
Summary
Summary of the 10-Q filed August 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Veeva Systems Inc. reported results for the three and six months ended July 31, 2025 in this Form 10-Q.
Total revenues were $789.1 milliona for the quarter, up from $676.2 million, with subscription services revenue of $659.2 million (up from $561.3 million). Operating income was $195.9 million versus $166.5 million a year earlier, and net income was $200.3 million, or $1.19 diluted per share, compared with $171.0 million, or $1.04 per share. For the six months, total revenues were $1.55 billion and net income was $428.5 million.
Non-GAAP operating income for the quarter was $352.6 millionb, according to the non-GAAP reconciliation in the filing. Cash, cash equivalents and short-term investments totaled $6.4 billion as of July 31, 2025, and net cash provided by operating activities was $1.12 billion for the six months. Accounts receivable fell to $422.1 million from $1,016.4 million at January 31, 2025, reflecting seasonal collections, and deferred revenue declined to $1.11 billion from $1.27 billion.
The filing notes that the first fiscal quarter is seasonally the strongest for cash inflows. The effective tax rate rose to 24.5%c for the quarter, which the company attributes mainly to indirect effects of the One Big Beautiful Bill Act (OBBBA). The most notable event disclosed is a settlement agreement, dated August 13, 2025, that resolves all ongoing litigation between Veeva and IQVIA, with neither party paying damages.
As of July 31, 2025, the company had accrued approximately $31 milliond in success fees owed to law firms under the litigation fee arrangements, and general and administrative expenses for the quarter included $30.6 million in litigation settlement-related charges. The filing also discloses the planned wind-down of the Salesforce platform used for Veeva CRM, with Vault CRM migration underway and Salesforce support ending September 1, 2030, as well as continued risk of customer concentration, with the top 10 customers accounting for 28% of total revenues in fiscal 2025.
02—Key points
Key Highlights
- Total revenues of $789.1 million for the quarter ended July 31, 2025, up from $676.2 million, with subscription services revenue of $659.2 million, up from $561.3 million.
- GAAP net income of $200.3 million ($1.19 diluted EPS) for the quarter, versus $171.0 million ($1.04 diluted EPS) a year earlier; non-GAAP net income was $333.4 million ($1.99 diluted EPS).
- GAAP operating income of $195.9 million for the quarter, up from $166.5 million; non-GAAP operating income was $352.6 million, up from $279.8 million.
- Cash, cash equivalents and short-term investments totaled $6.4 billion at July 31, 2025, and operating cash flow for the six months was $1.12 billion, up from $856.4 million.
- General and administrative expenses rose to $95.8 million for the quarter, including $30.6 million in litigation settlement-related charges, following the August 13, 2025 settlement with IQVIA that ends all ongoing litigation between the parties.
- The effective tax rate increased to 24.5% for the quarter, primarily due to indirect effects of the One Big Beautiful Bill Act, partly offset by excess tax benefits from equity compensation.
- The company is migrating Veeva CRM customers to Vault CRM and does not intend to renew its Salesforce platform agreement, with the Salesforce-based CRM supported until September 1, 2030.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Veeva Systems kept $0.25.
- Revenue$789.1M100.0%
- Cost of revenue−$195.3M24.7%
- Gross profit$593.8M75.3%
- Operating costs−$397.9M50.4%
- Operating income$195.9M24.8%
- Interest, other & tax$4.4M0.6%
- Net income$200.3M25.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 29, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $789.08M$676.18M | +16.7% |
| Cost of Revenue | $195.25M$170.37M | +14.6% |
| Gross Profit | $593.83M$505.81M | +17.4% |
| R&D Expenses | $192.68M$176.43M | +9.2% |
| Operating Expenses | $397.92M$339.32M | +17.3% |
| Operating Income | $195.91M$166.49M | +17.7% |
| Net Income | $200.31M$171.04M | +17.1% |
| EPS (Basic) | $1.23$1.06 | +16.0% |
| EPS (Diluted) | $1.19$1.04 | +14.4% |
| Shares Outstanding (Basic) | 163.50M161.71M | +1.1% |
| Shares Outstanding (Diluted) | 167.69M164.56M | +1.9% |
05—Questions
Frequently Asked Questions
How did Veeva's revenue and profitability perform in the quarter ended July 31, 2025?
Total revenues rose 17% to $789.1 million from $676.2 million, led by subscription services, which grew to $659.2 million. Gross profit was $593.8 million and operating income was $195.9 million, compared with $166.5 million a year earlier. Net income was $200.3 million, or $1.19 per diluted share, versus $1.04 per diluted share a year earlier.
What is the impact of the IQVIA litigation settlement?
On August 13, 2025, Veeva and IQVIA settled all ongoing litigation, with neither party paying damages and all claims and counterclaims dismissed with prejudice. As of July 31, 2025, Veeva had accrued about $31 million owed to law firms under partial contingency fee arrangements, and the quarter's general and administrative expenses included $30.6 million in litigation settlement-related charges.
How strong is Veeva's balance sheet and cash position?
As of July 31, 2025, cash, cash equivalents and short-term investments totaled $6.4 billion, of which $79 million was held outside the United States. Total stockholders' equity was $6.64 billion, up from $5.83 billion at January 31, 2025, and the company has no debt listed on its balance sheet. Management believes existing cash and investments will be sufficient for working capital and capital expenditure needs for at least the next 12 months.
What are the main risks flagged in the filing?
The filing highlights customer concentration, with the top 10 customers at 28% of fiscal 2025 total revenues. It also cites competition from Salesforce and IQVIA in CRM, the migration of Veeva CRM customers to Vault CRM and the end of the Salesforce platform arrangement, dependence on third-party cloud providers such as Amazon Web Services and Salesforce, and evolving privacy and AI regulation.
How will the Salesforce platform change affect Veeva's CRM business?
Veeva does not intend to renew its agreement for the Salesforce platform, which currently powers Veeva CRM. During the wind-down period from September 1, 2025 to September 1, 2030, Veeva may not sell Salesforce-based applications to new customers, and existing customers' seats are capped at 150% of their September 1, 2025 levels. The company is migrating customers to Vault CRM, which it says involves time and expense and carries execution risk.
06—Continue