01—Abstract
Summary
Summary of the 10-Q filed November 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Veeva Systems Inc. reported results for its third quarter of fiscal 2026, the three and nine months ended October 31, 2025.
Total revenues for the quarter were $811.2 milliona, up from $699.2 million a year earlier, and subscription services revenues were $682.5 million compared with $580.9 million. For the nine months, total revenues were $2.36 billion versus $2.03 billion. Operating income for the quarter was $240.9 million, compared with $181.4 million, and net income was $236.2 million, or $1.40 per diluted share, versus $185.8 million and $1.13 per diluted share a year earlier.
Net cash provided by operating activities for the nine months was $1.31 billionb, compared with $1.02 billion, which the company attributes to higher sales and cash collections and the impact of the One Big Beautiful Bill Act (OBBBA). The balance sheet strengthened over the period. Cash, cash equivalents, and short-term investments totaled $6.6 billion as of October 31, 2025, and deferred revenue declined to $822.5 million from $1.27 billion at January 31, 2025, consistent with the company's seasonality, as the first fiscal quarter is typically its strongest for collections.
Stockholders' equity rose to $7.04 billionc. The company settled all ongoing litigation with IQVIA on August 13, 2025, with neither party paying damages. Litigation settlement-related charges totaled $30.6 million for the nine months.
The filing highlights risks tied to the migration of Veeva CRM customers to Vault CRM. The Salesforce agreement expired September 1, 2025, and a wind-down period runs through September 1, 2030, during which Veeva may not sell Salesforce-platform applications to new customers. Management also notes competitive pressure from Salesforce in CRM and rising costs for data and computing infrastructure in subscription services.
02—Key points
Key Highlights
- Total revenues for the three months ended October 31, 2025 were $811.2 million, up from $699.2 million, with subscription services revenues of $682.5 million compared with $580.9 million.
- Net income for the quarter was $236.2 million, or $1.40 per diluted share, compared with $185.8 million, or $1.13 per diluted share, in the prior-year quarter.
- Operating income for the quarter was $240.9 million, compared with $181.4 million, and the effective tax rate rose to 24.5% from 23.3%, primarily due to the indirect effects of the OBBBA.
- Cash, cash equivalents, and short-term investments totaled $6.6 billion as of October 31, 2025, with net cash provided by operating activities of $1.31 billion for the nine months.
- Deferred revenue was $822.5 million as of October 31, 2025, down from $1.27 billion at January 31, 2025, reflecting the company's seasonal billing pattern.
- Veeva settled all ongoing litigation with IQVIA on August 13, 2025, with neither party paying damages and all claims and counterclaims dismissed.
- The Salesforce agreement for Veeva CRM expired September 1, 2025, and a wind-down period runs through September 1, 2030, during which Veeva may not sell Salesforce-platform applications to new customers.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Veeva Systems kept $0.29.
- Revenue$811.2M100.0%
- Cost of revenue−$199.5M24.6%
- Gross profit$611.8M75.4%
- Operating costs−$370.9M45.7%
- Operating income$240.9M29.7%
- Interest, other & tax−$4.7M0.6%
- Net income$236.2M29.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 21, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $811.24M$699.21M | +16.0% |
| Cost of Revenue | $199.47M$174.39M | +14.4% |
| Gross Profit | $611.77M$524.82M | +16.6% |
| R&D Expenses | $191.88M$172.41M | +11.3% |
| Operating Expenses | $370.92M$343.46M | +8.0% |
| Operating Income | $240.85M$181.35M | +32.8% |
| Net Income | $236.20M$185.81M | +27.1% |
| EPS (Basic) | $1.44$1.15 | +25.2% |
| EPS (Diluted) | $1.40$1.13 | +23.9% |
| Shares Outstanding (Basic) | 164.05M161.99M | +1.3% |
| Shares Outstanding (Diluted) | 168.94M164.98M | +2.4% |
05—Questions
Frequently Asked Questions
How did Veeva's revenue and profitability trend in the third quarter of fiscal 2026?
Total revenues rose to $811.2 million from $699.2 million, and subscription services revenues rose to $682.5 million from $580.9 million. Operating income increased to $240.9 million from $181.4 million, and net income increased to $236.2 million from $185.8 million. Diluted net income per share was $1.40, compared with $1.13 a year earlier.
What drove the growth in subscription services revenue?
The company attributed $63 million of the quarterly subscription services revenue increase to R&D Solutions and $39 million to Commercial Solutions. Growth was primarily driven by existing customers expanding their use of Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud, with some contribution from annual inflation price adjustments.
How is the company's liquidity position?
As of October 31, 2025, cash, cash equivalents, and short-term investments totaled $6.6 billion, of which $74 million was held outside the United States. Net cash provided by operating activities was $1.31 billion for the nine months, and management believes existing resources will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months.
What are the main risks related to the Veeva CRM to Vault CRM migration?
The filing notes that migrating customers requires time and expense, may cause outages or performance problems, and could lead some customers to choose competitors. Salesforce, the primary CRM competitor, has announced that certain large Veeva CRM customers have committed to purchasing its CRM solutions. Veeva CRM will be supported until September 1, 2030.
Has the IQVIA litigation been resolved?
Yes. On August 13, 2025, Veeva and IQVIA entered into a settlement agreement resolving all ongoing litigation between them. Neither party paid damages to the other, and all claims and counterclaims were dismissed. The company recorded litigation settlement-related charges of $30.6 million for the nine months ended October 31, 2025.
06—Continue