01—Abstract
Summary
Summary of the 10-Q filed June 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Veeva Systems Inc. reported its first-quarter fiscal 2027 results (three months ended April 30, 2026) with total revenues of $882.9 milliona, up from $759.0 million a year earlier, and subscription revenues of $730.2 million, up from $634.8 million.
Operating income rose to $273.1 millionb from $233.7 million, and net income was $260.9 million compared with $228.2 million. Diluted net income per share was $1.57, versus $1.37 in the prior-year quarter. On a non-GAAP basis, operating income was $395.4 million and diluted non-GAAP EPS was $2.24, compared with $1.97 a year earlier.
Cash flow from operations was $1,127.1 millionc, compared with $877.2 million in the prior-year quarter, and the company cited increased sales and collections along with the One Big Beautiful Bill Act. Cash, cash equivalents and short-term investments totaled $7.3 billion at quarter end. During the quarter, Veeva repurchased 1,255,029 shares for about $221 million under a $2 billion authorization approved in January 2026, leaving $1.6 billion available.
The company also acquired Rise Healthcare Tech, Inc. (Ostro) on March 9, 2026, for $90 milliond in total consideration ($70 million net of cash acquired). The filing highlights several risks, including customer migration from Veeva CRM on Salesforce to Vault CRM, competition from Salesforce, concentration among key customers (top 10 customers accounted for 28% of fiscal 2026 revenues), and ongoing regulatory and data privacy exposure. Management also disclosed that it transitioned long-term employee equity grants from stock options to restricted stock units in April 2026.
02—Key points
Key Highlights
- Total revenues were $882.9 million, up 16% from $759.0 million, with subscription revenues up 15% to $730.2 million.
- GAAP operating income was $273.1 million versus $233.7 million, and GAAP net income was $260.9 million versus $228.2 million.
- Diluted GAAP EPS was $1.57 versus $1.37; non-GAAP diluted EPS was $2.24 versus $1.97.
- Net cash from operating activities was $1,127.1 million versus $877.2 million, with management citing the OBBBA tax impact and higher collections.
- Cash, cash equivalents and short-term investments totaled $7.3 billion as of April 30, 2026.
- Repurchased 1,255,029 shares for about $221 million; $1.6 billion remained under the $2 billion authorization.
- Acquired Ostro (Rise Healthcare Tech, Inc.) for $90 million in total consideration, recording $44.4 million of goodwill.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, Veeva Systems kept $0.30.
- Revenue$882.9M100.0%
- Cost of revenue−$220.9M25.0%
- Gross profit$662.0M75.0%
- Operating costs−$388.9M44.0%
- Operating income$273.1M30.9%
- Interest, other & tax−$12.2M1.4%
- Net income$260.9M29.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed June 5, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $882.95M$759.04M | +16.3% |
| Cost of Revenue | $220.92M$173.82M | +27.1% |
| Gross Profit | $662.02M$585.22M | +13.1% |
| R&D Expenses | $208.32M$184.03M | +13.2% |
| Operating Expenses | $388.91M$351.49M | +10.6% |
| Operating Income | $273.11M$233.73M | +16.8% |
| Net Income | $260.94M$228.19M | +14.4% |
| EPS (Basic) | $1.60$1.40 | +14.3% |
| EPS (Diluted) | $1.57$1.37 | +14.6% |
| Shares Outstanding (Basic) | 163.34M162.75M | +0.4% |
| Shares Outstanding (Diluted) | 165.99M166.23M | −0.1% |
05—Questions
Frequently Asked Questions
How did Veeva's revenue and profitability trend in the quarter?
Total revenues rose to $882.9 million from $759.0 million, driven by $95.4 million of subscription growth and $28.5 million of professional services growth. GAAP operating income increased to $273.1 million from $233.7 million, and gross margin was 75% versus 77% a year earlier, reflecting higher cost of professional services and subscription.
What drove the increase in cost of revenues?
Cost of professional services and other rose $26.3 million, primarily from employee compensation costs and higher headcount. Cost of subscription rose $20.8 million, primarily from computing infrastructure and data costs tied to higher end-user activity and investment in data solutions.
How is Veeva returning capital to shareholders?
During the quarter Veeva repurchased and retired 1,255,029 shares for about $221 million at an average price of $176.17. The $2 billion program authorized in January 2026 has a two-year term and was funded from operating cash flows, with $1.6 billion remaining. The company does not pay dividends.
What risks does the filing highlight for the CRM business?
The company is migrating Veeva CRM customers to Vault CRM, and certain customers have chosen to move to Salesforce, which has announced commitments from some large Veeva CRM customers. Veeva's Salesforce agreement expired September 1, 2025, and a wind-down period runs through September 1, 2030, during which new sales on the Salesforce platform are restricted.
What changed in the company's equity compensation approach?
In April 2026, Veeva transitioned long-term equity incentives for employees (excluding the CEO) from annual stock option grants to restricted stock units that generally cliff-vest after four years. Stock-based compensation was $119.3 million in the quarter, compared with $112.2 million a year earlier.
06—Continue