01—Abstract
Summary
Summary of the 10-Q filed August 27, 2026. 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, 2026.
Total revenues were $927.96 milliona for the quarter, up from $789.08 million, and $1.81 billion for the six months, up from $1.55 billion. Subscription revenue was $766.76 million for the quarter, and gross margin was 75%. Operating income rose to $275.02 million for the quarter from $195.91 million, and net income was $273.43 million, or $1.66 per diluted share, compared with $200.31 million, or $1.19 per diluted share, a year earlier.
The filing attributes the quarterly increase in general and administrative expense comparisons partly to $31 millionb of litigation settlement-related charges recorded in the prior-year quarter, which did not recur. Cash flow and capital return were strong. Net cash provided by operating activities was $1.37 billion for the six months, compared with $1.12 billion a year earlier, and the company attributed the increase to higher sales and collections and lower income tax payments under the One Big Beautiful Bill Act.
Cash, cash equivalents, and short-term investments totaled $7.2 billionc as of July 31, 2026. During the six months, Veeva repurchased and retired 2,663,443 shares for about $467 million, leaving $1.4 billion available under its $2 billion program. The company also acquired Rise Healthcare Tech, Inc. (Ostro) in March 2026 for $90 million in total consideration, or $70 million net of cash acquired.
The filing also highlights risks tied to the company's CRM transition. Veeva is migrating customers from its Salesforce-based Veeva CRM to Vault CRM, and the filing states that some customers have chosen, or may choose, to move to Salesforce.
The Salesforce agreement expired on September 1, 2025, and a wind-down period runs through September 1, 2030. The company reported that its effective tax rate fell to 21.8%d for the quarter from 24.5%, mainly due to a larger foreign-derived deduction eligible income deduction.
02—Key points
Key Highlights
- Total revenues rose to $927.96 million for the quarter, up from $789.08 million, and to $1.81 billion for the six months, up from $1.55 billion.
- Subscription revenues were $766.76 million for the quarter, up from $659.18 million, and represented 83% of total revenues for the six months.
- Operating income was $275.02 million for the quarter, up from $195.91 million. Net income was $273.43 million, or $1.66 per diluted share, versus $1.19 a year earlier.
- Net cash provided by operating activities was $1.37 billion for the six months, up from $1.12 billion, aided by lower income tax payments under the OBBBA.
- Cash, cash equivalents, and short-term investments totaled $7.2 billion as of July 31, 2026.
- Veeva repurchased 2,663,443 shares for about $467 million during the six months, with $1.4 billion remaining under its $2 billion program.
- Veeva is migrating CRM customers from Salesforce-based Veeva CRM to Vault CRM. The filing notes that some customers have chosen to purchase CRM solutions from competitors, including Salesforce.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2027, Veeva Systems kept $0.29.
- Revenue$928.0M100.0%
- Cost of revenue−$232.0M25.0%
- Gross profit$696.0M75.0%
- Operating costs−$420.9M45.4%
- Operating income$275.0M29.6%
- Interest, other & tax−$1.6M0.2%
- Net income$273.4M29.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2027filed August 27, 2026Financial Statements
Q2 FY2027 against Q2 FY2026
| Line item | Q2 FY2027Q2 FY2026 | Change |
|---|---|---|
| Revenue | $927.96M$789.08M | +17.6% |
| Cost of Revenue | $232.01M$195.25M | +18.8% |
| Gross Profit | $695.95M$593.83M | +17.2% |
| R&D Expenses | $222.92M$192.68M | +15.7% |
| Operating Expenses | $420.93M$397.92M | +5.8% |
| Operating Income | $275.02M$195.91M | +40.4% |
| Net Income | $273.43M$200.31M | +36.5% |
| EPS (Basic) | $1.68$1.23 | +36.6% |
| EPS (Diluted) | $1.66$1.19 | +39.5% |
| Shares Outstanding (Basic) | 162.34M163.50M | −0.7% |
| Shares Outstanding (Diluted) | 165.06M167.69M | −1.6% |
05—Questions
Frequently Asked Questions
How did Veeva perform in the quarter ended July 31, 2026?
Total revenues were $927.96 million, up from $789.08 million a year earlier. Operating income was $275.02 million, compared with $195.91 million, and net income was $273.43 million, or $1.66 per diluted share, compared with $1.19 per diluted share in the prior-year quarter.
What drove the change in general and administrative expenses?
General and administrative expenses fell to $71.31 million for the quarter from $95.80 million. The filing attributes the decrease mainly to $31 million of litigation settlement-related charges recorded in the quarter ended July 31, 2025, which did not recur. The decrease was partly offset by a $2 million increase in employee compensation-related costs.
How is Veeva returning capital to shareholders?
During the six months ended July 31, 2026, Veeva repurchased and retired 2,663,443 shares for about $467 million. As of July 31, 2026, $1.4 billion remained available under the $2 billion share repurchase program authorized in January 2026. The program has a two-year term and may be suspended or discontinued at any time.
What does the filing say about the CRM migration and Salesforce?
Veeva is migrating its Veeva CRM customers from the Salesforce platform to Vault CRM, which runs on Veeva's own Vault platform. The filing states that the Salesforce agreement expired on September 1, 2025, with a wind-down period through September 1, 2030, during which Veeva may not sell Salesforce-based applications to new customers. It also notes that some customers have moved or may move to Salesforce as their CRM provider.
What drove the lower effective tax rate?
The effective tax rate was 21.8% for the quarter, compared with 24.5% a year earlier, and 23.3% for the six months, compared with 24.0%. The filing attributes the decrease primarily to a larger foreign-derived deduction eligible income deduction under the One Big Beautiful Bill Act, partly offset by discrete tax deficiencies related to equity compensation.
06—Continue