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Veeva Systems (VEEV)
NYSE:VEEV

Veeva Systems (VEEV) AI Stock Analysis

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Veeva Systems

(NYSE:VEEV)

Rating:81Outperform
Price Target:
$323.00
▲(14.29%Upside)
Veeva Systems scores highly due to its robust financial performance and positive earnings call, highlighting strong revenue growth and strategic advancements in AI and CRM markets. However, the high P/E ratio and potential overbought technical indicators present valuation concerns and a risk of short-term pullbacks.
Positive Factors
Market Position
Veeva is well-positioned with healthy momentum in both Commercial and R&D solutions, showing impressive growth in both sectors.
Product Development
Crossix has an active product pipeline with compelling feature releases planned, which may persist demand tailwinds.
Revenue Growth
Management raised revenue guidance due to favorable foreign exchange impacts and a strong first-quarter performance.
Negative Factors
Competitive Pressure
Veeva Systems has faced recent losses in top 20 CRM deals, with competitors like Salesforce offering highly customized solutions.
Growth Sustainability
There are concerns about commercial growth sustainability due to the 'lumpy' demand described by management.
Regulatory Risk
There is a risk from potential regulatory curbs on DTC ad activity.

Veeva Systems (VEEV) vs. SPDR S&P 500 ETF (SPY)

Veeva Systems Business Overview & Revenue Model

Company DescriptionVeeva Systems Inc. is a leading provider of cloud-based software solutions specifically designed for the global life sciences industry. The company offers a comprehensive suite of applications that enable pharmaceutical and biotechnology companies to reduce costs, increase productivity, and improve compliance throughout the product lifecycle. Veeva's core products include Veeva Vault, a content management and collaboration solution, Veeva CRM, a customer relationship management platform tailored for life sciences, and Veeva Network, a master data management application.
How the Company Makes MoneyVeeva Systems generates revenue primarily through subscription fees for its cloud-based software solutions offered to the life sciences sector. The company's revenue model is largely based on multi-year contracts with customers, which provide a steady and predictable income stream. Key revenue streams include Veeva Vault, Veeva CRM, and Veeva Network, each catering to different aspects of the life sciences industry such as content management, customer engagement, and data management, respectively. Additionally, Veeva offers professional services, including implementation, training, and support, which contribute to its overall earnings. Strategic partnerships with major pharmaceutical companies and other stakeholders in the life sciences ecosystem further enhance Veeva's revenue potential by expanding its market reach and customer base.

Veeva Systems Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows revenue distribution across various business segments, indicating which segments drive growth and how diversified Veeva Systems' income streams are.
Chart InsightsVeeva Systems' Subscription Services segment has shown consistent growth, bolstered by strong performance in Vault CRM and Crossix, which saw over 30% year-over-year growth. Despite macroeconomic uncertainties, Veeva's strategic focus on AI and expansion into horizontal CRM markets is driving optimism. The Professional Services segment, however, shows fluctuating growth, possibly impacted by macro pressures. The company's robust execution and achievement of a $3 billion revenue run rate goal underscore its resilience and strategic agility in navigating market challenges.
Data provided by:Main Street Data

Veeva Systems Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q1-2026)
|
% Change Since: 1.28%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive quarter with strong revenue performance and significant customer growth in Vault CRM and Crossix. However, concerns over the uncertain macro environment and its potential impact on smaller biopharma companies temper the overall outlook. Veeva's strategic focus on AI integration and horizontal CRM expansion shows promising future growth potential.
Q1-2026 Updates
Positive Updates
Exceeded Revenue Expectations
Total revenue for the quarter was $759 million, surpassing guidance. Non-GAAP operating margin was strong, contributing to achieving the 2025 revenue run rate goal of $3 billion.
Vault CRM Customer Growth
Vault CRM saw significant growth with over 80 customers live, and is on track to reach 200 customers by next year. This includes both new customers and migrations.
Crossix Performance
Crossix outperformed expectations with more than 30% year-over-year growth, driven by usage-based elements and strategic integration with CRM products.
Expansion into Horizontal CRM Market
Veeva is making progress in horizontal CRM markets, with plans to secure first customers by the end of the year, leveraging new technological advances and a differentiated business model.
Positive AI Developments
Veeva AI is positioned to significantly enhance efficiency in the life sciences industry, with plans to deeply integrate AI into core applications, potentially increasing industry efficiency by 15% by 2030.
Negative Updates
Macro Environment Uncertainty
The macro environment is more uncertain than 90 days ago, largely due to US administration dynamics, though no material impact has been seen in financial results or pipeline yet.
Potential Challenges for Smaller Biopharma
There could be funding issues for smaller biopharma companies if the macro environment remains uncertain, potentially delaying projects.
Delayed Large Pharma CRM Migrations
Most large pharma companies are expected to decide on migrating to Vault CRM by 2025 or 2026, indicating a slower transition process.
Company Guidance
During the Veeva Systems Fiscal 2026 First Quarter Results Conference Call, the company reported strong financial performance with total revenue of $759 million and a non-GAAP operating margin that exceeded expectations. Veeva achieved its calendar 2025 revenue run rate goal of $3 billion, demonstrating robust execution across the company despite a more uncertain macroeconomic environment. The call highlighted significant progress in Veeva's Vault CRM, with 80 customers now live and a projection of reaching 200 customers by next year. Furthermore, Veeva's Crossix business outperformed, contributing to the company's revenue growth, particularly in usage-based areas. The company expressed optimism about its AI initiatives, particularly Veeva AI, which is poised to drive efficiency gains in the life sciences industry. Guidance for future quarters reflects continued strength in subscription revenues and a strategic focus on expanding into horizontal CRM markets.

Veeva Systems Financial Statement Overview

Summary
Veeva Systems exhibits strong financial performance with robust revenue growth, excellent profitability margins, and a stable balance sheet with minimal leverage. The company's cash flow management is exceptional, supporting operational and growth needs effectively. Potential risks include a slight decrease in EBIT Margin and the need to maintain growth momentum.
Income Statement
85
Very Positive
Veeva Systems demonstrates strong revenue growth with a Revenue Growth Rate of 17.5% from the previous year and a solid Gross Profit Margin of 75.5% for TTM. The company maintains a high EBIT Margin of 27% and a Net Profit Margin of 27.3%, indicating robust profitability. However, there is a slight decrease in EBIT Margin compared to the previous year, which could be a point of concern if it continues.
Balance Sheet
90
Very Positive
The balance sheet is highly stable with a low Debt-to-Equity Ratio of 0.0124, showcasing minimal leverage and financial risk. The Equity Ratio stands at 80%, reflecting a strong capital base. The Return on Equity (ROE) is impressive at 12.6% for TTM, indicating efficient use of equity capital to generate profits. The strong liquidity position further enhances the company's financial stability.
Cash Flow
88
Very Positive
Veeva Systems exhibits consistent cash flow generation with a strong Operating Cash Flow to Net Income Ratio of 1.54 and a Free Cash Flow to Net Income Ratio of 1.54, highlighting efficient cash conversion. The Free Cash Flow Growth Rate is 10.4%, demonstrating healthy cash flow management. The company's cash flow performance supports its operational and growth needs effectively.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.86B2.75B2.36B2.16B1.85B1.47B
Gross Profit2.16B2.05B1.69B1.55B1.35B1.06B
EBITDA790.95M730.82M461.96M488.21M532.94M407.25M
Net Income780.66M714.14M525.71M487.71M427.39M380.00M
Balance Sheet
Total Assets7.77B7.34B5.91B4.80B3.82B3.05B
Cash, Cash Equivalents and Short-Term Investments6.07B5.15B4.03B3.10B2.38B1.66B
Total Debt77.23M75.78M55.77M60.98M54.59M63.12M
Total Liabilities1.55B1.51B1.27B1.09B904.83M779.75M
Stockholders Equity6.21B5.83B4.64B3.72B2.91B2.27B
Cash Flow
Free Cash Flow1.20B1.09B885.14M777.98M761.97M551.81M
Operating Cash Flow1.20B1.09B911.34M780.47M764.46M551.25M
Investing Cash Flow-479.87M-700.14M-1.08B-1.01B-346.15M-333.63M
Financing Cash Flow42.67M26.11M-16.19M-19.38M-4.14M33.82M

Veeva Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price282.61
Price Trends
50DMA
257.78
Positive
100DMA
242.97
Positive
200DMA
231.38
Positive
Market Momentum
MACD
6.79
Positive
RSI
59.95
Neutral
STOCH
66.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEEV, the sentiment is Positive. The current price of 282.61 is below the 20-day moving average (MA) of 283.35, above the 50-day MA of 257.78, and above the 200-day MA of 231.38, indicating a neutral trend. The MACD of 6.79 indicates Positive momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEEV.

Veeva Systems Risk Analysis

Veeva Systems disclosed 43 risk factors in its most recent earnings report. Veeva Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Veeva Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$46.23B59.9514.07%14.78%39.33%
IQIQV
77
Outperform
$28.13B22.4421.65%2.84%-0.16%
73
Outperform
$34.78B15.9726.32%0.18%1.55%38.51%
68
Neutral
$34.27B39.2417.33%78.01%
66
Neutral
$41.99B-414.62%17.21%21.16%
EWEW
64
Neutral
$45.27B51.5716.73%-9.84%-35.77%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VEEV
Veeva Systems
282.61
99.15
54.04%
ALNY
Alnylam Pharma
329.77
78.74
31.37%
EW
Edwards Lifesciences
77.02
-15.30
-16.57%
IQV
IQVIA Holdings
164.65
-43.45
-20.88%
ARGX
Argenx Se
545.11
109.27
25.07%
GEHC
GE Healthcare Technologies Inc
76.12
-0.81
-1.05%

Veeva Systems Corporate Events

Executive/Board ChangesShareholder Meetings
Veeva Systems Holds Annual Shareholder Meeting
Neutral
Jun 23, 2025

On June 18, 2025, Veeva Systems held its Annual Meeting where shareholders voted on two key proposals. The first proposal involved the election of directors to serve until the 2026 annual meeting, with all nominees successfully elected. The second proposal ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (VEEV) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Veeva Systems stock, see the VEEV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 02, 2025