Veeva Systems 2026 Q3 Earnings Beats Expectations as Net Income Surges 27.1%

Veeva Systems (VEEV) reported third-quarter fiscal 2026 results on November 21, 2025, surpassing Wall Street expectations and raising full-year guidance. The company delivered 16.0% year-over-year revenue growth to $811.24 million and a 25.2% increase in EPS to $1.44. Management cited robust demand for AI-driven solutions and strong cross-functional performance as key drivers of the outperformance.

Revenue

Subscription services drove the majority of the growth, contributing $682.50 million, while professional services and other revenue segments added $128.74 million to the total. The 16.0% year-over-year revenue increase reflects sustained demand for Veeva’s cloud-based solutions, particularly in the life sciences sector.

Earnings/Net Income

Net income surged 27.1% to $236.20 million in Q3 2026, compared to $185.81 million in the same period a year prior. The EPS increase of 25.2% underscores the company’s strong profitability and operational efficiency, with 14 consecutive years of profitability affirming its stable business model.

Post-Earnings Price Action Review

Despite the earnings beat and raised guidance, Veeva’s stock fell 9.9% post-announcement, marking a six-month low. Analysts attributed the selloff to concerns over decelerating growth expectations, with sell-side projections suggesting a potential slowdown to 10.8% annual revenue growth. The decline contrasted with prior positive momentum, including a 17.6% surge following the “beat and raise” Q1 2026 report. Technical indicators show the stock nearing oversold territory, with an RSI of 32.57, but sector-specific risks like CRM attrition and regulatory changes remain watchpoints.

CEO Commentary

CEO Peter Gassner highlighted “excellent” Q3 performance, driven by innovation in Vault CRM, Crossix, and AI initiatives. He emphasized Veeva AI’s potential to automate clinical data and safety processes, calling it a “major initiative” for industry transformation. Gassner also expressed confidence in retaining CRM clients and expanding through add-ons like Service Center, while underscoring the company’s “unique competitive advantage” in integrated data, software, and consulting.

Guidance

Veeva raised full-year 2026 guidance to $7.93 EPS and $3.166B–$3.169B in revenue, above the consensus of $7.81 and $3.14B. CFO Brian Van Wagener noted no material impact from CRM attrition on 2030 goals, citing diversified revenue streams and strong R&D performance. The company remains focused on AI-driven product adoption and Crossix growth as key drivers.

Additional News

Recent non-earnings developments include partnerships with Gilead and Amgen to enhance CRM and clinical trial efficiency. The IQVIA collaboration further solidifies Veeva’s integrated data approach. Insider selling activity saw four transactions totaling 24,665 shares in the past three months, though the Altman Z-Score of 21.91 indicates strong financial stability. Institutional ownership remains robust at 85.11%, reflecting confidence in long-term strategies.

Veeva’s strategic focus on AI and industry-specific solutions positions it to capitalize on enterprise software trends. While near-term valuation concerns persist, the company’s strong balance sheet and innovation pipeline suggest resilience amid market volatility.