Veeva Systems 2026 Q3 Earnings Strong Performance with 27.1% Net Income Growth

Veeva Systems (VEEV) reported fiscal 2026 Q3 earnings on Nov 21, 2025, exceeding expectations with robust revenue and EPS growth. The company raised its fiscal 2026 guidance, reflecting confidence in sustained performance. Despite short-term stock volatility, Veeva maintained profitability for 14 consecutive years, underscoring its stable business model.

Revenue

Veeva Systems’ total revenue surged 16.0% year-over-year to $811.24 million in Q3 2026, driven by strong demand for its cloud-based solutions. Subscription services, the company’s core offering, accounted for $682.50 million, reflecting a 16.0% increase. Professional services and other revenue segments contributed $128.74 million, rounding out the total revenue. This growth highlights the company’s ability to scale its offerings while maintaining high-margin recurring revenue streams.

Earnings/Net Income

Earnings per share (EPS) rose 25.2% to $1.44 in Q3 2026, compared to $1.15 in Q3 2025. Net income also expanded by 27.1%, reaching $236.20 million from $185.81 million. These results demonstrate Veeva’s operational efficiency and pricing power, particularly in its subscription-driven model. The EPS increase of 25.2% underscores robust earnings growth, reflecting the company’s strong operational performance and effective cost management.

Post-Earnings Price Action Review

Despite beating earnings estimates and raising guidance, Veeva’s stock faced immediate headwinds. Shares fell 2.28% on the day of the report, with a sharper 16.81% decline over the following week. Month-to-date, the stock plummeted 15.82%, driven by investor concerns over CRM client attrition. While the company emphasized long-term stability in cross-sell opportunities and AI-driven growth, short-term volatility reflected skepticism about slowing pharma CRM adoption. The post-earnings sell-off suggests market focus on near-term challenges, despite strong financials.

CEO Commentary

Peter Gassner, CEO, described Q3 as “excellent,” with total revenue of $811 million and non-GAAP operating income of $365 million exceeding guidance. He highlighted AI as a “major initiative” and emphasized Veeva’s leadership in life sciences innovation. While acknowledging CRM attrition, Gassner noted cross-sell opportunities and long-term confidence in Crossix and clinical platforms.

Guidance

Veeva reaffirmed its 2030 goals, citing no material impact from CRM transitions in 2026 or 2027. CFO Brian Van Wagener projected Q3 revenue of $811.2 million and EPS of $1.44, with full-year EPS guidance at $7.93. Strategic priorities include leveraging AI for industry-specific applications and maintaining focus on pharma innovation.

Additional News

Bank Julius Baer & Co. increased its stake in Veeva to $18.66 million, reflecting institutional confidence. Meanwhile, insider selling activity, with four transactions totaling 24,665 shares, raised questions about executive sentiment. Phreesia (PHR), a peer in the medical info systems sector, is set to report Q3 results on Dec 8, 2025, with analysts expecting strong revenue growth. These developments highlight sector dynamics and investor scrutiny of long-term growth prospects.

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