Veeva Systems 2026 Q3 Earnings Strong Performance as Net Income Surges 27.1%

Veeva Systems (VEEV) reported Q3 2026 earnings on Nov 21, 2025, with revenue rising 16% to $811.24 million and EPS increasing 25.2% to $1.44. The company raised full-year guidance and maintained a 14-year streak of profitability. Analysts cited Veeva’s AI-driven innovation and diversified growth in Clinical and Quality segments as key strengths.

Revenue

Veeva’s total revenue surged to $811.24 million in Q3 2026, reflecting 16% year-over-year growth. Subscription services, the company’s core offering, accounted for $682.50 million of the total, while professional services and other revenue contributed $128.74 million. The subscription segment’s robust performance underscored strong demand for Veeva’s cloud-based solutions in the life sciences industry.

Earnings/Net Income

Earnings per share (EPS) climbed 25.2% to $1.44, driven by a 27.1% year-over-year increase in net income to $236.20 million. The 25.2% year-on-year increase in EPS underscores the company’s robust profitability and operational efficiency.

Price Action

VEEV’s stock price declined 2.28% in the latest trading day, 16.81% over the week, and 15.82% month-to-date, despite the earnings beat.

Post-Earnings Price Action Review

The strategy of buying VEEV upon a revenue beat and holding for 30 days shows potential, given the company’s 16% revenue growth and raised guidance. Despite a six-month low in stock price and insider selling, analysts like RBC Capital and Barclays maintain Buy ratings with price targets above $305. Veeva’s 45% operating margin and strong AI integration in Commercial Cloud and Safety solutions position it for long-term growth. However, investors must weigh risks such as CRM customer attrition and market volatility.

CEO Commentary

Peter Gassner highlighted Q3’s “excellent” performance, with $811 million in revenue and $365 million in non-GAAP operating income. He emphasized AI-driven innovation across Commercial Cloud and Clinical segments, as well as cross-sell opportunities to offset CRM attrition. Gassner reiterated confidence in 2030 goals, citing diversified growth in AI and partnerships like IQVIA.

Guidance

Q4 2026 guidance was raised to revenue of $811.2 million and EPS of $1.44, reflecting stronger-than-expected deal execution. Full-year targets remain on track, with CFO Brian Van Wagener noting stable gross margins and no material near-term impact from CRM attrition.

Additional News

Recent developments include partnerships with IQVIA and Amgen to enhance clinical trial efficiency and AI integration. Insider selling activity, with four transactions totaling 24,665 shares in three months, raised concerns about short-term confidence. Additionally, Veeva expanded its collaboration with Gilead for Vault CRM, signaling continued market penetration in the life sciences sector.