Veeva Systems 2026 Q3 Earnings Surpasses Expectations with 27.1% Net Income Growth

Veeva Systems (VEEV) reported third-quarter fiscal 2026 results that exceeded expectations, with revenue rising 16.0% to $811.24 million and EPS climbing 25.2% to $1.44. The company raised its fiscal 2026 revenue and EPS guidance, affirming long-term targets despite acknowledging CRM migration risks.

Revenue

Subscription services accounted for the lion’s share at $682.50 million, with professional services and other contributing $128.74 million. Total revenue growth was driven by robust performance in subscription offerings, reflecting sustained demand for Veeva’s cloud-based solutions.

Earnings/Net Income

Net income surged 27.1% year-over-year to $236.20 million, while EPS growth underscored the company’s ability to maintain profitability over 14 consecutive fiscal quarters. The 25.2% EPS increase underscores the company’s strong earnings momentum and operational efficiency.

Post-Earnings Price Action Review

Following the earnings release, the stock experienced a decline of 2.28% during the latest trading day, with a steeper drop of 16.81% over the past week and a 15.82% month-to-date decrease. Analysts suggest these movements reflect market concerns over future growth prospects despite the strong financial results.

CEO Commentary

Peter Gassner highlighted “excellent” Q3 performance, emphasizing progress in Veeva AI and innovation across Vault CRM, Crossix, and Clinical. He acknowledged CRM migration risks but noted the segment remains “healthy” and not the company’s largest revenue driver. Strategic priorities include leveraging AI for industry-specific solutions and expanding R&D capabilities.

Guidance

The company reaffirmed its 2030 goals, with no material impact from CRM attrition. CFO Brian Van Wagener described CRM risks as “modest” and immaterial in the short term, while maintaining Q3 results aligned with official figures.

Additional News

Recent analyst activity included BMO Capital maintaining a Market Perform rating with a $300 price target, citing strong revenue and EBIT outperformance. Canaccord lowered its price target to $280, maintaining a Hold rating, while Raymond James raised its target to $320 with an Outperform rating. J.P. Morgan expressed optimism about Veeva’s long-term positioning despite short-term CRM retention concerns.