Why Veeva Systems Outpaces Salesforce in a Fragmented CRM Market

In the rapidly evolving world of enterprise software, the CRM (Customer Relationship Management) market has become increasingly fragmented as companies specialize to meet industry-specific needs. While Salesforce has long dominated the general CRM space, Veeva Systems has carved out a unique niche in the life sciences sector - and this sector specialization is proving to be a powerful advantage in today's economic climate. As the pharmaceutical and biotech industries face unprecedented challenges and opportunities, Veeva's focused approach, superior financial performance, and AI-driven innovation position it as a compelling long-term investment compared to Salesforce's slowing growth trajectory.

Sector Specialization: The Life Sciences Edge
Veeva's deep industry focus has allowed it to develop solutions that address the complex regulatory and operational needs of the life sciences sector. With 58% of its revenue coming from North America and over 50 of the world's largest pharmaceutical companies as customers, Veeva has built a reputation for delivering compliance-focused solutions that are difficult for generalist platforms to replicate. Its Vault CRM platform, now live with 80 customers and on track to reach 200 by 2026, is specifically designed for pharmaceutical sales teams, offering features like regulated document management, validated sampling, and AI-powered compliance monitoring.

This specialization has created a moat that protects Veeva from the more generic CRM competitors. While Salesforce has made inroads with its Life Sciences Cloud (developed in partnership with IQVIA), Veeva's 16.7% year-over-year revenue growth in 2023 and consistent 17% growth in 2025 demonstrates the value of industry-specific solutions. The company's gross profit margin of 75.5% in 2025 far outpaces Salesforce's 77.19% in Q1 2025, showing that Veeva can maintain profitability while continuing to invest in innovation.

Growth Resilience in Uncertain Times
As macroeconomic pressures continue to impact enterprise spending, Veeva's life sciences focus has provided a buffer against market volatility. While Salesforce's revenue growth has slowed from 25% in 2022 to just 8%-9% in 2025, Veeva has maintained double-digit growth through its specialized offerings. This resilience is particularly valuable in the current environment, where pharmaceutical companies need reliable partners to navigate regulatory changes, digital transformation, and personalized medicine demands.

Veeva's operating margin of 46% in Q1 2026 (up from 35.6% in 2024) highlights its operational efficiency and pricing power in the life sciences space. The company's non-GAAP EPS grew by 31.3% in 2023, outpacing Salesforce's 10% and 57% growth in 2023 and 2024 respectively. These metrics suggest that Veeva's focused strategy is more resilient to macroeconomic headwinds than Salesforce's broader approach.

AI-Driven Innovation with Industry Precision
Both companies are investing heavily in AI, but Veeva's approach is more tightly aligned with life sciences needs. While Salesforce has developed general AI capabilities across its ecosystem, Veeva's AI initiatives are specifically designed for pharmaceutical workflows. The company's Veeva Andi platform, for example, offers AI-powered insights tailored to life science sales and marketing teams, helping reps optimize customer interactions while maintaining compliance.

This targeted innovation creates a virtuous cycle: as Veeva's AI capabilities become more industry-specific, they reinforce customer loyalty and make it harder for competitors to replicate their value proposition. The company's research and development investments are clearly paying off, with its Vault CRM platform serving as a prime example of how AI can be applied to solve industry-specific challenges.

Financial Metrics and Market Position
When comparing the two companies' financials, the advantages of Veeva's specialized approach become even clearer. Veeva's forward P/E ratio of 35.92 may appear higher than Salesforce's 22.98, but this is justified by its stronger growth prospects and industry-specific advantages. The company's Zacks Rank #2 (Buy) rating reflects strong long-term potential, while Salesforce's Zacks Rank #3 (Hold) indicates more cautious expectations.

In the life sciences CRM market, Veeva maintains a commanding position with over 1,388 customers, including 50 of the largest global pharmaceutical companies. While Salesforce has made gains (notably winning two of Veeva's top 20 CRM customers), its broader platform approach may struggle to match Veeva's deep industry expertise. The recent launch of Salesforce's Life Sciences Cloud, while promising, still faces an uphill battle against Veeva's established reputation for regulatory compliance and industry-specific workflows.

Investment Implications
For investors looking to position themselves in the evolving CRM market, Veeva Systems presents a compelling case. The company's focused strategy in the life sciences sector provides both competitive advantages and growth resilience that generalist platforms like Salesforce may struggle to match. With a strong balance sheet, expanding Vault CRM platform, and AI capabilities tailored to the pharmaceutical industry, Veeva is well-positioned to continue outperforming as the life sciences sector undergoes digital transformation.

While Salesforce remains a formidable player in the broader CRM market, its slowing growth rate and exposure to macroeconomic volatility make it a less attractive long-term investment in today's climate. For investors seeking exposure to the high-growth life sciences sector, Veeva's specialized approach offers a more compelling opportunity with clearer growth trajectory and stronger margins.

In a fragmented CRM market, specialization is proving to be a winning strategy. As the pharmaceutical and biotech industries continue to demand highly specialized digital solutions, Veeva's focused approach and industry-specific innovation position it as a strong long-term buy compared to Salesforce's more generalized platform. With the life sciences sector expected to drive significant technological adoption in the coming years, investors who understand the value of sector specialization may find Veeva Systems to be the more strategic investment choice.