Veeva Systems Q2 Income Advances, Revenue Rises 16.7%

Veeva Systems Inc. reported a profit of $200.31 million, or $1.19 per share, in Q2, up from $171.04 million, or $1.04 per share, last year. Revenue rose 16.7% to $789.08 million from $676.18 million. The company provided guidance for Q3 EPS of $1.94-$1.95 and revenue of $790-$793 million, and full-year EPS of about $7.78 and revenue of $3.134-$3.140 billion.

Veeva Systems Inc. (NYSE: VEEV) reported strong financial results for the second quarter of fiscal year 2026, with total revenues of $789.1 million, representing a 17% year-over-year increase. The company's non-GAAP operating income reached $352.6 million, up 26% from the same period last year, and non-GAAP net income was $333.4 million, an increase of 25%. Subscription services revenues grew 17% to $659.2 million, while services revenue increased by 13% to $130 million [1].

Key developments during the quarter included progress in Veeva AI, significant milestones in the Vault CRM Suite with over 100 customers live, and a strategic partnership with IQVIA. The company updated its fiscal 2026 guidance, projecting total revenues between $3,134 million and $3,140 million [1].

Veeva’s Q2 2026 results demonstrated robust growth across key financial metrics. Total revenue reached $789 million, up 17% from $676 million in Q2 2025. Subscription revenue grew 18% year-over-year to $659 million, while services revenue increased by 13% to $130 million [2]. The company's non-GAAP operating income reached $353 million, up 26% from $280 million in Q2 2025, resulting in a non-GAAP operating margin of 44.7% [2].

Looking at Veeva’s longer-term performance, the company has maintained consistent growth in annual revenue over the past several years. From FY 2021 to the FY 2026 guidance, total revenue is projected to grow from $1.47 billion to approximately $3.14 billion, representing a compound annual growth rate of over 16% [2].

Veeva provided comprehensive guidance for both the upcoming quarter (Q3 2026) and the full fiscal year 2026. For Q3, the company expects total revenue between $790 million and $793 million, with subscription revenue of approximately $671 million and services revenue between $119 million and $122 million. Non-GAAP operating income is projected to be between $348 million and $350 million, maintaining the strong 44% operating margin [2].

For the full fiscal year 2026, Veeva expects total revenue between $3,134 million and $3,140 million, representing approximately 14% year-over-year growth. This includes subscription revenue of about $2,657 million, split between Commercial Solutions ($1,246 million) and R&D Solutions ($1,411 million). Non-GAAP operating income is projected to be approximately $1,388 million, with non-GAAP earnings per share of around $7.78 [2].

An important strategic change highlighted in the presentation is Veeva’s standardization of Termination for Convenience (TFC) rights for customers with multi-year ramping deals. This change reflects the company’s shift toward longer contract durations [2].

Veeva Systems’ Q2 2026 results demonstrate continued strong execution and financial discipline. With 17% revenue growth, expanding margins, and robust cash flow generation, the company appears well-positioned to maintain its leadership in providing cloud software solutions to the life sciences industry.

References:
[1] https://www.stocktitan.net/news/VEEV/veeva-announces-fiscal-2026-second-quarter-87or7n2mjpjp.html
[2] https://www.investing.com/news/company-news/veeva-systems-q2-2026-slides-revenue-up-17-operating-margins-expand-93CH-4213306