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Total Revenue: $789 million for the fiscal 2026 second quarter.
Non-GAAP Operating Income: $353 million for the fiscal 2026 second quarter.
Release Date: August 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Veeva Systems Inc (NYSE:VEEV) reported Q2 results ahead of guidance with total revenue of $789 million and non-GAAP operating income of $353 million.
The resolution of the longstanding dispute with IQVIA opens new opportunities for collaboration and integration, enhancing Veeva's Commercial Cloud offerings.
Veeva AI is expected to be transformative for the company and the industry, with plans to integrate AI agents deeply into the Vault platform.
The company has seen strong execution in R&D subscriptions and services, contributing to a positive outlook for the second half of the fiscal year.
Veeva's Business Consulting is playing a crucial role in facilitating AI adoption and change management for clients, providing a structural advantage.
Negative Points
The resolution with IQVIA, while positive, does not contribute materially to revenue for the current fiscal year.
There is some resistance to change in the market, particularly with the Compass Prescriber product, which has faced slower-than-expected adoption.
The transition to Vault CRM from legacy systems involves short-term increased costs due to transition expenses.
Veeva's AI initiatives, while promising, are not expected to contribute materially to revenue until 2026 or 2027.
The macroeconomic environment remains uncertain, which could impact customer spending and pipeline progression.
Q & A Highlights
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Q: Can you discuss the resolution of the lawsuit with IQVIA and the opportunities it unlocks? A: Peter Gassner, CEO: The resolution came after realizing there was no reason for the conflict anymore. It unlocks opportunities by removing barriers in the Commercial area, such as restrictions with Salesforce and IQVIA data, allowing us to integrate industry-leading data into our products. This resolution is transformative for our Commercial Cloud, similar to our Development Cloud.
Q: What is the outlook for Veeva's Quality Cloud and its role in the company's future? A: Peter Gassner, CEO: Quality Cloud has gained elevated focus and is on track with our five-year plan. It includes areas like Laboratory Information Management and Validation Management, which can become significant business areas for us. However, the changes in quality are not material to our overall revenue plan.
Q: How does Veeva plan to leverage AI across its platform, and what is the expected impact? A: Peter Gassner, CEO: Veeva AI will integrate deeply with our Vault platform, allowing users to interact with content, data, and agents. We aim to lead in industry-specific agents within life sciences. While we don't expect material revenue from AI in 2026 or 2027, it will significantly increase our market size over time.
Q: What has been the customer reaction to the resolution with IQVIA, and how does it affect the CRM relationship? A: Peter Gassner, CEO: The customer reaction has been overwhelmingly positive as it eliminates the need for workarounds between Veeva and IQVIA. IQVIA is no longer a CRM competitor, having exited that market. We still compete in some areas, but the resolution benefits customers by reducing integration challenges.
Q: Can you elaborate on the growth in R&D subscriptions and the factors driving it? A: Brian Van Wagener, CFO: The growth in R&D subscriptions is broad-based, with strong execution across all areas. The environment is stable, and we are seeing firming up of the pipeline for the second half of the year, contributing to our confidence in continued growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
