Veeva Systems Inc
(NYSE:VEEV)
$
282.13
+37.22 (+15.2%)
Market Cap: 45.83 Bil
Enterprise Value: 38.74 Bil
PE Ratio: 46.40
PB Ratio: 6.17
GF Score: 90/100 
Q2 2027 Veeva Systems Inc. Earnings Call Transcript
Aug 26, 2026 / 09:00PM GMT
Release Date Price:
$244.91
(-0.76%)
Key Points
Positve
- Veeva Systems Inc (VEEV) delivered a strong Q2 with total revenue of $928 million and non-GAAP operating income of $416 million, exceeding guidance.
- The company achieved its best-ever CRM quarter, with notable wins including two TOP20 biopharma customers (Lilly and Biogen) selecting Vault CRM, bringing the total to 12 of TOP20.
- Veeva Falcon, the company's agentic AI product, is generating high customer interest, with early adopters showing promising results and a faster implementation process compared to traditional software.
- Commercial subscription revenue grew 13% year-over-year, with broad-based strength across CRM, content, data, and Crossix, even excluding Crossix's contribution.
- The partnership with IQVIA is progressing well, with both companies expressing satisfaction, and it is expected to drive further growth in the life sciences industry.
- The company is confident in winning back customers who chose Salesforce, citing Salesforce's struggles with large projects and Veeva's strong execution and customer trust.
- Veeva's R&D segment is transitioning to new growth products like EDC, eCOA, RTSM, Safety, and LIMS, which are early but have significant long-term potential.
- The company's focus on tech-enabled services is expected to enhance the value of its software, leading to faster implementations and increased customer success.
- Veeva's China business is growing and synergistic with its global offerings, providing a competitive advantage in that market.
- The company's pricing model for Aspen is simple and predictable, modeled after AWS, which could attract customers seeking transparency and ease of use.
Negative
- Veeva Systems Inc (VEEV) faces execution risks with Falcon, as it is a new market and motion for the company, and the product is still in early stages with only five early adopters.
- The company acknowledges that some customers have chosen Salesforce, and while it expects to win some back, this is not guaranteed and may take until 2027-2028.
- R&D growth is experiencing a 'changing of the guards' as older products like ETMF and CTMF mature, while newer products are still ramping, which could create a temporary growth slowdown.
- The company's Aspen product is very early-stage, and there is uncertainty about whether it can execute well enough to compete with established horizontal CRM platforms.
- Falcon's pricing is still being determined, and the company is working with customers to find a model that balances predictability with the product's rapidly improving capabilities.
- The company faces potential gross margin pressure from AI models, although it believes it can mitigate this by pushing more work into deterministic software.
- There are only two remaining TOP20 CRM decisions left, and while Veeva is confident, these are not yet finalized, and there is no guarantee of winning both.
- The departure of Tom Schwenger, a key executive, could potentially impact some customer relationships, although the company downplays this risk.
- The company is not dependent on acquisitions for Falcon, but it may need to be selective in M&A to find cultural fits, which could limit growth opportunities.
- Macro uncertainties, such as interest rates and geopolitical tensions, could still disrupt the life sciences industry and impact Veeva's business.
Operator
Hello everyone.
Thank you for joining us and welcome to the VIVA Systems Fiscal 2027 Second Quarter Results Conference Call.
After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press. Star 1 again.
I will now hand the conference over to Gunnar Hanson, Senior Director, Investor Relations.
Gunnar, please go ahead.
Gunnar Hansen
Veeva Systems Inc. - Senior Director, Investor Relations
Good afternoon and welcome to Viva's Fiscal 2027 Second Quarter Earnings Conference Call for the quarter ended July 31, 2026.
As a reminder, we posted prepared remarks on Viva's Investor Relations website just after 1 p.m. Pacific today.
We hope you've had a chance to read them before the call.
Today's call will be used primarily for Q&A. With me today for Q&A are Peter Gassner, our Chief Executive Officer Paul Shawa, EVP Strategy and Brian Van Wagner, our Chief Financial Officer.
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