Veeva Systems (VEEV) delivers 16% growth and boosts 2027 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Veeva Systems Inc. reported strong growth for Q4 and fiscal 2026. Fourth quarter revenues were $835.9 million, up 16% year over year, with subscription revenues of $707.7 million also up 16%. GAAP net income for the quarter rose to $244.2 million, and diluted EPS increased to $1.45, while non-GAAP diluted EPS reached $2.06.
For fiscal 2026, total revenues were $3,195.3 million, up 16%, with subscription revenues of $2,684.2 million, up 17%. Full-year GAAP net income grew to $908.9 million and diluted EPS to $5.44, while non-GAAP net income was $1,352.5 million and non-GAAP diluted EPS was $8.10. Management highlighted momentum in Veeva AI, Commercial Cloud, Development Cloud, and Quality Cloud and reaffirmed a long-term revenue run rate target of $6 billion by 2030.
Positive
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Negative
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Insights
Veeva delivers 16% growth with rising profitability and upbeat guidance.
Veeva Systems posted Q4 revenues of $835.9M, up 16%, and full-year revenues of $3,195.3M, also up 16%. Profitability improved meaningfully, with fiscal 2026 GAAP operating income rising 33% to $916.4M and non-GAAP operating income up 24% to $1,433.8M.
Net income followed suit: fiscal 2026 GAAP net income increased 27% to $908.9M, while non-GAAP net income rose 24% to $1,352.5M. Diluted EPS climbed from $4.32 to $5.44 on a GAAP basis and from $6.60 to $8.10 on a non-GAAP basis, indicating strong operating leverage.
Cash generation was robust, with full-year net cash provided by operating activities of $1,415.2M. Guidance points to continued expansion: for the fiscal year ending January 31, 2027, Veeva projects revenues between $3,585M and $3,600M and non-GAAP diluted EPS of about $8.85. Management also reiterated a $6B revenue run rate target by 2030, tying growth expectations to continued adoption of Veeva AI, Commercial Cloud, Development Cloud, and Quality Cloud.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________________________________________
FORM 8-K
_____________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 4, 2026
_____________________________________________________________________________
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________
| (State or other jurisdiction of incorporation of organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (925 ) 452-6500
Not Applicable
(Former name or former address, if changed since last report)
_____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
par value $0.00001 per share | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||
Item 2.02. Results of Operations and Financial Condition.
On March 4, 2026, Veeva Systems Inc. (“Veeva”) issued a press release announcing its results for its fourth quarter and fiscal year ended January 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release titled “Veeva Announces Fourth Quarter and Fiscal Year 2026 Results,” dated March 4, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Veeva Systems Inc. | |||||||||||
| Dated: | March 4, 2026 | By: | /s/ BRIAN VAN WAGENER | ||||||||
Brian Van Wagener Chief Financial Officer (Principal Financial Officer) | |||||||||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Veeva Announces Fourth Quarter and Fiscal Year 2026 Results
Fiscal Year 2026 Total Revenues of $3,195.3M, up 16% Year Over Year
Q4 Total Revenues of $836.0M, up 16% Year Over Year
Fiscal Year 2026 Subscription Revenues of $2,684.2M, up 17% Year Over Year
Q4 Subscription Revenues of $707.7M, up 16% Year Over Year
PLEASANTON, CA — March 4, 2026 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2026.
“The agentic transformation underway represents a substantial opportunity for Veeva and life sciences,” said CEO Peter Gassner. “With our core systems of record spanning the industry’s most critical functions and unique datasets, we can deliver industry-specific AI deeply integrated into our applications. Our progress with Veeva AI and continued strong execution in Commercial Cloud, Development Cloud, and Quality Cloud will create significant value for the industry.”
Fiscal 2026 Fourth Quarter Results:
•Revenues: Total revenues for the fourth quarter were $836.0 million, up from $720.9 million one year ago, an increase of 16% year over year. Subscription revenues for the fourth quarter were $707.7 million, up from $608.6 million one year ago, an increase of 16% year over year.
•Operating Income and Non-GAAP Operating Income:(1) Fourth quarter operating income was $245.9 million, compared to $188.4 million one year ago, an increase of 30% year over year. Non-GAAP operating income for the fourth quarter was $366.5 million, compared to $307.7 million one year ago, an increase of 19% year over year.
•Net Income and Non-GAAP Net Income:(1) Fourth quarter net income was $244.2 million, compared to $195.6 million one year ago, an increase of 25% year over year. Non-GAAP net income for the fourth quarter was $346.1 million, compared to $287.9 million one year ago, an increase of 20% year over year.
•Net Income per Share and Non-GAAP Net Income per Share:(1) For the fourth quarter, fully diluted net income per share was $1.45, compared to $1.18 one year ago, while non-GAAP fully diluted net income per share was $2.06, compared to $1.74 one year ago.
Fiscal Year 2026 Results:
•Revenues: Total revenues for the fiscal year ended January 31, 2026 were $3,195.3 million, up from $2,746.6 million one year ago, an increase of 16% year over year. Subscription revenues were $2,684.2 million, up from $2,284.7 million one year ago, an increase of 17% year over year.
•Operating Income and Non-GAAP Operating Income:(1) Fiscal year 2026 operating income was $916.4 million, compared to $691.4 million one year ago, an increase of 33% year over year. Non-GAAP operating income for fiscal year 2026 was $1,433.8 million, compared to $1,152.3 million one year ago, an increase of 24% year over year.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. |  | 1 | ||||||
•Net Income and Non-GAAP Net Income:(1) Fiscal year 2026 net income was $908.9 million, compared to $714.1 million one year ago, an increase of 27% year over year. Non-GAAP net income for fiscal year 2026 was $1,352.5 million, compared to $1,090.4 million one year ago, an increase of 24% year over year.
•Net Income per Share and Non-GAAP Net Income per Share:(1) For fiscal year 2026, fully diluted net income per share was $5.44, compared to $4.32 one year ago, while non-GAAP fully diluted net income per share was $8.10, compared to $6.60 one year ago.
“Financial results in the fourth quarter exceeded our guidance across the board and capped off a year of durable, profitable growth,” said CFO Brian Van Wagener. “As we look ahead, strong momentum and operational discipline give us confidence in our trajectory toward our $6 billion revenue run rate target by 2030.”
Recent Highlights:
•Strengthening our Partnership with the Industry in Milestone Year – Expanding with both new and existing customers, Veeva finished the year with a total of 1,552 customers, including 1,196 in Veeva R&D and Quality Solutions and 767 in Veeva Commercial Solutions. Driven by continued customer success and product excellence, Veeva achieved its $3 billion revenue run rate in early 2025 – a major milestone that underscores the company’s consistent execution against its goals.(2)(3)
•Driving Innovation with Deeply Integrated, Industry AI – With core systems of record spanning the industry’s most critical functions, Veeva is uniquely positioned to deliver industry-specific AI integrated into its core applications. Veeva AI utilizes specialized datasets, sophisticated logic, deep process integration, and safeguards to provide high-value AI that ensures compliance and data integrity. Since the December release of the first Veeva AI Agents for CRM and commercial content, several customers have gone live and many more projects are underway. Veeva is on track to release additional agents across its other major application areas throughout 2026.
•Expanding Leadership in R&D and Quality – Veeva Development Cloud and Quality Cloud advanced significantly in the quarter, marked by several top 20 biopharma wins and key progress in newer application areas. In clinical, a top 20 biopharma selected Veeva RTSM as their enterprise standard. Safety momentum continued with Veeva's sixth top 20 win and its first top 20 biopharma live on Workbench and Signal. In Quality, Veeva LIMS made significant progress and remains on track for its first top 20 biopharma go-live at two manufacturing sites in 2026.
•Leading in Commercial with Innovation and Customer Success Focus – With Vault CRM, the next generation CRM for life sciences, Veeva is accelerating the industry’s move to agentic CRM. More than 125 customers are live on Vault CRM including 2 top 20 biopharmas in major markets, with many more on track to go live in 2026. Veeva ended the year with 10 top 20 biopharmas committed to Vault CRM globally and expects about 14 of the top 20 to commit as it continues to execute on its commercial vision. Crossix also had a breakout year, with strong growth in Measurement and Audiences.
Financial Outlook:
Veeva is providing guidance for its fiscal first quarter ending April 30, 2026 as follows:
•Total revenues between $855 and $858 million.
•Non-GAAP operating income between $378 and $381 million.(4)
•Non-GAAP fully diluted net income per share between $2.13 and $2.14.(4)
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 2 | ||||||
Veeva is providing updated guidance for its fiscal year ending January 31, 2027 as follows:
•Total revenues between $3,585 and $3,600 million.
•Non-GAAP operating income of about $1,590 million.(4)
•Non-GAAP fully diluted net income per share of approximately $8.85.(4)
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, March 4, 2026, and a replay of the call will be available on Veeva's investor relations website.
| What: | Veeva Systems Fourth Quarter and Fiscal Year 2026 Results Conference Call | ||||
| When: | Wednesday, March 4, 2026 | ||||
| Time: | 2:00 p.m. PT (5:00 p.m. ET) | ||||
| Online Registration: | https://events.q4inc.com/analyst/403345563?pwd=06lfBYfp | ||||
| Webcast: | ir.veeva.com | ||||
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) The combined customer counts for R&D and Quality Solutions and Commercial Solutions exceed the total customer count because some customers subscribe to products in both areas. R&D and Quality Solutions consist of our Veeva Development Cloud and Veeva Quality Cloud solutions. Commercial Solutions consist of our Veeva Commercial Cloud and Veeva Data Cloud solutions.
(3) Customer count totals are presented net of customer attrition during the period.
(4) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2026 or the fiscal year ending January 31, 2027 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 3 | ||||||
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, data, and business consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of March 4, 2026, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 33 and 34 in our filing on Form 10-Q for the period ended October 31, 2025 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
###
Investor Relations Contact: | Media Contact: | |||||||
Gunnar Hansen | Maria Scurry | |||||||
Veeva Systems Inc. | Veeva Systems Inc. | |||||||
267-460-5839 | 781-366-7617 | |||||||
ir@veeva.com | pr@veeva.com | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 4 | ||||||
VEEVA SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| January 31, 2026 | January 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,421,233 | $ | 1,118,785 | |||||||
| Short-term investments | 5,139,581 | 4,031,442 | |||||||||
| Accounts receivable, net | 1,259,737 | 1,016,356 | |||||||||
| Unbilled accounts receivable | 50,609 | 40,761 | |||||||||
| Prepaid expenses and other current assets | 126,470 | 101,458 | |||||||||
| Total current assets | 7,997,630 | 6,308,802 | |||||||||
| Property and equipment, net | 70,261 | 55,912 | |||||||||
| Deferred costs, net | 29,961 | 26,383 | |||||||||
| Lease right-of-use assets | 75,626 | 63,863 | |||||||||
| Goodwill | 439,877 | 439,877 | |||||||||
| Intangible assets, net | 30,314 | 44,460 | |||||||||
| Deferred income taxes | 273,417 | 343,919 | |||||||||
| Other long-term assets | 62,257 | 56,540 | |||||||||
| Total assets | $ | 8,979,343 | $ | 7,339,756 | |||||||
Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 37,644 | $ | 30,447 | |||||||
| Accrued compensation and benefits | 45,857 | 39,429 | |||||||||
| Accrued expenses and other current liabilities | 45,885 | 35,557 | |||||||||
| Income tax payable | 6,698 | 9,024 | |||||||||
| Deferred revenue | 1,488,819 | 1,273,978 | |||||||||
| Lease liabilities | 12,153 | 9,969 | |||||||||
| Total current liabilities | 1,637,056 | 1,398,404 | |||||||||
| Deferred income taxes | 558 | 587 | |||||||||
Long-term lease liabilities | 83,706 | 65,806 | |||||||||
| Other long-term liabilities | 43,271 | 42,586 | |||||||||
| Total liabilities | 1,764,591 | 1,507,383 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock | 2 | 2 | |||||||||
| Additional paid-in capital | 2,843,089 | 2,386,192 | |||||||||
| Accumulated other comprehensive income (loss) | 8,160 | (8,416) | |||||||||
| Retained earnings | 4,363,501 | 3,454,595 | |||||||||
| Total stockholders’ equity | 7,214,752 | 5,832,373 | |||||||||
Total liabilities and stockholders’ equity | $ | 8,979,343 | $ | 7,339,756 | |||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 5 | ||||||
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
| Three months ended January 31, | Fiscal year ended January 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
Subscription(5) | $ | 707,745 | $ | 608,577 | $ | 2,684,194 | $ | 2,284,659 | |||||||||||||||
Professional services and other(6) | 128,206 | 112,309 | 511,117 | 461,960 | |||||||||||||||||||
| Total revenues | 835,951 | 720,886 | 3,195,311 | 2,746,619 | |||||||||||||||||||
Cost of revenues(7): | |||||||||||||||||||||||
Cost of subscription | 96,541 | 83,493 | 362,888 | 323,070 | |||||||||||||||||||
| Cost of professional services and other | 116,936 | 97,498 | 419,131 | 376,566 | |||||||||||||||||||
| Total cost of revenues | 213,477 | 180,991 | 782,019 | 699,636 | |||||||||||||||||||
| Gross profit | 622,474 | 539,895 | 2,413,292 | 2,046,983 | |||||||||||||||||||
Operating expenses(7): | |||||||||||||||||||||||
| Research and development | 198,793 | 181,527 | 767,386 | 693,078 | |||||||||||||||||||
| Sales and marketing | 110,179 | 99,202 | 428,798 | 396,726 | |||||||||||||||||||
| General and administrative | 67,626 | 70,743 | 300,739 | 265,744 | |||||||||||||||||||
| Total operating expenses | 376,598 | 351,472 | 1,496,923 | 1,355,548 | |||||||||||||||||||
| Operating income | 245,876 | 188,423 | 916,369 | 691,435 | |||||||||||||||||||
| Other income, net | 71,661 | 56,707 | 278,139 | 227,946 | |||||||||||||||||||
| Income before income taxes | 317,537 | 245,130 | 1,194,508 | 919,381 | |||||||||||||||||||
Income tax provision | 73,333 | 49,505 | 285,602 | 205,243 | |||||||||||||||||||
| Net income | $ | 244,204 | $ | 195,625 | $ | 908,906 | $ | 714,138 | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 1.49 | $ | 1.20 | $ | 5.55 | $ | 4.41 | |||||||||||||||
| Diluted | $ | 1.45 | $ | 1.18 | $ | 5.44 | $ | 4.32 | |||||||||||||||
Weighted-average shares used to compute net income per share: | |||||||||||||||||||||||
| Basic | 164,343 | 162,391 | 163,667 | 161,879 | |||||||||||||||||||
| Diluted | 168,261 | 165,674 | 166,995 | 165,232 | |||||||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||
Net change in unrealized (loss) gain on available-for-sale investments | $ | (988) | $ | (1,482) | $ | 17,362 | $ | 4,094 | |||||||||||||||
| Net change in cumulative foreign currency translation loss | (766) | (475) | (786) | (1,873) | |||||||||||||||||||
| Comprehensive income | $ | 242,450 | $ | 193,668 | $ | 925,482 | $ | 716,359 | |||||||||||||||
(5) Includes subscription revenues from the following product areas: | |||||||||||||||||||||||
| Veeva Commercial Solutions | $ | 326,984 | $ | 293,385 | $ | 1,257,568 | $ | 1,104,888 | |||||||||||||||
Veeva R&D and Quality Solutions | 380,761 | 315,192 | 1,426,626 | 1,179,771 | |||||||||||||||||||
Total subscription | $ | 707,745 | $ | 608,577 | $ | 2,684,194 | $ | 2,284,659 | |||||||||||||||
(6) Includes professional services and other revenues from the following product areas: | |||||||||||||||||||||||
| Veeva Commercial Solutions | $ | 47,580 | $ | 45,607 | $ | 189,307 | $ | 185,302 | |||||||||||||||
Veeva R&D and Quality Solutions | 80,626 | 66,702 | 321,810 | 276,658 | |||||||||||||||||||
| Total professional services and other | $ | 128,206 | $ | 112,309 | $ | 511,117 | $ | 461,960 | |||||||||||||||
(7) Includes stock-based compensation as follows: | |||||||||||||||||||||||
| Cost of revenues: | |||||||||||||||||||||||
Cost of subscription | $ | 1,844 | $ | 1,699 | $ | 7,342 | $ | 6,591 | |||||||||||||||
| Cost of professional services and other | 15,014 | 12,737 | 57,376 | 51,377 | |||||||||||||||||||
| Research and development | 50,765 | 47,160 | 204,893 | 185,901 | |||||||||||||||||||
| Sales and marketing | 25,133 | 22,250 | 97,355 | 90,178 | |||||||||||||||||||
| General and administrative | 25,503 | 31,358 | 105,737 | 103,303 | |||||||||||||||||||
| Total stock-based compensation | $ | 118,259 | $ | 115,204 | $ | 472,703 | $ | 437,350 | |||||||||||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 6 | ||||||
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Fiscal year ended January 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 908,906 | $ | 714,138 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 37,972 | 39,383 | ||||||||||||
| Reduction of lease right-of-use assets | 12,499 | 11,547 | ||||||||||||
| Accretion of discount on short-term investments | (9,693) | (24,443) | ||||||||||||
| Stock-based compensation | 472,703 | 437,350 | ||||||||||||
| Amortization of deferred costs | 16,423 | 15,528 | ||||||||||||
| Deferred income taxes | 65,094 | (112,273) | ||||||||||||
| Other, net | 3,259 | 1,201 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (244,704) | (164,572) | ||||||||||||
| Unbilled accounts receivable | (9,848) | (4,396) | ||||||||||||
| Deferred costs | (20,001) | (17,995) | ||||||||||||
| Prepaid expenses and other current and long-term assets | (33,825) | (17,453) | ||||||||||||
| Accounts payable | 6,080 | (1,961) | ||||||||||||
| Accrued expenses and other current liabilities | 2,982 | (1,414) | ||||||||||||
| Income tax payable | (2,326) | (2,838) | ||||||||||||
| Deferred revenue | 213,056 | 227,838 | ||||||||||||
| Lease liabilities | (5,822) | (9,835) | ||||||||||||
| Other long-term liabilities | 2,470 | 246 | ||||||||||||
| Net cash provided by operating activities | 1,415,225 | 1,090,051 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Purchases of short-term investments | (3,133,080) | (2,581,968) | ||||||||||||
| Maturities and sales of short-term investments | 2,057,849 | 1,902,349 | ||||||||||||
| Long-term assets | (29,131) | (20,519) | ||||||||||||
| Net cash used in investing activities | (1,104,362) | (700,138) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Proceeds from exercise of common stock options | 253,863 | 105,538 | ||||||||||||
| Repurchases of common stock | (169,949) | — | ||||||||||||
| Taxes paid related to net share settlement of equity awards | (93,247) | (79,423) | ||||||||||||
| Net cash (used in) provided by financing activities | (9,333) | 26,115 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 919 | (1,735) | ||||||||||||
| Net change in cash, cash equivalents, and restricted cash | 302,449 | 414,293 | ||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,120,963 | 706,670 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,423,412 | $ | 1,120,963 | ||||||||||
| Supplemental disclosures of other cash flow information: | ||||||||||||||
| Excess tax benefits from employee stock plans | $ | 25,273 | $ | 8,932 | ||||||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 7 | ||||||
Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
•Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 8 | ||||||
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
| Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis) | Three months ended January 31, | Fiscal year ended January 31, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by operating activities on a GAAP basis | $ | 106,847 | $ | 69,544 | $ | 1,415,225 | $ | 1,090,051 | |||||||||||||||
| Excess tax benefits from employee stock plans | (1,971) | (3,772) | (25,273) | (8,932) | |||||||||||||||||||
| Net cash provided by operating activities on a non-GAAP basis | $ | 104,876 | $ | 65,772 | $ | 1,389,952 | $ | 1,081,119 | |||||||||||||||
| Net cash used in investing activities on a GAAP basis | $ | (167,750) | $ | (15,692) | $ | (1,104,362) | $ | (700,138) | |||||||||||||||
| Net cash (used in) provided by financing activities on a GAAP basis | $ | (178,048) | $ | 20,811 | $ | (9,333) | $ | 26,115 | |||||||||||||||
| Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) | Three months ended January 31, | Fiscal year ended January 31, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Cost of subscription revenues on a GAAP basis | $ | 96,541 | $ | 83,493 | $ | 362,888 | $ | 323,070 | |||||||||||||||
| Stock-based compensation expense | (1,844) | (1,699) | (7,342) | (6,591) | |||||||||||||||||||
| Amortization of purchased intangibles | (240) | (1,045) | (3,344) | (4,310) | |||||||||||||||||||
Cost of subscription revenues on a non-GAAP basis | $ | 94,457 | $ | 80,749 | $ | 352,202 | $ | 312,169 | |||||||||||||||
Gross margin on subscription revenues on a GAAP basis | 86.4 | % | 86.3 | % | 86.5 | % | 85.9 | % | |||||||||||||||
| Stock-based compensation expense | 0.3 | 0.3 | 0.3 | 0.3 | |||||||||||||||||||
| Amortization of purchased intangibles | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||||
Gross margin on subscription revenues on a non-GAAP basis | 86.7 | % | 86.7 | % | 86.9 | % | 86.3 | % | |||||||||||||||
| Cost of professional services and other revenues on a GAAP basis | $ | 116,936 | $ | 97,498 | $ | 419,131 | $ | 376,566 | |||||||||||||||
| Stock-based compensation expense | (15,014) | (12,737) | (57,376) | (51,377) | |||||||||||||||||||
| Amortization of purchased intangibles | (9) | (138) | (420) | (550) | |||||||||||||||||||
| Cost of professional services and other revenues on a non-GAAP basis | $ | 101,913 | $ | 84,623 | $ | 361,335 | $ | 324,639 | |||||||||||||||
| Gross margin on professional services and other revenues on a GAAP basis | 8.8 | % | 13.2 | % | 18.0 | % | 18.5 | % | |||||||||||||||
| Stock-based compensation expense | 11.7 | 11.3 | 11.2 | 11.1 | |||||||||||||||||||
| Amortization of purchased intangibles | — | 0.2 | 0.1 | 0.1 | |||||||||||||||||||
| Gross margin on professional services and other revenues on a non-GAAP basis | 20.5 | % | 24.7 | % | 29.3 | % | 29.7 | % | |||||||||||||||
| Gross profit on a GAAP basis | $ | 622,474 | $ | 539,895 | $ | 2,413,292 | $ | 2,046,983 | |||||||||||||||
| Stock-based compensation expense | 16,858 | 14,436 | 64,718 | 57,968 | |||||||||||||||||||
| Amortization of purchased intangibles | 249 | 1,183 | 3,764 | 4,860 | |||||||||||||||||||
| Gross profit on a non-GAAP basis | $ | 639,581 | $ | 555,514 | $ | 2,481,774 | $ | 2,109,811 | |||||||||||||||
| Gross margin on total revenues on a GAAP basis | 74.5 | % | 74.9 | % | 75.5 | % | 74.5 | % | |||||||||||||||
| Stock-based compensation expense | 2.0 | 2.0 | 2.0 | 2.1 | |||||||||||||||||||
| Amortization of purchased intangibles | — | 0.2 | 0.2 | 0.2 | |||||||||||||||||||
| Gross margin on total revenues on a non-GAAP basis | 76.5 | % | 77.1 | % | 77.7 | % | 76.8 | % | |||||||||||||||
| Research and development expense on a GAAP basis | $ | 198,793 | $ | 181,527 | $ | 767,386 | $ | 693,078 | |||||||||||||||
| Stock-based compensation expense | (50,765) | (47,160) | (204,893) | (185,901) | |||||||||||||||||||
| Amortization of purchased intangibles | — | — | — | (85) | |||||||||||||||||||
| Research and development expense on a non-GAAP basis | $ | 148,028 | $ | 134,367 | $ | 562,493 | $ | 507,092 | |||||||||||||||
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 9 | ||||||
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
| Three months ended January 31, | Fiscal year ended January 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales and marketing expense on a GAAP basis | $ | 110,179 | $ | 99,202 | $ | 428,798 | $ | 396,726 | |||||||||||||||
| Stock-based compensation expense | (25,133) | (22,250) | (97,355) | (90,178) | |||||||||||||||||||
| Amortization of purchased intangibles | (2,087) | (2,885) | (10,382) | (13,443) | |||||||||||||||||||
| Sales and marketing expense on a non-GAAP basis | $ | 82,959 | $ | 74,067 | $ | 321,061 | $ | 293,105 | |||||||||||||||
| General and administrative expense on a GAAP basis | $ | 67,626 | $ | 70,743 | $ | 300,739 | $ | 265,744 | |||||||||||||||
| Stock-based compensation expense | (25,503) | (31,358) | (105,737) | (103,303) | |||||||||||||||||||
| Amortization of purchased intangibles | — | — | — | (170) | |||||||||||||||||||
| Litigation settlement-related charges | — | — | (30,627) | (5,000) | |||||||||||||||||||
| General and administrative expense on a non-GAAP basis | $ | 42,123 | $ | 39,385 | $ | 164,375 | $ | 157,271 | |||||||||||||||
| Operating expense on a GAAP basis | $ | 376,598 | $ | 351,472 | $ | 1,496,923 | $ | 1,355,548 | |||||||||||||||
| Stock-based compensation expense | (101,401) | (100,768) | (407,985) | (379,382) | |||||||||||||||||||
| Amortization of purchased intangibles | (2,087) | (2,885) | (10,382) | (13,698) | |||||||||||||||||||
| Litigation settlement-related charges | — | — | (30,627) | (5,000) | |||||||||||||||||||
| Operating expense on a non-GAAP basis | $ | 273,110 | $ | 247,819 | $ | 1,047,929 | $ | 957,468 | |||||||||||||||
| Operating income on a GAAP basis | $ | 245,876 | $ | 188,423 | $ | 916,369 | $ | 691,435 | |||||||||||||||
| Stock-based compensation expense | 118,259 | 115,204 | 472,703 | 437,350 | |||||||||||||||||||
| Amortization of purchased intangibles | 2,336 | 4,068 | 14,146 | 18,558 | |||||||||||||||||||
| Litigation settlement-related charges | — | — | 30,627 | 5,000 | |||||||||||||||||||
| Operating income on a non-GAAP basis | $ | 366,471 | $ | 307,695 | $ | 1,433,845 | $ | 1,152,343 | |||||||||||||||
| Operating margin on a GAAP basis | 29.4 | % | 26.1 | % | 28.7 | % | 25.2 | % | |||||||||||||||
| Stock-based compensation expense | 14.1 | 16.0 | 14.8 | 15.9 | |||||||||||||||||||
| Amortization of purchased intangibles | 0.3 | 0.6 | 0.4 | 0.7 | |||||||||||||||||||
| Litigation settlement-related charges | — | — | 1.0 | 0.2 | |||||||||||||||||||
| Operating margin on a non-GAAP basis | 43.8 | % | 42.7 | % | 44.9 | % | 42.0 | % | |||||||||||||||
| Net income on a GAAP basis | $ | 244,204 | $ | 195,625 | $ | 908,906 | $ | 714,138 | |||||||||||||||
| Stock-based compensation expense | 118,259 | 115,204 | 472,703 | 437,350 | |||||||||||||||||||
| Amortization of purchased intangibles | 2,336 | 4,068 | 14,146 | 18,558 | |||||||||||||||||||
| Litigation settlement-related charges | — | — | 30,627 | 5,000 | |||||||||||||||||||
Income tax effect on non-GAAP adjustments(8) | (18,675) | (27,020) | (73,915) | (84,618) | |||||||||||||||||||
| Net income on a non-GAAP basis | $ | 346,124 | $ | 287,877 | $ | 1,352,468 | $ | 1,090,428 | |||||||||||||||
| Diluted net income per share on a GAAP basis | $ | 1.45 | $ | 1.18 | $ | 5.44 | $ | 4.32 | |||||||||||||||
| Stock-based compensation expense | 0.70 | 0.70 | 2.83 | 2.65 | |||||||||||||||||||
| Amortization of purchased intangibles | 0.01 | 0.02 | 0.08 | 0.11 | |||||||||||||||||||
| Litigation settlement-related charges | — | — | 0.18 | 0.03 | |||||||||||||||||||
Income tax effect on non-GAAP adjustments(8) | (0.10) | (0.16) | (0.43) | (0.51) | |||||||||||||||||||
| Diluted net income per share on a non-GAAP basis | $ | 2.06 | $ | 1.74 | $ | 8.10 | $ | 6.60 | |||||||||||||||
________________________
(8) For the three months and fiscal years ended January 31, 2026 and 2025, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | | 10 | ||||||