Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems has demonstrated robust financial performance, with total revenue increasing by 14.3% year-over-year, surpassing expectations primarily due to strong subscription and professional services revenue. The company reported calculated billings of $1,259.9 million, a 20.6% year-over-year growth that exceeded consensus estimates, further indicating strong demand in the life sciences sector. Additionally, Veeva achieved a significant expansion in non-GAAP operating margin, rising 480 basis points year-over-year to 42.7%, driven by improved gross margins and lower-than-expected operating expenses.

The analysis indicates a negative outlook on Veeva Systems's stock due to anticipated flat services revenue in FY26, despite a modest increase in subscription revenue estimates. The company's billings are projected to be below consensus expectations, suggesting weaker performance and potential pressure on shares if negative developments occur, particularly within the volatile media spending landscape. Additionally, challenges in the services segment, coupled with significant migration work surrounding Vault CRM and a negative foreign exchange impact, further contribute to the concerns regarding Veeva's financial performance in the coming fiscal periods.