Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems demonstrated robust financial performance with professional services revenue reaching $112.3 million, a 2.9% year-over-year increase that surpassed consensus estimates. Total revenue rose by 14.3% year-over-year to exceed expectations, driven by a strong subscription revenue growth of 16.7% year-over-year, amounting to $608.6 million, which also beat consensus projections. Additionally, the company achieved a substantial gross margin expansion of 210 basis points year-over-year to 77.1%, coupled with a noteworthy increase in non-GAAP operating margin of 480 basis points year-over-year to 42.7%, reflecting operational efficiencies and improved profitability.

Veeva Systems has revised its total revenue estimates downward, anticipating flat service revenue for FY26, despite a modest increase in subscription revenue forecasts. Management is cautious about achieving significant growth in FY26 due to the volatility associated with media spending, which could impact performance expectations and contribute to share price pressure in light of potential negative events, such as customer losses in the Vault CRM segment. Additionally, the company expects first-quarter billings to fall short of consensus estimates, reflecting a challenging macro environment for its services segment and indicating broader pressure on growth amid operational challenges.