Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems reported a strong financial performance, highlighted by a 20.6% year-over-year growth in calculated billings, reaching $1,259.9 million, which exceeded consensus estimates. The company's total revenue increased by 14.3% year-over-year, driven by better-than-expected subscription and professional services performances, alongside a notable 480bps expansion in the non-GAAP operating margin, which rose to 42.7%. Additionally, total gross margin improved to 77.1%, reflecting enhanced efficiencies in both subscription and professional services, further solidifying a positive outlook for the company's stock.

Veeva Systems is experiencing a cautious outlook due to projected flat services revenues for FY26, alongside a modest increase in subscription revenues, indicating challenges in sustaining growth momentum. The company faces volatility in media spending, which complicates revenue expectations and builds pressure on share performance, particularly if adverse events impact market perception. Additionally, billings for the first quarter of FY26 are anticipated to fall short of consensus estimates, highlighting underlying weaknesses and macroeconomic factors that may dampen financial performance moving forward.