Veeva Systems Reports Strong Q1 Results for Fiscal Year 2026 with 17% Revenue Growth

Veeva Systems Reports Impressive Q1 FY 2026 Results

Veeva Systems Inc. (NYSE: VEEV), a leader in industry cloud solutions tailored for the global life sciences sector, recently reported remarkable results for the first quarter of fiscal year 2026. The company's total revenues reached $759.0 million, reflecting a 17% increase compared to the previous year, when revenues were $650.3 million. This strong performance is driven by the growth of Veeva's subscription services revenue, which amounted to $634.8 million, a robust 19% increase year-over-year.

Record Operating Income

Operating income for Veeva also saw significant gains, climbing to $233.7 million, representing a remarkable 51% increase from $155.2 million in the same quarter last year. When adjusted for non-GAAP metrics, the operating income totalled $349.9 million, showing a 34% improvement from the previous year's non-GAAP figure of $260.9 million.

Net income for the quarter was reported at $228.2 million, a 41% increase from $161.7 million a year prior, while the non-GAAP net income reached $327.8 million, marking a 33% growth compared to the same quarter in 2024.

The diluted net income per share for the quarter stood at $1.37, compared to $0.98 a year ago, showcasing Veeva's commitment to strong financial performance.

Management Insights

CEO Peter Gassner expressed his enthusiasm regarding these results, stating, "I consider this our best first quarter ever. We executed with speed, quality, and innovation across all areas on short-term objectives and long-term initiatives aligned to our values and 2030 goals." Chief Financial Officer Brian Van Wagener echoed this sentiment, noting that their execution demonstrates their sizeable market opportunity and confidence in reaching their 2030 revenue goals.

Major Milestones

In the latest quarter, Veeva achieved a significant milestone by surpassing the $3 billion revenue run rate goal set for 2025. This achievement underscores the company’s progress towards its ambitious goal of doubling revenue by 2030.

Adding to this momentum, Veeva announced the launch of Veeva AI, an initiative aimed at incorporating artificial intelligence capabilities into its applications and the Veeva Vault Platform. Scheduled for its first release in December 2025, Veeva AI aims to enhance operational efficiency and improve productivity for life sciences companies through application-specific AI Agents.

Innovations at Veeva Summit

Notable innovations were presented at the Veeva Commercial Summit held in May, emphasizing the company's ongoing commitment to commercial excellence. Veeva shared upcoming advancements, including various AI Agents designed to empower users, along with new offerings to enrich customer engagement via the Veeva Data Cloud. The summit attracted industry leaders and Veeva customers, providing a platform to showcase successful strategies and learnings.

Financial Outlook

Looking ahead, Veeva estimates its total revenues for the second quarter ending July 31, 2025, to be between $766 million and $769 million. The company also projects non-GAAP operating income in the range of $335 to $337 million and non-GAAP fully diluted net income per share to be between $1.89 and $1.90.

For the fiscal year ending January 31, 2026, Veeva forecasts total revenues of approximately $3.09 to $3.10 billion, with non-GAAP operating income expected around $1.36 billion and a projected non-GAAP fully diluted net income per share of about $7.63.

Conclusion

Veeva Systems' strong performance in the first quarter of fiscal year 2026 illustrates its leadership position and ongoing growth in the life sciences industry. With innovative plans like Veeva AI on the horizon, the company is set to further enhance its capabilities and continue supporting its clients as the industry evolves.

For more insights, Veeva invites interested parties to join their scheduled conference call at 2 p.m. PT on May 28, 2025, which will provide additional information on their financial performance and strategic outlook.