Veeva Systems (VEEV) Beats Q3 Estimates, Lifts 2026 Outlook

Published: November 20, 2025 – Pleasanton, California

Veeva Systems Inc. (NYSE: VEEV) reported strong third‑quarter fiscal 2026 results after Thursday’s close, topping Wall Street estimates for both revenue and earnings and raising its outlook for the rest of the year. Yet despite the upbeat numbers, VEEV stock traded lower in extended hours as investors digested guidance, valuation, and recent share price gains. ^[1]

Q3 Fiscal 2026 Results: Double‑Digit Growth Across the Board

Veeva’s fiscal third quarter covers the period ended October 31, 2025 (often referred to as Q3 2026 in company materials and Q3 2025 on a calendar basis). The company once again delivered double‑digit, broad‑based growth:

Total revenue: $811.2 million, up 16% year‑over‑year from $699.2 million. ^[2]
Subscription services revenue: $682.5 million, up 17% from $580.9 million a year ago, underscoring the strength of Veeva’s recurring cloud business. ^[3]
GAAP operating income: $240.9 million, up 33% year‑over‑year.
Non‑GAAP operating income: $364.9 million, up 20% year‑over‑year. ^[4]
GAAP net income: $236.2 million, up 27% year‑over‑year. ^[5]
Non‑GAAP net income: $345.1 million, up 20% from the prior year. ^[6]

On a per‑share basis, fully diluted GAAP EPS came in at $1.40, up from $1.13 in the same quarter last year, while non‑GAAP EPS reached $2.04, up from $1.75. ^[7]

Wall Street had been expecting around $1.95 in EPS and roughly $793 million in revenue, so Veeva’s $2.04 EPS and $811.2 million in sales were clear beats on both metrics. ^[8]

The quarter also saw margin expansion:

Adjusted operating margin reached about 45%, up from roughly 41% a year earlier. ^[9]
Adjusted operating income outpaced revenue growth, reflecting disciplined expense management even as Veeva continues to invest in AI and product development. ^[10]

Guidance Raised for Q4 and Full Fiscal 2026

Alongside the earnings beat, Veeva raised its outlook for the fiscal fourth quarter and full fiscal year ending January 31, 2026:

Q4 Fiscal 2026 Guidance

For the current quarter (ending January 31, 2026), Veeva now expects: ^[11]

Total revenue: between $807 million and $810 million
Non‑GAAP operating income: about $350 million
Non‑GAAP EPS: approximately $1.92

These revenue expectations sit modestly above prior analyst estimates (around $800–801 million at the midpoint), while the EPS guide also edges past consensus. ^[12]

Full‑Year Fiscal 2026 Guidance

For the full fiscal year, Veeva now forecasts: ^[13]

Total revenue: $3.166–$3.169 billion
Non‑GAAP operating income: about $1.417 billion
Non‑GAAP EPS: approximately $7.93

StreetInsider notes that this EPS outlook is ahead of the roughly $7.81 consensus, while the revenue range is also above prior expectations of about $3.14 billion. ^[14]

CFO Brian Van Wagener emphasized in the release that these results and the increased full‑year guidance reflect “broad‑based strength” across the business and keep the company on track for its 2030 target of a $6 billion revenue run‑rate. ^[15]

Veeva AI and Product Momentum Take Center Stage

Beyond the headline numbers, Veeva’s latest quarter underscores how aggressively the company is leaning into AI and expanding its cloud footprint in life sciences.

Veeva AI: From Vision to Early Agents

Management highlighted rapid progress on Veeva AI, framing it as a suite of industry‑specific AI agents embedded across Veeva’s applications rather than a generic, one‑size‑fits‑all tool. ^[16]

Key updates include:

The first AI agents for CRM and commercial content are on track for release in early December 2025.
Additional agents for R&D, quality, and further commercial use cases are planned across 2026, aimed at boosting productivity, automating workflows, and enabling more data‑driven engagement with healthcare professionals. ^[17]

CEO Peter Gassner reiterated that these specialized agents are already showing value in early adopter projects, helping customers reach “new levels of productivity and customer centricity.” ^[18]

Vault CRM and Development Cloud Adoption

Veeva also reported continued traction in its flagship platforms: ^[19]

Vault CRM added 23 new customers in the quarter, bringing the total to 115 live customers, including major pharmaceutical companies. A significant rollout for a top‑20 biopharma in Japan underscored the product’s ability to handle large, global deployments.
Within Veeva Development Cloud, three top‑20 biopharma companies selected Veeva applications as their enterprise standards, including Study Startup, Study Training, and Veeva Safety. One of these top‑20 biopharmas went live on Veeva Safety during the quarter, highlighting momentum in the company’s newer safety and pharmacovigilance offerings.

These adoption figures reinforce Veeva’s strategy of becoming the core digital infrastructure for life sciences—from clinical trials to commercial operations.

How VEEV Stock Is Reacting Today

Despite the earnings and guidance beats, Veeva shares moved lower after the results hit the tape.

Ahead of earnings, VEEV had already been under some pressure. AskTraders noted that the stock was trading just above $271, down a little over 8% over the previous five trading days, even as analysts remained broadly optimistic. ^[20]
Immediately after the release, StockStory/related coverage reported shares trading down about 2.7% to around $263.38, suggesting investors may have been looking for an even stronger outlook or acceleration in growth. ^[21]
Later in after‑hours trading, Benzinga reported that VEEV was down roughly 5–6%, with the stock changing hands in the mid‑$250s range, even as the company beat on both revenue and EPS and raised forecasts. ^[22]

Different real‑time data providers show slightly different prints, but the story is consistent: the market reaction has been negative, at least initially, despite the solid headline numbers.

Technical research from Stock Traders Daily flagged “weak near‑term sentiment” and elevated downside risk, even while long‑term signals remained constructive—underlining the tug‑of‑war between Veeva’s long‑term story and short‑term trading dynamics. ^[23]

What Wall Street Expected vs. What Veeva Delivered

Today’s earnings don’t exist in a vacuum. For most of November, analysts had been setting the stage for a clean beat and a focus on guidance.

A Mizuho preview earlier today characterized the quarter as “de‑risked,” noting that management had already built a track record of consistent execution and that investor attention would likely turn to the FY 2026 outlook and AI initiatives. ^[24]
Consensus heading into the print called for roughly $1.95 in EPS and around $793 million in revenue. Veeva’s actual $2.04 EPS and $811.2 million in sales comfortably surpassed those numbers. ^[25]
GuruFocus and other outlets highlighted that Veeva’s updated Q4 guidance, particularly the ~$808.5 million revenue midpoint, came in above Street expectations, reinforcing the “beat and raise” narrative. ^[26]

Even so, some commentary suggests investors might have been hoping for an even more aggressive acceleration, especially given Veeva’s premium valuation and the growing importance of AI in its story. StockStory noted that while the print had “key positives,” shares traded lower as investors appeared to be looking for more upside. ^[27]

Institutional Flows: Artisan Partners Trims, Ownership Still High

Separate from the earnings release, MarketBeat reported today that Artisan Partners Limited Partnership trimmed its Veeva position by 0.8%, selling 9,603 shares in the second quarter. After the sale, the fund still held about 1.22 million shares, representing roughly 0.74% of Veeva’s outstanding stock, with an estimated value of around $350 million at the time of filing. ^[28]

The same report highlighted that approximately 88% of Veeva’s shares are owned by institutional investors, underscoring the company’s status as an institutional favorite in the healthcare software space. ^[29]

Analysts tracked by MarketBeat continue to rate the stock a “Moderate Buy,” with an average price target near $307, implying meaningful upside from recent trading levels—even after factoring in today’s pullback. ^[30]

Valuation Check: Is VEEV Undervalued After the Pullback?

A separate note from Simply Wall St, also dated November 20, 2025, dug into Veeva’s valuation after its recent rally and short‑term weakness:

Over the past year, Veeva’s total shareholder return is estimated at about 29–30%, driven by steady revenue and earnings growth. ^[31]
Short term, the stock has cooled: a 7‑day return of about –8.1% and a roughly 4.5% decline over 30 days, reflecting pre‑earnings volatility and profit‑taking. ^[32]
Using its own discounted cash‑flow and narrative framework, Simply Wall St pegs “fair value” around $320.62, suggesting the shares could be approximately 15% undervalued versus a recent price in the low‑to‑mid $270s. ^[33]

The analysis also calls out the resolution of Veeva’s long‑running data‑access dispute with IQVIA, arguing that improved data interoperability can expand Veeva’s addressable market and support faster growth in Commercial Cloud over the coming years. ^[34]

Still, Simply Wall St and other commentators note that this bullish scenario depends on sustained execution in a competitive and rapidly evolving software landscape.

Competitive Landscape, Legal Overhangs, and Key Risks

Even on a strong earnings day, investors can’t ignore the risk side of the ledger.

Competition: Veeva operates in an increasingly crowded life‑sciences software market, competing with global software firms and specialized industry players. AskTraders’ pre‑earnings report cautioned that the company’s premium valuation leaves little room for missteps, especially as rivals ramp up their own AI and cloud offerings. ^[35]
Legal exposure: Veeva has been involved in disputes around branding and data access (including litigation related to Microsoft’s “Viva” and prior conflicts with IQVIA). While some of these issues are being resolved, they highlight ongoing legal and regulatory risk. ^[36]
Customer concentration: A sizable portion of revenue comes from large pharmaceutical companies. Any slowdown in spending, pricing pressure, or churn among these big clients could weigh on growth. Management again flagged macro and industry‑specific risks (regulation, funding, policy changes) in today’s forward‑looking statements. ^[37]

Veeva’s own Q3 prepared remarks and press release stress that forward‑looking guidance is inherently uncertain and subject to macroeconomic, competitive, and operational headwinds. ^[38]

What to Watch Next

Here are the main catalysts and data points investors and industry watchers will be tracking after today’s report:

Q&A Earnings Call Replay
Veeva hosted its Q3 2026 results Q&A call at 2:00 p.m. PT (5:00 p.m. ET) today. A replay is available via the investor relations site. Expect more color on AI investments, competitive dynamics, and demand trends across Commercial Cloud and Development Cloud. ^[39]
Early December: First Veeva AI Agents Go Live
The launch of the first CRM and commercial‑content AI agents in early December will be an important real‑world test of how quickly Veeva can translate its AI story into measurable productivity gains and adoption metrics. ^[40]
Q4 Performance vs. Elevated Expectations
With Q4 revenue and EPS guidance now above consensus, the bar has been raised. Investors will watch whether Veeva can continue to deliver mid‑teens revenue growth, high‑40s non‑GAAP operating margins, and robust cash generation. ^[41]
Institutional Positioning and Analyst Revisions
After Artisan Partners’ modest trim and today’s price action, subsequent 13F filings and analyst target changes could offer clues on how large investors and Wall Street are recalibrating their views. ^[42]

Bottom Line

On November 20, 2025, Veeva Systems delivered exactly the kind of quarter most bulls wanted to see:

Solid double‑digit revenue and earnings growth
A clean beat on consensus estimates
Raised guidance for both Q4 and the full fiscal year
Clear progress on Veeva AI, Vault CRM, and Development Cloud adoption

Yet the immediate stock reaction was negative, reflecting a familiar pattern for high‑quality, high‑multiple software names: when expectations are lofty, even a “beat and raise” can trigger profit‑taking or concerns that future growth might slow. ^[43]

For long‑term investors, the key question emerging from today’s news cycle is whether Veeva’s accelerating AI roadmap, deepening customer relationships, and strong balance sheet can justify its premium valuation over the coming years—or whether near‑term volatility and competitive pressure will cap returns from here.

As always, this article is for informational purposes only and does not constitute investment advice. Anyone considering VEEV should evaluate their own risk tolerance, time horizon, and financial situation, and consult a qualified financial adviser where appropriate.

Veeva (VEEV|$46.6B) - 2026 Q2 Earnings Analysis