Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems reported robust financial metrics, showcasing a 14.3% year-over-year increase in total revenue, driven by strong subscription revenue growth of 16.7% and a notable outperformance in professional services revenue, which increased 2.9% year-over-year. The company demonstrated significant operational efficiency, with a gross margin expansion of 210 basis points to 77.1% and a striking 480 basis point increase in non-GAAP operating margin to 42.7%, far exceeding expectations. Additionally, calculated billings grew by 20.6% year-over-year, reflecting strong customer demand and effective engagement strategies, leading to an exceptionally strong quarter for Veeva.

Veeva Systems faces a challenging outlook due to subdued revenue growth expectations, with total revenue estimates declining and flat service revenues anticipated for FY26, despite a modest increase in subscription revenues. Management exhibits caution regarding potential volatility in media spending, which may undermine overall performance, particularly given past execution history and the risk of adverse market reactions to negative developments. Additionally, the company’s first quarter billings projection falls short of consensus estimates, reflecting issues with the timing of billings and suggesting macroeconomic factors could negatively impact the services segment, further complicating their growth trajectory.