Executive Summary

Veeva delivered a clean beat in Q1 FY26: revenue $759.0M (+17% YoY) vs SPGI consensus $728.4M*, and non-GAAP EPS $1.97 vs $1.74*; GAAP EPS was $1.37 .
Non-GAAP gross margin and operating margin expanded to 79.2% and 46.1% (vs 75.6% and 40.1% a year ago), aided by outperformance in usage-based Crossix and timing benefits in services; management flagged Q1 as a high watermark with margins normalizing to ~44% in Q2 .
FY26 guidance was raised across revenue ($3.09B–$3.10B), non-GAAP operating income (~~$1.36B), and non-GAAP EPS (~~$7.63), but remains modestly below SPGI consensus for the year (Revenue $3.139B*, EPS $7.81*) .
Strategic progress continued: >80 Vault CRM customers live (vs >50 in Q4), 19/20 top-20 pharmas on eTMF, and nine top-20 using Veeva EDC; Veeva AI set for first release in Dec-2025 as a key multi-year catalyst .
CEO framed Q1 as “our best first quarter ever,” with the company surpassing a $3B revenue run-rate and reiterating the 2030 goal to double revenue; cross-sell momentum in Commercial (Crossix, Data Cloud) and durable R&D ramps underpin medium-term visibility .

What Went Well and What Went Wrong

What Went Well

Broad-based beat and margin expansion: revenue +17% YoY to $759.0M; non-GAAP operating margin 46.1% (from 40.1%); non-GAAP EPS $1.97 vs $1.50 YoY .
Crossix outperformance (usage-based) drove the upside; CFO called Crossix a >30% YoY growth business and a key long-term growth contributor .
Vault CRM momentum and strategic wins: >80 customers live (28 added in Q1) and on track to ~200 by next year; four top-20 biopharmas have publicly committed to Vault CRM; migrations and innovation cadence (Campaign Manager, Service Center, CRM Bot/MLR Bot) resonating with customers .

Quote: “I consider this our best first quarter ever… We have now achieved our calendar 2025 revenue run rate goal of $3 billion.” — CEO Peter Gassner .

What Went Wrong

Management signaled Q1 was a “high watermark” for margins due to mix and timing; expects operating margin to step down to ~44% in Q2 as services timing normalizes and usage-based upside is not assumed to recur .
Macro/policy unease noted in customer conversations (FDA staffing, drug pricing, funding) though no impact to pipeline/results yet; emerging biotechs could be sensitive if funding tightens .
Despite raising FY26 guidance, it remains slightly below SPGI consensus (Revenue $3.139B*, EPS $7.81*), implying potential modest estimate trims needed on the Street .

Financial Results

Headline P&L and Margins (older → newer)

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Total Revenue ($M)	$699.2	$720.9	$759.0
Subscription Revenue ($M)	$580.9	$608.6	$634.8
Professional Services & Other ($M)	$118.4	$112.3	$124.3
GAAP Diluted EPS	$1.13	$1.18	$1.37
Non-GAAP Diluted EPS	$1.75	$1.74	$1.97
Total Gross Margin (GAAP)	75.1%	74.9%	77.1%
Total Gross Margin (Non-GAAP)	77.3%	77.1%	79.2%
Operating Margin (GAAP)	25.9%	26.1%	30.8%
Operating Margin (Non-GAAP)	43.5%	42.7%	46.1%

Q1 FY26 vs SPGI Consensus

Metric	Consensus	Actual	Beat/(Miss)
Revenue ($M)	728.4*	759.0	+30.6
Non-GAAP Diluted EPS	1.74*	1.97	+0.23

Values with asterisk retrieved from S&P Global.

Segment/Product Area Detail

Subscription Services ($M)	Q3 FY25	Q4 FY25	Q1 FY26
Veeva Commercial Solutions	278.4	293.4	305.4
Veeva R&D Solutions	302.5	315.2	329.4
Total Subscription	580.9	608.6	634.8

Professional Services & Other ($M)	Q3 FY25	Q4 FY25	Q1 FY26
Commercial Solutions	45.9	45.6	46.6
R&D Solutions	72.5	66.7	77.7
Total PS & Other	118.4	112.3	124.3

Guidance Changes

Metric	Period	Previous Guidance (Mar 5, 2025)	Current Guidance (May 28, 2025)	Change
Total Revenue ($M)	FY26	$3,040–$3,055	$3,090–$3,100	Raised
Non-GAAP Operating Income ($M)	FY26	~1,300	~1,360	Raised
Non-GAAP Diluted EPS	FY26	~$7.32	~$7.63	Raised
Total Revenue ($M)	Q2 FY26	N/A	$766–$769	New
Non-GAAP Operating Income ($M)	Q2 FY26	N/A	$335–$337	New
Non-GAAP Diluted EPS	Q2 FY26	N/A	$1.89–$1.90	New

Note: Company does not provide GAAP targets for op income/EPS due to stock-based compensation and other items .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY25)	Previous Mentions (Q4 FY25)	Current Period (Q1 FY26)	Trend
AI/technology initiatives	Announced CRM Bot, MLR Bot for late 2025; Direct Data API free to customers; focus on embedded AI in workflows	AI strategy steady; platform-level LLMs; deep app-specific agents; prudent timing amid hype	Veeva AI first release planned Dec 2025; licensing at Vault level; LLM-agnostic; strong customer interest in CRM bot/MLR bot	Building momentum
Macro, tariffs, funding	Stable demand; customers adapting to “new normal”	FY26 guide assumes no macro change; slight decel vs normalized TFC base; FX a 1% revenue headwind	More unease in conversations (FDA staffing, funding) but no impact to results/pipeline; subscription base provides insulation	Cautious but resilient
Commercial performance (Crossix, Data Cloud)	Crossix strength; attach of add-ons; CRM seat counts stable overall	Crossix key driver; no change in revenue linearity; Data Cloud interest rising	Crossix outperformed (usage-based); >30% YoY growth; R&D segment also strong	Positive
Vault CRM migrations/adoption	>30 live; new suite (Campaign Manager/Service Center)	>50 live; 4th top-20 committed; early migrations underway	>80 live; +28 added in Q1; targeting ~200 live next year including top-20s	Accelerating
R&D execution (eTMF/CTMS/EDC)	Broad adoption in Development Cloud	9/20 top-20 on EDC; CTMS/eTMF standards; large multi-app wins	19/20 top-20 on eTMF; nine top-20 using EDC; continued multi-year ramp dynamics	Positive
Regulatory/legal	DTC advertising scenario discussed; long implementation, likely challenges	Continued monitoring; no near-term impact	Ongoing FDA staffing/approval timing concerns noted by customers	Watchlist

Management Commentary

“I consider this our best first quarter ever… Total revenue in the quarter was $759 million and non-GAAP operating margin of 46%. …we have now achieved our calendar 2025 revenue run rate goal of $3 billion.” — CEO Peter Gassner .
“Delivering results ahead of guidance for all metrics again demonstrates our focused execution and sizable market opportunity.” — CFO Brian Van Wagener .
On Crossix: “Our offering is getting more broad and getting more valuable… a comprehensive Crossix deal… maybe double in size of what it was three years ago… quick ROI.” — CEO Peter Gassner .
On AI: “Veeva AI… deeply embedded in the core applications… AI Agents… CRM bot, MLR bot… I’m very bullish Veeva can help increase life sciences efficiency by ~15% to 2030.” — CEO Peter Gassner .
On margins: “Q1 was a high watermark… ~three-quarters of the outperformance was driven by revenue… We see [operating margin] return back to 44% in Q2.” — CFO Brian Van Wagener .

Q&A Highlights

Crossix strength and drivers: usage-based products “humming,” >30% YoY growth; quick ROI supports spend resiliency even if macro softens .
Billings and guidance: FY billings raised on FX and subscription outperformance; services timing to normalize; no change seen in close rates or deal velocity .
Vault CRM migration cadence: On track with top-20 timelines; “red zone” by 2027 for complex migrations; >80 live today en route to ~200 next year .
Margin outlook: Q1 benefited from revenue mix/timing; expect ~44% non-GAAP operating margin for Q2 and balance of year .
Macro tone: customer unease (approvals, policy) but no impact to pipeline/results; subscription model and mission-critical apps provide insulation .

Estimates Context

Q1 FY26 beats vs SPGI consensus: Revenue $759.0M vs $728.4M*, non-GAAP EPS $1.97 vs $1.74*; GAAP EPS $1.37 .
FY26 guidance vs SPGI consensus: Company raised FY26 to Revenue $3.09–$3.10B and non-GAAP EPS ~ $7.63, modestly below SPGI consensus (Revenue $3.139B*, EPS $7.81*) — implies potential modest Street recalibration despite guide raise .