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VEEVA SYSTEMS INC (VEEV)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 delivered total revenue of $720.9M (+14% y/y), subscription revenue of $608.6M (+17% y/y), GAAP diluted EPS $1.18 and non-GAAP EPS $1.74; management emphasized results were above guidance across all metrics .
  • FY2026 guidance introduced: revenue $3.040–$3.055B, non-GAAP operating income ~$1.3B, non-GAAP EPS ~$7.32; Q1 FY2026 guidance: revenue $726–$729M, non-GAAP op income $307–$309M, non-GAAP EPS $1.74–$1.75 .
  • Strategic momentum: ninth top‑20 biopharma committed to Veeva EDC; one top‑20 took a full Clinical Platform (six major applications) in one of Veeva’s largest subscription orders; growing interest in Data Cloud and the launch of CRM Pulse; Direct Data API now included at no cost to accelerate AI/analytics use cases .
  • FY2025 trajectory strengthened into year-end: updated FY2025 guidance (from Q3) was raised versus Q2 levels and Q4 actuals beat Q4 guidance; FY2026 margin framework highlights ongoing efficiency while maintaining product investment focus .

What Went Well and What Went Wrong

What Went Well

  • Clinical suite standardization wins and scale: ninth top‑20 EDC commitment and a top‑20 selecting a full Clinical Platform in Q4, consolidating around Veeva for speed and integrated workflows .
  • Commercial innovation cadence and customer success: 20 new Vault CRM customers in the quarter, with migrations progressing and a broadening roadmap (Service Center, Campaign Manager), improving customer centricity across sales/medical/marketing .
  • Data and AI initiatives gaining traction: increasing interest in Data Cloud (Compass, OpenData, Link, Pulse), early Pulse adoption with a seven‑figure initial deal, and Direct Data API included for free to accelerate AI/analytics integrations .

What Went Wrong

  • Subscription growth deceleration expected in FY2026 versus FY2025, largely due to tough comps in Crossix after strong outperformance in FY2025; management framed it as momentum intact but a harder y/y compare .
  • Street consensus comparison unavailable for this recap due to an S&P Global quota limit at query time, limiting explicit beat/miss versus consensus specificity; however, Q4 results were above company guidance and FY2026 EPS guide was noted by analysts as above Street .
  • Macro/tariffs remain an uncertainty and could delay customer decisions; management has not observed impact yet but flagged it as an early‑stage risk .

Financial Results

Quarterly Comparison (GAAP and non‑GAAP)

MetricQ2 FY2025Q3 FY2025Q4 FY2025
Total Revenues ($USD Millions)$676.2 $699.2 $720.9
Subscription Services Revenues ($USD Millions)$561.3 $580.9 $608.6
Professional Services & Other Revenues ($USD Millions)$114.9 $118.4 $112.3
GAAP Operating Income ($USD Millions)$166.5 $181.4 $188.4
Non‑GAAP Operating Income ($USD Millions)$279.8 $304.0 $307.7
GAAP Diluted EPS ($USD)$1.04 $1.13 $1.18
Non‑GAAP Diluted EPS ($USD)$1.62 $1.75 $1.74
GAAP Gross Margin (%)74.8% 75.1% 74.9%
Non‑GAAP Gross Margin (%)77.2% 77.3% 77.1%
GAAP Operating Margin (%)24.6% 25.9% 26.1%
Non‑GAAP Operating Margin (%)41.4% 43.5% 42.7%

Segment Breakdown (Subscription and Services)

Segment MetricQ2 FY2025Q3 FY2025Q4 FY2025
Subscription – Commercial ($USD Millions)$271.8 $278.4 $293.4
Subscription – R&D ($USD Millions)$289.5 $302.5 $315.2
Services – Commercial ($USD Millions)$45.1 $45.9 $45.6
Services – R&D ($USD Millions)$69.8 $72.5 $66.7

KPIs and Business Activity

KPIQ4 FY2025
Total Customers1,477
Customers in R&D Solutions1,125
Customers in Commercial Solutions730
Vault CRM – Customers Live>50
Vault CRM – Migrations Completed8
Quality Cloud – New Customers Added in Q441
Quality Cloud – Existing Customers Expanded>20
Safety – Fourth Top 20 Selected; Second Top 20 Went LiveNoted

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Total Revenues ($USD Millions)Q4 FY2025$696–$699 $720.9 actual Beat
Non‑GAAP Operating Income ($USD Millions)Q4 FY2025~$275 $307.7 actual Beat
Non‑GAAP Diluted EPS ($USD)Q4 FY2025~$1.57 $1.74 actual Beat
Total Revenues ($USD Millions)FY2025$2,704–$2,710 (Q2) $2,722–$2,725 (Q3) Raised
Non‑GAAP Operating Income ($USD Millions)FY2025~$1,080 (Q2) ~$1,120 (Q3) Raised
Non‑GAAP Diluted EPS ($USD)FY2025~$6.22 (Q2) ~$6.44 (Q3) Raised
Total Revenues ($USD Millions)Q1 FY2026N/A$726–$729 New
Non‑GAAP Operating Income ($USD Millions)Q1 FY2026N/A$307–$309 New
Non‑GAAP Diluted EPS ($USD)Q1 FY2026N/A$1.74–$1.75 New
Total Revenues ($USD Millions)FY2026N/A$3,040–$3,055 New
Non‑GAAP Operating Income ($USD Millions)FY2026N/A~ $1,300 New
Non‑GAAP Diluted EPS ($USD)FY2026N/A~ $7.32 New

Earnings Call Themes & Trends

TopicQ2 FY2025 (Prior‑2)Q3 FY2025 (Prior‑1)Q4 FY2025 (Current)Trend
Vault CRM adoption & roadmapService Center launched; +14 new customers 4th top‑20 commitment; full functionality parity and new apps; migrations tooling maturing +20 new customers; migrations progressing; focus on customer‑centricity (sales/medical/marketing) Accelerating adoption and migration readiness
Clinical suite standardizationCDB selected by seven top‑20; CTMS/RIM standardizations Broader strategic engagements across Development Cloud; strong momentum Ninth top‑20 EDC; one top‑20 took full Clinical Platform; faster implementations Deepening enterprise standardization
Data Cloud (Compass, Pulse, OpenData, Link)Strategic progress; customer wins Crossix driving commercial growth; Walgreens data source partnership for Compass Rising Data Cloud interest; brand‑level Compass expansion; CRM Pulse launched globally with initial 7‑figure deal Building pipeline; early monetization
AI productization and enablementAnnounced future CRM Bot, Voice Control, MLR Bot in Commercial AI distraction waning; margin guide not relying on AI; differentiated CRM Bot vs. MLR Bot monetization Stable LLM ecosystem; AI solutions (TMF bot, CRM voice, CRM bot, MLR bot) prioritized; Direct Data API free to accelerate AI Practical, workflow‑embedded AI gaining traction
Macro/tariffs/regulatoryCustomers focused; mission‑critical projects continue New administration uncertainties; no customer decision changes observed Tariffs/macro early; potential delays but not observed yet Watchful but stable demand
China CRM localization——Six of top‑20 biopharmas standardized on China CRM Suite; hosted in‑country, compliant Growing regional product-market fit

Management Commentary

  • “It was an outstanding quarter and year of execution and innovation in software, data, and business consulting.” – CEO Peter Gassner .
  • “We closed the year with results ahead of guidance for all metrics… momentum across our product areas.” – CFO Brian Van Wagener .
  • On Clinical momentum: “We were very pleased that in the quarter, we had our ninth of the top 20 commit to Veeva EDC… ramps steadily contributing to billings and revenue.” – CFO .
  • On Data Cloud: “Probably the biggest change in the last 6 months is more interest in Data Cloud overall… adoption is early.” – CEO .
  • On FY2026 margin framing: “We’re optimizing for speed and execution, not margin… continuing to invest in the business for growth.” – CFO .
  • On AI strategy: “It’s settling out… core LLMs at the platform level; we focus on workflow‑specific AI solutions like CRM voice, CRM bot, MLR bot.” – CEO .

Q&A Highlights

  • Clinical platform consolidation: Top‑20 is choosing full clinical platform for “speed to value” and alignment; multi‑app ramps can take ~5 years .
  • EDC/CDMS ramps: Steady contributions factored into FY2026 guidance; not limited to one product or year .
  • Data Cloud/Pulse: Early but increasing interest; Pulse launched with global scope and initial 7‑figure deal; Compass progress stronger on patient data; prescriber for incentive comp expected to take time .
  • Margin outlook: Highest non‑GAAP operating margin guide reflects efficiencies across product and field while maintaining investment pace; not reliant on AI benefits .
  • Macro/tariffs/NIH: Too early to assess impacts; life sciences resilience and subscription model predictability if projects are delayed; no observed changes in decisions .

Estimates Context

  • S&P Global consensus for Q4 FY2025 and FY2026 was unavailable at query time due to an SPGI quota limit; Q4 results were above company guidance and one analyst noted FY2026 EPS guidance came in above Street, with revenue roughly in line ex‑FX .
  • Values from S&P Global were not retrievable due to quota constraints at time of analysis.

Key Takeaways for Investors

  • Q4 capped FY2025 with broad‑based strength and guidance beats; sequential growth on revenue and sustained high non‑GAAP margins position FY2026 well .
  • Clinical standardization is accelerating at top‑20 biopharmas (EDC, eTMF, CTMS, and broader clinical platform), underpinning durable multi‑year ramps and enterprise stickiness .
  • Commercial transformation via Vault CRM is advancing with strong SMB/pre‑commercial wins and growing top‑20 commitment pace; migrations and innovation cadence reduce decision friction .
  • Data Cloud strategy (Compass, OpenData, Link, Pulse) is building momentum; Pulse’s global rollout and early seven‑figure deal suggest a new data monetization flywheel alongside Crossix .
  • AI enablement via Direct Data API and workflow‑specific bots offers incremental value without margin dependency, supporting efficiency as the product portfolio scales .
  • Watch near‑term Crossix comps for subscription growth optics and macro/tariff headlines for potential timing impacts; management sees resilient demand and predictable subscription dynamics .
  • Catalysts: Continued top‑20 clinical and CRM commitments, Pulse geographic expansion (Asia/Japan), China CRM Suite traction, and delivery on Q1/FY2026 guidance milestones .

Additional Relevant Q4 FY2025 Press Releases

  • CRM Pulse launch (global HCP access data across 21 countries with quarterly releases) .
  • China CRM Suite standardization (6 of top‑20 biopharmas; in‑country hosting and compliance) .
  • Direct Data API included in Vault Platform (up to 100x faster data access; connectors for Redshift/Snowflake/Databricks/Power BI) .