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Bull of the Day: Veeva Systems (VEEV)

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Key Takeaways

  • VEEV has tripled Tech over the past decade, yet it trades 15% below its highs.
  • The life sciences tech company posted an AI-boosted beat-and-raise Q1 in late May.
  • Veeva is on the verge of breaking above a key technical range, and its valuation looks enticing.

Veeva Systems ((VEEV - Free Report) is a cloud-based software firm focused on the pharmaceutical and life sciences industries.

VEEV stock has tripled the Zacks Tech sector over the past decade. Yet investors can buy the tech stock down 15% below its 2021 highs.

The life sciences tech company soared at the end of May after it posted impressive beat-and-raise results that highlight its margins and earnings expansion, and its artificial intelligence innovations.

The AI-boosted software stock is on the verge of breaking above a key technical trading range as it attempts to return to its records and beyond. Plus, Veeva’s valuation levels are growing more enticing as it successfully expands its bottom line.

Why This Medical Tech Stock is a Must Buy

Veeva is a cloud-based software company focused on the pharmaceutical and life sciences industries, boasting clients like Merck, Bayer, and beyond.

VEEV helps clients improve and streamline critical business functions, with software and services for research and development, regulatory processes and compliance, safety, clinical trials, marketing, and more. Veeva’s technology enables its clients to bring “products to market faster and more efficiently” while maintaining compliance.

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The firm has invested heavily in artificial intelligence, and it announced Veeva AI at the end of April. Its new AI system “provides a fast and efficient way to introduce application-specific AI Agents based on large language models (LLMs) into existing Veeva applications and enable end users with AI Shortcuts.”

The company averaged roughly 25% revenue growth over the last decade. Veeva grew its fiscal 2025 (last year) revenue by 16%, driven by a 20% increase in subscription services, helping boost its adjusted earnings by 37%. Most recently, VEEV posted beat-and-raise first quarter fiscal 2026 results on May 28.

VEEV grew its revenue by 17%, with Subscription Services up 19% YoY. The company also boosted its adjusted earnings by 31% and provided upbeat guidance.

Veeva said it is “progressing well toward” its goal of doubling its FY25 revenue by fiscal 2030, which would see it reach a $6 billion revenue run rate.

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Looking beyond what CEO Peter Gassner called its “best first quarter ever,” it is projected to boost its sales by roughly 12% in FY26 (this year) and next year to reach $3.46 billion.

The life sciences software giant is projected to grow its adjusted earnings by 15% this year and 9% next year. VEEV has topped our bottom line estimate for five years running, and upbeat earnings revisions land it a Zacks Rank #1 (Strong Buy).

Time to Buy VEEV Stock for AI-Boosted Upside and Value?

Veeva stock has skyrocketed 955% in the last 10 years to more than triple the Zacks Tech sector. Despite this outperformance, it still trades 15% below its highs after chopping around the last several years, as Wall Street worries about slowing growth and valuation.

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VEEV has jumped 35% in 2025, boosted by an 18% surge since its Q1 release at the end of May. The recent jump helped its very long-term 50-week moving average climb above its 200-week trendline, completing what technical traders call a bullish golden cross.

Veeva’s valuation was a big reason for its underwhelming performance over the past several years.

It trades at 49.6X forward 12-month earnings vs. Tech’s 26X. Yet, Veeva’s current levels represent 35% value compared to its 10-year median and 67% below to its highs.

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Its strong bottom-line growth outlook has it trading at an 80% discount to its highs and roughly 50% below its median, with a 2.1 price/earnings to growth (PEG) ratio.

This is not too far above its lows and the Tech sector’s 1.7 even though Veeva stock has soared almost 1,00% in the last 10 years vs. Tech’s 315%.

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Investors should consider buying Veeva ahead of a potential breakout to all-time highs and for long-term AI-boosted growth within a critical area of the economy that’s never going out of style.

On top of that, Veeva’s balance sheet is stellar, with $6.1 billion in cash and equivalents, zero debt vs. just $1.5 billion in total liabilities. This backdrop gives the medical software company the ability to constantly pursue more organic growth opportunities across AI and beyond and make strategic acquisitions. 


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