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Here's Why You Should Add Veeva Systems Stock to Your Portfolio Now
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Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid fourth-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.
This Zacks Rank #1 (Strong Buy) company’s shares have risen 5.4% in the past six months compared with 4.5% growth of the industry. The S&P 500 composite has increased 0.9% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $38.91 billion. The company anticipates 26.2% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 7.92%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s Growth
Robust Product Portfolio: Veeva continues to drive the migration to its next-gen Vault CRM, with 20 new customers adopting the solution in the fourth quarter, particularly small and mid-sized biotech firms preparing for commercial launches. The company expects most top 20 pharma firms to make migration decisions by fiscal 2026, ahead of the 2030 sunset of the legacy CRM.
Veeva has introduced AI-driven innovations like CRM Voice Control, CRM Bot and MLR Bot to enhance efficiency, compliance and automation. Meanwhile, its Clinical Development Cloud sees growing adoption, with 17 of the top 20 pharma companies using its CTMS and a ninth committing to its EDC solution. Investments in RTSM and eCOA further expand its market opportunities.
Veeva’s Data Cloud solutions, including Compass, OpenData, Link and Pulse, are gaining traction, with Compass now supporting more than 100 brands. The newly introduced Pulse product secured its first seven-figure deal, helping pharma firms improve segmentation and targeting. The company is still in the early stages of enterprise-wide licensing agreements but anticipates larger contracts ahead. Additionally, Veeva is expanding its Safety solutions, offering a fully cloud-based suite for safety signal detection, adverse event reporting and regulatory compliance, benefiting from automated updates and seamless integration with its clinical systems.
Strategic Deals: Veeva Systems has secured several key deals in recent months, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM, expanding its use of Veeva Commercial Cloud and Development Cloud. Additionally, ACTO joined the Veeva AI Partner Program to enhance generative-AI capabilities for field representatives in life sciences. In October, Veeva and Walgreens Boots Alliance announced a long-term partnership to leverage the former’s Data Cloud and Clinical Platform, aiming to improve patient outcomes by connecting the latter’s community locations with diverse patient populations for easier clinical research access.
Strong Q4 Results: Veeva Systems exited the third quarter of fiscal 2025 with better-than-expected results, wherein both earnings and revenues beat their respective consensus estimate. This uptick in both top and bottom line and robust performance by the Subscription services segment during the quarter were impressive. The rise in Professional services and other’s revenues also bodes well.
Per management, Veeva Systems had a strong finish to the year by strengthening its partnerships across all customer segments, from large biopharma companies to smaller biotech firms. The company expanded its customer base, ending the year with 1,477 customers. This included 1,125 customers in Veeva R&D Solutions and 730 in Veeva Commercial Solutions. Growth came from both new customer acquisitions and existing customers increasing their use of Veeva's products.
Factor That May Offset the Gains of VEEV
Rising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. General and administrative expenses for the fourth quarter of fiscal 2025 increased 20.6% year over year. Management expects sales and marketing expenses to increase in fiscal 2025, primarily due to employee-related expenses as the company raises its headcount to support sales and marketing efforts associated with product offerings and continued expansion of sales capacity across all solutions.
In the fiscal fourth quarter, the total operating expenses increased 9.3% year over year. Veeva Systems expects operating expenses to increase in fiscal 2025, primarily due to employee compensation-related costs.
Estimate Trend
Veeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past seven days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved 25 cents north to $7.21.
The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $727.5 million, indicating an 11.9% improvement from the year-ago quarter’s reported number. The EPS estimate for the first quarter of fiscal 2026 is pinned at $1.73, implying a 15.3% improvement year over year.
Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 EPS has
increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
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Here's Why You Should Add Veeva Systems Stock to Your Portfolio Now
Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid fourth-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.
This Zacks Rank #1 (Strong Buy) company’s shares have risen 5.4% in the past six months compared with 4.5% growth of the industry. The S&P 500 composite has increased 0.9% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $38.91 billion. The company anticipates 26.2% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 7.92%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s Growth
Robust Product Portfolio: Veeva continues to drive the migration to its next-gen Vault CRM, with 20 new customers adopting the solution in the fourth quarter, particularly small and mid-sized biotech firms preparing for commercial launches. The company expects most top 20 pharma firms to make migration decisions by fiscal 2026, ahead of the 2030 sunset of the legacy CRM.
Veeva has introduced AI-driven innovations like CRM Voice Control, CRM Bot and MLR Bot to enhance efficiency, compliance and automation. Meanwhile, its Clinical Development Cloud sees growing adoption, with 17 of the top 20 pharma companies using its CTMS and a ninth committing to its EDC solution. Investments in RTSM and eCOA further expand its market opportunities.
Veeva’s Data Cloud solutions, including Compass, OpenData, Link and Pulse, are gaining traction, with Compass now supporting more than 100 brands. The newly introduced Pulse product secured its first seven-figure deal, helping pharma firms improve segmentation and targeting. The company is still in the early stages of enterprise-wide licensing agreements but anticipates larger contracts ahead. Additionally, Veeva is expanding its Safety solutions, offering a fully cloud-based suite for safety signal detection, adverse event reporting and regulatory compliance, benefiting from automated updates and seamless integration with its clinical systems.
Strategic Deals: Veeva Systems has secured several key deals in recent months, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM, expanding its use of Veeva Commercial Cloud and Development Cloud. Additionally, ACTO joined the Veeva AI Partner Program to enhance generative-AI capabilities for field representatives in life sciences. In October, Veeva and Walgreens Boots Alliance announced a long-term partnership to leverage the former’s Data Cloud and Clinical Platform, aiming to improve patient outcomes by connecting the latter’s community locations with diverse patient populations for easier clinical research access.
Strong Q4 Results: Veeva Systems exited the third quarter of fiscal 2025 with better-than-expected results, wherein both earnings and revenues beat their respective consensus estimate. This uptick in both top and bottom line and robust performance by the Subscription services segment during the quarter were impressive. The rise in Professional services and other’s revenues also bodes well.
Per management, Veeva Systems had a strong finish to the year by strengthening its partnerships across all customer segments, from large biopharma companies to smaller biotech firms. The company expanded its customer base, ending the year with 1,477 customers. This included 1,125 customers in Veeva R&D Solutions and 730 in Veeva Commercial Solutions. Growth came from both new customer acquisitions and existing customers increasing their use of Veeva's products.
Factor That May Offset the Gains of VEEV
Rising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. General and administrative expenses for the fourth quarter of fiscal 2025 increased 20.6% year over year. Management expects sales and marketing expenses to increase in fiscal 2025, primarily due to employee-related expenses as the company raises its headcount to support sales and marketing efforts associated with product offerings and continued expansion of sales capacity across all solutions.
In the fiscal fourth quarter, the total operating expenses increased 9.3% year over year. Veeva Systems expects operating expenses to increase in fiscal 2025, primarily due to employee compensation-related costs.
Estimate Trend
Veeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past seven days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved 25 cents north to $7.21.
The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $727.5 million, indicating an 11.9% improvement from the year-ago quarter’s reported number. The EPS estimate for the first quarter of fiscal 2026 is pinned at $1.73, implying a 15.3% improvement year over year.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) . At present, Masimo sports a Zacks Rank #1, whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 EPS has
increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.