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Reasons to Hold Veeva Systems Stock in Your Portfolio for Now
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Key Takeaways
VEEV posted 16% revenue growth in Q3 to $811M, driven by strength in product portfolio.
VEEV is seeing deeper enterprise adoption, with Global 2000 clients standardizing multiple apps across clouds.
VEEV faces rising operating expenses, with G&A costs up 56.1% year over year.
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 third-quarter fiscal 2026 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.
This Zacks Rank #3 (Hold) company’s shares have lost 22% in the last six-month period compared with the 17.1% decline of the industry. The S&P 500 Composite has increased 14.4% 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 $36.93 billion. The company anticipates 23.8% 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 8.2%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s Growth
Robust Product Portfolio: Veeva Systems delivered a strong third quarter with revenue rising 16% year over year to $811 million, driven by broad-based strength across both Commercial and R&D Clouds rather than dependence on any single product. In Commercial Cloud, Vault CRM remained a core platform with deep top-20 biopharma penetration, while its share of total revenue continued to decline as faster-growing offerings like Crossix, Data Cloud products and AI-enabled tools scaled, supporting higher cross-sell and customer stickiness. On the R&D side, Development Cloud execution stayed steady, with growing momentum in Quality Cloud and early top-20 adoption of newer manufacturing-focused solutions, reinforcing Veeva Systems’ expanding platform role, deeper enterprise penetration and long-term revenue visibility.
Strategic Deals: Veeva Systems highlighted continued progress in the fiscal third quarter through deeper enterprise-level adoption and strategic partnerships that support its long-term platform strategy. Large Global 2000 life sciences customers are increasingly standardizing on multiple Veeva Systems applications across Commercial, Clinical, Safety, Quality and Data Cloud, signaling rising confidence in the platform’s ability to support mission-critical workflows at scale.
Management also underscored the strategic value of its partnership with IQVIA, noting that while revenue contributions build gradually, the collaboration is already enhancing customer confidence, data interoperability and workflow integration, alongside broader partnerships with CROs and systems integrators that reduce implementation friction and enable wider enterprise adoption.
Strong Q3 Results: Veeva Systems exited the third quarter of fiscal 2026 with better-than-expected results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The uptick in both the top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
During the quarter, Veeva Systems also strengthened its leadership position in CRM, driven by expanding adoption and product excellence across global markets. Vault CRM added 23 new customers, bringing the total number of live customers to 115. A major highlight was a large rollout for a top-20 biopharma company in Japan, which showcased the platform’s ability to support complex, multinational deployments.
A 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 third quarter of fiscal 2026 increased 56.1% year over year. Management expects sales and marketing expenses to increase in fiscal 2026, primarily due to employee-related expenses as the company raises its headcount to support its sales and marketing efforts associated with its product offerings and continued expansion of its sales capacity across all its solutions.
In the fiscal third quarter, the total operating expenses increased 7.9% year over year. Veeva Systems expects operating expenses to increase in fiscal 2026, primarily due to employee compensation-related costs.
Estimate Trend
Veeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved 13 cents north to $7.91.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $808.9 million, indicating a 12.2% improvement from the year-ago quarter’s reported number. The EPS estimate for the fourth quarter of fiscal 2026 is pinned at $1.92, implying a 10.3% improvement year over year.
Key Picks
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
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Reasons to Hold Veeva Systems Stock in Your Portfolio for Now
Key Takeaways
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 third-quarter fiscal 2026 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.
This Zacks Rank #3 (Hold) company’s shares have lost 22% in the last six-month period compared with the 17.1% decline of the industry. The S&P 500 Composite has increased 14.4% 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 $36.93 billion. The company anticipates 23.8% 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 8.2%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s Growth
Robust Product Portfolio: Veeva Systems delivered a strong third quarter with revenue rising 16% year over year to $811 million, driven by broad-based strength across both Commercial and R&D Clouds rather than dependence on any single product. In Commercial Cloud, Vault CRM remained a core platform with deep top-20 biopharma penetration, while its share of total revenue continued to decline as faster-growing offerings like Crossix, Data Cloud products and AI-enabled tools scaled, supporting higher cross-sell and customer stickiness. On the R&D side, Development Cloud execution stayed steady, with growing momentum in Quality Cloud and early top-20 adoption of newer manufacturing-focused solutions, reinforcing Veeva Systems’ expanding platform role, deeper enterprise penetration and long-term revenue visibility.
Strategic Deals: Veeva Systems highlighted continued progress in the fiscal third quarter through deeper enterprise-level adoption and strategic partnerships that support its long-term platform strategy. Large Global 2000 life sciences customers are increasingly standardizing on multiple Veeva Systems applications across Commercial, Clinical, Safety, Quality and Data Cloud, signaling rising confidence in the platform’s ability to support mission-critical workflows at scale.
Management also underscored the strategic value of its partnership with IQVIA, noting that while revenue contributions build gradually, the collaboration is already enhancing customer confidence, data interoperability and workflow integration, alongside broader partnerships with CROs and systems integrators that reduce implementation friction and enable wider enterprise adoption.
Strong Q3 Results: Veeva Systems exited the third quarter of fiscal 2026 with better-than-expected results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The uptick in both the top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
During the quarter, Veeva Systems also strengthened its leadership position in CRM, driven by expanding adoption and product excellence across global markets. Vault CRM added 23 new customers, bringing the total number of live customers to 115. A major highlight was a large rollout for a top-20 biopharma company in Japan, which showcased the platform’s ability to support complex, multinational deployments.
A 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 third quarter of fiscal 2026 increased 56.1% year over year. Management expects sales and marketing expenses to increase in fiscal 2026, primarily due to employee-related expenses as the company raises its headcount to support its sales and marketing efforts associated with its product offerings and continued expansion of its sales capacity across all its solutions.
In the fiscal third quarter, the total operating expenses increased 7.9% year over year. Veeva Systems expects operating expenses to increase in fiscal 2026, primarily due to employee compensation-related costs.
Estimate Trend
Veeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved 13 cents north to $7.91.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $808.9 million, indicating a 12.2% improvement from the year-ago quarter’s reported number. The EPS estimate for the fourth quarter of fiscal 2026 is pinned at $1.92, implying a 10.3% improvement year over year.
Key Picks
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.