A month has gone by since the last earnings report for Veeva Systems (VEEV Quick QuoteVEEV - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Veeva due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Veeva Systems Q4 Earnings & Revenues Beat, Operating Margin Rise

Veeva Systems reported adjusted earnings per share of $2.06 for the fourth quarter of fiscal 2026, which increased 18.4% from the year-ago figure of $1.74. Adjusted earnings per share beat the Zacks Consensus Estimate by 7.3%.

GAAP earnings per share in the fiscal fourth quarter were $1.45, up 22.9% from the year-ago period’s $1.18.

VEEV’s Q4 Revenue Details

In the quarter under review, the company’s revenues totaled $836 million, beating the Zacks Consensus Estimate by 3.4%. On a year-over-year basis, the top line improved 16%.

The fiscal fourth-quarter top line was driven by Veeva Systems’ robust segmental performance.

VEEV’s FY26 Results

For fiscal 2026, VEEV registered total sales of $3.19 billion, up 16% year over year.

The company reported adjusted earnings per share of $8.10 for fiscal 2026, up 22.7% compared with fiscal 2025.

Segmental Analysis of VEEV

Veeva Systems derives revenues from two operating segments: Subscription services, and Professional services and other.

In the fiscal fourth quarter, Subscription services revenues improved 16% from the year-ago quarter to $707.7 million. Per management, this uptick was driven by both its established and newer solutions.

Professional services and other revenues increased 14.1% year over year to $128.2 million.

Q4 Margin Performance by VEEV

In the quarter under review, Veeva Systems’ gross profit improved 15.3% year over year to $622.5 million. The gross margin contracted 40 basis points (bps) to 74.5%.

Sales and marketing expenses increased 11.1% year over year to $110.2 million. Research and development (R&D) expenses rose 9.5% year over year to $198.8 million, while general and administrative expenses decreased 4.4% year over year to $67.6 million. Total operating expenses of $376.6 million increased 7.1% year over year.

Operating profit totaled $245.9 million, which increased 30.5% from the prior-year quarter. The operating margin in the fiscal fourth quarter expanded 330 bps to 29.4%.

VEEV’s Financial Position

The company exited fourth-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $6.56 billion compared with $6.64 billion at the fiscal third-quarter end.

Cumulative net cash provided by operating activities at the end of the quarter was $1.42 billion compared with $1.09 billion a year ago.

Q1 & FY27 Guidance Provided by VEEV

Veeva Systems has issued its financial outlook for the first quarter and full-year fiscal 2027.

For the fiscal first quarter, the company expects total revenues between $855 million and $858 million. The Zacks Consensus Estimate is currently pegged at $845.4 million.

Subscription revenues are estimated to be approximately $720 million, and the same for Professional services and other is expected to be in the range of $135-$138 million for the fiscal first quarter.

For the fiscal first quarter, adjusted earnings per share are anticipated between $2.13 and $2.14. The Zacks Consensus Estimate is pegged at $2.03.

Veeva Systems expects revenues for fiscal 2027 between $3,585 million and $3,600 million. The Zacks Consensus Estimate is currently pegged at $3.54 billion.

For fiscal 2027, Subscription revenues are expected to be approximately $3,040 million. This consists of Commercial Solutions’ subscription revenues of around $1,380 million and R&D Solutions’ subscription revenues of approximately $1,660 million.

Professional services and other revenues for fiscal 2027 are expected to be between $545 million and $560 million.

Adjusted earnings per share for fiscal 2027 are expected to be approximately $8.85. The Zacks Consensus Estimate is pegged at $8.50.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 5.43% due to these changes.

VGM Scores

At this time, Veeva has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Veeva has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Veeva is part of the Zacks Medical Info Systems industry. Over the past month, Hims & Hers Health, Inc. (HIMS Quick QuoteHIMS - Free Report) , a stock from the same industry, has gained 20.5%. The company reported its results for the quarter ended December 2025 more than a month ago.

Hims & Hers Health reported revenues of $617.82 million in the last reported quarter, representing a year-over-year change of +28.4%. EPS of $0.07 for the same period compares with $0.11 a year ago.

For the current quarter, Hims & Hers Health is expected to post earnings of $0.02 per share, indicating a change of -90% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.3% over the last 30 days.

Hims & Hers Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.