We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Veeva (VEEV) Down 2.6% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Veeva Systems (VEEV - Free Report) . Shares have lost about 2.6% 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 the latest earnings report in order to get a better handle on the important catalysts.
Veeva Systems Q2 Earnings and Revenues Beat Estimates
Veeva Systems reported adjusted earnings per share of $2.35 for the second quarter of fiscal 2027, which increased 18.1% from the year-ago figure of $1.99. Adjusted earnings per share beat the Zacks Consensus Estimate by 5.9%.
GAAP earnings per share in the fiscal second quarter was $1.66, up 39.5% from the year-ago period’s $1.37.
VEEV’s second-quarter revenues rose 17.6% to $928 million and topped the consensus estimate by 2.7%. Growth reflected strength across subscriptions and services, while Vault CRM ended the quarter with more than 180 customers live.
VEEV’s Q2 Segmental Details
The fiscal second-quarter revenue growth was driven by strength across Subscription services and Professional services and other revenues.
Subscription services revenues increased 16.3% year over year to $766.8 million.
Professional services and other revenues advanced 24.1% year over year to $161.2 million.
Q2 Margin Performance by VEEV
In the quarter under review, Veeva Systems’ gross profit increased 17.2% year over year to $695.9 million. However, the gross margin contracted 30 basis points (bps) to 75%.
Sales and marketing expenses increased 15.8% year over year to $126.7 million. Research and development expenses rose 15.7% year over year to $222.9 million, while general and administrative expenses declined 25.6% year over year to $71.3 million. Total operating expenses of $420.9 million increased 5.8% year over year.
Operating profit totaled $275 million, up 40.4% from the prior-year quarter. The operating margin in the fiscal second quarter expanded 480 bps to 29.6%.
VEEV’s Financial Position
The company exited second-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.24 billion compared with $7.31 billion at the fiscal first quarter of 2027-end.
Cumulative net cash provided by operating activities at the end of the quarter was $1.37 billion compared with $1.12 billion a year ago.
Q3 & FY27 Guidance Provided by VEEV
Veeva Systems has issued its financial outlook for the fiscal third quarter and raised its guidance for fiscal 2027.
For the fiscal third quarter, the company expects total revenues in the range of $932-$935 million. Subscription revenues are projected to be approximately $782 million, while Professional services and other revenues are anticipated between $150 million and $153 million.
Adjusted earnings per share is projected between $2.33 and $2.34.
For fiscal 2027, Veeva Systems now expects revenues between $3.682 billion and $3.687 billion. Subscription revenues are projected to be approximately $3.08 billion, comprising Commercial Solutions subscription revenues of around $1.405 billion and R&D and Quality Solutions subscription revenues of approximately $1.675 billion. Professional services and other revenues are expected in the range of $602-$607 million.
Adjusted earnings per share is now expected to be approximately $9.21.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Veeva has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Veeva has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
Image: Bigstock
Veeva (VEEV) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Veeva Systems (VEEV - Free Report) . Shares have lost about 2.6% 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 the latest earnings report in order to get a better handle on the important catalysts.
Veeva Systems Q2 Earnings and Revenues Beat Estimates
Veeva Systems reported adjusted earnings per share of $2.35 for the second quarter of fiscal 2027, which increased 18.1% from the year-ago figure of $1.99. Adjusted earnings per share beat the Zacks Consensus Estimate by 5.9%.
GAAP earnings per share in the fiscal second quarter was $1.66, up 39.5% from the year-ago period’s $1.37.
VEEV’s second-quarter revenues rose 17.6% to $928 million and topped the consensus estimate by 2.7%. Growth reflected strength across subscriptions and services, while Vault CRM ended the quarter with more than 180 customers live.
VEEV’s Q2 Segmental Details
The fiscal second-quarter revenue growth was driven by strength across Subscription services and Professional services and other revenues.
Subscription services revenues increased 16.3% year over year to $766.8 million.
Professional services and other revenues advanced 24.1% year over year to $161.2 million.
Q2 Margin Performance by VEEV
In the quarter under review, Veeva Systems’ gross profit increased 17.2% year over year to $695.9 million. However, the gross margin contracted 30 basis points (bps) to 75%.
Sales and marketing expenses increased 15.8% year over year to $126.7 million. Research and development expenses rose 15.7% year over year to $222.9 million, while general and administrative expenses declined 25.6% year over year to $71.3 million. Total operating expenses of $420.9 million increased 5.8% year over year.
Operating profit totaled $275 million, up 40.4% from the prior-year quarter. The operating margin in the fiscal second quarter expanded 480 bps to 29.6%.
VEEV’s Financial Position
The company exited second-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.24 billion compared with $7.31 billion at the fiscal first quarter of 2027-end.
Cumulative net cash provided by operating activities at the end of the quarter was $1.37 billion compared with $1.12 billion a year ago.
Q3 & FY27 Guidance Provided by VEEV
Veeva Systems has issued its financial outlook for the fiscal third quarter and raised its guidance for fiscal 2027.
For the fiscal third quarter, the company expects total revenues in the range of $932-$935 million. Subscription revenues are projected to be approximately $782 million, while Professional services and other revenues are anticipated between $150 million and $153 million.
Adjusted earnings per share is projected between $2.33 and $2.34.
For fiscal 2027, Veeva Systems now expects revenues between $3.682 billion and $3.687 billion. Subscription revenues are projected to be approximately $3.08 billion, comprising Commercial Solutions subscription revenues of around $1.405 billion and R&D and Quality Solutions subscription revenues of approximately $1.675 billion. Professional services and other revenues are expected in the range of $602-$607 million.
Adjusted earnings per share is now expected to be approximately $9.21.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Veeva has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Veeva has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.