Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $2.04 for the third quarter of fiscal 2026, up 16.6% from last year’s figure of $1.75. Adjusted EPS beat the Zacks Consensus Estimate by 4.62%.
GAAP EPS in the fiscal third quarter was $1.40, up 23.9% from $1.13 in the prior-year period.
During the quarter under review, the company’s revenues totaled $811.2 million, surpassing the Zacks Consensus Estimate by 2.4%. On an annual basis, turnover improved by 16%.
Fiscal third quarter revenue was driven by strong segment performance from Veeva Systems.
Veeva Systems derives revenue from two operating segments: Subscription Services and Professional and Other Services.
In the fiscal third quarter, subscription services revenue improved 17.5% from the same quarter last year, to $682.5 million. According to management, this increase is due to both its established and newer solutions. Our third-quarter revenue estimate was $671 million.
Professional services and other revenue increased 13% year over year to $128.7 million. Our third-quarter revenue estimate was $120.1 million.
During the quarter under review, Veeva Systems’ gross profit improved 16.6% year over year to $611.8 million. Gross margin increased by 30 basis points (bps) to 75.4%. We forecast 75.3% gross margin for the fiscal third quarter.
Sales and marketing expenses increased 12% year over year to $110.6 million. Research and development (R&D) expenses increased 11.3% year-over-year to $191.9 million, while general and administrative expenses increased 56.1% year-over-year to $68.5 million. Total operating expenses of $370.9 million increased 7.9% year over year.
Operating income totaled $240.9 million, up 32.8% from the year-ago quarter. Operating margin in the fiscal third quarter increased 380 basis points to 29.7%. We forecast an operating margin of 26.7% for the fiscal third quarter.
Veeva Systems Inc. Price, consensus and EPS surprise
Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systèmes Inc. Quote
The company exited the third quarter of fiscal 2026 with cash and cash equivalents and short-term investments of $6.64 billion, compared to $6.40 billion at the end of the second quarter of the fiscal year.
Cumulative net cash provided by operating activities at the end of the quarter was $1.31 billion, compared to $1.02 billion a year ago.
Veeva Systems released its updated financial outlook for fiscal 2026 and provided estimates for the fourth quarter of fiscal 2026.
For the fiscal fourth quarter, the company expects total revenue to range from $807 million to $810 million. The Zacks Consensus Estimate is currently $798.2 million.
Subscription revenue is estimated at approximately $696 million, and professional and other services revenue is expected to be between $111 million and $114 million for the fiscal fourth quarter.
For the fiscal fourth quarter, adjusted EPS is expected to be approximately $1.92. The Zacks Consensus Estimate is pegged at $1.87.
Veeva Systems now expects fiscal 2026 revenues between $3,166 million and $3,169 million, compared to previous guidance of $3,134 million and $3,140 million. The Zacks Consensus Estimate is currently pegged at $3.14 billion.
For fiscal 2026, subscription revenue is now expected to be approximately $2,672 million, compared to the previous forecast of $2,657 million. This includes Commercial Solutions subscription revenue of approximately $1,252 million and R&D Solutions subscription revenue of approximately $1,420 million.
Professional services and other revenue for fiscal 2026 is now expected to be between $494 million and $497 million.
FY2026 adjusted EPS is now expected to be $7.93, compared to the previous forecast of $7.78. The Zacks Consensus Estimate is pegged at $7.78.
Veeva Systems exited the third quarter of fiscal 2026 with better-than-expected results, in which both earnings and revenue exceeded their respective Zacks Consensus Estimate. The increase in revenue and net income and the strong performance of the subscription services segment during the quarter were impressive. Rising revenues from professional and other services also bode well. However, the company’s shares lost 6.1% yesterday after-market. The stock has gained 21.3% in the year-to-date period, compared to the industry and S&P 500’s growth of 9.4% and 14.2%, respectively.
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According to management, the company saw significant momentum during the fiscal third quarter as Veeva AI achieved several important milestones. The team is pursuing a focused strategy to create deep, industry-specific AI agents capable of significantly improving productivity and execution in life sciences workflows. The first wave of agents, supporting CRM and sales content, is expected to launch in early December, while additional agents for R&D, quality and broader sales functions are already in development for 2026. Management reiterated its confidence that these AI layers are likely to become critical value drivers as customers increasingly seek integrated intelligence into their everyday systems.
During the quarter, Veeva Systems also strengthened its leadership position in CRM, driven by growing adoption and product excellence in global markets. Vault CRM added 23 new customers, bringing the total number of actual customers to 115. One of the highlights was a large-scale deployment for a top 20 biopharmaceutical company in Japan, which demonstrated the platform’s ability to support complex multinational deployments. This builds on the continued success of two other large biopharmaceutical companies already operating and performing well in large geographies, reinforcing Veeva Systems’ advantage in achieving consistent results at scale.
Management also noted strong progress within Veeva Development Cloud, which represents the company’s largest long-term opportunity in life sciences. Three of the top 20 biopharmaceutical companies selected Development Cloud applications as their enterprise standard during the quarter, one each for Veeva Study Startup, Veeva Study Training and Veeva Safety. In terms of safety, in particular, the newest part of the portfolio, the third top 20 biopharmaceutical has gone live, signaling growing industry confidence. Veeva Systems also advanced several significant opportunities as more global pharmaceutical players seek to modernize pharmacovigilance and streamline R&D operations through a unified, cloud-based platform.
VEEV currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical sector are Medspace Holdings MEDP, Intuitive surgical the ISRG and Boston Scientist BSX.
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenue 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 to 16.6% for the industry. The company beat earnings estimates in each of the following four quarters, with the average surprise being 14.28%.
Intuitive surgical, Currently carrying a Zacks Rank #2 (Buy), posted third-quarter 2025 adjusted EPS of $2.40, surpassing the Zacks Consensus Estimate by 20.6%. Revenue 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 to the industry’s 11.9%. The company’s earnings beat estimates in each of the following four quarters, with the average surprise being 16.34%.
Boston Scientific, currently Ranked #2 by Zacks, reported third-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 5.6%. Revenue 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 to the industry’s 13.5%. The company’s earnings beat estimates in each of the following four quarters, with the average surprise being 7.36%.
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