EX-99.1 2 veev-20260430xex991.htm EX-99.1 Document Exhibit 99.1 FOR IMMEDIATE RELEASE Veeva Announces Fiscal 2027 First Quarter Results Total Revenues of $882.9M, up 16% Year Over Year Subscription Revenues of $730.2M, up 15% Year Over Year PLEASANTON, CA — June 3, 2026 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its first quarter ended April 30, 2026. "Our rapid progress with Veeva AI sets the foundation as we enter the next chapter of our industry cloud," said CEO Peter Gassner. "We are moving from an industry-specific application company to an industry-specific application and AI agent company. This is a major transformation for Veeva and the industry that will help our customers bring the right medicines to patients faster." Fiscal 2027 First Quarter Results: • Revenues : Total revenues for the first quarter were $882.9 million, up from $759.0 million one year ago, an increase of 16% year over year. Subscription revenues for the first quarter were $730.2 million, up from $634.8 million one year ago, an increase of 15% year over year. • Operating Income and Non-GAAP Operating Income : (1) First quarter operating income was $273.1 million, compared to $233.7 million one year ago, an increase of 17% year over year. Non-GAAP operating income for the first quarter was $395.4 million, compared to $349.9 million one year ago, an increase of 13% year over year. • Net Income and Non-GAAP Net Income : (1) First quarter net income was $260.9 million, compared to $228.2 million one year ago, an increase of 14% year over year. Non-GAAP net income for the first quarter was $371.1 million, compared to $327.8 million one year ago, an increase of 13% year over year. • Net Income per Share and Non-GAAP Net Income per Share : (1) For the first quarter, fully diluted net income per share was $1.57, compared to $1.37 one year ago, while non-GAAP fully diluted net income per share was $2.24, compared to $1.97 one year ago. “Our first quarter results exceeded guidance on all metrics, reflecting another quarter of broad-based growth and profitability,” said CFO Brian Van Wagener. “We’re pleased with the raised fiscal 2027 guidance and energized by the large and growing opportunity ahead.” Recent Highlights: • Advancing Industry AI with Rapid Progress Across Veeva AI – Veeva significantly advanced its industry AI strategy this quarter. Ostro, acquired in March, is delivering compliant, conversational AI for more than 50 brands. Vault AI is on track to expand to all Vault applications in August. Veeva Falcon, the new platform delivering agentic labor for clinical, regulatory, and safety, is planned for early adopter release in November. © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 1 • Leading the Industry with Agentic Commercial – At Commercial Summit in May, Veeva shared its vision for Agentic Commercial, leveraging AI to help biopharmas bring the right medicines to more patients. With capabilities like the Agentic Call Report in Vault CRM and Ostro’s conversational AI on brand websites, biopharmas can now generate and act on Commercial Evidence. In Vault CRM, the industry’s fastest path to Agentic CRM success, Veeva added 27 new Vault CRM customers in the quarter and now has more than 150 customers live. • Bringing Agentic Labor to Veeva Development Cloud – Veeva expanded its leadership with multiple enterprise biopharma wins across clinical, regulatory, and safety. Additionally, Veeva showcased its AI strategy at the recent European R&D and Quality Summit in Copenhagen, generating strong customer interest in Vault AI and Veeva Falcon to drive productivity and speed in drug development. Financial Outlook: Veeva is providing guidance for its fiscal second quarter ending July 31, 2026 as follows: • Total revenues between $902 and $905 million. • Non-GAAP operating income between $392 and $395 million. (2) • Non-GAAP fully diluted net income per share between $2.21 and $2.22. (2) Veeva is providing updated guidance for its fiscal year ending January 31, 2027 as follows: • Total revenues between $3,635 and $3,645 million. • Non-GAAP operating income of about $1,610 million. (2) • Non-GAAP fully diluted net income per share of approximately $9.05. (2) Conference Call Information Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com . Veeva will host a Q&A conference call at 2:00 p.m. PT today, June 3, 2026, and a replay of the call will be available on Veeva's investor relations website. What: Veeva Systems Fiscal 2027 First Quarter Results Conference Call When: Wednesday, June 3, 2026 Time: 2:00 p.m. PT (5:00 p.m. ET) Online Registration: https://events.q4inc.com/analyst/423437130?pwd=ckfYa8Xa Webcast: ir.veeva.com ___________ (1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “ Non-GAAP Financial Measures ” and the tables entitled “ Reconciliation of GAAP to Non-GAAP Financial Measures ” below for details. (2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the second fiscal quarter ending July 31, 2026 or the fiscal year ending January 31, 2027 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant. © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 2 About Veeva Systems Veeva delivers the industry cloud for life sciences with cloud software, AI, data, and business consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com. Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts. Forward-looking Statements This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of June 3, 2026, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 13 and 14 in our filing on Form 10-K for the period ended January 31, 2026 which you can find here . Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-K and in our subsequent SEC filings, which you can access at sec.gov . We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision. ### Investor Relations Contact: Media Contact: Gunnar Hansen Maria Scurry Veeva Systems Inc. Veeva Systems Inc. 267-460-5839 781-366-7617 ir@veeva.com pr@veeva.com © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 3 VEEVA SYSTEMS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) April 30, 2026 January 31, 2026 Assets Current assets: Cash and cash equivalents $ 1,896,580  $ 1,421,233  Short-term investments 5,416,139  5,139,581  Accounts receivable, net 568,020  1,259,737  Unbilled accounts receivable 59,752  50,609  Prepaid expenses and other current assets 122,770  126,470  Total current assets 8,063,261  7,997,630  Property and equipment, net 73,484  70,261  Deferred costs, net 28,686  29,961  Lease right-of-use assets 82,060  75,626  Goodwill 488,161  439,877  Intangible assets, net 55,508  30,314  Deferred income taxes 272,665  273,417  Other long-term assets 65,733  62,257  Total assets $ 9,129,558  $ 8,979,343  Liabilities and stockholders ’ equity Current liabilities: Accounts payable $ 40,657  $ 37,644  Accrued compensation and benefits 52,572  45,857  Accrued expenses and other current liabilities 50,974  45,885  Income tax payable 67,897  6,698  Deferred revenue 1,476,539  1,488,819  Lease liabilities 13,131  12,153  Total current liabilities 1,701,770  1,637,056  Deferred income taxes 1,148  558  Long-term lease liabilities 89,936  83,706  Other long-term liabilities 32,350  43,271  Total liabilities 1,825,204  1,764,591  Stockholders’ equity: Common stock 2  2  Additional paid-in capital 2,699,707  2,843,089  Accumulated other comprehensive (loss) income (19,792) 8,160  Retained earnings 4,624,437  4,363,501  Total stockholders’ equity 7,304,354  7,214,752  Total liabilities and stockholders ’ equity $ 9,129,558  $ 8,979,343  © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 4 VEEVA SYSTEMS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except per share data) (Unaudited) Three months ended April 30, 2026 2025 Revenues: Subscription (3) $ 730,175  $ 634,768  Professional services and other (4) 152,773  124,275  Total revenues 882,948  759,043  Cost of revenues (5) : Cost of subscription 99,103  78,346  Cost of professional services and other 121,821  95,478  Total cost of revenues 220,924  173,824  Gross profit 662,024  585,219  Operating expenses (5) : Research and development 208,323  184,033  Sales and marketing 111,117  98,628  General and administrative 69,472  68,826  Total operating expenses 388,912  351,487  Operating income 273,112  233,732  Other income, net 74,418  65,089  Income before income taxes 347,530  298,821  Income tax provision 86,594  70,631  Net income $ 260,936  $ 228,190  Net income per share: Basic $ 1.60  $ 1.40  Diluted $ 1.57  $ 1.37  Weighted-average shares used to compute net income per share: Basic 163,345  162,749  Diluted 165,989  166,229  Other comprehensive income: Net change in unrealized (loss) gain on available-for-sale investments $ (27,451) $ 17,367  Net change in cumulative foreign currency translation loss (501) (38) Comprehensive income $ 232,984  $ 245,519  (3) Includes subscription revenues from the following product areas: Veeva Commercial Solutions $ 337,866  $ 305,411  Veeva R&D and Quality Solutions 392,309  329,357  Total subscription $ 730,175  $ 634,768  (4) Includes professional services and other revenues from the following product areas: Veeva Commercial Solutions $ 57,573  $ 46,567  Veeva R&D and Quality Solutions 95,200  77,708  Total professional services and other $ 152,773  $ 124,275  (5) Includes stock-based compensation as follows: Cost of revenues: Cost of subscription $ 1,761  $ 1,715  Cost of professional services and other 14,151  12,769  Research and development 51,563  47,949  Sales and marketing 24,594  22,321  General and administrative 27,190  27,456  Total stock-based compensation $ 119,259  $ 112,210  © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 5 VEEVA SYSTEMS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three months ended April 30, 2026 2025 Cash flows from operating activities Net income $ 260,936  $ 228,190  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,587  9,822  Reduction of lease right-of-use assets 3,279  3,265  Accretion of discount on short-term investments (1,788) (2,509) Stock-based compensation 119,259  112,210  Amortization of deferred costs 4,900  4,043  Deferred income taxes 14,337  (27,418) Other, net (1,777) 4,327  Changes in operating assets and liabilities: Accounts receivable 696,614  522,686  Unbilled accounts receivable (9,143) (7,672) Deferred costs (3,625) (4,055) Prepaid expenses and other current and long-term assets (7,984) (4,501) Accounts payable 4,473  7,743  Accrued expenses and other current liabilities 8,923  (8,720) Income tax payable 61,199  82,345  Deferred revenue (32,963) (41,361) Lease liabilities (2,460) (2,543) Other long-term liabilities 1,349  1,306  Net cash provided by operating activities 1,127,116  877,158  Cash flows from investing activities Purchases of short-term investments (982,315) (667,100) Maturities and sales of short-term investments 670,835  620,903  Long-term assets (1,751) (5,910) Acquisitions, net of cash acquired (75,480) —  Net cash used in investing activities (388,711) (52,107) Cash flows from financing activities Proceeds from exercise of common stock options 2,939  40,605  Repurchases of common stock (226,947) —  Taxes paid related to net share settlement of equity awards (38,518) (20,225) Net cash (used in) provided by financing activities (262,526) 20,380  Effect of exchange rate changes on cash, cash equivalents, and restricted cash (532) 766  Net change in cash, cash equivalents, and restricted cash 475,347  846,197  Cash, cash equivalents, and restricted cash at beginning of period 1,423,412  1,120,963  Cash, cash equivalents, and restricted cash at end of period $ 1,898,759  $ 1,967,160  Supplemental disclosures of other cash flow information: Excess tax (deficiency) benefit from employee stock plans $ (4,092) $ 2,579  © 2026 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. 6 Non-GAAP Financial Measures In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures. • Excess tax benefit (deficiency). Excess tax benefits (deficiencies) from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva finds it useful to exclude excess tax benefits (deficiencies) when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits (deficiencies), Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. • Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. • Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well. • Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results. • Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures. There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance wit