Key Highlights

● Revenue grew 18% to $928.0 million in the second quarter.

● Subscription revenue rose to $766.8 million from $659.2 million.

● Non-GAAP net income was $387.4 million, or $2.35 per diluted share.

● More than 180 customers are live on Vault CRM.

Veeva Systems Inc. (NYSE:VEEV) provides cloud software to the life sciences industry, and its fiscal 2027 second-quarter results, released on 26 August 2026, showed revenue growth of 18% to $928.0 million. The specialist software supplier is expanding from its established clinical and regulatory products into customer relationship management and drug safety, where it competes directly with larger platforms.

Business and sector

Veeva sells Vault, a cloud platform used by pharmaceutical, biotechnology and medical device companies to manage clinical trials, regulatory submissions, quality processes and commercial activity. The life sciences sector spends heavily on compliance and data management, which supports demand for industry-specific software, but customers are few and large, so individual contract decisions can matter. Veeva Vault CRM, its product for managing relationships with healthcare professionals, is the focus of a competitive transition away from incumbent suppliers, and the company reported that twelve of the top 20 biopharmaceutical companies have made commitments globally.

Latest reported results

For the quarter ended 31 July 2026, subscription revenue was $766.8 million, up from $659.2 million, and professional services and other revenue was $161.2 million, up from $129.9 million. GAAP operating income rose to $275.0 million from $195.9 million, and non-GAAP operating income was $415.9 million, compared with $352.6 million. GAAP net income was $273.4 million, or $1.66 per diluted share, and non-GAAP net income was $387.4 million, or $2.35 per diluted share. Chief executive Peter Gassner said Vault CRM had its best quarter ever, and the company reported more than 180 live Vault CRM customers, including five of the top 20 biopharmaceutical companies.

Financial performance and industry context

Over the first six months of the fiscal year, revenue was $1,810.9 million, compared with $1,548.1 million, and net cash from operating activities was $1,365.8 million. At 31 July 2026 Veeva held $1,812.0 million in cash and cash equivalents and $5,430.9 million in short-term investments. Deferred revenue was $1,310.5 million, against $1,488.8 million at 31 January 2026, which reflects the seasonal pattern of annual billings. For the third quarter the company guided to revenue of $932 million to $935 million and non-GAAP earnings of $2.33 to $2.34 per diluted share. Its updated full-year outlook is revenue of $3,682 million to $3,687 million and non-GAAP operating income of about $1,640 million. Veeva Safety passed 100 customers, and the company acquired Copli and launched Veeva Falcon MLR.

Risks and uncertainties

Revenue concentration among a limited number of large drug developers means that merger activity, budget changes or procurement decisions could affect results. The transition to Vault CRM involves long implementation cycles and incumbent competition, so the number of live customers may not translate to revenue at a steady pace. Professional services revenue, which grew about 24% and so faster than subscriptions in the quarter, usually carries lower margins. Regulatory change, data privacy rules and the development of artificial intelligence tools that could reduce demand for configured software are additional uncertainties.

Vault CRM momentum against guidance

The third-quarter report, covering the period ending 31 October 2026, will test guidance and show whether the Vault CRM momentum continues. Other points include the pace of Veeva Safety adoption, the effect of the Copli acquisition and Veeva Falcon MLR on its content and promotional review offering, and the level of billings that determine deferred revenue. GAAP operating income grew about 40% in the quarter, so operating margin and cash generation will indicate whether investment in new products is being absorbed within the profit outlook.