Veeva Earnings: Customer Wins and AI Progress Fuel Momentum

Key Morningstar Metrics for Veeva Systems

• Fair Value Estimate
  : $287.00
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : Wide
• Morningstar Uncertainty Rating
  : High

What We Thought of Veeva Systems’ Earnings

Veeva Systems VEEV delivered 18% revenue growth (15% in commercial growth and 20% in research and development growth) and 18% adjusted EPS growth during the second fiscal quarter. Both figures landed ahead of guidance. Shares are up 9% after hours on Aug. 27.

Why it matters: Veeva puts aside the artificial intelligence-concerned naysayers and touts continued business strength, delivering the highest revenue growth in the past nine quarters.

• This was another strong quarter for new customers. Major Vault CRM wins, including Eli Lilly, Biogen, and Regeneron, demonstrate customers’ continued reliance on and trust in Veeva. Development Cloud also saw many new users adopt products across clinical, safety, and quality, demonstrating a continued need for Veeva’s products even in the age of AI.
• Veeva Falcon, agentic labor announced last quarter, is working with early adopters, and execution among other AI agentic solutions is progressing nicely. While it is still early for these products to contribute financially, we appreciate the continued momentum in Veeva’s AI solutions.

The bottom line: We maintain our $287 per share fair value estimate for wide-moat Veeva. Shares are mildly undervalued.

• Strong performance so far this year underpins our view that Veeva can weather threats of AI and instead use it to build upon its industry-leading portfolio. The market’s perspective on the firm’s position and strength against AI threats appears to be converging with our thesis, with shares recovering from the early 2026 AI-scare selloff and now outperforming both Morningstar software and healthcare indices for the year following the Aug. 26 results.
• We think Veeva’s deeply embedded customer relationships and growing AI offerings should help it compete in an increasingly crowded AI marketplace. Customers may have many options, from large AI firms to smaller providers, but Veeva’s existing relationships and industry expertise make it an attractive choice for customers looking to adopt AI solutions.