Executive Summary
Veeva Systems reported a strong start to Q1 FY2026 (quarter ended April 30, 2025) with revenue of $759.0 million, delivering a YoY growth rate of 16.7% and QoQ growth of 5.3%. The quarter featured robust profitability, highlighted by a non-GAAP operating margin of approximately 32% and net income of $228.2 million, translating to EPS of $1.40 (GAAP) and $1.37 (diluted). Management underscored that the results exceeded guidance and cited a tangible path toward a calendar 2025 revenue run rate of $3.0 billion. A cornerstone of the upside is Crossix, which contributed meaningfully to revenue strength and is supported by a broader data-and-analytics ecosystem (Data Cloud, LINC Compass). Vault CRM adoption progressed, with roughly 80 customers live versus a 200-customer target for year-end, underscoring early momentum in horizontal growth alongside the core life sciences franchise. Veeva AI is advancing as a major strategic initiative embedded in core applications, with management signaling AI agents and deeper integration by year-end. The macro backdrop remains uncertain, but the company reported no material impact to results or pipeline to date, reinforcing the durability of its subscription-led model and large, multi-year deals. The company reaffirmed its growth runway into 2030, with a heavy emphasis on AI-enabled productivity, horizontal CRM expansion, and continued expansion of Crossix and data cloud capabilities. Overall, the combination of strong cash flow generation, a healthy balance sheet, and a clear AI-enabled product roadmap supports an constructive investor thesis, albeit with near-term macro-driven visibility risk.
Key Performance Indicators
Key Insights
Revenue: $759.043M (+16.7% YoY, +5.3% QoQ) | Gross Profit: $585.219M (+22.8% YoY, +8.4% QoQ) | Gross Margin: ~77.1% | Operating Income: $233.732M (+50.6% YoY, +24.1% QoQ) | Operating Margin: ~30.8% | Net Income: $228.190M (+41.1% YoY, +16.7% QoQ) | EPS: $1.40 (GAAP) / $1.37 (Diluted) | Non-GAAP EPS: $1.37 | Operating Cash Flow: $877.158M | Free Cash Flow: $871.248M | Cash/Investments: $6.068B (cash & ST investments) | Cash at End of Period: $1.967B | Net Debt: -$1.888B | Weighted Shares: ~16...
Financial Highlights
Revenue: $759.043M (+16.7% YoY, +5.3% QoQ) | Gross Profit: $585.219M (+22.8% YoY, +8.4% QoQ) | Gross Margin: ~77.1% | Operating Income: $233.732M (+50.6% YoY, +24.1% QoQ) | Operating Margin: ~30.8% | Net Income: $228.190M (+41.1% YoY, +16.7% QoQ) | EPS: $1.40 (GAAP) / $1.37 (Diluted) | Non-GAAP EPS: $1.37 | Operating Cash Flow: $877.158M | Free Cash Flow: $871.248M | Cash/Investments: $6.068B (cash & ST investments) | Cash at End of Period: $1.967B | Net Debt: -$1.888B | Weighted Shares: ~162.749M (basic) / 166.229M (diluted)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
759.04M |
16.71% |
5.29% |
| Gross Profit |
585.22M |
22.83% |
8.39% |
| Operating Income |
233.73M |
50.63% |
24.05% |
| Net Income |
228.19M |
41.15% |
16.65% |
| EPS |
1.40 |
40.00% |
16.67% |
Management Commentary
Strategy and AI momentum: Management emphasized Veeva AI as a major initiative with a meaningful potential to uplift industry productivity, stating AI could improve life sciences efficiency by ~15% over a multi-year horizon and that AI is embedded in core products rather than a standalone system. (Quote context: Peter Gassner)
Vault CRM progress and horizontal expansion: Vault CRM adoption is advancing; the company expects about 200 live Vault CRM customers by year-end, with the quarterly update highlighting 80 live and a mix of migrations and new customers. The team described Vault CRM as superior to legacy Veeva CRM and highlighted the two-way growth path (migrations + net-new). (Quote context: Paul Shawah)
Macro backdrop and pipeline resilience: Although the macro environment is described as uncertain, Veeva did not observe material changes to results or pipeline to date; management noted potential risk to smaller biopharma projects and large-pharma conservatism, but Crossix and data-cloud offerings are still contributing strongly. (Quote context: Peter Gassner)
Crossix and data analytics momentum: Crossix outperformed expectations, driven by usage-based revenue, with Brian Van Wagener noting growth north of 30% Y/Y in the long term, while Paul highlighted the data-cloud and Compass ecosystem as early-stage but promising growth vectors. (Quote context: Brian Van Wagener; Peter Gassner)
Commercial CRM and AI economics: Management discussed the potential for a horizontal CRM effort and the intent to monetize Veeva AI with appropriately priced licenses, signaling a multi-year monetization pathway beyond core CRM. (Quote context: Peter Gassner)
It was a strong start to the year with results above our guidance. Calendar 2025 revenue run rate goal of $3 billion. Veeva AI is a major initiative and off to a good start.
— Peter Gassner
Vault CRM is going really well. It's working. Now the why is that? It's better than Veeva CRM. New customers and migrations.
— Paul Shawah
Forward Guidance
Management reiterated a durable growth trajectory supported by subscription-based models and expanding product suites. The company achieved a calendar 2025 revenue run rate target of $3B and indicated a full-year revenue growth target around 19% (as discussed in the Q1 call), with Crossix delivering outsized contributions and Vault CRM on-track to reach a larger install base. Near-term considerations include macro uncertainty and potential dislocation in smaller biotech spend, which could modestly influence services timing and project cycles, though the current pipeline remains robust. Key factors investors should monitor include:
- Vault CRM migration pace and horizontal CRM monetization cadence;
- AI productization and pricing strategy (Veeva AI) and its contribution to revenue and ARR growth;
- Crossix growth sustainability, especially in usage-based and audience-based offerings;
- Data Cloud integration and its ability to unlock higher cross-sell opportunities across the CRM, data, and analytics stack;
- EDC/eTMF expansion in clinical operations and potential M&A activity in the horizontal applications space.