Veeva Systems reported a solid QQ3 2025 quarter, with total revenue of $699.2 million, up 13.4% year over year, and non-GAAP operating income of $304 million. The company posted a robust gross margin of approximately 75.1% and an operating margin of about 25.9%, driving net income of $185.8 million and diluted EPS of $1.13. Management highlighted broad-based adoption across Development Cloud, including continued progress on Vault CRM and a pipeline of large strategic engagements. The quarter also featured meaningful progress in AI-enabled initiatives (GenAI) and a ramping cadence for Vault CRM migrations, with multiple top‑20 commitments and additional migrations expected in the coming quarters. Free cash flow and operating cash flow remained solid, underpinned by a strong balance sheet (net cash position of roughly $0.97 billion) and a liquidity runway that supports ongoing investments in product development and go-to-market expansion.
Looking ahead, Veeva signaled a persistent, macro-stable demand environment with continued strength in subscription growth (approximately 15% for the year) and a continued emphasis on a broad product base rather than single-product drivers. Management declined to provide formal 2026 GAAP guidance but reiterated confidence in the long-term 2030 goals, with execution quality and customer trust cited as core drivers of the business model. Key topics to watch include Vault CRM adoption among the Top 20, the economics of GenAI deployments (CRM Vault vs MLR Vault) and the monetization path for new modules like MLR Bot, ongoing data network expansion (Compass/Crossix/Data Cloud), and the integration of strategic partnerships within Development Cloud.
Overall, Veeva’s QQ3 print reinforces a durable growth profile with high operating leverage, strong cash generation, and a differentiated, cloud-first platform strategy positioned to expand penetration within the life sciences ecosystem.