Executive Summary
Veeva Systems delivered a solid fourth quarter and a strong fiscal year finish, underscoring durable demand for its Vault platform across life sciences workflows. Q4 2025 revenue of $720.9 million captured broad-based strength in R&D and commercial segments, with gross margin of approximately 74.9% and non-GAAP operating margin of 26.1%. Net income of $195.6 million and earnings per share of $1.20 (GAAP/nongaap) reflect disciplined cost management alongside continued investment in product innovation. For the full year, revenue reached $2.75 billion with non-GAAP operating income of roughly $1.15 billion. Management reiterated a strategy pivot toward AI-enabled workflows and data products, highlighted by the accelerated data-cloud agenda (Compass, OpenData, Pulse) and an expanding Vault CRM footprint among the top 20 customers. The company also reaffirmed its longer-term ambition, including a 2030 revenue target of $6 billion, and signaled that the vast majority of top-20 Vault CRM commitments are expected to occur by 2026. Liquidity remains robust, with substantial net cash generation and a healthy balance sheet, supporting continued investments in product development and go-to-market execution. Investors should monitor (i) the pace of top-20 CRM commitments and data-cloud expansion, (ii) AI-enabled product adoption (CRM Bot, MLR Bot, eTMF/CTMS enhancements), and (iii) potential macro-driven delays in enterprise IT projects, though management contends life sciences remains comparatively resilient to near-term cycles.
Key Performance Indicators
Key Insights
Revenue Q4 2025: $720.9M, YoY +14.3%, QoQ +3.1%; Gross Profit Q4 2025: $539.9M, Gross Margin 74.9% (YoY +19.2%, QoQ +2.9%); Operating Income Q4 2025: $188.4M, Op Margin 26.1% (YoY +39.3%, QoQ +3.9%); Net Income Q4 2025: $195.6M, Net Margin 27.1%; EPS (GAAP) $1.20, EPS (Diluted) $1.18; FY2025 Revenue: $2.75B; FY2025 Non-GAAP Operating Income: ~$1.15B; Cash Flow: Operating cash flow ~$69.5M; Free cash flow ~$69.5M; End-CQ1 2025 balance sheet liquidity shows cash and cash equivalents ~$1.12B with t...
Financial Highlights
Revenue Q4 2025: $720.9M, YoY +14.3%, QoQ +3.1%; Gross Profit Q4 2025: $539.9M, Gross Margin 74.9% (YoY +19.2%, QoQ +2.9%); Operating Income Q4 2025: $188.4M, Op Margin 26.1% (YoY +39.3%, QoQ +3.9%); Net Income Q4 2025: $195.6M, Net Margin 27.1%; EPS (GAAP) $1.20, EPS (Diluted) $1.18; FY2025 Revenue: $2.75B; FY2025 Non-GAAP Operating Income: ~$1.15B; Cash Flow: Operating cash flow ~$69.5M; Free cash flow ~$69.5M; End-CQ1 2025 balance sheet liquidity shows cash and cash equivalents ~$1.12B with total debt ~$75.8M and net cash around $1.043B, signaling a strong balance sheet.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
720.89M |
14.31% |
3.10% |
| Gross Profit |
539.90M |
19.17% |
2.87% |
| Operating Income |
188.42M |
39.30% |
3.90% |
| Net Income |
195.63M |
32.72% |
5.28% |
| EPS |
1.20 |
30.43% |
4.35% |
Key Financial Ratios
operatingProfitMargin
26.1%
operatingCashFlowPerShare
$0.43
freeCashFlowPerShare
$0.43
Management Commentary
Key management insights from the Q4 2025 earnings call include:
- Growth drivers and pipeline: Peter Gassner emphasized the AI strategy’s maturity and the plan to deploy multiple specialized models rather than a single monolithic solution, with near-term product milestones including CRM Bot, MLR Bot and eTMF-related automation. “AI strategy is captivating technology... there’s not going to be one large language model; there will be multiple specialized models.” Encourages a focus on use cases that integrate into workflows (CRM, safety, regulatory review).
- Data Cloud expansion and Compass: Gassner highlighted a broadened Data Cloud footprint across Compass, OpenData, Link, and Pulse, noting Compass as the biggest data opportunity and the potential for seven-figure deals to expand into small/mid-market segments, with a longer-term possibility of enterprise ELAs.
- Vault CRM momentum and top-20 customers: The company referenced ~20 Vault CRM wins in the quarter, with a significant portion in the US and a path to broader deployment across top-20 accounts, indicating a longer ramp (potentially ~5 years). Paul Shawah and Brian Van Wagener elaborated that most top-20 CRM commitments are expected by end-2026; pricing and migration complexity are acknowledged, but management remains confident in execution.
- Clinical development platform strength: There is emphasis on EDC adoption and “CTMS + eTMF standardization” driving broader adoption of RTSM, eCOA, and Site Connect/payments, suggesting a cross-sell path within the Development Cloud. Gassner reiterated that EDC ramp is a leading indicator for additional modules and future platform-wide value.
- Financial discipline and margins: CFO Brian Van Wagener stressed that management prioritizes growth and speed of execution over margin compression, aiming to sustain high margins while investing in product capabilities and go-to-market). He noted margin expansion is enabled via platform efficiencies, scale benefits, and a larger product footprint.
- Macro and guidance considerations: Management noted limited current macro impact on customer decision-making and highlighted Life Sciences’ relative resilience. The team expects continued investments in AI and cloud-native platforms, with a long-run objective of sustainable revenue growth and product-led expansion.
“The fourth quarter was a strong finish to a great year for Veeva, with strength across the business and results above guidance. We set our 2030 revenue goal of $6 billion, which reflects the significant opportunity we have ahead.”
— Peter Gassner
“AI strategy is captivating technology, there isn’t going to be one large language model. There will be multiple specialized models. We’re focusing on AI solutions that integrate into workflow like eTMF bots, CRM Voice Control, and MLR Bot.”
— Peter Gassner
Forward Guidance
- Macro environment: Management does not assume negative macro shifts in their FY2026 guidance, citing resilient life-sciences budgets and the visibility of multi-year subscription contracts.
- Near-term milestones to watch: The AI product rollout (CRM Bot, MLR Bot, CRM Voice Control) and continued adoption of Data Cloud components (Compass, OpenData, Pulse) are key catalysts for incremental revenue and expanded data access for customers.
- Top-20 CRM commitments: The company expects the vast majority of top-20 Vault CRM commitments to be decided by 2026, with some deals potentially pushing into 2027 given implementation complexity and change-management considerations.
- Margin and investment cadence: Management intends to maintain a growth-at-all-costs approach, with investments in R&D and product development (Vault platform and AI) complemented by scale efficiencies in services and sales. The margin trajectory is expected to remain elevated, aided by platform leverage and improved operational efficiencies, though no specific EBITDA or margin target beyond the 42% OPM guide referenced in Q&A was disclosed for FY2026.
- Key factors to monitor: (i) rate of net-new Vault CRM customers and top-20 expansion, (ii) adoption and monetization of Compass/Data Cloud assets, (iii) AI-driven workflow enhancements and their impact on retention/upsell, and (iv) FX headwinds and potential macro surprises affecting project timing.
- Investment thesis conclusion: Veeva remains highly differentiated in life-sciences cloud software, with a strong, cash-generative model and a durable backlog of enterprise-scale contracts. The multi-product Data Cloud and Vault CRM roadmaps, coupled with AI-enabled capabilities and a scalable services ecosystem, support a favorable long-term growth trajectory toward the $6B revenue target by 2030. Investors should monitor the cadence of Top-20 CRM commitments, data-cloud expansions, and the real-world efficiency gains from AI-enabled workflows as leading indicators of sustained growth and margin progression.