Veeva Systems (NYSE:VEEV) Shares Gap Up Following Better-Than-Expected Earnings

Veeva Systems Inc. (NYSE:VEEV) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $244.91, but opened at $275.36. Veeva Systems shares last traded at $293.8840, with a volume of 1,026,770 shares changing hands.

The technology company reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.22 by $0.13. The company had revenue of $927.96 million for the quarter, compared to analysts’ expectations of $905.38 million. Veeva Systems had a net margin of 28.37% and a return on equity of 13.72%. Veeva Systems’s quarterly revenue was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.99 earnings per share. Veeva Systems has set its FY 2027 guidance at 9.210-9.210 EPS and its Q3 2027 guidance at 2.330-2.340 EPS.

Veeva Systems News Summary

Here are the key news stories impacting Veeva Systems this week:

• Positive Sentiment: Veeva reported fiscal Q2 revenue of $928.0 million, up 17.6% year over year, while EPS of $2.35 exceeded the $2.22 analyst consensus. Subscription revenue increased 16% to $766.8 million. Veeva Announces Fiscal 2027 Second Quarter Results
• Positive Sentiment: Management issued fiscal Q3 revenue guidance of approximately $932 million-$935 million and EPS guidance of $2.33-$2.34, both above Wall Street expectations. Full-year fiscal 2027 EPS guidance of $9.21 and revenue guidance of about $3.7 billion also exceeded consensus estimates. Veeva Q2 2027 Earnings Call Transcript
• Positive Sentiment: Executives highlighted continued strength in Vault CRM, targeting more than 70% market share, and said the first Falcon customer deployments are expected this year. AI-related capabilities are also contributing to demand and revenue growth. Veeva CRM and Falcon Update
• Positive Sentiment: Needham reaffirmed its Buy rating, while Piper Sandler initiated coverage, adding favorable analyst attention following the earnings release. Needham Reaffirms Buy Rating
• Neutral Sentiment: Analyst commentary emphasized Veeva’s combination of recurring growth, strong margins and financial strength, but the stock’s elevated valuation—around 44 times earnings—leaves less room for execution or guidance disappointments.
• Negative Sentiment: The modest decline in the shares despite the earnings and guidance beats suggests investors may be taking profits or were already pricing in strong results. Near-term sentiment could remain sensitive to valuation and the pace of new product adoption.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Zacks Research downgraded shares of Veeva Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 14th. Raymond James Financial restated an “outperform” rating and set a $225.00 price objective on shares of Veeva Systems in a research report on Thursday, June 4th. Canaccord Genuity Group lowered their price objective on Veeva Systems from $235.00 to $220.00 and set a “hold” rating for the company in a research note on Thursday, June 4th. Piper Sandler began coverage on Veeva Systems in a report on Monday. They issued an “overweight” rating and a $295.00 target price for the company. Finally, The Goldman Sachs Group decreased their price target on Veeva Systems from $190.00 to $165.00 and set a “sell” rating on the stock in a report on Thursday, June 4th. Nineteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $264.00.

Insider Activity

In related news, insider Thomas D. Schwenger sold 36,000 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $250.23, for a total value of $9,008,280.00. Following the transaction, the insider owned 19,449 shares of the company’s stock, valued at $4,866,723.27. This represents a 64.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 10.60% of the company’s stock.

Institutional Trading of Veeva Systems

A number of hedge funds have recently added to or reduced their stakes in the business. California State Teachers Retirement System lifted its position in shares of Veeva Systems by 16,590.3% during the second quarter. California State Teachers Retirement System now owns 39,388,224 shares of the technology company’s stock valued at $6,990,228,000 after buying an additional 39,152,230 shares during the last quarter. Norges Bank purchased a new stake in Veeva Systems in the 4th quarter valued at about $332,412,000. Durable Capital Partners LP acquired a new position in Veeva Systems during the second quarter worth $281,351,000. Fundsmith LLP purchased a new stake in Veeva Systems during the second quarter worth about $144,955,000. Finally, Arrowstreet Capital Limited Partnership increased its stake in Veeva Systems by 203.0% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 913,281 shares of the technology company’s stock worth $160,427,000 after buying an additional 611,868 shares during the period. 88.20% of the stock is owned by hedge funds and other institutional investors.

Veeva Systems Price Performance

The business’s 50 day simple moving average is $203.41 and its 200 day simple moving average is $183.04. The company has a market capitalization of $47.85 billion, a price-to-earnings ratio of 52.48, a price-to-earnings-growth ratio of 1.06 and a beta of 0.92.

About Veeva Systems

Veeva Systems (NYSE: VEEV) is a cloud software company that develops industry-specific applications and data solutions for the global life sciences sector. Founded in 2007 and headquartered in Pleasanton, California, Veeva focuses on helping pharmaceutical, biotechnology, medical device and consumer health companies manage regulated content, clinical and regulatory processes, quality systems, and commercial operations in a compliant, cloud-native environment. The company completed its initial public offering in 2013 and has since expanded its product suite and international footprint.

Veeva’s product portfolio centers on its Vault platform and related application suites, which provide content and data management, clinical trial and regulatory workflows, quality management, and structured commercial capabilities such as customer relationship management and promotional content management.