Veeva Systems reported fiscal second-quarter 2027 revenue of $928 million on Tuesday, an 18% increase from $789 million a year earlier and ahead of analyst expectations of $905.4 million. Subscription revenue, comprising 83% of the total, rose 16% to $767 million, while services revenue grew 24% to $161 million.
Adjusted earnings per share reached $2.35, exceeding the $2.22 consensus by $0.13. Non-GAAP operating income climbed to $416 million from $353 million in the prior-year period, with operating margin steady at 44.8%, within the company’s historical range of 43.8% to 50.0% over the past five quarters.
The company highlighted strong adoption of its Vault CRM platform, with more than 180 customers live and commercial subscription revenue up 13% year-over-year. Management described the quarter as the best in Vault CRM history. Veeva’s annual fiscal 2026 revenue totaled $3.20 billion, nearly double the $1.85 billion reported in fiscal 2022, reflecting a compound annual growth rate of approximately 15%.
For the full fiscal year 2027, Veeva raised its revenue guidance to between $3.682 billion and $3.687 billion, implying roughly 15% growth. Subscription revenue is expected to reach about $3.08 billion, while services revenue is projected at $602 million to $607 million. Non-GAAP operating income is forecast at approximately $1.64 billion, with margins around 44%. The company also guided to non-GAAP fully diluted net income per share of about $9.21 and normalized billings of roughly $3.87 billion.
For the current quarter ending October 31, 2026, Veeva expects revenue of $932 million to $935 million, with subscription revenue of about $782 million and services revenue of $150 million to $153 million. Non-GAAP operating income is projected at $417 million to $420 million, translating to operating margins near 45%, and adjusted EPS of $2.33 to $2.34.
Veeva maintained its non-GAAP operating cash flow guidance of approximately $1.60 billion for fiscal 2027, representing a 43% margin. The company’s cash, cash equivalents, and short-term investments stood at $6.6 billion at the end of fiscal 2026, up from $5.2 billion a year earlier.
Shares of Veeva fell 0.76% to $244.91 during regular trading on August 26, 2026, but surged 9.43% in after-hours trading to $268. The stock has delivered a 34% return over the past six months.
