Veeva Systems (NYSE: VEEV) reported fiscal second-quarter 2027 revenue of $928 million, an 18% increase from $789 million in the same period a year earlier, exceeding the consensus estimate of $905.4 million. Subscription revenue, which accounts for 83% of total revenue, rose 16% to $767 million, while services revenue grew 24% to $161 million.
Adjusted earnings per share reached $2.35, surpassing expectations of $2.22 by 5.9%. Non-GAAP operating margin remained stable at 44.8%, consistent with the company’s historical range of 43.8% to 45.0% over the past five quarters. Non-GAAP operating income increased to $416 million from $353 million in the prior-year period.
The company’s stock fell 0.76% to $244.91 during regular trading but surged 9.43% in after-hours activity to $268. Its 52-week range stands at $148.05 to $310.50, with a market capitalization of approximately $39.85 billion. Over the past six months, the shares have gained 34%.
Veeva raised its full-year fiscal 2027 revenue guidance to between $3.682 billion and $3.687 billion, representing roughly 15% growth. Subscription revenue is expected to reach $3.08 billion, with commercial subscription revenue projected at $1.405 billion and R&D and quality subscription revenue at $1.675 billion. Services revenue guidance was set at $602 million to $607 million.
Non-GAAP operating income is forecast at approximately $1.64 billion, maintaining a margin of about 44%. Adjusted fully diluted net income per share is projected at $9.21. Normalized billings are expected to total around $3.87 billion, while non-GAAP operating cash flow is guided at $1.6 billion, with a margin of 43%. Foreign exchange is anticipated to provide a $20 million tailwind to revenue compared with fiscal 2026.
For the third quarter of fiscal 2027, Veeva guided revenue to $932 million to $935 million, with subscription revenue of approximately $782 million and services revenue of $150 million to $153 million. Non-GAAP operating income is expected to reach $417 million to $420 million, translating to operating margins of about 45%. Adjusted fully diluted net income per share is projected at $2.33 to $2.34.
Management highlighted the quarter as the strongest in its CRM platform’s history, with over 180 Vault CRM customers live. The company also noted progress in new product categories, including Falcon, an agentic labor platform with five early adopters and first go-lives expected in fiscal 2027. Aspen, a horizontal CRM product for technology startups, remains outside current revenue projections.
