Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $1.74 for the fourth quarter of fiscal 2025, which increased 26.1% from the year-ago figure of $1.38. Adjusted EPS surpassed the Zacks Consensus Estimate by 10.13%.

GAAP EPS in the fiscal fourth quarter was $1.18, up 31.1% from the year-ago period’s 90 cents.

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VEEV’s Revenue Details

For the quarter under review, the company’s revenues totaled $720.9 million, outpacing the Zacks Consensus Estimate by 3.2%. On a year-over-year basis, the top line improved 14.3%.

The fiscal fourth-quarter top line was driven by Veeva Systems’ robust segmental performance.

VEEV’s Fiscal-Year 2025 Results

For fiscal 2025, VEEV registered total sales of $2.75 billion, up 16% year over year.

VEEV reported adjusted EPS of $6.60 for fiscal 2025, up 36.4% compared with fiscal-year 2024.

Segmental Analysis of VEEV

Veeva Systems derives revenues from two operating segments — Subscription services and Professional services and other.

In the fiscal fourth quarter, Subscription services revenues improved 16.7% from the year-ago quarter to $608.6 million. Per management, this uptick was driven by both its established and newer solutions. Our projection for fiscal fourth-quarter revenues was $595.8 million.

Professional services and other revenues were up 2.9% year over year to $112.3 million. Our projection for fiscal fourth-quarter revenues was $102.3 million.

Q4 Margin Performance by VEEV

In the quarter under review, Veeva Systems’ gross profit improved 18.2% year over year to $539.9 million. The gross margin expanded 247 basis points (bps) to 74.9%. We had projected 72.4% of gross margin for the fiscal fourth quarter.

Sales and marketing expenses were flat year over year at $99.2 million. Research and development (R&D) expenses went up 10.9% year over year to $181.5 million, while general and administrative expenses increased 20.6% year over year to $70.7 million. Total operating expenses of $351.5 million increased 9.3% year over year.

Operating profit totaled $188.4 million, which increased 39.3% from the prior-year quarter. The operating margin in the fiscal fourth quarter expanded by a huge 470 bps to 26.1%. We had projected a 22.8% operating margin for the fiscal fourth quarter.

VEEV’s Financial Position

The company exited fourth-quarter fiscal 2025 with cash and cash equivalents and short-term investments of $5.15 billion compared with $5.06 billion at the fiscal third-quarter end.

Cumulative net cash provided by operating activities at the end of the quarter was $1.09 billion compared with $911.3 million a year ago.

Veeva Systems Inc. Price, Consensus and EPS Surprise

Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote

Guidance Provided by VEEV

Veeva Systems has issued its financial outlook for fiscal 2026 and provided its estimates for the first quarter of fiscal 2026.

For the fiscal first quarter, the company expects total revenues between $726 million and $729 million. The Zacks Consensus Estimate is currently pegged at $723.5 million.

Subscription revenues and Professional services and other revenues are estimated to be approximately $616 million and $110 million-$113 million, respectively, for the fiscal first quarter.

For the fiscal first quarter, adjusted EPS is projected to be in the range of $1.74-$1.75. The Zacks Consensus Estimate is pegged at $1.63.

Veeva Systems expects revenues for fiscal 2026 between $3,040 million and $3,055 million. The Zacks Consensus Estimate is currently pegged at $3.05 billion.

For fiscal 2026, Subscription revenues are expected to be approximately $2,585 million. This consists of Commercial Solutions’ subscription revenues of around $1,190 million and R&D Solutions’ subscription revenues of approximately $1,395 million.

Professional services and other revenues for fiscal 2026 are now expected to be between $455 million and $470 million.

Adjusted EPS for fiscal 2026 is expected to be $7.32. The Zacks Consensus Estimate is pegged at $6.96.

Our Take on Veeva’s Q4 Results

Veeva Systems exited the third quarter of fiscal 2025 with better-than-expected results wherein both earnings and revenues beat their respective consensus estimate. The uptick in the overall top line and bottom line and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and other’s revenues also bodes well. Shares of the company gained 6.9% during the after-market trading yesterday. However, the stock gained 1.9% in the past six months compared with  the industry and the S&P 500’s growth of 7.3% and 8.7%, respectively.

Per management, Veeva Systems had a strong finish to the year by strengthening its partnerships across all customer segments, from large biopharma companies to smaller biotech firms. The company expanded its customer base, ending the year with 1,477 customers. This included 1,125 customers in Veeva R&D Solutions and 730 in Veeva Commercial Solutions. Growth came from both new customer acquisitions and existing customers increasing their use of Veeva's products.

During the fourth quarter, Veeva Systems made solid progress with its Vault CRM Suite, which now offers the most advanced CRM system for the life sciences industry. The December release of Vault CRM included all features from the previous Veeva CRM, along with new capabilities and AI features planned for this year. The company also introduced Campaign Manager and Service Center as part of the suite. Per management, over 50 customers are live on Vault CRM, with eight customers migrating from the older Veeva CRM system and more migrations in progress.

Management also commented on Veeva Systems becoming the preferred choice for drug development and quality management. The Quality Cloud business added 41 new customers, while more than 20 existing customers expanded their use of Veeva's quality products. In the safety segment, four top 20 biopharma companies selected Veeva Safety, with the second top 20 customer recently going live and rolling out the full Safety Suite. In clinical solutions, a top 20 biopharma adopted Veeva's full Clinical Platform by purchasing six major applications at once, marking one of Veeva's largest subscription deals ever.

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VEEV’s Zacks Rank and Stocks to Consider

VEEV carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks from the industry have been discussed below:

Masimo MASI, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 6.1% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 63.5% against the industry’s 1.9% decline in the past six months.

Alphatec ATEC, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.

ATEC’s shares have gained 77% against the industry’s 1.9% decline in the past six months.

Avenna Healthcare AVAH, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 666.7% for 2025.

AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 21.8% in the past six months compared with the industry’s 2.9% decline.

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