Veeva Systems reported results for the quarter ended July 31, 2026, posting fiscal 2027 second-quarter revenue of $928 million and non-GAAP operating income of $416 million. Chief Executive Officer Peter Gassner stated that results surpassed the company’s prior guidance. The company’s leadership raised its full-year outlook following the strong performance.
Commercial subscription revenue increased approximately 13% year over year, according to Chief Financial Officer Brian Van Wagener. Growth was distributed across multiple product categories rather than concentrated in a single offering, with expansion across CRM, content, data products, Crossix and Ostro. The company achieved record CRM performance during the quarter, marked by new customer selections including Vault CRM adoptions from Eli Lilly, Biogen and Regeneron. Veeva indicated it has commitments from 12 of the top 20 biopharma companies, with two remaining decisions anticipated by year-end. Management also noted that certain customers who previously selected Salesforce have encountered implementation challenges, and Veeva indicated confidence in its ability to potentially win back some of those accounts, with most anticipated conversions expected in 2027 and 2028.
Veeva Falcon, the company’s artificial intelligence agent platform, emerged as a significant growth focus. Management described Falcon as representing a new category termed “agentic labor,” designed to perform work through AI agents rather than serving as traditional cloud software. Gassner emphasized that customer interest remains high due to perceived potential for cost savings, compliance improvements and operational efficiency. The company is prioritizing deployments within life-sciences sponsor organizations initially, though service providers have also expressed interest. Falcon deployments are designed to minimize typical enterprise software implementation requirements such as extensive data mapping and system transitions.
Veeva’s R&D business is transitioning from established products toward newer growth offerings. The company identified Veeva EDC, eCOA, RTSM, Safety and LIMS as major market opportunities with strategic importance, though these products remain relatively early in their development cycles. Van Wagener noted that growth curve timing for these products does not align precisely, a factor reflected in the company’s fiscal-year outlook. Additionally, Veeva discussed Aspen, an emerging horizontal CRM initiative structured as an internal startup operating with limited investment levels while focusing on early-stage customers and rapid product development.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI