Veeva Systems (VEEV) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached $759 million, up 17% year-over-year, with subscription revenue growing 19% and services revenue up 7%.

• Non-GAAP operating income for Q1 FY26 was $350 million, with a margin of 46.1%, and net income increased 41% to $228 million.

• Surpassed $3 billion annual revenue run rate, progressing toward the 2030 goal to double revenue.

• Launched Veeva AI initiative, with deep integration into core applications and first release planned for December 2025.

• Customer sentiment remains positive, with robust adoption of Vault CRM and growing interest in AI solutions.

Financial highlights

• Q1 FY26 total revenue: $759 million, up from $650.3 million a year ago; subscription services revenue: $634.8 million, up 19% year-over-year.

• Non-GAAP operating margin: 46.1%; non-GAAP gross margin: 79.2%; subscription gross margin: 88.1%.

• Operating income rose 51% to $234 million; adjusted operating income was $350 million.

• Net cash provided by operating activities was $877 million for Q1 FY26.

• Cash, cash equivalents, and short-term investments totaled $6.1 billion as of April 30, 2025.

Outlook and guidance

• FY26 revenue guidance: $3,090–$3,100 million; non-GAAP operating income: ~$1,360 million; non-GAAP EPS: ~$7.63.

• Q2 FY26 revenue guidance: $766–$769 million; non-GAAP operating income: $335–$337 million.

• Guidance assumes current macro conditions persist, with no material impact seen yet on financials or pipeline.

• Management expects continued growth in R&D Solutions as a percentage of total revenues.

• Margins expected to normalize to 44% for the remainder of the year.