Veeva Systems (VEEV) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue reached $759 million, up 17% year-over-year, surpassing guidance and driven by strong growth in subscription and services revenues.

• Non-GAAP operating income was $350 million (46% margin), with net income up 41% to $228 million and diluted EPS of $1.37.

• Achieved a $3 billion annual revenue run rate, meeting the 2025 target and progressing toward 2030 goals.

• Launched major AI initiatives, including Veeva AI, with first release planned for December 2025, and expanded industry leadership in clinical, regulatory, and commercial solutions.

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

Financial highlights

• Subscription revenue grew 19% year-over-year to $635 million; services revenue increased 7% to $124 million.

• Non-GAAP gross margin reached 79.2% in Q1; subscription gross margin was 88.1%.

• Operating income rose 51% to $234 million; non-GAAP operating income was $350 million.

• Cash and short-term investments totaled $6.1 billion at quarter-end.

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

Outlook and guidance

• FY2026 revenue guidance raised to $3.09–$3.10 billion; subscription revenue guidance increased to $2.625 billion.

• Non-GAAP operating income guidance for FY2026 is ~$1.36 billion (44% margin); non-GAAP EPS expected at $7.63.

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

• Full-year normalized billings projected at $3.32 billion (12% growth); cash flow from operations expected at $1.21 billion.

• Management expects continued growth in R&D Solutions and Crossix, with operating expenses rising due to higher compensation and usage.