Veeva Systems (VEEV) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue reached $883 million, up 16% year over year, exceeding guidance, with subscription revenue at $754 million and services revenue at $153 million.

• Non-GAAP operating income was $395 million (45% margin), with net income at $260.9 million, and diluted EPS at $1.57; non-GAAP EPS was $2.24.

• Strong execution and broad-based growth across all business segments, with rapid progress in AI initiatives, including the acquisition of Ostro and launch of Falcon AI platform.

• Significant wins in biopharma, commercial content, and CRM migrations, with over 150 Vault CRM customers live and a win rate above 80% in top 20 biopharma migrations.

• Results reflect robust innovation and product momentum, supported by a strong liquidity position and continued share repurchases.

Financial highlights

• Q1 non-GAAP operating income was $395 million (45% margin); GAAP operating income was $273.1 million (31% margin).

• Subscription revenue grew 15% year over year to $730 million; services revenue rose 23% to $153 million.

• Gross margin was 75% (GAAP) and 76.9% (non-GAAP); cash and short-term investments totaled $7.3 billion.

• Cash flow from operations was $1.13 billion; normalized billings were $815 million, up 15% year over year.

• Repurchased 1.3 million shares for $221 million; $1.6 billion remains for future repurchases.

Outlook and guidance

• FY2027 revenue guidance raised to $3.635–$3.645 billion (up 14% year over year), with subscription revenue at $3.060 billion and services revenue at $575–$585 million.

• FY2027 non-GAAP operating income projected at $1.610 billion (44% margin); non-GAAP EPS at $9.05.

• Q2 FY27 guidance: revenue $902–$905 million; non-GAAP operating income $392–$395 million; non-GAAP EPS $2.21–$2.22.

• Guidance assumes stable macroeconomic conditions and minor FX tailwinds.

• AI revenue, excluding Ostro, expected to be immaterial for the year; focus remains on customer success and product excellence.