Veeva Systems (VEEV) Q1 2027 earnings summary

Executive summary

• Total revenue for Q1 FY27 reached $883 million, up 16% year-over-year, with subscription revenue at $754 million and services revenue at $129 million; net income was $260.9 million, a 14% increase.

• Non-GAAP operating income for Q1 FY27 was $395 million, exceeding guidance, with a margin of 44.8%.

• Strong execution across all business segments, with notable momentum in AI-driven initiatives, CRM migrations, and product innovation, including the launch of Falcon and Vault AI.

• Acquisition of Ostro (Rise Healthcare Tech, Inc.) for $90 million to enhance AI-driven engagement capabilities and expand digital engagement with healthcare professionals and patients.

• Results exceeded guidance, reflecting broad-based growth and profitability.

Financial highlights

• Q1 FY27 non-GAAP operating income was $395.4 million, with a margin of 44.8%; GAAP operating income was $273.1 million.

• Subscription revenues rose to $754 million, up 15% year-over-year; professional services and other revenues reached $152.8 million, up 23%.

• Gross profit for Q1 FY27 was $662 million, with a GAAP gross margin of 75% and non-GAAP gross margin of 76.9%.

• Cash, cash equivalents, and short-term investments totaled $7.31 billion at Q1 FY27.

• Diluted EPS was $1.57, up from $1.37; non-GAAP diluted EPS was $2.24, up from $1.97.

Outlook and guidance

• FY27 revenue guidance is $3.635–$3.645 billion, with non-GAAP operating income of ~$1.61 billion and non-GAAP EPS of ~$9.05.

• Q2 FY27 guidance: total revenue $902–$905 million, subscription revenue ~$754 million, services revenue $148–$151 million, non-GAAP operating income $392–$395 million.

• Guidance assumes stable macro environment and FX tailwind of $23 million for FY27.

• Revenues from R&D and Quality Solutions are expected to increase as a percentage of total revenues in future periods.

• Full-year guidance raised modestly, reflecting continued conservatism due to early-stage scaling of large R&D products.