Veeva Systems (VEEV) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue reached $789 million, up 17% year-over-year, with subscription revenue at $659 million and services revenue at $130 million; non-GAAP operating income was $353 million, with a margin of 44.7%.

• Net income for the quarter was $200 million, with diluted EPS of $1.19 and non-GAAP EPS of $1.99.

• Strategic partnership and legal settlement with IQVIA resolved all disputes, enabling broader data integration and new commercial opportunities.

• Significant progress in AI initiatives, with first agentic AI releases planned and platform development advancing.

• Continued wins and adoption across Development Cloud, Quality Cloud, Commercial Cloud, and Data Cloud segments, with Veeva Basics gaining traction among emerging biotechs.

Financial highlights

• Gross margin for Q2 FY26 was 75.3% GAAP and 77.5% non-GAAP; subscription services gross margin was 86.2%.

• Operating margin was 24.8% GAAP and 44.7% non-GAAP.

• Cash, cash equivalents, and short-term investments totaled $6.4 billion at quarter end.

• Net cash provided by operating activities for the first six months was $1.12 billion.

• FY 2025 total revenue was $2,747 million, up 16% year-over-year.

Outlook and guidance

• FY2026 revenue guidance raised to $3,134–$3,140 million, with non-GAAP operating income expected at ~$1,388 million and non-GAAP EPS at ~$7.78.

• Q3 FY26 revenue guidance is $790–$793 million, with non-GAAP operating income of $348–$350 million.

• Full-year subscription revenue projected at $2.657 billion, up 16% year over year.

• Guidance assumes no significant macroeconomic changes and stable FX rates.

• Recent tax legislation reduced expected cash taxes by $135 million, partially offset by $30 million in legal settlement payments.