Veeva Systems (VEEV) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue reached $928 million, up 18% year-over-year, with strong growth across Commercial, R&D, and Quality segments, and subscription revenues at $766.8–$767 million, up 16%.

• Non-GAAP operating income for Q2 was $415.9–$416 million (44.8–45% margin), with net income at $273–$273.4 million and diluted EPS of $1.66.

• AI-driven innovation accelerated, with launches of Veeva Falcon, Aspen CRM, and Copli acquisition, and major customer adoption milestones.

• Share repurchases totaled $246–$472.7 million in Q2, with $1.4 billion remaining authorized.

• Cash and short-term investments at quarter-end were $7.2 billion.

Financial highlights

• Subscription revenue for Q2 was $766.8–$767 million, up 16% year-over-year; services revenue was $161 million, up 24%.

• Gross margin for Q2 was 75–75.0%, with subscription gross margin at 86–86.6%.

• Non-GAAP operating margin was 44.8–45%.

• Net cash provided by operating activities for the six months ended July 31, 2026, was $1.37 billion.

• Deferred revenue at quarter-end was $1.31 billion.

Outlook and guidance

• FY2027 revenue guidance raised to $3.682–$3.687 billion (15% growth), with subscription revenue at ~$3.080 billion and services revenue at $602–$607 million.

• Non-GAAP operating income guidance is ~$1.64 billion (44% margin); non-GAAP EPS guidance is ~$9.21.

• Q3 FY27 revenue guidance: $932–$935 million; non-GAAP operating income: $417–$420 million; non-GAAP EPS: $2.33–$2.34.

• Guidance assumes stable macroeconomic environment and FX tailwind of ~$20 million.

• Management expects existing liquidity to be sufficient for at least the next 12 months.