Veeva Systems (VEEV) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $699 million, up 13% year-over-year, with non-GAAP operating income of $304 million and a record 43.5% margin, both above guidance.

• Subscription services drove growth, accounting for 83% of revenue and rising 17% year-over-year, while services revenue declined slightly.

• Significant milestones included Vault CRM's fourth top 20 biopharma commitment, over 30 customers live, and new GenAI solutions like CRM Bot and MLR Bot.

• Strong liquidity position with $5.1 billion in cash, cash equivalents, and short-term investments as of October 31, 2024.

• FY 2025 guidance projects total revenue of $2,722–$2,725 million and non-GAAP operating income of ~$1,120 million.

Financial highlights

• Total revenue for Q3 2025 was $699 million, up 13% year-over-year; subscription revenue grew 17% to $581 million, while services revenue declined 3%.

• Non-GAAP operating income was $304 million, with a margin of 43.5%; GAAP operating income was $181 million, up 41% year-over-year.

• Gross margin improved to 75% GAAP and 77.3% non-GAAP; subscription gross margin was 86.2%.

• Net income for the quarter was $186 million, up 37% year-over-year; diluted EPS was $1.13.

• Cash flow from operations for the nine months was $1.02 billion.

Outlook and guidance

• FY 2025 revenue guidance is $2,722–$2,725 million, with non-GAAP operating income of ~$1,120 million and non-GAAP EPS of ~$6.44.

• Q4 2025 revenue guidance is $696–$699 million, with non-GAAP operating income of $275 million and EPS of ~$1.57.

• Management expects R&D Solutions to continue increasing as a share of total revenues.

• No formal FY2026 guidance yet; will be provided after Q4 results.

• Cash flows from operating activities expected to be lower in Q4 due to seasonality and tax payments.