Veeva Systems (VEEV) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $811.2 million, up 16% year-over-year, with subscription services revenue rising 17% to $682.5 million and services revenue at $129 million.

• Non-GAAP operating income for Q3 was $365 million (45% margin), exceeding guidance; net income grew 27% year-over-year to $236.2 million.

• CRM now represents about 20% of total revenue, down from 25% two years ago, reflecting growth in R&D, Crossix, and quality product areas.

• Strong performance attributed to innovation in AI, Vault CRM, Crossix, clinical, safety, and quality products, with significant customer adoption and expansion.

• The company continues to expand its customer base, with 1,477 customers as of January 31, 2025, and 115 live Vault CRM customers, including top 20 biopharmas.

Financial highlights

• Subscription services revenue grew 17% year-over-year to $682.5 million; professional services revenue increased 9% to $129 million.

• Gross margin on total revenues was 75.4% GAAP and 77.6% non-GAAP for Q3 FY2026; subscription gross margin was 86.3% for FY2025.

• Operating margin reached 29.7% GAAP and 45% non-GAAP; diluted EPS was $1.40, non-GAAP EPS was $2.04.

• Cash and short-term investments at quarter-end totaled $6.6 billion.

• Net cash provided by operating activities for the nine months ended October 31, 2025, was $1.31 billion.

Outlook and guidance

• Q4 FY2026 revenue guidance: $807–$810 million; non-GAAP operating income: ~$350 million; non-GAAP EPS: ~$1.92.

• FY2026 revenue guidance: $3.166–$3.169 billion (15% growth); non-GAAP operating income: ~$1.417 billion (45% margin); non-GAAP EPS: ~$7.93.

• Subscription revenue for FY2026 projected at $2.672 billion (17% growth); normalized billings: $3.369 billion, up 13% year-over-year.

• Management reiterates confidence in reaching a $6 billion revenue run-rate by 2030.

• No material impact expected from CRM customer attrition this year or next; 2030 goals remain on track.