You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K. In addition to historical condensed consolidated financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results could differ materially from those anticipated by these forward-looking statements as a result of many factors. We discuss factors that we believe could cause or contribute to these differences below and elsewhere in this report, including those set forth under “Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Overview Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span applications, agents, data, and consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from R&D through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. For a more detailed description of our business and products as of January 31, 2026, please see our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed on March 20, 2026. Our industry cloud solutions are grouped into four major product categories—Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud. For financial reporting purposes, “Commercial Solutions” revenues refer to revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutions, and “R&D and Quality Solutions” revenues refer to revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions. In our fiscal year ended January 31, 2026, we derived approximately 47% and 53% of our subscription revenues and 45% and 55% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively. For the six months ended July 31, 2026, we derived approximately 46% and 54% of our subscription revenues and 44% and 56% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively. Revenues associated with our R&D and Quality Solutions are expected to increase as a percentage of both subscription revenues and total revenues in the future. We also offer certain of our R&D and Quality Solutions to industries outside the life sciences industry primarily in North America and Europe. For our fiscal years ended January 31, 2026, 2025, and 2024, our total revenues were $3,195 million, $2,747 million, and $2,364 million, respectively, representing year-over-year growth in total revenues of 16% in our fiscal year ended January 31, 2026, and 16% in our fiscal year ended January 31, 2025. For our fiscal years ended January 31, 2026, 2025, and 2024, our subscription revenues were $2,684 million, $2,285 million, and $1,902 million, respectively, representing year-over-year growth in subscription revenues of 17% in our fiscal year ended January 31, 2026, and 20% in our fiscal year ended January 31, 2025. We generated net income of $909 million, $714 million, and $526 million for our fiscal years ended January 31, 2026, 2025, and 2024, respectively. As of January 31, 2026, 2025, and 2024, we served 1,552, 1,477, and 1,432 customers, respectively. As of January 31, 2026, 2025, and 2024, we had 767, 730, and 693 Commercial Solutions customers, respectively, and 1,196, 1,125, and 1,078 R&D and Quality Solutions customers, respectively. These customer count totals are net of customer attrition during each period. The combined customer counts for Commercial Solutions and R&D and Quality Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Many of our applications for R&D are used by smaller, earlier-stage, pre-commercial companies, some of which may not reach the commercialization stage. Components of Results of Operations Revenues We derive our revenues primarily from subscription fees and professional services fees. Subscription revenues consist of fees from customers accessing our software and data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, and managed services in connection 20 Veeva Systems Inc. | Form 10-Q Table of Contents with our solutions, as well as services related to our speakers bureau logistics and Veeva Business Consulting offering. For the six months ended July 31, 2026, subscription revenues constituted 83% of total revenues and professional services and other revenues constituted 17% of total revenues. We generally enter into master subscription agreements with our customers and count each distinct master subscription agreement that has not been terminated or expired and that has orders for which we have recognized revenue in the quarter as a distinct customer for purposes of determining our total number of current customers as of the end of that quarter. We generally enter into a single master subscription agreement with each customer, although in some instances, affiliated legal entities within the same corporate family may enter into separate master subscription agreements. Conversely, affiliated legal entities that maintain distinct master subscription agreements may choose to consolidate their orders under a single master subscription agreement, and, in that circumstance, our customer count would decrease. Divisions, subsidiaries, and operating units of our customers often place distinct orders for our subscription services under the same master subscription agreement, and we do not count such distinct orders as new customers for purposes of determining our total customer count. For Veeva Crossix, we do not count as distinct customers agencies contracting with us on behalf of brands within life sciences companies. New subscription orders for our CRM applications generally have a one-year term. If a customer adds end users or additional Commercial Solutions to an existing order for a CRM application, such additional orders will generally be coterminous with the anniversary date of the CRM order, and as a result, orders for additional end users will commonly have an initial term of less than one year. Subscription revenues are generally recognized ratably over the respective noncancellable subscription term because of the continuous transfer of control to the customer. Our master subscription agreements governing multi-year orders generally include a termination for convenience right for our customers. The amount of revenue recognized from such orders will generally be consistent with the amount invoiced for the relevant term of the order. Our subscription orders are generally billed at the beginning of the subscription period in annual or quarterly increments, which means the annualized value of such orders may not be completely reflected in deferred revenue at any single point in time. Also, particularly with respect to expansion orders for our Commercial Solutions, because the term of orders for additional end users or applications is commonly less than one year to align to the renewal date of existing Commercial Solutions orders, the annualized value of such orders may not be completely reflected in deferred revenue at any single point in time. We have also agreed from time to time, and may agree in the future, to allow customers to change the renewal dates of their orders to, for example, align more closely with a customer’s annual budget process or to align with the renewal dates of other orders placed by other entities within the same corporate control group, or to change payment terms from annual to quarterly, or vice versa. Such changes may result in an order of less than one year as necessary to align all orders to the desired renewal date and, thus, may result in a lesser increase to deferred revenue compared to if the adjustment had not occurred. Additionally, changes in renewal dates may change the fiscal quarter in which deferred revenue associated with a particular order is booked. Accordingly, we do not believe that changes on a quarterly or annual basis in deferred revenue, calculated billings, or normalized billings are precise indicators of future revenues. We define the term calculated billings for any period to mean revenue for the period plus the change in deferred revenue from the immediately preceding period minus the change in unbilled accounts receivable from the immediately preceding period. We define the term normalized billings for any period to mean calculated billings adjusted for the impact of (i) term changes in our customer renewals, such as changes to renewal date (for example, changing the renewal date of multiple products to be coterminous) or changes to billing frequency (for example, changing from annual to quarterly billings), and (ii) delayed renewals that have closed and billed after the period end. Our agreements typically provide that orders will automatically renew unless notice of non-renewal is provided in advance. Subscription revenues are affected primarily by the number of customers, the scope of the subscription purchased by each customer (for example, the number of end users or other subscription usage metric) and the number of solutions subscribed to by each customer. We utilize our own personnel to perform our professional services and business consulting engagements with customers. In certain cases, we may utilize third-party subcontractors to perform professional services engagements. The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services and business consulting arrangements are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred. Professional services revenues are affected primarily by our customers’ demands for implementation services, configuration, managed services, Veeva Systems Inc. | Form 10-Q 21 Table of Contents and speakers bureau logistics. Our business consulting revenues are affected primarily by our customers’ demands for services related to a particular customer success initiative, strategic analysis, or business process change, and not by cloud software implementation. Allocated Overhead We accumulate certain costs such as office rent, utilities, and other facilities costs, information technology, and building depreciation, and allocate them across the various departments based on headcount. We refer to these costs as “allocated overhead.” Cost of Revenues Cost of subscription revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including Amazon Web Services and Salesforce, Inc., personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, expenses associated with computer equipment and software, and allocated overhead. Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing professional and business consulting services. The cost of providing professional services is significantly higher as a percentage of the related revenues than the cost of subscription due to the direct labor costs and costs of third-party subcontractors. Operating Expenses Research and Development. Research and development expenses consist primarily of employee-related expenses, hosted infrastructure costs, and allocated overhead. We continue to focus our research and development efforts on our platforms, including adding new features and applications and increasing the functionality and enhancing the ease of use of our cloud-based applications. Sales and Marketing. Sales and marketing expenses consist primarily of employee-related expenses, sales commissions, marketing program costs, travel-related expenses, amortization expense associated with purchased intangibles primarily related to our customer relationships and allocated overhead. Marketing program costs include advertising, customer events, corporate communications, brand awareness, and product marketing activities. Sales commissions are costs of obtaining new customer contracts and are capitalized and then amortized over a period of benefit that we have determined to be three years. General and Administrative. General and administrative expenses consist of employee-related expenses for our finance and accounting, legal, employee success, management information systems personnel, and other administrative employees. In addition, general and administrative expenses include fees related to third-party legal counsel, fees related to third-party accounting, tax and audit services, other corporate expenses, and allocated overhead. Other Income, Net Other income, net, consists primarily of interest income, amortization of premiums paid or accretion of discounts on investments, and transaction gains or losses on foreign currency, net of hedging costs. Provision for Income Taxes Provision for income taxes consists of federal, state, and local income taxes in the United States and income taxes in certain foreign jurisdictions. See note 7 of the notes to our condensed consolidated financial statements. 22 Veeva Systems Inc. | Form 10-Q Table of Contents Results of Operations The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Revenues Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Revenues: Subscription $ 766,764 $ 659,183 $ 107,581 16% $ 1,496,939 $ 1,293,951 $ 202,988 16% Professional services and other 161,199 129,898 31,301 24% 313,972 254,173 59,799 24% Total revenues $ 927,963 $ 789,081 $ 138,882 18% $ 1,810,911 $ 1,548,124 $ 262,787 17% Percentage of revenues: Subscription 83 % 84 % 83 % 84 % Professional services and other 17 16 17 16 Total revenues 100 % 100 % 100 % 100 % The increase in subscription revenues for the three months ended July 31, 2026 consisted of $68 million attributable to R&D and Quality Solutions and $40 million attributable to Commercial Solutions. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the three months ended July 31, 2026, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the three months ended July 31, 2025. The increase in subscription revenues for the six months ended July 31, 2026 consisted of $131 million attributable to R&D and Quality Solutions and $72 million attributable to Commercial Solutions. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the six months ended July 31, 2026, as compared to 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025. The increase in subscription revenues attributable to R&D and Quality Solutions and Commercial Solutions for the three and six months ended July 31, 2026 was driven by the expanding use by existing customers and higher prices in connection with our annual inflation adjustment for our products. The increase in professional services and other revenues for the three and six months ended July 31, 2026 was primarily due to an increase in implementation services and business consulting. The geographic mix of professional services and other revenues was 55% from North America, 39% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended July 31, 2026, as compared to 58% from North America, 36% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended July 31, 2025. The geographic mix of professional services and other revenues was 56% from North America, 38% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2026, as compared to 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025. Veeva Systems Inc. | Form 10-Q 23 Table of Contents Cost of Revenue and Gross Margin Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Cost of revenues: Cost of subscription $ 105,677 $ 93,830 $ 11,847 13% $ 204,780 $ 172,176 $ 32,604 19% Cost of professional services and other 126,335 101,423 24,912 25% 248,156 196,901 51,255 26% Total cost of revenues $ 232,012 $ 195,253 $ 36,759 19% $ 452,936 $ 369,077 $ 83,859 23% Gross margin percentage: Subscription 86 % 86 % 86 % 87 % Professional services and other 22 % 22 % 21 % 23 % Total gross margin percentage 75 % 75 % 75 % 76 % Gross profit $ 695,951 $ 593,828 $ 102,123 17% $ 1,357,975 $ 1,179,047 $ 178,928 15% The increase in cost of subscription for the three and six months ended July 31, 2026 was primarily due to an increase of $12 million and $32 million, respectively, in computing infrastructure and data costs. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in data costs was related to investment in our data solutions. The increase in cost of professional services and other for the three and six months ended July 31, 2026 was primarily due to an increase of $19 million and $38 million in employee compensation-related costs, respectively. The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount. Operating Expenses and Operating Margin Research and Development Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Research and development $ 222,918 $ 192,677 $ 30,241 16% $ 431,241 $ 376,710 $ 54,531 14% Percentage of total revenues 24 % 24 % 24 % 24 % The increase in research and development expenses for the three and six months ended July 31, 2026 was primarily due to an increase of $24 million and $42 million in employee compensation-related costs, respectively. The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount. Sales and Marketing Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Sales and marketing $ 126,701 $ 109,439 $ 17,262 16% $ 237,818 $ 208,067 $ 29,751 14% Percentage of total revenues 14 % 14 % 13 % 13 % The increase in sales and marketing expenses for the three and six months ended July 31, 2026 was primarily due to an increase of $11 million and $23 million in employee compensation-related costs, respectively, and $5 million and $4 million in marketing program costs related to events, respectively. 24 Veeva Systems Inc. | Form 10-Q Table of Contents The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount. General and Administrative Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) General and administrative $ 71,314 $ 95,804 $ (24,490) (26)% $ 140,786 $ 164,630 $ (23,844) (14)% Percentage of total revenues 8 % 12 % 8 % 11 % The decrease in general and administrative expenses for the three and six months ended July 31, 2026 was primarily due to $31 million in litigation settlement-related charges that was incurred in the quarter ended July 31, 2025. The decrease for the three and six months ended July 31, 2026 was partially offset by an increase of $2 million and $3 million in employee compensation-related costs, respectively. Other Income, Net Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Other income, net $ 74,512 $ 69,456 $ 5,056 7% $ 148,930 $ 134,545 $ 14,385 11% The increase in other income, net, for the three and six months ended July 31, 2026 was primarily due to an increase in interest income from higher cash and short-term investments balances. Provision for Income Taxes Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) Income before income taxes $ 349,530 $ 265,364 $ 84,166 32% $ 697,060 $ 564,185 $ 132,875 24% Income tax provision $ 76,101 $ 65,055 $ 11,046 17% $ 162,695 $ 135,686 $ 27,009 20% Effective tax rate 21.8 % 24.5 % 23.3 % 24.0 % The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, equity compensation, tax credits, and FDDEI deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable. During the three and six months ended July 31, 2026, as compared to the same periods in the prior fiscal year, our effective tax rate decreased primarily due to an increase in FDDEI deduction under the OBBBA provisions effective in the current fiscal year, partially offset by discrete tax deficiencies related to equity compensation. Non-GAAP Financial Measures In our public disclosures, we have provided non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In addition to our GAAP measures, we use these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures. Veeva Systems Inc. | Form 10-Q 25 Table of Contents •Excess tax benefit (deficiency). Excess tax benefits (deficiencies) from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, we find it useful to exclude excess tax benefits (deficiencies) when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits (deficiencies), we believe excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. •Stock-based compensation expenses. We exclude stock-based compensation expenses primarily because they are non-cash expenses that we exclude from our internal management reporting processes. We also find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, we believe excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. •Amortization of purchased intangibles. We incur amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, we exclude these expenses for internal management reporting processes. We also find it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. •Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results. •Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures. Limitations on the Use of Non-GAAP Financial Measures There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. 26 Veeva Systems Inc. | Form 10-Q Table of Contents The following table reconciles the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Three months ended July 31, Six months ended July 31, 2026 2025 2026 2025 (in thousands) Net cash provided by operating activities on a GAAP basis $ 238,709 $ 238,433 $ 1,365,825 $ 1,115,591 Excess tax (benefit) deficiency from employee stock plans (3,268) (13,031) 824 (15,610) Net cash provided by operating activities on a non-GAAP basis $ 235,441 $ 225,402 $ 1,366,649 $ 1,099,981 Net cash used in investing activities on a GAAP basis $ (63,540) $ (389,272) $ (452,251) $ (441,379) Net cash (used in) provided by financing activities on a GAAP basis $ (259,308) $ 115,689 $ (521,834) $ 136,069 Operating income on a GAAP basis $ 275,018 $ 195,908 $ 548,130 $ 429,640 Stock-based compensation expense 136,803 121,966 256,062 234,176 Amortization of purchased intangibles 4,062 4,075 7,067 8,016 Litigation settlement-related charges — 30,627 — 30,627 Operating income on a non-GAAP basis $ 415,883 $ 352,576 $ 811,259 $ 702,459 Net income on a GAAP basis $ 273,429 $ 200,309 $ 534,365 $ 428,499 Stock-based compensation expense 136,803 121,966 256,062 234,176 Amortization of purchased intangibles 4,062 4,075 7,067 8,016 Litigation settlement-related charges — 30,627 — 30,627 Income tax effect on non-GAAP adjustments (1) (26,882) (23,572) (38,945) (40,085) Net income on a non-GAAP basis $ 387,412 $ 333,406 $ 758,549 $ 661,234 Diluted net income per share on a GAAP basis $ 1.66 $ 1.19 $ 3.22 $ 2.56 Stock-based compensation expense 0.83 0.73 1.54 1.40 Amortization of purchased intangibles 0.02 0.02 0.04 0.05 Litigation settlement-related charges — 0.18 — 0.18 Income tax effect on non-GAAP adjustments (1) (0.16) (0.13) (0.23) (0.24) Diluted net income per share on a non-GAAP basis $ 2.35 $ 1.99 $ 4.57 $ 3.95 (1) For the three and six months ended July 31, 2026 and 2025, we used an estimated annual effective non-GAAP tax rate of 21%. Liquidity and Capital Resources Six months ended July 31, 2026 2025 (in thousands) Net cash provided by operating activities $ 1,365,825 $ 1,115,591 Net cash used in investing activities (452,251) (441,379) Net cash (used in) provided by financing activities (521,834) 136,069 Effect of exchange rate changes on cash and cash equivalents (831) 1,365 Net change in cash and cash equivalents $ 390,909 $ 811,646 Our principal sources of liquidity continue to be comprised of our existing cash, cash equivalents, and short-term investments. As of July 31, 2026, our cash, cash equivalents, and short-term investments totaled $7.2 billion, of which $102 million represented cash and cash equivalents held outside of the United States. Our primary use of cash is payment of our operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, investments in our information technology infrastructure, and general operating expenses for marketing, facilities, and overhead costs. Long-term cash requirements for items other than normal operating expenses could include the following: the acquisition of businesses, or technologies complementary to our business, share repurchases, and capital expenditures. Our non-U.S. cash and cash equivalents are not considered indefinitely reinvested outside the United States, except in certain designated jurisdictions. As of July 31, 2026, we have not recorded any taxes, such as withholding taxes, associated with the foreign earnings that are indefinitely reinvested outside of the United States. Under currently enacted tax laws, if we were to choose to repatriate the funds we have designated as indefinitely Veeva Systems Inc. | Form 10-Q 27 Table of Contents reinvested outside the United States, such amounts may be subject to certain jurisdictional taxes (e.g., withholding taxes). We have financed our operations primarily through cash generated from operations. We believe our existing cash, cash equivalents, and short-term investments will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the ongoing investments in technology infrastructure, the introduction of new and enhanced solutions, and the continuing market acceptance of our solutions. In addition to share repurchase activity, we may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, and intellectual property rights. We may be required to seek additional equity or debt financing for those arrangements or for other reasons. Share Repurchase Program In January 2026, our board of directors authorized a share repurchase program of up to $2 billion of our outstanding shares of common stock. Under the program, we may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under the Exchange Act. The timing and total amount of any share repurchases depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program has a term of two years, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. Any repurchased shares of common stock will be retired. The repurchase program is funded using our cash flows from operations. During the six months ended July 31, 2026, we repurchased and subsequently retired 2,663,443 shares of our common stock for an aggregate amount of approximately $467 million. Cash Flows from Operating Activities Our largest source of operating cash inflows is cash collections from our customers for subscription services. We also generate significant cash flows from our professional services arrangements. The first quarter of our fiscal year is seasonally the strongest quarter for cash inflows due to the collections from our annual subscription billings. As a result, we expect cash flows from operating activities to be substantially less in each of the subsequent quarters of the fiscal year. Our primary uses of cash from operating activities are for employee-related expenditures, expenses related to our computing infrastructure (including Amazon Web Services and Salesforce), building infrastructure costs (including leases for office space), and fees for third-party legal counsel and accounting services. Net cash provided by operating activities was $1,366 million for the six months ended July 31, 2026 compared to $1,116 million provided by operating activities for the six months ended July 31, 2025. The increase in cash provided by operating activities was primarily due to increased sales and the related cash collections and the reduction in income tax payments due to impact of the OBBBA, partially offset by increased expenses. The OBBBA modified provisions around FDDEI and we are in the final year of our two-year election to accelerate the deduction of unamortized capitalized domestic research and development expenditures. The OBBBA is expected to continue to reduce our cash tax obligations for the remainder of the fiscal year, the amount of which we are unable to estimate at this time. Cash Flows from Investing Activities Investing activities primarily relate to cash used for the purchase of marketable securities, net of maturities, as well as capital expenditures. Net cash used in investing activities was $452 million for the six months ended July 31, 2026 compared to $441 million used in investing activities for the six months ended July 31, 2025. The increase in cash used in investing activities was primarily due to the increase in purchases of short-term investments and the acquisition of Rise Healthcare Tech, Inc. (“Ostro”), offset by the increase in proceeds from maturities and sales of short-term investments. 28 Veeva Systems Inc. | Form 10-Q Table of Contents Cash Flows from Financing Activities The cash flows from financing activities relate primarily to share repurchases and taxes paid on behalf of employees related to the net share settlement of restricted stock units (“RSUs”), offset by stock option exercises. Net cash used in financing activities was $522 million for the six months ended July 31, 2026 compared to $136 million provided by financing activities for the six months ended July 31, 2025. The change in cash used in financing activities was primarily due to share repurchases and a decrease in proceeds from stock options exercised. Critical Accounting Policies and Estimates Our condensed consolidated financial statements are prepared in accordance with GAAP. In the preparation of these condensed consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs, and expenses and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions. There have been no material changes to our critical accounting policies and estimates during the six months ended July 31, 2026 as compared to those disclosed in note 1 of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. Veeva Systems Inc. | Form 10-Q 29 Table of Contents