A maker of industry cloud software, data, and consulting for the global life sciences industry, Veeva helps drugmakers like Eli Lilly and Novartis move from research through commercialization. Its applications run on the proprietary Veeva Vault platform, spanning clinical development, quality, commercial sales and marketing, and reference data. A notable quirk: Veeva is a Delaware public benefit corporation, formally balancing shareholder returns with the interests of its broader stakeholders.
Veeva's Q2 FY2027 revenue rose 17.6% to $928.0M as the prior-year litigation charge dropped out of G&A.
The litigation charge that weighed on last year's quarter is gone, and the shows it. rose 17.6% to $928.0 million, held at 75.0%, and rose 39.5% to $1.66 as R&D and Quality Solutions added $68 million of subscription growth. Veeva enters the second half with growth intact and a $2 billion underway.
Key takeaways
rose 40.4% to $275.0 million, helped by general and administrative expenses falling 26% to $71.3 million as the prior-year quarter's $31 million litigation settlement charge did not recur.
rose 17.6% to $928.0 million, with subscription revenue up 16% to $766.8 million and professional services and other revenue up 24% to $161.2 million.
R&D and Quality Solutions contributed $68 million and Commercial Solutions $40 million of the subscription increase, driven by expanding use by existing customers and annual price adjustments.
Section summaries
Management's Discussion and Analysis
Q2 FY2027 revenue rose 18% to $928M, driven by R&D and Quality subscription growth and higher services revenue.
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Total revenues increased 18% to $928.0 million in Q2 FY2027, with subscription revenues up 16% to $766.8 million and professional services and other revenues up 24% to $161.2 million.
Subscription growth was driven by expanding use by existing customers and higher prices from annual inflation adjustments, with R&D and Quality Solutions contributing $68 million and Commercial Solutions contributing $40 million of the Q2 increase.
was flat at 75.0%, with subscription gross margin holding at 86% and professional services gross margin holding at 22%.
rose 36.5% to $273.4 million and rose 39.5% to $1.66.
for the six months reached $1.37 billion, up from $1.12 billion a year earlier, helped by higher sales and collections and lower income tax payments from the OBBBA.
The company repurchased and retired 2,663,443 shares for about $467 million during the six months under its $2 billion .
What changed
The growth rate that earlier filings flagged to watch held: Q2 FY2027 rose 17.6% , up from 16.7% in Q2 FY2026 and 16.3% in Q1 FY2027.
The $31 million litigation settlement charge that pushed Q2 FY2026 G&A up 56% did not recur, and G&A fell 26% to $71.3 million.
R&D and Quality Solutions' quarterly subscription contribution rose to $68 million from $63 million in Q1 FY2027 and $62 million in Q2 FY2026.
stabilized at 75.0% after dipping 2.1 points sequentially in Q1 FY2027, with subscription margin holding at 86% rather than falling further.
The pace accelerated: $467 million repurchased in the first six months of FY2027 versus $180 million in all of FY2026.
What to watch
Q3 FY2027 growth rate to see if the 17.6% pace holds as the OBBBA tax benefit and IQVIA settlement fully annualize.
R&D and Quality Solutions subscription contribution next quarter to see if the $68 million add continues to offset R&D expense growth.
Vault CRM adoption and customer migration progress off Salesforce ahead of the 2030 deadline amid Salesforce competitive pressure.
Any customer loss or disruption from IQVIA's healthcare data restrictions on Veeva Network and Veeva Nitro, and the pace of buybacks under the $2 billion program.
Total was flat at 75% in Q2 FY2027, as subscription gross margin held at 86% and professional services gross margin held at 22%.
General and administrative expenses fell 26% in Q2 FY2027 to $71.3 million, primarily because the prior-year quarter included $31 million in litigation settlement-related charges.
Net cash provided by operating activities rose to $1.37 billion for the six months ended July 31, 2026 from $1.12 billion a year earlier, helped by higher sales and collections and lower income tax payments from the OBBBA.
The company repurchased and retired 2,663,443 shares for about $467 million during the six months ended July 31, 2026 under its $2 billion program.
Quantitative and Qualitative Disclosures About Market Risk
Veeva reports low market risk, with 83% of revenue in USD and a $7.2B investment portfolio sensitive to interest rates.
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For the six months ended July 31, 2026, about 83% of revenues and 80% of expenses were denominated in USD.
Primary currency exposures are to the Euro, Japanese Yen, Canadian Dollar, British Pound Sterling, and Chinese Yuan.
The company hedges some foreign currency transactions and may hedge selected significant transactions or net monetary exposures in the future.
Realized and unrealized foreign currency gains and losses were immaterial for the three and six months ended July 31, 2026 and 2025.
Cash, cash equivalents, and short-term investments totaled $7.2 billion as of July 31, 2026, held mainly in demand deposits, money market funds, corporate notes and bonds, and U.S. Treasury securities.
A 100-basis-point rise in interest rates would have reduced the investment portfolio's market value by $104 million, while a 100-basis-point decline would have increased it by $107 million as of July 31, 2026.
From time to time, we may be involved in legal proceedings and subject to claims incident to the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any legal proceedings…
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From time to time, we may be involved in legal proceedings and subject to claims incident to the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained.
32 Veeva Systems Inc. | Form 10-Q
Table of Contents
Key risks center on security, CRM migration, life sciences concentration, and evolving AI and data-privacy regulation.
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Security breaches or unauthorized access to customer data could reduce demand, trigger liability, and are seen as elevated by AI-enabled attacks and Middle East tensions.
The migration from Veeva CRM on Salesforce to Vault CRM on the Veeva Vault platform is complex and could cause outages, customer disruption, or losses to competitors such as Salesforce.
is highly concentrated in life sciences and key customers, with top 10 customers at 28% of total revenues in each of fiscal 2026, 2025, and 2024.
Newer offerings including Veeva AI products and Aspen CRM may not gain adoption fast enough to sustain growth, while total growth has already slowed to 16% in fiscal 2026 and 2025 from prior levels.
Evolving privacy and AI rules such as the EU AI Act, EU Data Act, and Washington My Health My Data Act have already forced product changes, including limits on Veeva Crossix audience segments.
Dependence on third-party infrastructure and models from Amazon Web Services, Salesforce, and Anthropic creates outage, renewal, and regulatory restriction risk.