stockrowWhat it does
Veeva Systems is a cloud-software, data and business-consulting company focused on the global life-sciences industry. Founded in 2007 and headquartered in Pleasanton, it is led by Chief Executive Officer Peter P. Gassner. Its customers include pharmaceutical, biotechnology, medical-device and diagnostics companies, contract research organizations, and contract sales organizations.
The company’s products cover work from drug development through commercial launch. Development Cloud supports clinical trials, clinical-data management, drug safety and regulatory submissions. Quality Cloud supports regulated documents, quality processes, laboratory work and training. Commercial Cloud helps sales, marketing, medical-affairs and service teams engage healthcare professionals and manage commercial content. Data Cloud provides reference, deep and transaction data used in clinical and commercial work.
The common software foundation is Veeva Vault, which can handle both documents and related data in one system. Veeva AI adds agents within Veeva applications that can access data, documents and workflows. The company also provides implementation, managed services, technical consulting, training and business consulting. It operates as a Delaware public benefit corporation, whose stated purpose includes making the industries it serves more productive and creating employment opportunities.
How it makes money
Veeva earns most of its revenue from subscriptions to its software and data products, with the balance coming from professional services, speakers-bureau logistics and business consulting. Subscription revenue was $2,684 million in the fiscal year ended January 31, 2026, and represented 84% of total revenue; professional services and other revenue represented 16%. Total revenue was $3,195 million in that fiscal year. Management said on the call that total revenue was $928 million in Q2 FY2027.
The company reports two revenue groupings. Commercial Solutions comprise Commercial Cloud and Data Cloud, including CRM, commercial-content management, marketing analytics and healthcare-professional data. R&D and Quality Solutions comprise Development Cloud and Quality Cloud, including clinical, regulatory, safety, quality and laboratory applications. R&D and Quality Solutions made up 55% of total revenue in FY2026, while Commercial Solutions made up 45%.
Customers generally sign master subscription agreements. New CRM subscription orders generally run for one year, while multi-year orders are also used. Agreements generally renew automatically unless customers give advance notice of non-renewal. Revenue is normally recognized evenly over the noncancellable subscription term. Subscription value depends on customer count, the scope of each subscription, such as users or another usage metric, and the number of products a customer uses.
Services work is mainly billed on time-and-materials terms, with some fixed-fee arrangements. The company uses its own personnel and, in some cases, third-party subcontractors for service engagements. Management said on the call that Aspen is being introduced with a $50 per user per month productivity price, plus usage-overage charges.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| R&D and Quality Solutions | $1.4 billion | 44.6% | 20.9% |
| Commercial Solutions | $1.3 billion | 39.4% | 13.8% |
| R&D and Quality Solutions | $321.8 million | 44.6% | 20.9% |
| Commercial Solutions | $189.3 million | 39.4% | 13.8% |
Customers and how it sells
Veeva served 1,552 customers as of January 31, 2026. Its customer base ranges from large global pharmaceutical and biotechnology companies to emerging-growth companies, and it also sells selected R&D and Quality applications to consumer-products companies. Named customers include Bayer AG, Boehringer Ingelheim GmbH, Eli Lilly and Company, Gilead Sciences, Merck Sharp & Dohme Corp. and Novartis Pharma AG.
The company sells through a direct sales organization. It maintains separate R&D-and-quality and commercial sales teams because those functions commonly have different technology and business decision makers at large life-sciences companies. It also segments sales coverage between large global companies and smaller companies, and has product-specific and industry-specific teams for some products.
North America accounted for 59.6% of FY2026 revenue, Europe for 29.4%, Asia Pacific for 8.77%, and other international markets for 2.26%. The company hosts products in the United States, European Union, Japan, South Korea, Singapore, Australia and Brazil, with China-only products hosted in China. Management said on the call that the company has products made by its China team in China for China, including China CRM and data products.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| North America | $1.9 billion | 59.6% | 17.4% |
| Europe | $939.6 million | 29.4% | 18.8% |
| Asia Pacific | $280.2 million | 8.77% | 5.43% |
| Other international | $72.2 million | 2.26% | 5.51% |
Suppliers and costs
Veeva uses third parties for the computing infrastructure on which its solutions operate. Its Vault applications, including Vault CRM, and certain other Commercial Cloud applications use Amazon Web Services. Veeva CRM and certain multichannel CRM applications use Salesforce hosting infrastructure. Its AI Agents use large language models from Anthropic and Amazon hosted on Amazon Bedrock. Other applications use technologies including Amazon Redshift and Zoom.
Subscription cost includes third-party computing infrastructure, customer-support and hosting personnel, data stewards, data-acquisition costs, delivery costs for data products, computer equipment, software and allocated overhead. Computing infrastructure and data costs rose in FY2026 as end-user activity increased and the company continued investing in data solutions.
Professional-services cost is more labor-intensive than subscription cost and includes employees and third-party subcontractors. Research and development, sales and marketing, and general and administrative spending are also primarily employee-related. The company had 7,928 employees worldwide as of January 31, 2026.
- Revenue$3.2B
- Cost of revenue−$782.0M
- Research and development−$767.4M
- Selling, general and administrative−$729.5M
- Operating income$916.4M
Competitive position
Veeva competes in global, rapidly changing markets for life-sciences software, data and services. Salesforce competes in life-sciences CRM. IQVIA competes in CRM, data products and certain Development Cloud and Quality Cloud applications; IQVIA has licensed its CRM software to Salesforce. Veeva Data Cloud and Crossix also compete with Ipsos Group S.A., Definitive Health Corp. and smaller data and analytics providers.
For Development Cloud and Quality Cloud applications, competitors include IQVIA, Dassault Systèmes, OpenText Corporation, Oracle Corporation and Honeywell International Inc. Client-server legacy systems from Oracle and Microsoft Corporation can also compete for replacement decisions. Customers may choose general cloud tools from Salesforce, Box, Amazon Web Services or Microsoft for some functions. Professional services and business consulting compete with professional-services firms.
The company identifies customer satisfaction, regulatory-compliance functionality, life-sciences domain expertise, deployment, breadth of functionality, security, scalability, reliability, user adoption and integration as competitive factors. It has industry-specific products spanning software, data and consulting, and its Vault platform combines content and data handling.
Our reading: Veeva’s life-sciences specialization and compliance-oriented workflows are a strong moat source because its products address regulated development, quality and commercial functions.
Our reading: The connected software, data and consulting offering is a moderate moat source because customers can use multiple products, but large platform, data and application providers compete in parts of the portfolio.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Salesforce | life-sciences CRM and cloud platforms | High |
| IQVIA | CRM, data, development and quality applications | High |
| Ipsos Group S.A. | life-sciences data and analytics | Medium |
| Definitive Health Corp. | life-sciences data and analytics | Medium |
| Dassault Systèmes | development and quality applications | Medium |
| OpenText Corporation | development, quality and content applications | Medium |
| Oracle Corporation | development, quality and legacy applications | High |
| Honeywell International Inc. | development and quality applications | Medium |
Growth opportunities
Growth in FY2026 came mainly from expanded use of products by existing customers. Total revenue increased $449 million, including $400 million of subscription-revenue growth. The increase in subscription revenue included $247 million from R&D and Quality Solutions and $153 million from Commercial Solutions. The company expects R&D and Quality Solutions to increase as a share of subscription revenue and total revenue over time.
The company is developing and selling products across clinical data management, including EDC, eCOA and RTSM, as well as Safety and LIMS. Management said on the call that these products are large and strategic but remain early in their life cycles. Management also said that it is focused first on sponsors as early adopters of Falcon, its agentic-labor offering, and that Falcon needs further product readiness before broader deployment.
Vault CRM is another current product transition. Management said on the call that more than 180 customers were live on Vault CRM. It also said that Lilly, Biogen and Regeneron selected Vault CRM during the quarter. The company’s legacy Veeva CRM and some related applications, built on Salesforce infrastructure, will be supported until December 31, 2029.
Data Cloud development includes OpenData, Compass and Link. Management said on the call that Data Cloud is an accelerator rather than a prerequisite for AI, and identified momentum in OpenData, Compass for certain complex therapies and Link. Aspen is an early-stage horizontal CRM initiative and is not included in the company’s revenue plans at this time.
- $1.9BFY2022
- $2.2BFY2023
- $2.4BFY2024
- $2.7BFY2025
- $3.2BFY2026
- $3.7BFY2027 guidance
Structural risks
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Data security and privacy: A security breach or unauthorized access to customer data could cause customers to reduce or stop using Veeva’s solutions and could create significant liabilities. Privacy, information-security and life-sciences regulations may add compliance costs, reduce demand or create liabilities.
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Competition: The company faces intense competition from life-sciences specialists, large cloud and application providers, data vendors, legacy systems and new entrants. Some competitors have greater financial, technical, marketing, intellectual-property or partner resources.
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Life-sciences concentration: Nearly all revenue comes from life-sciences customers. Mergers among those customers, regulatory changes, government policies or changes in funding can affect their demand for Veeva’s products.
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International operations: International business is exposed to trade policy, sanctions, data-sovereignty rules, local compliance obligations, foreign-exchange changes, different sales and collection cycles, and political or armed conflicts.
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Third-party infrastructure and technology: The company relies on third-party infrastructure and technologies, including Amazon Web Services and Salesforce infrastructure for specified applications, as well as third-party large language models for AI Agents.
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AI-product execution: Management said on the call that Falcon is early, the company is the rate limiter on product readiness, and agentic labor requires training, guardrails and human-in-the-loop controls.
Bottom line
Our reading
Our reading: Veeva is a subscription-led industry-cloud business serving regulated life-sciences workflows from clinical development through commercialization, with services and consulting alongside software and data. Our reading: Its business depends materially on customer expansion, continued adoption of newer clinical, quality, CRM and AI products, and third-party computing infrastructure. Our reading: Its exposure includes concentrated dependence on the life-sciences industry, competition from large technology and data providers, and data-security and regulatory requirements.