Veeva Systems reported fiscal second-quarter revenue of $928 million, up 18% year over year, with subscription revenue rising 16% to $766.8 million and GAAP operating income climbing 40% to $275 million, lifting the operating margin to 29.6% from 24.8%. However, the prior-year quarter included a $30.6 million litigation settlement charge, and excluding that item would put the earlier margin near 28.7%, making the underlying expansion closer to one percentage point. Subscription growth remains strong, with more than 180 customers live on Vault CRM and 12 of the top 20 biopharmaceutical companies committed to the platform, while the company added over 30 clinical customers and surpassed 100 Veeva Safety customers. Non-GAAP operating income rose 18% to $415.9 million, with the margin edging up to 44.8% from 44.7%, but operating cash flow was nearly flat at $238.7 million and professional-services gross margin declined to 31.5% from 33.4%. For fiscal 2027, Veeva expects revenue of $3.682 billion to $3.687 billion and non-GAAP operating income of about $1.64 billion, implying a margin of approximately 44.5%, which management characterized as about 44%, suggesting continued high profitability but not obvious expansion from fiscal 2026's 44.9%.
Veeva Systems Inc Class AStrong revenue growth and operating income expansion, though margin growth is modest.
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