Veeva Systems, Inc. VEEV reported adjusted earnings per share (EPS) of $2.35 for the second quarter of fiscal 2027, which increased 18.1% from the year-ago figure of $1.99. Adjusted EPS beat the Zacks Consensus Estimate by 5.9%.
GAAP EPS in the fiscal second quarter was $1.66, up 39.5% from the year-ago period’s $1.37.
VEEV’s second-quarter revenues rose 17.6% to $928 million and topped the consensus estimate by 2.7%. Growth reflected strength across subscriptions and services, while Vault CRM ended the quarter with more than 180 customers live.
Shares of the company surged more than 9% in yesterday’s after-market trading. The stock gained 9.7% in the year-to-date period compared with the industry’s growth of 7.7%. The S&P 500 Index has increased 11.6% in the same time frame.
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VEEV’s Q2 Segmental Details
The fiscal second-quarter revenue growth was driven by strength across Subscription services and Professional services and other revenues.
Subscription services revenues increased 16.3% year over year to $766.8 million.
Professional services and other revenues advanced 24.1% year over year to $161.2 million.
Q2 Margin Performance by VEEV
In the quarter under review, Veeva Systems’ gross profit increased 17.2% year over year to $695.9 million. However, the gross margin contracted 30 basis points (bps) to 75%.
Sales and marketing expenses increased 15.8% year over year to $126.7 million. Research and development expenses rose 15.7% year over year to $222.9 million, while general and administrative expenses declined 25.6% year over year to $71.3 million. Total operating expenses of $420.9 million increased 5.8% year over year.
Operating profit totaled $275 million, up 40.4% from the prior-year quarter. The operating margin in the fiscal second quarter expanded 480 bps to 29.6%.
VEEV’s Financial Position
The company exited second-quarter fiscal 2027 with cash and cash equivalents and short-term investments of $7.24 billion compared with $7.31 billion at the fiscal first quarter of 2027-end.
Cumulative net cash provided by operating activities at the end of the quarter was $1.37 billion compared with $1.12 billion a year ago.
Q3 & FY27 Guidance Provided by VEEV
Veeva Systems has issued its financial outlook for the fiscal third quarter and raised its guidance for fiscal 2027.
For the fiscal third quarter, the company expects total revenues in the range of $932-$935 million. Subscription revenues are projected to be approximately $782 million, while Professional services and other revenues are anticipated between $150 million and $153 million.
Adjusted EPS is projected between $2.33 and $2.34.
For fiscal 2027, Veeva Systems now expects revenues between $3.682 billion and $3.687 billion. Subscription revenues are projected to be approximately $3.08 billion, comprising Commercial Solutions subscription revenues of around $1.405 billion and R&D and Quality Solutions subscription revenues of approximately $1.675 billion. Professional services and other revenues are expected in the range of $602-$607 million.
Adjusted EPS is now expected to be approximately $9.21.
Veeva Systems Inc. Price, Consensus and EPS Surprise
Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote
Wrapping Up
Veeva Systems exited the second quarter of fiscal 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company also raised its fiscal 2027 outlook. Strong execution across Commercial Solutions and R&D and Quality Solutions, along with continued momentum in newer growth areas, remained encouraging.
Veeva Systems continued to make notable progress with Vault CRM. The platform recorded its best quarter ever, with more than 180 customers live, including five top 20 biopharmas. In August, two additional top 20 biopharmas and one large enterprise biopharma committed to Vault CRM, taking total top 20 commitments to 12 globally. A top 20 biopharma also deployed Vault CRM and Agentic Call Report across its entire U.S. field team during the quarter.
The company also advanced its AI strategy. Veeva Falcon, its agentic labor platform for clinical, regulatory and safety functions, now has five early adopters and remains on track for initial go-lives this year. Veeva Systems also acquired Copli and launched Veeva Falcon MLR to automate content reviews. Vault AI added new standard agents, enhanced existing agents and introduced advanced tools for custom agent development in August. Management noted that customer interest in Falcon remains high, although product readiness and work with early adopters remain key near-term priorities.
Momentum across Development Cloud and Quality Cloud also remained strong. A large enterprise biopharma selected Veeva EDC, extending its existing eTMF, CTMS and Study Startup foundation. Veeva Safety surpassed 100 customers and secured its second top 20 biopharma win for Safety Workbench. The Quality business added more than 30 customers, supported by at least 20 wins each across QualityDocs, QMS and Training. These developments underscore Veeva Systems’ continued expansion across clinical, safety and quality applications.
VEEV’s Zacks Rank & Stocks to Consider
VEEV carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO.
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.
The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
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This article originally published on Zacks Investment Research (zacks.com).