Veeva Systems’ second quarter results drew a negative market reaction despite the company beating Wall Street’s expectations on revenue and non-GAAP profit. Management attributed the quarter’s performance to strong execution across its R&D and commercial product lines, including continued momentum in Crossix and Vault CRM. CEO Peter Gassner highlighted the resolution of the long-standing dispute with IQVIA as a major step forward, stating, “We can begin to learn about each other and partner for the benefit of customers.” The team also pointed to broad-based customer adoption and stable demand across its core markets, though some products like Compass faced resistance to change.
Is now the time to buy VEEV? Find out in our full research report (it’s free).
Veeva Systems (VEEV) Q2 CY2025 Highlights:
- Revenue: $789.1 million vs analyst estimates of $768.4 million (16.7% year-on-year growth, 2.7% beat)
- Adjusted EPS: $1.99 vs analyst estimates of $1.90 (4.7% beat)
- Adjusted Operating Income: $352.6 million vs analyst estimates of $337 million (44.7% margin, 4.6% beat)
- The company lifted its revenue guidance for the full year to $3.14 billion at the midpoint from $3.10 billion, a 1.4% increase
- Management raised its full-year Adjusted EPS guidance to $7.78 at the midpoint, a 2% increase
- Operating Margin: 24.8%, in line with the same quarter last year
- Billings: $648.6 million at quarter end, up 7.7% year on year
- Market Capitalization: $44.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Veeva Systems’s Q2 Earnings Call
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Ken Wong (Oppenheimer): asked about the impact of the IQVIA dispute resolution. CEO Peter Gassner explained it removes past barriers, allowing for new data integrations that benefit customers.
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Joe Vruwink (Baird): inquired about the growing role of Quality Cloud and AI’s influence on the five-year plan. Gassner stated quality remains on track, and AI will expand Veeva’s market size, though revenue impact will be gradual.
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Dylan Becker (William Blair): questioned how Veeva’s platform and structural advantages support further AI adoption among top enterprises. Gassner asserted their system-of-record status provides a “right to win” as customers embed more intelligence in workflows.
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Stan Berenshteyn (Wells Fargo Securities): asked about the dollar opportunity for Nitro and Network following the IQVIA agreement. Gassner characterized the financial upside as similar to other add-on products but expects broader commercial suite adoption.
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Rishi Jaluria (RBC): probed whether AI agents can ease Vault CRM migrations. Gassner replied that while migration tools are improving, AI agents themselves do not directly accelerate the process, though AI’s value may drive eventual adoption.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will closely monitor (1) progress on early AI agent deployments and customer feedback, (2) tangible revenue contribution from the expanded IQVIA partnership and new commercial suite integrations, and (3) the pace of Vault CRM migrations among large pharmaceutical clients. Continued strength in Crossix and the ability to scale business consulting alongside new AI projects will also be important markers of execution.
Veeva Systems currently trades at $270, down from $294.12 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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