Investing.com -- Shares of Veeva Systems (NYSE: VEEV ) surged 15% following the company’s announcement of better-than-expected first quarter earnings and an optimistic financial outlook for the second quarter and full fiscal year 2026.
Veeva Systems reported a first quarter EPS of $1.97, surpassing analyst predictions by $0.23, and revenue figures reached $759 million, exceeding the consensus estimate of $728.32 million. The strong financial performance is attributed to a 17% increase in total revenues compared to the same quarter last year, with subscription services revenues experiencing a 19% rise YoY.
Looking ahead, the company provided guidance for the second quarter with EPS estimates of $1.89-$1.90, against a consensus of $1.79, and revenue projections of $766-769 million, compared to the consensus of $750.3 million. For the full fiscal year 2026, Veeva Systems anticipates an EPS of $7.63 and revenue between $3.09-3.1 billion, both forecasts surpassing consensus estimates.
CEO Peter Gassner highlighted the quarter as Veeva’s best first quarter ever, citing swift execution and innovation aligned with the company’s values and long-term goals. The press release also noted that Veeva achieved its 2025 revenue run rate goal of $3 billion within the quarter, marking a significant milestone and setting a positive trajectory towards the 2030 target of doubling that revenue.
Analysts responded positively to the financial results, with Evercore ISI’s Kirk Materne raising the price target on Veeva Systems to $285.00 from $240.00 while maintaining an In Line rating. Materne commented, "Bottom line: Veeva delivered a strong F1Q as total revenue of $759.0mn (+17%) outpaced expectations (~$728.1/+12%) based on solid performance across the portfolio as well as Crossix outperformance."
Morgan Stanley’s Craig Hettenbach also adjusted the price target to $210.00 from $201.00, maintaining an Underweight rating, but acknowledged Veeva’s resilience in navigating the challenging Life Sciences market. Stifel’s David Grossman, expressing confidence in the company’s performance, raised the target price to $295.00 from $272.00 and maintained a Buy rating.
The company’s recent highlights include the introduction of Veeva AI, designed to drive productivity and automation in the life sciences industry, and the expansion of its commercial data offerings with the launch of Veeva CRM Pulse.
Investors are evidently buoyed by the robust financial results and the company’s forward-looking guidance, reflecting confidence in Veeva Systems’ market position and growth trajectory.
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