Earnings call · Jul 2026 (Q2 FY27)

VEEVA SYSTEMS Q2 FY27 earnings call VEEV

Aug 26, 2026 Source

Executive summary

Veeva Systems Q2 FY27 — Record CRM Performance and AI Acceleration

Veeva delivered a strong quarter, driven by record CRM performance and significant advancements in AI, particularly with Veeva Falcon. The company is strategically investing in new growth areas like Aspen and next-gen R&D products, while maintaining a focus on profitability. Management expressed high confidence in its market leadership and the long-term trajectory of its synergistic product portfolio, despite some challenges faced by competitors.

Highlights

Total revenue reached $928 million, exceeding guidance.
Non-GAAP operating income was $416 million, demonstrating strong profitability.
Achieved the best CRM quarter ever, with significant customer wins including Biogen and Regeneron.
Accelerating rapidly in AI, particularly with Veeva Falcon, showing very high customer interest.
Commercial segment subscription revenue grew approximately 13% year-over-year, broad-based strength.

Concerns

Salesforce CRM projects for some large customers are experiencing difficulties and delays.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Commercial Cloud Broad-based strength across CRM, content, data, Crossix, and Astra. Crossix continues to be a strong performer with headroom for growth, and CRM is also growing. Subscription revenue growth (excluding Crossix): double digits	—	approximately 13%	—	—

VEEV operating KPIs by quarter

VEEV operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jul 2025 Q2 FY26	Oct 2025 Q3 FY26	Apr 2026 Q1 FY27	This call Jul 2026 Q2 FY27	Change vs prior quarter
Live customers in CRM	100 So now that's gone with Salesforce since we've moved to Vault, and we have 100 live customers in CRM. Source transcript	115 And then, Brian, 115 customers live on Vault CRM, including I think some top 20s kind of in the motions. Source transcript	150+ We have customers now, over 150 customers live on Vault CRM. Source transcript	180+ We have over 180 customers live. Source transcript	—

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

IQVIA Strategic partnership to enhance offerings for the life sciences industry, leveraging services, data, and software.

Partnership is described as significantly improved, with end customers appreciating the reduced friction. Seen as crucial for leveraging AI in the industry.

Biogen Selection of Vault CRM

One of two top 20 biopharma wins for Vault CRM in the quarter, driven by trust and product excellence.

Regeneron Selection of Vault CRM

One of two top 20 biopharma wins for Vault CRM in the quarter, driven by trust and product excellence.

Copa Acquisition for talent and product, specifically Falcon MLR.

Described as an excellent acquisition, particularly for Falcon MLR, which has advanced sales cycles. Peter Gassner noted it was a good fit for culture, product, and willingness to be acquired.

Risks & headwinds

Struggles and delays in Salesforce CRM projects for large customers Ongoing, with potential win-back opportunities for Veeva in 2027 and 2028.

Projects are having trouble, not going smooth, with some project delays.

Mitigation:Veeva's strong execution, product innovation, and deep customer relationships position it as a 'Plan B' for these customers.

What to watch in Q3 FY27

Falcon early adopter success

As soon as possible, implied next quarters.

Current Very high customer interest, Veeva is the rate limiter.

Target Early adopters live and successful, product flying off the shelf.

Why it matters

Successful early adoption of Falcon is critical for validating Veeva's new 'agentic labor' offering and accelerating its AI strategy, which is a major new chapter for the company.

If we had our early adopters live and successful right now, I don't want to be hyperbole, but Falcon would be flying off the shelf, if that was the case.

Q&A highlights

How are customers assessing and adopting new Veeva AI offerings, particularly Falcon, given the busy R&D environment?

Customers are highly interested in Falcon due to clear priorities for cost savings and compliance. Veeva is currently the rate limiter in getting the product ready, but interest is very high, and the product is expected to "fly off the shelf" once early adopters are successful, as implementation is less complex than traditional software.

“interest in Falcon is very high. We are the rate limiter right now. We have to get that product ready, start working with the early adopters, but interest in Falcon is very high.”

asked by Joe Vruwink · answered by Peter Gassner

2 min read 6 chapters

Detailed narrative

AI Strategy and Falcon Adoption

Veeva is rapidly accelerating its AI initiatives, with Veeva Falcon generating significant customer interest due to its potential for quick cost savings and compliance. Falcon represents a new "agentic labor" offering, distinct from traditional cloud software, data, and consulting, and is seen as a structural advantage for Veeva due to its integration with core applications. Early adopters are primarily sponsors, with potential for service providers in the future, though initial focus remains on sponsors.

Aspen Development and Market Opportunity

Aspen, a new horizontal CRM offering, is in its early stages as a startup within Veeva, focusing on modern technology and AI enablement. Management is 100% confident in the market need for Aspen, aiming to provide a better, simpler, and more predictable CRM solution. Investment in Aspen is currently small and not a financial drain on the company, with no revenue factored into current plans, as the focus is on product development and early customer engagement.

CRM Market Leadership and Win-Back Opportunities

Veeva achieved its best CRM quarter ever, securing two top 20 biopharma wins (Biogen, Regeneron) for Vault CRM. Management notes that Salesforce CRM projects for some large customers are struggling, creating potential win-back opportunities for Veeva, particularly in 2027 and 2028 as the 2029 backstop for Veeva CRM approaches. Veeva aims to maintain over 70% market share in the CRM space, leveraging its execution and innovation.

R&D Product Portfolio Transition

The R&D subscription line is undergoing a transition from "old guard" products like eTMF and CTMS to newer growth areas such as EDC, eCOA, RTSM, Safety, and LIMS. These newer products represent significant, strategic opportunities with substantial headroom for growth, driving the long-term trajectory of the R&D business towards 2030 and beyond. Veeva is making strong progress in product development and customer execution for these offerings.

IQVIA Partnership and Industry Collaboration

The partnership with IQVIA is described as highly successful and beneficial for both companies and the life sciences industry. The collaboration is seen as crucial for leveraging AI, which requires integrated services, data, and software, enhancing the overall ecosystem for customers. Management expressed a significantly improved sentiment regarding the IQVIA relationship compared to two years prior.

China Market Strategy

Veeva's China strategy involves developing products specifically for the China market (e.g., China CRM suite, data products) on the local tech stack. These China-for-China products are synergistic with Veeva's global offerings, allowing global customers with headquarters in the US, Japan, or Europe to leverage a unified Veeva team for their China operations. The China business is profitable and growing, contributing to global synergy.

AI-generated summary of the company's earnings call. Not investment advice.