Veeva Shares Surge on Earnings Beat, Multiple Firms Raise Price Targets

Veeva Systems Inc. shares jumped on Thursday after the company reported better-than-expected earnings and guidance. Multiple analysts subsequently raised their price targets on the stock.

The company reported second-quarter adjusted earnings per share of $2.35, beating the consensus estimate of $2.22. Revenue came in at $927.96 million, surpassing Wall Street expectations of $905.28 million. The company stated that this quarter was its strongest CRM quarter ever.

Veeva Systems raised its fiscal 2027 adjusted EPS guidance to $9.21 from $9.05, while analysts had expected $9.06. The company also lifted its revenue outlook to a range of $3.682 billion to $3.687 billion, versus market expectations of $3.65 billion.

• Veeva Systems shares are climbing sharply. What is driving the VEEV rally?

Conference Call Highlights

Commercial subscription revenue grew approximately 13% year-over-year, with broad growth across CRM, Content, Data Cloud, and Crossix.

CRM momentum continues to accelerate, with 12 of the top 20 biopharma companies having committed to adopting Vault CRM. Over 180 CRM customers have gone live to date. Veeva expects to maintain a market share above 70% in the long term, with potential customer conversions from Salesforce concentrated in 2027-2028, supporting CRM business through 2029.

Veeva also highlighted strong early demand for its new agentic workforce product, Falcon, with five early adopters expected and the first deployments planned for this year. Falcon requires limited implementation effort, is expected to have software-like gross margins, and investments will scale with revenue growth, with no significant incremental investment planned for fiscal 2027.

In R&D, Veeva is transitioning from legacy products such as eTMF, CTMS, QDocs, QMS, and Regulatory to EDC, eCOA, RTSM, Safety, and LIMS. Management sees significant long-term opportunities in these areas through 2030 and beyond.

The partnership with IQVIA continues to progress, integrating complementary services, data, and software capabilities. Strong pharmaceutical marketing and digital spending are supporting Crossix, creating potential AI-driven upside.

Overall, management indicated that the life sciences industry has stabilized after several years of volatility, and despite geopolitical and technological disruptions, customers continue to prioritize core initiatives.

CRM Momentum Boosts Analyst Confidence

Following the earnings release, several research firms raised their price targets on the company, including:

Needham analyst Ryan MacDonald maintained a Buy rating and raised the price target from $270 to $310. He noted that three significant CRM customer wins enhance confidence in winning the remaining two undecided top-20 customers and potential customer conversions over the next two years. MacDonald wrote that continued strength in R&D and Crossix businesses, along with healthy early demand for Falcon, supports confidence in Veeva's 2030 targets.

Guggenheim analyst Tamjid Chowdhury also maintained a Buy rating and raised the price target from $276 to $310. He estimated that despite a lower comparison base, second-quarter new annual recurring revenue growth accelerated to approximately 26% year-over-year from 14% in the first quarter of fiscal 2027. Chowdhury noted that Veeva is making progress in helping customers capture AI-driven value and will continue to participate in the AI evolution of the life sciences industry, despite being in early stages.

RBC Capital analyst Rishi Jaluria reiterated an Outperform rating and raised the price target from $275 to $325. He added that Vault CRM adoption continues to advance, with over 180 customers live, and that a top-20 pharma company has deployed Agentic Call Report across all U.S. field representatives, highlighting Veeva's AI innovation capabilities.