Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems reported a strong financial performance marked by total revenue growth of 14.3% year-over-year, driven by subscription revenue that increased 16.7% and professional services revenue rising 2.9%, both exceeding consensus estimates. The company's calculated billings of $1,259.9 million grew 20.6% year-over-year, indicating robust demand, particularly within its commercial solutions. Additionally, the total gross margin expanded by 210 basis points to 77.1%, supported by improved margins in both subscription and professional services, while non-GAAP operating margins notably increased by 480 basis points to 42.7%, contributing to a positive outlook for the stock.

Veeva Systems is facing a slightly downshifted revenue outlook, as projections indicate flat services growth in FY26 alongside modest increases in subscription revenue. The company's billings for 1QF26 are anticipated to fall short of consensus expectations, with projections of $678 million versus the $693.2 million previously forecasted, highlighting concerns over macro-driven weaknesses in its services segment. Furthermore, the inherent volatility of media spending and the heavy reliance on successful execution in a competitive market may amplify risks, particularly given the potential impact of negative news on stock performance.