Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems is projected to achieve $1,252 million in FY26 subscription revenues from the commercial segment and $1,420 million from the R&D segment, reflecting continued growth in these key areas. The company reported a total revenue increase of 16.0% year-over-year, with subscription revenues surpassing expectations by 1.7% while professional services exceeded estimates by 6.8%. Notably, the non-GAAP operating margin expanded by 150 basis points to 45.0%, driven by revenue outperformance and lower-than-expected operating expenses, further highlighting the company's robust financial performance and operational efficiency.

Veeva Systems's stock presents a negative outlook as it currently trades at approximately 9x EV/NTM revenues, below its historical three-year average multiple of around 10.5x, indicating potential weakness in market confidence. A possible decline in demand for its subscription products, coupled with the financial health dependency on clients in a challenging macroeconomic environment, raises concerns about revenue stability and customer retention. Furthermore, while the company suggests that its diversified revenue streams will mitigate impacts, any significant shifts in customer satisfaction or economic conditions could materially affect its operating results.