Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems has demonstrated a strong financial outlook with expected FY26 subscription revenues of approximately $1,252 million from commercial and $1,420 million from R&D, reflecting growth from previous projections. The company now anticipates around 15% overall revenue growth, driven by a 17% increase in subscription growth and an 8% rise in services revenue, both of which outperformed earlier estimates. Additionally, the non-GAAP operating margin expanded by 150 basis points year-over-year to 45.0%, supported by strong subscription revenue growth of 17.5% year-over-year and an increase in total gross margin to 77.6%.

Veeva Systems's stock outlook is negatively affected by several key factors, including the potential decline in demand for its solutions as the value and cost-savings become less apparent, compounded by the strained financial health of its clients amidst ongoing macroeconomic pressures. The company has recently experienced a net loss of four Top-20 customers, highlighting challenges in maintaining its competitive edge in the market. Additionally, while Veeva is diversifying its revenue streams with a reduction in CRM's contribution, it faces increased operational risks and competitive threats, which could lead to further inaccuracies in financial estimates and a decline in VEEV share value.