Veeva Systems (VEEV) Stock Forecast & Price Target

Veeva Systems is projected to see a strong revenue trajectory, with anticipated FY26 subscription revenues of approximately $1,252 million from the commercial segment and $1,420 million from the R&D segment, reflecting continuous growth from the previous year. The company reported a 16.0% year-over-year increase in total revenue, with subscription revenues coming in 1.7% ahead of estimates and professional services outperforming expectations by 6.8%, demonstrating robust demand across its offerings. Furthermore, Veeva experienced an impressive expansion in its non-GAAP operating margin, which increased by 150 basis points year-over-year to 45.0%, supported by a growth in both commercial and R&D revenues, and a notable improvement in total gross margin to 77.6%.

Veeva Systems's stock currently trades at approximately 9x EV/NTM revenues, which reflects a discount to its historical three-year average of about 10.5x, indicating potential market concerns regarding its growth prospects. There are significant risks associated with customer retention as a decline in the perceived value and cost-savings of its subscription products could lead to cancellations, which would negatively affect revenue and operating results. Furthermore, the company’s dependency on the financial health of its clients raises concerns, as the ongoing pressures on large pharma spending and limited funding for small biotech could persist, adversely impacting Veeva's performance if recovery in these sectors is slower than anticipated.