Veeva Systems Inc.

Veeva reported fiscal Q2 revenue of $928 million and non-GAAP operating income of $416 million, and Peter Gassner said the quarter came in ahead of guidance. Commercial subscriptions were up about 13% year over year, including double-digit growth even excluding Crossix, with strength across CRM, content, data, Crossix, and Ostro. Management did not give full GAAP EPS in the call excerpt provided. For the rest of FY2027, Brian Van Wagener said the Falcon, Aspen, Vault agents, and AI investments are already factored into updated guidance and that there is nothing material to call out for this fiscal year.

Peter Gassner’s tone was upbeat and highly optimistic, especially on AI. He said Falcon is a new category for Veeva—‘agentic labor’—and described it as a structural advantage because it pairs with Veeva’s core applications across life sciences. He also emphasized that customers are eager to move beyond AI experimentation and that Veeva’s existing trust and relationships give it an edge in CRM win-backs, commercial growth, and new offerings like Aspen.

Brian Van Wagener focused on broad-based operating execution and the durability of the model. He called out commercial subscription growth of about 13% year over year, said the growth was broad-based across CRM, content, data, Crossix, and Ostro, and noted that Crossix still has ‘a lot of headroom for growth.’ On R&D, he said the business is transitioning from legacy products to newer ones like EDC, eCOA, RTSM, Safety, and LIMS, but that the company is confident in the long-term trajectory and has raised guidance again. He also said new-market investments, including Falcon, are being scaled with revenue and that there is nothing material to call out on spending for FY2027.

Analysts focused heavily on Falcon, Aspen, CRM win-backs, R&D mix shifts, Crossix, and capital allocation. Management said Falcon has strong interest because it offers quick cost savings, compliance, and efficiency, but the product is still early and Veeva is focused on getting the first adopters live. On CRM, Paul Shawah said Veeva has 12 of the top 20 and that the remaining two decisions should play out by year-end, while also highlighting Salesforce implementation issues and over 180 live customers at Veeva. Questions on pricing and margins drew the response that Falcon pricing will likely need to be predictable, may use enterprise-style agreements, and that gross margins should be roughly similar to software over time because more work is pushed into deterministic layers.