Shares of Veeva Systems (VEEV) gained in after-hours trading after the healthcare software company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $1.74, which smashed analysts’ consensus estimate of $1.58 per share. In addition, sales increased by 14.3% year-over-year, with revenue hitting $720.89 million. This beat analysts’ expectations of $699.23 million.
This growth appears to be mainly driven by the firm’s 17% growth in Subscription Services revenues, which made up $608.6 million of total sales. In addition, Veeva “deepened its strategic partnerships across all customer segments,” from top biopharmaceutical companies to emerging biotechs.
This led to 41 new customers being added to the firm’s Quality Cloud products, with another 20 existing users expanding their use. Furthermore, a top 20 biopharma client took a full Clinical Platform approach by adding six major clinical applications at once. This represented one of the company’s largest subscription orders ever. As a result of these wins, the company ended the year with 1,477 customers.
2026 Outlook
Looking forward, management has provided the following guidance for 2026:
- Q1 Revenue of between $726 million and $729 million versus analysts’ estimates of $725.8 million
- Q1 Adjusted EPS in the range of $1.74 and $1.75 compared to analysts’ estimates of $1.62
- FY Revenue of between $3.04 billion and $3.055 billion versus analysts’ estimates of $3.056 billion
- FY Adjusted EPS of approximately $7.32 compared to analysts’ estimates of $6.97
As we can see, the company’s outlook is mostly better than expected, which, when combined with its Q4 results, led to the after-hours move in the stock price.
Is VEEV a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on VEEV stock based on 14 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 2% decline in its share price over the past year, the average VEEV price target of $265.10 per share implies 20.1% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
