AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Regulated customer use and configuration, migration and integration requirements support practical switching friction. The relative burden of replacing Veeva versus alternatives is unquantified, limiting the demonstrated strength.
durability · 2/4 · Embedded regulatory workflows and live Vault CRM adoption support persistence, but cancellation rights and the mandatory platform transition leave durability mixed rather than exceptional.
customer dependency · 3/4 · Customers actually use Veeva for electronic records, signatures and validated business activities, supported by implementation and integration services. This demonstrates operational dependence, although customers retain exit rights and dependency is not quantified through retention statistics.
erosion resilience · 2/4 · Subscription growth and continuing interim revenue growth show resilience despite actual usage reductions and Commercial Solutions demand pressure. Migration progress is encouraging, but AI competition and delayed revenue recognition limit confidence in resistance to future erosion.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Certain contracts provide annual inflation adjustments, but the passages do not establish net realized prices after negotiation, discounts or changes in product and customer mix. Revenue growth and lower spending from fewer seats cannot resolve unit pricing.
retention · 2/4 · Regulated workflow dependence, revenue from prior-period agreements and subscription growth indirectly support continuing demand. Actual reductions and terminations are counterevidence. Revenue recognition from existing contracts is not itself proof of renewal; no retention rate is inferred.
margin resilience · 3/4 · GAAP operating margin increased from approximately 25.2% to 28.7% in fiscal 2026. Interim adjusted operating margin remained approximately 44.8% in the July quarter despite continued growth. These demonstrate operating resilience, although prior-year litigation charges aided GAAP comparisons and neither result isolates pricing power or proves a moat.
contractual freedom · 1/4 · Some contracts permit inflation-linked renewal increases, but generally available termination-for-convenience rights, EU cancellation rights and customer renewal negotiations constrain unilateral monetization. Protection is fragile rather than absent.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 100.00
- Current ratio (x)
- 4.89
Capital allocation—
Missing required inputs: operatingReturn, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 1.75
- 3-year average SBC / revenue (%)
- 15.79
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · Operations have primarily financed the business, revenue and operating income grew alongside product investment, and executed repurchases accompanied lower basic weighted-average shares in the latest first half. These support demonstrated discipline, tempered by substantial stock compensation and unproven repurchase valuation and acquisition returns.
incentive alignment · 3/4 · The approved CEO option grant has a premium exercise price and a disclosed five-year vesting schedule. Executive compensation is largely equity driven without contractual termination acceleration. These are actual arrangements, not merely proposals. Alignment is limited by award size, dilution and the absence of financial performance measures beyond stock price; ownership percentages are unavailable.
execution · 3/4 · More than 125 live Vault CRM customers, fiscal 2026 subscription growth and subsequent interim revenue growth provide demonstrated deployment and operating achievements. Execution is assessed partly from indirect financial outcomes; the supplied evidence does not establish complete migration success or AI returns.
governance · 2/4 · Disclosed independent principal committees, board independence determinations, adopted proxy access and special-meeting rights support oversight. Recent interim executive service by a director deemed independent and broad PBC balancing discretion complicate shareholder accountability. These are mixed structural considerations, not evidence of realized misconduct.
Evidence
Our customers use our solutions for business activities that are subject to a complex regime of global laws and regulations, including requirements for maintenance of electronic records and electronic signatures, requirements regarding drug sample tracking and distribution, requirements regarding system validations, requirements regarding processing of health data, and other laws and regulations.
Risk factors / customer use of regulated records and validated systems · Filed 20/03/2026
•requirements analysis, solution design and configuration;
Business / requirements analysis, solution design and configuration services · Filed 20/03/2026
•technical consulting services related to data migration and systems integrations;
Business / data migration and systems integration services · Filed 24/03/2025
The purchase of our solutions may involve a significant commitment of capital and other resources.
Risk factors / customer capital and resource commitments · Filed 27/08/2026
Additional representative progress in fiscal 2026 included: • Following through on our commitment to the life sciences industry to bring a better, higher-value CRM to the industry, we achieved over 125 customers live on Vault CRM, our next generation CRM solution built on our proprietary Veeva Vault platform that will accelerate insights, innovation, and efficiency.
Public benefit corporation report / fiscal 2026 live Vault CRM deployments · Filed 04/05/2026
Veeva Systems Inc. | Form 10-K 44 Table of Contents Revenues Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Revenues: Subscription $ 2,684,194 $ 2,284,659 17% Professional services and other 511,117 461,960 11% Total revenues $ 3,195,311 $ 2,746,619 16% Percentage of revenues: Subscription 84 % 83 % Professional services and other 16 17 Total revenues 100 % 100 % Total revenues for the fiscal year ended January 31, 2026 increased $449 million, of which $400 million was from growth in subscription revenue.
MD&A / fiscal 2026 subscription and total revenue growth · Filed 20/03/2026
As a result, a substantial majority of our quarterly subscription revenues are generated from subscription agreements entered into during prior periods.
Risk factors / subscription revenue from agreements entered in prior periods · Filed 27/08/2026
In addition, certain customers have in the past exercised their right to reduce usage or exercise termination rights, and other customers may also choose to do so in the future.
Risk factors / actual usage reductions and exercised termination rights · Filed 27/08/2026
Our master subscription agreements governing multi-year orders generally include a right to terminate for convenience.
Risk factors / termination for convenience · Filed 27/08/2026
In addition, pursuant to the EU Data Act, which came into effect September 12, 2025, our EU customers may cancel their subscriptions without cause upon providing the notice and after the transition period specified by the Act.
Risk factors / EU Data Act cancellation rights · Filed 27/08/2026
Our agreement with Salesforce expired on September 1, 2025, and pursuant to the terms of our agreement, during the wind-down period from September 1, 2025 to September 1, 2030, we may not sell applications that utilize the Salesforce platform to new customers and our sales of applications that utilize the Salesforce platform to a customer existing at September 1, 2025 may not exceed 150% of the seats in use by each such customer as of September 1, 2025.
Risk factors / Salesforce wind-down restrictions and dates · Filed 27/08/2026
After September 1, 2030, we will not be able to sell applications that utilize the Salesforce platform to any customers.
Risk factors / September 2030 end of Salesforce-based application sales · Filed 27/08/2026
If our actual or potential competitors’ products, services, or technologies become more accepted than our solutions, if they are successful in bringing their products or services to market earlier than we are, if their products or services are more technologically capable than ours (including as a result of new or better use of evolving AI technologies), or if customers replace our solutions with custom-built software, then our revenues could be adversely affected.
Risk factors / competing technology, AI and custom-built software · Filed 27/08/2026
For example, certain life sciences companies have reduced the number of sales representatives they employ due to an increased preference for digitally-enabled sales channels, which negatively impacted sales of our solutions, including Veeva CRM and certain of our other Commercial Solutions.
Risk factors / realized sales impact from reduced customer salesforces · Filed 27/08/2026
Further, our customers may negotiate terms less advantageous to us upon renewal, which could reduce our revenues from these customers.
Risk factors / customer negotiation of renewal terms · Filed 27/08/2026
On March 24, 2020, we amended our complaint in the Veeva Nitro Action to include allegations of IQVIA’s anticompetitive conduct as to additional Veeva software applications, such as Veeva Andi, Veeva Align, and Veeva Vault MedComms; additional examples of IQVIA’s monopolistic behavior against Veeva Nitro; IQVIA’s unlawful access of Veeva’s proprietary software products; and a request for declaratory relief.
Legal proceedings / historical allegations involving IQVIA and overlapping applications · Filed 25/03/2024
For example, certain of our contracting terms include an annual inflation adjustment that raises the price to each customer upon renewal by the lower of 4% or the Consumer Price Index (All Urban Consumer, U.S.
Risk factors / contractual annual inflation adjustment · Filed 20/03/2026
| Form 10-K 43 Table of Contents Results of Operations The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Fiscal year ended January 31, 2026 2025 (in thousands) Consolidated Statements of Comprehensive Income Data: Revenues: Subscription $ 2,684,194 $ 2,284,659 Professional services and other 511,117 461,960 Total revenues 3,195,311 2,746,619 Cost of revenues (1): Cost of subscription 362,888 323,070 Cost of professional services and other 419,131 376,566 Total cost of revenues 782,019 699,636 Gross profit 2,413,292 2,046,983 Operating expenses (1): Research and development 767,386 693,078 Sales and marketing 428,798 396,726 General and administrative 300,739 265,744 Total operating expenses 1,496,923 1,355,548 Operating income 916,369 691,435 Other income, net 278,139 227,946 Income before income taxes 1,194,508 919,381 Income tax provision 285,602 205,243 Net income $ 908,906 $ 714,138 (1) Includes stock-based compensation as follows: Cost of subscription $ 7,342 $ 6,591 Cost of professional services and other 57,376 51,377 Research and development 204,893 185,901 Sales and marketing 97,355 90,178 General and administrative 105,737 103,303 Total stock-based compensation $ 472,703 $ 437,350 Fiscal Year Ended January 31, 2026 and 2025 The following is a discussion of our results of operations for the year ended January 31, 2026 compared to the year ended January 31, 2025.
MD&A / fiscal 2026 and 2025 GAAP operating results and stock compensation · Filed 20/03/2026
| Form 10-Q 17 Table of Contents Three months ended July 31, Six months ended July 31, 2026 2025 2026 2025 Revenues $ 927,963 $ 789,081 $ 1,810,911 $ 1,548,124 Cost of revenues - adjusted: Cost of subscription revenues 102,381 90,843 199,049 166,462 Cost of professional services and other revenues 110,396 86,480 218,066 169,055 Operating expenses - adjusted: Research and development 160,428 139,289 317,188 275,373 Sales and marketing 96,095 81,157 180,287 154,669 General and administrative 42,780 38,736 85,062 80,106 Operating income - adjusted 415,883 352,576 811,259 702,459 Other segment items (1) 140,865 156,668 263,129 272,819 Other income, net 74,512 69,456 148,930 134,545 Income tax provision 76,101 65,055 162,695 135,686 Consolidated net income $ 273,429 $ 200,309 $ 534,365 $ 428,499 (1) Other segment items included in consolidated net income consist primarily of stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges.
Segment information / interim revenue, adjusted operating income and reconciliation · Filed 27/08/2026
General and Administrative Three months ended July 31, Six months ended July 31, 2026 2025 $ Change % Change 2026 2025 $ Change % Change (dollars in thousands) General and administrative $ 71,314 $ 95,804 $ (24,490) (26)% $ 140,786 $ 164,630 $ (23,844) (14)% Percentage of total revenues 8 % 12 % 8 % 11 % The decrease in general and administrative expenses for the three and six months ended July 31, 2026 was primarily due to $31 million in litigation settlement-related charges that was incurred in the quarter ended July 31, 2025.
MD&A / prior-year litigation charges affecting expense comparisons · Filed 27/08/2026
We have financed our operations primarily through cash generated from operations.
Liquidity and capital resources / operating cash as primary financing source · Filed 27/08/2026
The table below sets forth information regarding repurchase of shares under our share repurchase program (in thousands, except number of shares and per share data): Three months ended July 31, Six months ended July 31, 2026 2026 Total number of shares repurchased 1,408,414 2,663,443 Average price paid per share (1) $ 174.48 $ 175.28 Amount repurchased (1) $ 245,736 $ 466,835 (1) Amounts exclude commissions and excise taxes.
Note 10 / executed first-half fiscal 2027 share repurchases · Filed 27/08/2026
16 Veeva Systems Inc. | Form 10-Q Table of Contents The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): Three months ended July 31, Six months ended July 31, 2026 2025 2026 2025 Numerator: Net income $ 273,429 $ 200,309 $ 534,365 $ 428,499 Denominator: Basic shares: Weighted average common shares outstanding, basic 162,344 163,496 162,836 163,129 Diluted shares: Weighted average common shares outstanding, basic 162,344 163,496 162,836 163,129 Effect of potentially dilutive common shares 2,713 4,189 3,236 4,143 Weighted average common shares outstanding, diluted 165,057 167,685 166,072 167,272 Net income per share: Basic $ 1.68 $ 1.23 $ 3.28 $ 2.63 Diluted $ 1.66 $ 1.19 $ 3.22 $ 2.56 Potential common share equivalents excluded because their inclusion would be anti-dilutive are as follows (in thousands): Three months ended July 31, Six months ended July 31, 2026 2025 2026 2025 Options and RSUs 10,965 7,298 9,858 6,746 Note 12.
Note 11 / weighted-average shares and potential dilution · Filed 27/08/2026
Veeva completed the acquisition of Ostro for approximately $100 million in cash and long-term equity retention grants.
Subsequent events / completed Ostro acquisition consideration · Filed 20/03/2026
Gassner of options to purchase an aggregate of 2,650,000 shares of our common stock (the “2024 CEO Options”) with an exercise price of $236.90 per share, which was equal to the 52-week high trading price at the time of grant and significantly higher than the closing price of our stock as of the trading date immediately prior to the grant date.
Executive compensation / approved 2024 CEO option award and exercise price · Filed 04/05/2026
Gassner’s long-term incentive compensation, comprised of premium-priced stock options that vest over the course of five years (from 2025 to 2030), was well aligned to the interests of our shareholders and created strong incentives for Mr.
Board responsiveness / existing CEO option vesting schedule and board alignment assertion · Filed 04/05/2026
While our executive compensation program rewards individual and company performance via short-term and long-term equity incentive programs, we do not currently link the compensation actually paid to our NEOs to any company financial performance measure other than our stock price.
Pay versus performance / absence of financial performance measures beyond stock price · Filed 04/05/2026
Our Board determined that each of our directors, with the exclusion of Peter Gassner (our CEO), is independent under NYSE listing standards.
Director independence / board independence determination · Filed 04/05/2026
Veeva Systems Inc. | 2026 Proxy Statement 13 TABLE OF CONTENTS How We Are Selected, Elected, and Evaluated The charters of our Audit Committee, Compensation Committee, and Nominating and Governance Committee limit membership to independent directors.
Governance / independent membership requirements for principal committees · Filed 04/05/2026
• In 2021, we adopted proxy access for director nominations and changed our charter documents to permit shareholders to call special meetings.
Governance / adopted proxy access and shareholder special-meeting rights · Filed 04/05/2026
Mr. Cabral briefly served as Interim CFO from April 1, 2024 to September 16, 2024, which was less than six months and, pursuant to NYSE listing standards, does not preclude him from being deemed independent following the end of his tenure as our Interim CFO.
Director independence / recent interim CFO service and listing-standard treatment · Filed 04/05/2026
In the event of a conflict between the interests of our stockholders, our stakeholders, and our public benefit purpose, our directors must only make an informed and disinterested decision, and not such that no person of ordinary, sound judgment would approve.
PBC risk factors / board standard for balancing conflicting interests · Filed 20/03/2026
Accordingly, the effect of significant declines in sales and customer acceptance of our solutions may not be reflected in our short-term results of operations, which would make these reported results less indicative of our future financial results.
Risk factors / lag between customer acceptance changes and reported results · Filed 27/08/2026
This viewpoint is reflected in our executive compensation structure, which is largely equity driven, does not include exclusive perks, subjective bonuses, or a contractual right to accelerated vesting for executives on termination.
Employment practices / executive compensation structure and termination vesting terms · Filed 04/05/2026
