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Free cash flow generation is robust but highly seasonal, with a 24.9% margin in 2027Q2, though quarterly swings are driven by large working capital movements, such as a $202.8M negative swing in the same period.
Veeva Systems Inc. (VEEV) cash flow statement — 15-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 |
|---|
| Cash from Operations | 1.67B | 1.42B | 1.09B | 911.34M | 780.47M | 764.46M | 551.25M | 437.38M | 310.83M | 233.44M | 144.01M | 80.15M | 67.57M | 41.75M | 30.8M | 4.74M |
| Operating CF Margin % | - | 44.29% | 39.69% | 38.56% | 36.22% | 41.3% | 37.63% | 39.61% | 36.05% | 33.8% | 26.47% | 19.59% | 21.57% | 19.87% | 23.77% | 7.73% |
| Operating CF Growth % | 99.72% | 29.83% | 19.61% | 16.77% | 2.09% | 38.68% | 26.04% | 40.71% | 33.15% | 62.1% | 79.67% | 18.62% | 61.84% | 35.57% | 550.32% | - |
| Net Income | 1.01B | 908.91M | 714.14M | 525.71M | 487.71M | 427.39M | 380M | 301.12M | 229.83M | 151.18M | 68.8M | 54.41M | 40.14M | 10.81M | 18.18M | 4.23M |
| Depreciation & Amortization | 46.85M | 50.47M | 50.93M | 37.15M | 37.66M | 36.97M | 39.35M | 26.59M | 13.4M | 13.7M | 13.1M | 8.46M | 3.93M | 2.41M | 789K | 407K |
| Stock-Based Compensation | 255.23M | 472.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 434K |
| Deferred Taxes | 59.92M | 65.09M | -112.27M | -105.37M | -127.5M | 11.08M | -1.05M | -6.66M | -8.09M | 1.21M | -5.07M | -6.26M | -4.27M | -1.78M | -639K | 530K |
| Other Non-Cash Items | 259.78M | 9.99M | 429.64M | 393.03M | 375.26M | 268.37M | 208.59M | 134.52M | 93.06M | 72.69M | 43.51M | 27.31M | 16.97M | 20.16M | 1.96M | 300K |
| Working Capital Changes | 28.9M | -91.94M | 7.62M | 60.82M | 7.34M | 20.66M | -75.65M | -18.18M | -17.38M | -5.33M | 23.68M | -3.77M | 10.8M | 10.16M | 10.51M | -1.17M |
| Change in Receivables | -88.04M | -254.55M | -168.97M | -104M | -91.08M | -83.08M | -188.45M | -70.09M | -83.77M | -52.13M | -38.15M | -46.65M | -34.45M | -19.74M | -17.07M | -12.84M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 2.07M | 6.08M | -1.96M | -10.23M | 21.43M | -3M | 754K | 2.81M | 1.82M | 1.4M | 1.11M | -494K | 1.74M | -1.3M | 1.75M | 416K |
| Cash from Investing | -1.12B | -1.1B | -700.14M | -1.08B | -1.01B | -346.15M | -333.63M | -516.91M | -103.87M | -154.52M | -96.65M | -96.68M | -272.02M | -26.58M | -16.36M | -1.68M |
| Capital Expenditures | -26.69M | -29.13M | -20.52M | -26.2M | -13.51M | -14.21M | -8.68M | -4.32M | -9.82M | -11.37M | -7.51M | -22.15M | -26.94M | -2.98M | -1.55M | -1.19M |
| CapEx % of Revenue | 0.77% | 0.91% | 0.75% | 1.11% | 0.63% | 0.77% | 0.59% | 0.39% | 1.14% | 1.65% | 1.38% | 5.41% | 8.6% | 1.42% | 1.2% | 1.95% |
| Acquisitions | -81.83M | 0 | 0 | 0 | 0 | -7.78M | 0 | -448.16M | 0 | 0 | 0 | -126.18M | 0 | -12.15M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 102K | 41K | 21K | 253K | -438K | -490K |
| Cash from Financing | -667.24M | -9.33M | 26.11M | -16.19M | -19.38M | -4.14M | 33.82M | 10.01M | 25.91M | 20.77M | 37.98M | 19.45M | 71.26M | 215.44M | 575K | 49K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -384K | -1.04M | -984K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -553.91M | 83.91M | 105.54M | 62.69M | 43.65M | 51.54M | 34.86M | 10.99M | 25.91M | 20.77M | 12.35M | 5.88M | 45.94M | 215.27M | 575K | 49K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -642.62M | -169.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -14K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -113.32M | -93.25M | -79.42M | -78.88M | -63.03M | -55.29M | 0 | 0 | 0 | 0 | 25.63M | 13.52M | 25.33M | 174K | 0 | 0 |
| Net Change in Cash | -118.29M | 302.45M | 414.29M | -182.98M | -251.57M | 409.51M | 251.91M | -72.38M | 230.79M | 102.58M | 85.43M | 2.93M | -133.25M | 230.62M | 15.01M | 3.1M |
| Free Cash Flow | 516.99M | 1.39B | 1.07B | 885.14M | 766.96M | 750.25M | 542.56M | 434.26M | 302.39M | 223.81M | 137.09M | 59M | 41.04M | 39.89M | 29.84M | 4.09M |
| FCF Margin % | 14.95% | 43.38% | 38.94% | 37.45% | 35.59% | 40.54% | 37.03% | 39.33% | 35.07% | 32.41% | 25.2% | 14.42% | 13.1% | 18.98% | 23.03% | 6.67% |
| FCF Growth % | -61.07% | 29.6% | 20.83% | 15.41% | 2.23% | 38.28% | 24.94% | 43.61% | 35.11% | 63.26% | 132.35% | 43.75% | 2.88% | 33.71% | 630.18% | - |
| FCF per Share | 3.13 | 8.30 | 6.47 | 5.41 | 4.72 | 4.62 | 3.38 | 2.74 | 1.94 | 1.46 | 0.93 | 0.41 | 0.28 | 0.29 | 0.24 | 0.03 |
| FCF Conversion (FCF/Net Income) | 0.51x | 1.56x | 1.53x | 1.73x | 1.60x | 1.79x | 1.45x | 1.45x | 1.35x | 1.54x | 1.86x | 1.47x | 1.67x | 1.77x | 8.85x | 1.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 322.05M | 134.47M | 167.95M | 58.63M | 18.1M | 14.29M | 19.54M | 12.46M | 14.15M | 19.97M | 1.51M | 20.67M | 5.66M | 2.64M |
Quick answers to the most common questions about buying VEEV stock.
Veeva Systems Inc. (VEEV) generated $1.42B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Veeva Systems Inc. (VEEV) generated $1.39B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Veeva Systems Inc. (VEEV) spent $29.1M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Veeva Systems Inc. (VEEV) spent $169.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Platform migration execution risk
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital Swings
The volatile relationship between net income and operating cash flow, with OCF/NI ratios ranging from 0.36 to 4.72 over the last ten quarters, suggests that reported earnings are heavily influenced by the timing of large subscription billings and collections, not just underlying profitability.
The dramatic swings in operating cash flow, particularly the spikes in Q1 of each fiscal year (e.g., $1.1B OCF vs. $260.9M NI in 2027Q1), indicate a business model where cash collection is highly seasonal and lumpy, tied to annual enterprise contract renewals. This pattern means that quarterly net income is a poor proxy for near-term cash generation, and investors must focus on the full-year cash conversion cycle to assess true economic performance.
FCF Margin Volatility Amid Strong Underlying Generation
Despite a reported FCF margin of 24.9% in 2027Q2, the quarterly FCF margin has swung from 9.0% to 116.1% over the past ten quarters, indicating that the underlying free cash flow generation is robust but its timing is highly irregular.
The company's capital-light model is evident in the consistently minimal capital expenditures, which are less than 1.5% of revenue in every quarter. This allows nearly all operating cash flow to convert to free cash flow, but the trajectory is dominated by the working capital cycle rather than operational trends. The strong FCF in recent quarters appears to be a function of favorable billing timing rather than a structural acceleration in cash generation.
Working Capital as the Primary Cash Flow Driver
Changes in working capital have been the dominant factor in quarterly cash flow, with a massive $716.4M positive swing in 2027Q1 followed by a $202.8M negative swing in 2027Q2, highlighting the extreme seasonality of collections.
The pattern of large positive working capital changes in Q1 (fiscal year start) followed by negative changes in subsequent quarters is a direct reflection of the annual subscription billing cycle. This dynamic obscures the true operational cash flow trend and makes quarter-over-quarter comparisons meaningless. The efficiency of collections appears high, but the volatility it introduces into the cash flow statement requires analysts to normalize for this seasonality.
Aggressive Buybacks Offset by Minimal Capex
In 2027Q2, Veeva deployed $245.7M towards share repurchases, a significant increase from prior quarters, while maintaining minimal capital expenditures of just $8.0M, indicating a focus on returning capital to shareholders.
The company's capital allocation strategy is clear: it generates substantial free cash flow from its asset-light model and uses it primarily for share repurchases, as evidenced by the $245.7M outflow in the latest quarter. The absence of dividends and the minimal acquisition activity suggest management believes its own stock is the best use of capital. This strategy is sustainable only if the core business continues to generate strong, albeit volatile, free cash flow.
SBC and Migration Costs Cloud Cash Reality
Stock-based compensation of $136.8M in 2027Q2 represents a significant non-cash add-back that inflates operating cash flow, while the costs of the Vault CRM migration may be capitalized, potentially understating true cash costs.
The large SBC figure is a critical adjustment; without it, the gap between net income and operating cash flow would be much narrower. Furthermore, the ongoing platform migration from Salesforce to Vault likely involves significant internal development costs that may be capitalized as software development, delaying their impact on cash flow. This accounting treatment could make the current cash flow profile appear stronger than the underlying economic reality of the transition.