Veeva achieved a 30.9% operating margin in 2027Q1, reflecting effective overhead scaling as gross margins remained stable at 74.7%.
| 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 |
|---|
| Sales/Revenue | 3.32B | 3.2B | 2.75B | 2.36B | 2.16B | 1.85B | 1.47B | 1.1B | 862.21M | 690.56M | 544.04M | 409.22M | 313.22M | 210.15M | 129.55M | 61.26M |
| Revenue Growth % | 16.25% | 16.34% | 16.2% | 9.68% | 16.44% | 26.33% | 32.7% | 28.05% | 24.86% | 26.93% | 32.95% | 30.65% | 49.05% | 62.22% | 111.47% | - |
| Cost of Goods Sold | 831.45M | 782.02M | 699.64M | 677.29M | 609.4M | 503.68M | 408.93M | 303.37M | 245.28M | 211.44M | 173.68M | 142.21M | 115.66M | 82.6M | 57.02M | 29.06M |
| COGS % of Revenue | - | 24.47% | 25.47% | 28.65% | 28.28% | 27.21% | 27.91% | 27.48% | 28.45% | 30.62% | 31.92% | 34.75% | 36.93% | 39.31% | 44.01% | 47.43% |
| Gross Profit | 2.49B | 2.41B | 2.05B | 1.69B | 1.55B | 1.35B | 1.06B | 800.71M | 616.93M | 479.14M | 370.36M | 267.01M | 197.56M | 127.55M | 72.53M | 32.21M |
| Gross Margin % | 74.95% | 75.53% | 74.53% | 71.35% | 71.72% | 72.79% | 72.09% | 72.52% | 71.55% | 69.38% | 68.08% | 65.25% | 63.07% | 60.69% | 55.99% | 52.57% |
| Gross Profit Growth % | - | 17.9% | 21.38% | 9.1% | 14.74% | 27.55% | 31.9% | 29.79% | 28.76% | 29.37% | 38.71% | 35.15% | 54.89% | 75.85% | 125.21% | - |
| Operating Expenses | 1.53B | 1.5B | 1.36B | 1.26B | 1.09B | 841.6M | 678.35M | 514.49M | 394.06M | 321.21M | 256.17M | 188.42M | 127.6M | 88.25M | 42.5M | 25.57M |
| OpEx % of Revenue | - | 46.85% | 49.35% | 53.18% | 50.42% | 45.47% | 46.3% | 46.6% | 45.7% | 46.51% | 47.09% | 46.04% | 40.74% | 41.99% | 32.81% | 41.74% |
| Selling, General & Admin | 740.34M | 729.54M | 662.47M | 628.02M | 566.29M | 459.57M | 384.13M | 304.6M | 235.28M | 189.19M | 159.43M | 122.44M | 86.44M | 61.92M | 27.86M | 17.82M |
| SG&A % of Revenue | - | 22.83% | 24.12% | 26.57% | 26.28% | 24.83% | 26.22% | 27.59% | 27.29% | 27.4% | 29.3% | 29.92% | 27.6% | 29.46% | 21.51% | 29.08% |
| Research & Development | 791.68M | 767.39M | 693.08M | 629.03M | 520.28M | 382.04M | 294.22M | 209.9M | 158.78M | 132.05M | 96.75M | 65.98M | 41.16M | 26.33M | 14.64M | 7.75M |
| R&D % of Revenue | - | 24.02% | 25.23% | 26.61% | 24.14% | 20.64% | 20.08% | 19.01% | 18.42% | 19.12% | 17.78% | 16.12% | 13.14% | 12.53% | 11.3% | 12.65% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34K | -7K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 955.75M | 916.37M | 691.43M | 429.33M | 459.09M | 505.5M | 377.79M | 286.22M | 222.87M | 157.93M | 120.69M | 78.59M | 69.97M | 39.3M | 30.03M | 6.64M |
| Operating Margin % | 28.79% | 28.68% | 25.17% | 18.16% | 21.3% | 27.31% | 25.79% | 25.92% | 25.85% | 22.87% | 22.18% | 19.2% | 22.34% | 18.7% | 23.18% | 10.84% |
| Operating Income Growth % | - | 32.53% | 61.05% | -6.48% | -9.18% | 33.8% | 31.99% | 28.43% | 41.12% | 30.86% | 53.57% | 12.32% | 78.01% | 30.87% | 352.44% | - |
| EBITDA | 1.07B | 1.19B | 730.82M | 461.96M | 488.21M | 532.94M | 407.25M | 306.08M | 236.27M | 171.63M | 134.51M | 87.05M | 73.89M | 41.71M | 30.82M | 7.04M |
| EBITDA Margin % | 32.31% | 37.38% | 26.61% | 19.54% | 22.65% | 28.8% | 27.8% | 27.72% | 27.4% | 24.85% | 24.72% | 21.27% | 23.59% | 19.85% | 23.79% | 11.5% |
| EBITDA Growth % | 32.27% | 63.45% | 58.2% | -5.38% | -8.39% | 30.86% | 33.05% | 29.55% | 37.66% | 27.59% | 54.52% | 17.81% | 77.15% | 35.34% | 337.5% | - |
| D&A (Non-Cash Add-back) | 44.94M | 0 | 39.38M | 32.63M | 29.12M | 27.45M | 29.45M | 19.86M | 13.4M | 13.7M | 13.82M | 8.46M | 3.93M | 2.41M | 789K | 407K |
| EBIT | 1.24B | 1.19B | 919.38M | 588.02M | 509.1M | 512.31M | 377.79M | 286.22M | 222.87M | 165.77M | 120.69M | 78.59M | 69.97M | 39.3M | 30.03M | 6.64M |
| Net Interest Income | 0 | 0 | 207.99M | 133.75M | 45.86M | 14.73M | 15.86M | 25.18M | 15.39M | 8.38M | 4.48M | 4.62M | 3.54M | 502K | 148K | 0 |
| Interest Income | 0 | 0 | 207.99M | 133.75M | 45.86M | 14.73M | 15.86M | 25.18M | 15.39M | 8.38M | 4.48M | 4.62M | 3.54M | 502K | 148K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 287.47M | 278.14M | 227.95M | 158.69M | 50.01M | 6.82M | 16.2M | 27.48M | 15.78M | 7.84M | 1.67M | 28K | -2.78M | -804K | -940K | 15K |
| Pretax Income | 1.24B | 1.19B | 919.38M | 588.02M | 509.1M | 512.31M | 393.99M | 313.7M | 238.64M | 165.77M | 122.36M | 78.62M | 67.19M | 38.5M | 29.09M | 6.65M |
| Pretax Margin % | 37.46% | 37.38% | 33.47% | 24.88% | 23.62% | 27.68% | 26.89% | 28.41% | 27.68% | 24.01% | 22.49% | 19.21% | 21.45% | 18.32% | 22.46% | 10.86% |
| Income Tax | 301.56M | 285.6M | 205.24M | 62.32M | 21.39M | 84.92M | 13.99M | 12.58M | 8.81M | 14.59M | 44.78M | 24.16M | 26.8M | 14.88M | 10.31M | 2.42M |
| Effective Tax Rate % | 24.26% | 23.91% | 22.32% | 10.6% | 4.2% | 16.58% | 3.55% | 4.01% | 3.69% | 8.8% | 36.6% | 30.73% | 39.89% | 38.66% | 35.44% | 36.42% |
| Net Income | 941.65M | 908.91M | 714.14M | 525.71M | 487.71M | 427.39M | 380M | 301.12M | 229.83M | 151.18M | 77.57M | 54.46M | 40.38M | 23.61M | 3.48M | 4.23M |
| Net Margin % | 28.37% | 28.44% | 26% | 22.24% | 22.63% | 23.09% | 25.94% | 27.27% | 26.66% | 21.89% | 14.26% | 13.31% | 12.89% | 11.24% | 2.69% | 6.9% |
| Net Income Growth % | 20.62% | 27.27% | 35.84% | 7.79% | 14.11% | 12.47% | 26.2% | 31.02% | 52.03% | 94.89% | 42.44% | 34.86% | 71.01% | 578.59% | -17.73% | - |
| Net Income (Continuing) | 941.65M | 908.91M | 714.14M | 525.71M | 487.71M | 427.39M | 380M | 301.12M | 229.83M | 151.18M | 77.57M | 54.46M | 40.38M | 23.61M | 18.78M | 4.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.67 | 5.44 | 4.32 | 3.22 | 3.00 | 2.63 | 2.36 | 1.90 | 1.47 | 0.98 | 0.47 | 0.38 | 0.28 | 0.15 | 0.03 | 0.01 |
| EPS Growth % | 19.11% | 25.93% | 34.16% | 7.33% | 14.07% | 11.44% | 24.21% | 29.25% | 50% | 108.51% | 23.68% | 35.71% | 86.67% | 420.83% | - | - |
| EPS (Basic) | - | 5.55 | 4.41 | 3.27 | 3.14 | 2.79 | 2.52 | 2.04 | 1.59 | 1.08 | 0.51 | 0.41 | 0.31 | 0.20 | 0.03 | 0.01 |
| Diluted Shares Outstanding | 165.99M | 167M | 165.23M | 163.49M | 162.44M | 162.28M | 160.73M | 158.3M | 156.12M | 153.68M | 147.58M | 144.98M | 144.2M | 137.59M | 125.78M | 125.78M |
| Basic Shares Outstanding | 163.34M | 163.67M | 161.88M | 160.53M | 155.38M | 153.25M | 150.67M | 147.8M | 144.24M | 140.31M | 146.36M | 132.02M | 127.71M | 103.45M | 108.44M | 125.78M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Platform migration execution risk
According to the latest quarterly financial statements, Veeva Systems maintained a steady revenue growth rate of 16.3% in 2027Q1, demonstrating resilience as the company navigates the complex migration of its core CRM product from the Salesforce platform to its proprietary Vault architecture.
The consistent double-digit growth suggests that the company's core subscription model remains insulated from broader macroeconomic volatility. Investors should monitor whether this trajectory can be sustained as the company shifts its entire customer base to the proprietary Vault CRM, which represents a significant operational pivot.
As reported in recent filings, Veeva has maintained a robust gross margin profile, hovering around 74.7% in 2027Q1, which underscores the company's strong pricing power within the highly specialized life sciences regulatory compliance software market compared to broader enterprise software peers.
The stability of these margins suggests that the company successfully manages the high costs associated with specialized R&D talent. This level of profitability appears to be a direct result of the high switching costs inherent in the GXP-validated software environment.
Based on the provided income statement data, Veeva's operating income reached $273.1M in 2027Q1, reflecting an operating margin of 30.9% and indicating that the company is effectively scaling its overhead costs relative to its expanding gross profit base over the last ten quarters.
The ability to expand operating margins while simultaneously investing in R&D suggests a disciplined approach to expense management. This trend may imply that the company is beginning to realize economies of scale as its multi-product adoption strategy gains traction among large pharmaceutical clients.
Analysis of the income statement reveals that stock-based compensation remains a material variable, with significant spikes observed in 2026Q3 and 2025Q3, which warrants careful normalization when evaluating the true underlying profitability and cash-generating capacity of the business for institutional investors.
The volatility in SBC expenses suggests that GAAP net income may not always reflect the core operational performance of the firm. Investors should focus on normalized earnings metrics to better understand the sustainability of the company's bottom-line growth during this period of product transition.
Quick answers to the most common questions about buying VEEV stock.
For fiscal year 2026, Veeva Systems Inc. (VEEV) reported total revenue of $3.20B. This represents a 5115.8% increase compared to $61.3M in 2012.
Veeva Systems Inc. (VEEV) is profitable, generating $908.9M in net income for the fiscal year ending 2026 with a net profit margin of 28.4%.
Veeva Systems Inc. (VEEV) reported an operating income of $916.4M, resulting in an operating profit margin of 28.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Veeva Systems Inc. (VEEV) generated $2.41B in gross profit for the year, representing a gross profit margin of 75.5%. This demonstrates the company's core pricing power and production efficiency.