On Thursday, Citi analyst Tyler Radke reaffirmed a Buy rating on shares of Veeva Systems (NYSE:VEEV) with a price target of $307.00, adding to the positive sentiment shown by 10 analysts who have revised their earnings estimates upward according to InvestingPro data. Radke highlighted the company’s fourth-quarter performance, which surpassed expectations in several key areas. Veeva Systems, currently trading at $237.49 with a "GREAT" financial health score, reported normalized billings that exceeded forecasts by 5 percentage points, while subscription and operational margins outperformed by approximately 3 points.
The company demonstrated robust product adoption in both commercial and research and development sectors, adding 20 new Vault CRM customers and 41 new Quality customers. This customer growth has contributed to impressive financial metrics, with revenue growing 16.2% and maintaining a strong gross profit margin of 74.5%. Additionally, Veeva Systems secured its fourth top 20 customer in the Safety category and witnessed a top 20 customer commit comprehensively to its clinical solutions.
Despite a perceived deceleration in subscription revenue growth for FY26, when adjusted for Total Contract Value (TFC) and foreign exchange (FX) impacts, the growth slowdown is minimal, estimated at just 1 percentage point from FY25. Moreover, the company’s margins are projected to increase by 1 point. The billing outlook for FY26 remains positive, with an anticipated year-over-year growth of 11%.
Radke expects Veeva Systems’ stock to experience a slight uptick following the company’s strong finish in the fourth quarter and the promising outlook for FY25, which indicates a robust growth pipeline for the business.
In other recent news, Veeva Systems reported a 14% year-over-year increase in revenue for the fourth quarter, with earnings rising by 26%, leading to a reaffirmation of a Buy rating and a $272 price target from Stifel analysts. The company’s guidance for fiscal year 2026 surpassed expectations, indicating 11% revenue growth and a strong subscription growth forecast of 14%. Analysts at TD Cowen raised their price target for Veeva to $261, noting an uptick in research and development growth and a robust adjusted operating income margin. RBC Capital Markets maintained an Outperform rating with a $285 price target, highlighting Veeva’s solid performance and strategic initiatives.
Truist Securities increased their price target to $217, reflecting Veeva’s better-than-expected fourth-quarter financial results and growth in their Vault CRM platform, which added 20 new customers. Evercore ISI also raised their target to $250, citing strong Q4 financial performance with revenue and earnings per share exceeding forecasts. Veeva’s operating margins for FY26 are reported to be around 43%, attributed to efficiency improvements and deepening customer relationships. The company remains confident in securing commitments from top 20 pharmaceutical companies to its Vault CRM platform by 2025. Despite potential foreign exchange headwinds, these developments reflect Veeva’s robust demand and strategic positioning in the market.
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