Veeva Systems Reports Q1 2027 Results: Full Earnings Call Transcript

On Wednesday, Veeva Systems (NYSE: VEEV ) discussed first-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Veeva Systems Inc reported total revenue of $883 million for the fiscal 2027 first quarter, exceeding guidance with a non-GAAP operating income of $395 million.

The company highlighted its strategic focus on AI-driven initiatives, particularly through its Veeva Falcon product, aiming to automate labor-intensive tasks within life sciences. Veeva anticipates continued growth in its R&D and Quality Cloud segments, despite maintaining conservative full-year guidance adjustments. Crossix had a strong quarter due to increased pharma digital spending, with ongoing innovation supporting market share gains. Management confidence remains high in winning the majority of remaining CRM migration decisions, with significant recent wins from Teva and Merck KGaA.

The acquisition of ASTRO aligns with Veeva's strategy to enhance brand engagement platforms for biopharma companies, leveraging AI for compliance and efficiency. Professional services revenue saw a record quarter, driven by strong project execution and consulting work, though not necessarily a leading indicator of subscription growth. Full Transcript OPERATOR Hello everyone. Thank you for joining us and welcome to Veeva Systems fiscal 2027 first quarter results conference call.

After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press Star one to raise your hand. To withdraw your question, press Star one again. I will now hand the conference over to Gunner Hanson, Senior Director of Investor Relations.

Gunner, please go ahead. Gunner Hanson, Senior Director of Investor Relations Good afternoon and welcome to Veeva's fiscal 2027 first quarter earnings conference call for the quarter ended April 30, 2026. As a reminder, we posted prepared remarks on Veeva's Investor Relations website just after 1 PM Pacific today. We hope you have had a chance to read them before the call.

Today's call will be used primarily for Q and A. With me today for Q and A are Peter Gassner, our Chief Executive Officer, Paul Shawah, EVP Strategy, and Brian Van Wagner, our Chief Financial Officer. During this call, we may make forward-looking statements regarding trends, our strategies, and the anticipated performance of the business, including guidance regarding future financial results. These forward-looking statements will be based on our current views and expectations and are subject to various risks and uncertainties.

Our actual results may differ materially. Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-K. Forward-looking statements made during the call are being made as of today, June 3, 2026, based on the facts available to us today. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information.

Veeva disclaims any obligation to update or revise any forward-looking statements. We may discuss our guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum on the call. We may also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website.

With that, thank you for joining us and I'll turn the call over to Peter. Peter Gassner, Founder and CEO Thank you, Gunner, and welcome everyone to the call. We had a strong start to the year, delivering results ahead of our guidance. Total revenue in the quarter was 883 million with non-GAAP operating income of 395 million.

Our execution continues strong across the business and it's an exciting time for Veeva and for Life Sciences overall as we execute against a clear vision for Industry AI. We'll now open up the call to your questions. OPERATOR We will now begin the question and answer session. Please limit yourself to one question.

If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device.

Please stand by while we compile the Q and A roster. Your first question comes from the line of Joe Verwink with Baird. Joe, your line is now open. Joe Verwink, Analyst at Baird Great.

Thanks for taking my question this afternoon. I was hoping to go into a bit more detail on Veeva Falcon. This certainly seems more complex and consequential in scope. I think you call it disruptive in the remarks.

Can you maybe expand on what this product is targeting and how you envision customers operating in drug development with maybe now this interplay between the Bolt Standard agents and Silken? Peter Gassner, Founder and CEO If that was Peter, I'll take that one. Yeah. There's a lot of things to unpack there.

What you're seeing is sort of the next chapter of Veeva. In our industry class, we used to talk about applications, data, and consulting to make the industry more efficient and effective. Now we're talking about, you know, we're talking about software, AI data, and consulting. Right.

So Falcon specifically is at the agent agent layer. And it's agentic labor. So fully replacing arts, you know, jobs that people used to do. People who used to do these jobs using our applications now will deliver the agentic labor to do that.

So it's a big new area for Veeva. It's som