Skip to main content
Homepage
Full 18-step deep-dive · ~20–30 min · a member feature.
FRESH Analysis Report
Aug 22, 2026
1 day ago · 100% complete
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Veeva Systems Inc. (VEEV) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +4 (−100…+100 Quality+Value blend) · Quality 82 · Value -59 · Sentiment 52 (timing only, not weighted) · Composite fair value $43.82 vs $247.90 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Veeva Systems Inc.

VEEV NYSE
Healthcare · Health Information Services
Pleasanton, CA 94588, United States veeva.com Updated Aug 22, 4:07pm
Price
$247.90
Market Cap
$40.3B
Employees
7,928
Beta
0.92
Avg Volume
1,628,361
CEO
Mr. Peter P. Gassner

Veeva Systems Inc. is a cloud software company focused on the life sciences industry. It provides industry-specific applications that help pharmaceutical, biotechnology, and other healthcare organizations manage customer relationships, clinical operations, quality processes, regulatory content, and commercial activities within a compliant digital environment. The company’s platform is designed to support critical workflows across development, manufacturing, and go-to-market functions, with products that emphasize data integrity, collaboration, and regulatory alignment. Veeva Systems serves a broad range of life sciences customers, from emerging biotech firms to global pharmaceutical companies, and plays a significant role in the modernization of software systems used across healthcare and regulated industries.

Runs with full report Generated: Aug 22, 2026 4:15pm
Price Overview
Price at report time
$247.90
as of Aug 22, 4:08pm (1d ago)
Change · Aug 22
-2.63 (-1.05%)
Day Range
$246.80 – $250.81
52-Week Range
$148.05 – $310.50
50-Day MA
$197.66
200-Day MA
$199.75
Volume
1,091,600.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 1d).
Share Structure
Outstanding 162,942,747.00
Float 148,846,788.00
Free Float 91.3%
High free float — 91.3% of shares trade freely, ~8.7% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 22, 2026 4:27pm (1d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 22, 2026 4:27pm (1d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
45.57
Stock Price: $247.90
EPS (Diluted): 5.44
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
5.74
Stock Price: $247.90
Total Equity: $7.21B
Shares: 166,995,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
Market Cap: $40.27B
Total Debt: $0.00
Cash: $1.42B
EBITDA: N/A
EBITDA not available
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$39.2B
Market Cap: $40.27B
Total Debt: $0.00
Cash: $1.42B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
75.5%
Gross Profit: $2.41B
Revenue: $3.20B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
28.7%
Operating Income: $916.37M
Revenue: $3.20B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
28.4%
Net Income: $908.91M
Revenue: $3.20B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
12.6%
Net Income: $908.91M
Total Equity: $7.21B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
12.0%
Operating Income: $916.37M
Tax Rate: 23.9%
Equity: $7.21B
Total Debt: $0.00
Cash: $1.42B
Zero debt — invested capital = equity minus cash (very efficient)
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
4.89
Current Assets: $8.00B
Current Liabilities: $1.64B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.00
Short-Term Debt: $0.00
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $7.21B
Zero debt — this company carries no debt obligations. Strongest possible score.
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$19.13
Revenue: $3.20B
Shares: 166,995,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$43.20
Total Equity: $7.21B
Shares: 166,995,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$8.47
Operating CF: $1.42B
CapEx: $0.00
Shares: 166,995,000
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
Last Dividend: $0.00
Stock Price: $247.90
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
Dividends Paid: N/A
Net Income: $908.91M
Dividends paid not available in cash flow statement
Industry Benchmarks
Last run: Aug 22, 2026 4:13pm
Compares VEEV against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 22, 2026 4:27pm (1d ago)
Metric 2022 2023 2024 2025 2026
Revenue $1.9B $2.2B $2.4B $2.7B $3.2B
Cost of Revenue $503.7M $609.4M $677.3M $699.6M $782.0M
Gross Profit $1.3B $1.5B $1.7B $2.0B $2.4B
Operating Expenses $841.6M $1.1B $1.3B $1.4B $1.5B
Operating Income $505.5M $459.1M $429.3M $691.4M $916.4M
Net Income $427.4M $487.7M $525.7M $714.1M $908.9M
EBITDA $531.5M $484.1M $454.3M
EPS $2.79 $3.14 $3.27 $4.41 $5.55
EPS (Diluted) $2.63 $3.00 $3.22 $4.32 $5.44
Balance Sheet (Annual)
Last updated: Aug 22, 2026 4:08pm (1d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $1.1B $886.5M $703.5M $1.1B $1.4B
Total Current Assets $3.1B $4.0B $5.0B $6.3B $8.0B
Total Assets $3.8B $4.8B $5.9B $7.3B $9.0B
Current Liabilities $840.8M $1.0B $1.2B $1.4B $1.6B
Long-Term Debt
Total Liabilities $904.8M $1.1B $1.3B $1.5B $1.8B
Total Equity $2.9B $3.7B $4.6B $5.8B $7.2B
Retained Earnings $1.7B $2.2B $2.7B $3.5B $4.4B
Cash Flow (Annual)
Last updated: Aug 22, 2026 4:27pm (1d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $764.5M $780.5M $911.3M $1.1B $1.4B
Capital Expenditure
Free Cash Flow
Acquisitions (net) -$7.8M $0 $0
Net Debt Issued / (Repaid)
Dividends Paid
Stock Buybacks $0 $0 -$169.9M
Net Change in Cash $409.5M -$251.6M -$183.0M $414.3M $302.4M
Growth Trends (YoY %)
Last updated: Aug 22, 2026 4:27pm (1d ago)
Metric 2023 2024 2025 2026
Revenue Growth +16.4% +9.7% +16.2% +16.3%
Gross Profit Growth +14.7% +9.1% +21.4% +17.9%
Operating Income Growth -9.2% -6.5% +61.0% +32.5%
Net Income Growth +14.1% +7.8% +35.8% +27.3%
EBITDA Growth -8.9% -6.1%
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 13 computed · 6 not applicable · 5 not yet run
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-22 16:36
-0.8 : 1 recovery upside vs repeat-quarter downside
Even the bull case prices 48% below today — the ratio here measures the model-vs-market gap, not payoff odds. Another quarter like the worst recent one costs 64%.
CaseGrowthMarginFair valuevs price ($247.90)
Bull — recovery +24% 32.6% $129.69 -48%
Base — stabilizes +16% 28.4% $89.82 -64%
Bear — keeps slipping +8% 24.1% $60.61 -76%
Stress — last quarter repeats +16% 28.5% $90.24 -64%
The next quarters keep the trajectory of the most recent ones — growth stays at 16.3% and margins bend by the same profit-vs-revenue ratio (×1.00). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Apr 2026 against the same quarter one year earlier and found revenue +16.3% · operating income +16.9% · net income +14.3% year-over-year. That measured heading is what the stress case extends forward. Data measured through Apr 30, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for VEEV — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-22 16:34

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Growing Veeva is compounding mid-teens revenue with faster earnings leverage on a subscription base that renews near-fully — durable growth, but the growth RATE is grinding down from the 20%+ era toward low-teens. conf 8/10
Inline with category Category growing · Category (health information services / life-sciences software) is growing: 29.6% 3-yr revenue CAGR decelerating to 14.6% recent, with margins expanding across the board. Veeva at +16.3% revenue is modestly ABOVE the category median 15.5% and above recent industry YoY — while the sector demand-cycle flag reads contraction, that reflects capex/sentiment softness, not shrinking category revenue.
Next 2 quarters
Growing
Subscription backlog and near-total retention make the next two prints highly predictable; Vault CRM migrations and module cross-sell already contracted flow into revenue. Earnings leverage continues as headcount growth trails revenue. No mechanism visible to break the mid-teens revenue / faster-earnings pattern within two quarters.
↑ above expectations
Year 1
Growing
Full-year trajectory is carried by contracted subscription revenue plus in-flight platform migrations; services is the swing factor and the softer one. Mid-teens revenue with high-teens operating income growth is the central case, with the exit rate slightly below the entry rate.
≈ inline with expectations
Years 2–3
Growing
Structural earnings power still rises: the R&D/Development Cloud suite is under-penetrated, retention is near-total, and category margins are expanding industry-wide. But commercial CRM is largely penetrated, pharma faces a 2027-28 patent cliff, and the quarterly trend is already decelerating — so the rate compresses toward low-teens revenue with earnings a few points faster.
↓ below expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
69 Vault platform migration + cross-sell — The commercial CRM base is moving onto Veeva's own Vault stack, and each migration is a re-contracting event that adds modules (data, medical, safety) rather than just renewing seats. This is a company-specific mechanism for mid-teens subscription growth that does not depend on new pharma budget dollars — it re-prices and expands existing relationships.
63 Mission-critical regulatory workflow lock-in — Clinical, quality and regulatory content sit inside validated, audited systems; ripping them out means re-validating GxP processes. That produces near-total gross retention and lets price/module escalators land with little churn drag — the reason revenue volatility is measured at 0.0007 with all years positive.
53 Operating leverage on a scaled subscription base — Operating income (+16.9%) and multi-year earnings CAGR (31.5%) outrun revenue (+16.3%/16.3% CAGR); FCF CAGR 24.6%. Industry-wide operating margin expansion (+12.8pp/3yr) confirms the category structurally converts scale to profit, so earnings can keep growing faster than revenue even as top-line decelerates.
46 Development Cloud / clinical data share taking — The R&D-side products (CDMS, clinical ops, safety) are the newer, less-penetrated half of the franchise and are displacing incumbent trial systems. Category median growth is 15.5% and Veeva is at 16.3% — the R&D suite is what keeps it at or above the tide rather than merely riding it.
Growth risks
61 Visible deceleration — Quarterly trend is flagged decelerating; landscape shows industry recent YoY 14.6% vs 29.6% long-term. The law of large numbers plus fully-penetrated commercial CRM means the top line most likely steps down toward low-teens over the next two years. Growth is real but the second derivative is negative.
49 Customer budget pressure: pharma patent cliff and biotech funding — Sector demand cycle reads contraction (score -2). Large-pharma cost programs ahead of 2027-28 LOEs and thin emerging-biotech funding shrink the seat and module expansion pool, especially in commercial. Veeva's growth is a derivative of customer headcount and trial starts.
33 Competitive re-entry in commercial — Salesforce's life-sciences push and IQVIA's data/CRM assets contest the commercial layer now that the historical partnership is gone. Losing a few large commercial accounts would not break the R&D franchise but would cap the highest-margin, most penetrated segment.
28 AI reshaping the content/services layer — A meaningful slice of revenue is content, MLR review and services workflow — exactly the work generative AI compresses. Veeva is shipping its own AI, but if customers use AI to shrink content volume and reviewer seats, consumption-linked expansion softens even with retention intact.
16 Price-implied growth not supplied — The expectations panel gives no reverse-DCF figure, so the structural rung is judged against the narrative framing of embedded premium growth rather than a stated number. Lower confidence on the structural creme as a result.
Life sciences IT spend is being reallocated rather than cut: pharma is trimming commercial headcount and legacy services while still funding compliance, trial digitization and data infrastructure — the parts Veeva sells. Macro headwinds (10y at 4.69) squeeze emerging-biotech formation, which is the marginal customer cohort, and IRA pricing pressure keeps large-pharma budgets disciplined. Net: the world supports steady mid-teens compounding for a validated, regulation-anchored system of record, but it no longer supports the 25-30% land-grab growth of the last cycle. AI is the genuine two-sided variable — it can expand Veeva's per-customer value (AI agents on proprietary regulated data) or deflate the content/services layer it monetizes today.
Growth position composite +25
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
70Years 2–3 · Growing
+25Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-22 16:26:20
Verdict the synthesis is directionally correct but quantitatively unhinged — $46 fair value would require this business to be a melting ice cube, which it demonstrably is not (revenue up 16%, margins up 400bps YoY, CFO conversion elite). The Market Forces "hold for quality, not buy for growth" framing is the most defensible read in the stack. I'd put fair value at $185–210, making current $248 roughly 15–25% overvalued — enough to avoid initiating, not enough to short a compounder with this balance sheet and moat. Wait for a Vault CRM stumble, a broader SaaS de-rating, or a print below 14% growth to get paid to own it. At $200 I'd start; at $170 I'd back up the truck.

Looking at the raw quarterly cadence first: revenue went $676M → $699M → $721M → $759M → $789M → $811M → $836M → $883M over eight quarters. That's not decelerating in any meaningful sense — YoY growth by quarter is roughly 25.4%→27.3%→16.0%→16.0%→16.3%→16.0%→16.1%→16.3%. The step-down happened a year ago (CRM Salesforce transition/pricing normalization) and growth has since re-anchored at a remarkably stable ~16%. Net margin has walked from 25% to 29.6% — real, sustained, and running hotter than the annual net margin figure of 28.4% suggests. TTM revenue is ~$3.32B, TTM net income ~$941M, so the trailing P/E is closer to ~43x, not the terrifying number implied by the DCF-shortfall framing. Operating CF of $1.42B on $3.20B revenue is a 44% CFO margin — this is elite unit economics, not a house of cards.

Now to the model stack: the Valuation Synthesis "fair value $43.82" is nonsensical for a business generating $1.4B of operating cash flow with zero debt and $1.4B of cash — that would imply an EV/CFO of ~5x for a 16%-grower with 76% gross margins and net-cash balance sheet. The Narrative model's "82% of price is narrative" framing inherits this same broken anchor. I dissent from the magnitude of the synthesis dissent. That said, the Market Forces and Thesis Evaluation reads are directionally right: at 12.3x EV/sales and ~43x TTM earnings, the stock does embed durable 15%+ growth AND continued margin expansion. A more honest reverse-DCF: to justify $248, you need ~14% revenue CAGR for a decade fading to 4%, ~35% terminal FCF margins, and a ~9% discount rate. That gets you to roughly $180–210 fair value. Not $46, not $248. Overvalued by ~20–30%, not by 80%.

The contrarian case against my own moderation: Veeva's Salesforce CRM divorce (moving to Vault CRM) is a genuine live risk that the models underweight — this is a multi-year migration where a competitor (Salesforce itself, plus IQVIA OCE) can attack the installed base. If even 10-15% of CRM revenue defects, the "sticky moat" story cracks and the multiple compresses fast. Second, ROIC of 12% and ROE of 12.6% are surprisingly pedestrian for a "best-in-class SaaS compounder" — the equity base has ballooned to $7.2B, meaning capital efficiency is fading even as margins expand. Third, insider activity: eight sales in the last two months, zero open-market buys, is not "neutral" — it's the standard pattern of insiders quietly derisking into strength. Fourth, the pre-flight classification as "traditional/mature earner" is right but underlines the problem: mature earners don't deserve 43x P/E multiples unless growth genuinely re-accelerates, and there's no evidence in the quarterly print that it will.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-22 16:26:35
Verdict Fairly to slightly overvalued at $248 — exceptional fundamentals justify a premium, but I’d need closer to $210 or clear re-acceleration toward a $3.8B revenue run-rate to get bullish.

Veeva looks like exactly what great software businesses are supposed to look like in their mature phase: clean revenue compounding, very high gross margins, rising operating leverage, and a fortress balance sheet. Revenue went from $1.85B in FY2022 to $3.20B in FY2026, a 15%-16% annualized clip, while net income more than doubled from $427M to $909M. What stands out most is not just growth but quality of growth. Quarterly revenue has stepped up from $676.2M to $882.9M over the last eight reported quarters, and net margins stayed mostly in a tight 25%-30% band, finishing at 29.6% in the latest quarter. Annual gross margin at 75.5% and operating margin at 28.7% tell you this is not buying growth with undisciplined spend. Operating cash flow of $1.42B on $3.20B of revenue is exceptional conversion, and with $1.42B of cash and no debt, the business has almost no balance-sheet risk.

The story in the numbers is that Veeva has already crossed from “promising vertical SaaS” into “elite compounder,” and that matters because many valuation frameworks badly undershoot companies that sustain both growth and very high incremental margins for long periods. The jump in annual operating income from $429M in FY2024 to $691M in FY2025 and $916M in FY2026 is especially important: revenue grew 16%-17%, but operating income grew 60% and then 33%, implying meaningful leverage is still available even at scale. The recent quarterly run-rate supports that view. Latest-quarter revenue of $882.9M annualizes above $3.5B, about 10% ahead of the FY2026 base, and that is before assuming further expansion through the year. A business with near-30% net margins, no leverage, and double-digit top-line growth should not be valued like a generic “mature earner.” The rule-based label catches the maturity, but misses that this company is still compounding faster and more profitably than most mature software peers.

That said, I still come out cautious on the stock, not the company. At roughly $40.3B market cap, investors are paying about 13x trailing sales and 45.6x earnings for a business growing revenue around 16% and earnings around 27%. Those are strong numbers, but not rare enough to justify pretending execution risk is absent. The latest four quarters sum to about $3.32B of revenue and roughly $969M of net income, so the stock is also around 41x current run-rate earnings despite already having reached an unusually high margin structure. Once a software company is already at 28%-30% net margins, future earnings growth has to lean more on revenue than margin expansion, and that usually compresses multiples over time. I do not buy the absurdly low synthesized fair value in the briefing; a $46 stock price would imply the market should value Veeva like a low-quality cyclical, which is nonsense. But I do think today’s price already discounts a lot of durability, and probably a return to sustained mid-teens growth with little volatility.

The best argument against my caution is straightforward: Veeva may deserve a permanent scarcity premium because the fundamentals are unusually resilient and getting better, not worse. Quarterly revenue did not roll over; it accelerated from $720.9M to $759.0M to $789.1M to $811.2M to $836.0M to $882.9M. Net income likewise climbed from $171.0M eight quarters ago to $260.9M now. If the business can keep compounding revenue in the mid-teens while preserving ~30% net margins and converting cash at current rates, a 40x-45x earnings multiple is expensive but not irrational for a debt-free category leader. A smart bull would also point out that ROIC and ROE look modest only because the balance sheet carries excess cash and the business is conservatively capitalized; on an operating basis, this is a much stronger franchise than the raw returns ratios suggest. I weigh that argument seriously, but the problem is that buying at $248 requires confidence not just in business quality, but in the market continuing to award a premium multiple to that quality.

What would change my mind is either price or proof of renewed growth. If Veeva can push quarterly revenue above $950M while holding net margin near 30%, that would indicate the current valuation is being grown into faster than I expect. Similarly, a full-year revenue trajectory approaching $3.7B-$3.8B with operating margin above 29% would support a more constructive stance even at a premium multiple. On the other hand, if growth slips toward low teens while margins simply hold flat, the stock is vulnerable because there is no valuation cushion here. My bottom line: phenomenal company, demanding stock, and not nearly as overvalued as the extreme model outputs imply, but still priced above what I’d want to pay.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-22 16:27:15
Verdict High-quality mid-teens compounder, but $248 / 45x earnings prices in perfection; fairer zone nearer $170-200

Veeva’s numbers describe a high-quality vertical software compounder that has cleanly transitioned from earlier hypergrowth into a predictable mid-teens machine. Annual revenue climbed from $1.85B in FY2022 to $3.20B in FY2026, a 16.3% CAGR that matches the most recent year-over-year print; the last eight quarters march upward without interruption—from $676M to $883M—while net margins have settled in the high-20s and just printed 29.6% on $883M of revenue. Operating income nearly doubled from $429M to $916M over three years as the gross margin held above 75% and operating leverage kicked in; net income of $909M and operating cash flow of $1.42B on a debt-free balance sheet with $1.42B cash and a 4.9 current ratio confirm both earnings quality and fortress finances. ROE and ROIC in the low-12% range look modest only because the equity base is large and unlevered; the economic engine itself is efficient. The story the data tell is durable franchise economics inside life-sciences workflow and compliance software, not a fading growth story.

Where the quantitative models go off the rails is the composite fair-value print near $46. That figure implies a mid-single-digit earnings multiple on nearly $1B of net income and $1.4B of cash generation—an absurdity for any sticky SaaS business with 16% growth, 28%+ net margins, and zero leverage. The 45.6× P/E, 13× sales and 12.3× EV/revenue are undeniably rich, yet they are the market’s way of capitalizing a mission-critical moat and high switching costs, not a 80% overvaluation mirage. Revenue growth has been remarkably stable rather than collapsing, earnings are still compounding at 27–31%, and the Rule-of-40 score sits near 44. The deceleration flag is real but mild; this is maturation, not deterioration.

The strongest contrary case is straightforward: at $248 you are paying roughly 45× trailing earnings and 13× sales for mid-teens growth that the models correctly note leaves almost no margin of safety if CRM saturation slows the mix or if larger cloud platforms nibble at the edges. A smart opponent would also highlight that the entire $200-plus premium above a conservative DCF rests on the narrative of perpetual platform monopoly and TAM expansion that has not yet shown up as acceleration in the reported numbers. Insider activity is a steady drip of option-related sales, offering no endorsement. Those points have force; I simply weigh the cash-flow durability and margin structure more heavily than a pure multiple-compression scare, and I refuse to anchor on a $46 output that treats Veeva like a no-growth industrial.

I would flip to a more constructive stance if the next two quarters re-accelerate revenue growth above 18–20% with Vault contribution visibly lifting the mix, or if the company begins returning meaningful capital while holding net margins above 30%. Conversely, two consecutive quarters of revenue growth slipping under 12% or operating margin compression would confirm the multiple is simply too high and push me firmly into the bear camp.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 3.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ -1.0 vs panel · self: 4.0
GPT gpt-5.4 5.0
fairly valued · conviction 3/5 · Δ +2.0 vs panel · self: 4.0
Grok grok-4.5 2.0
overvalued · conviction 3/5 · Δ -1.0 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-22 16:36:05
Delvantic - Cairn AI
Quality — wait for a dip 7/10
Elite vertical-SaaS compounder priced for perfection at $247.90 — great business, no margin of safety, so I wait.
The cruxWhether Q2 and the Lilly Vault CRM ramp confirm the platform-monopoly story enough to justify paying full multiple, or give me the pullback I need to buy the quality at a fair price.
Forensic checks Derived mechanically from VEEV's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionStable Share Count
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+82
Fortress
edge √Σ 151 · risk √Σ 36 · conf 9/10

Revenue compounds from $1.85B (FY22) to $3.20B (FY26), a ~15% CAGR, with gross margin expanding from 72.8% to 75.5% and operating margin recovering from a 2024 trough of 18.2% back to 28.7%. Net income nearly doubled over four years to $908.9M and FCF grew from $764.5M to $1.42B, so cash generation actually exceeds GAAP earnings (OCF/NI 1.64x, accruals -6.4% of assets). Beneish M of -2.62 and Altman Z of 15.92 corroborate that reported numbers are real. Balance sheet is a fortress: $1.42B liquid cash, zero net debt, and one year of FCF equals current cash balance - the business is entirely self-funding with no external capital dependency. Dilution is well controlled for a software company: diluted shares crept from 162.3M to 167.0M (0.7% CAGR) despite SBC running 14.8% of revenue, though buybacks recover only ~9% of SBC so per-share value is preserved rather than actively returned. Insider tape is routine: option-exercise-and-sell and tax-withholding activity, with only $10M of sales in 12 months against a $40B cap - immaterial and not a red flag. The business is a mature earner with expanding, not compressing, unit economics.

Strengths 4
m85
Margin expansion at scale
GM% climbed 72.8 to 75.5 and OpM% rebounded from 18.2 (FY24) to 28.7 (FY26) while revenue grew ~73% over four years - operating leverage is real and accelerating.
m80
Cash-backed earnings
OCF/NI 1.64x, accruals -6.4% of assets, Beneish -2.62. FCF of $1.42B exceeds net income of $909M - no accrual-driven earnings inflation.
m75
Fortress balance sheet
$1.42B net cash, Altman Z 15.92, one full year of FCF sitting on the balance sheet. Survival math is a non-issue.
m60
Disciplined share count
Diluted shares grew only 0.7%/yr (162.3M to 167.0M over 4yrs) despite SBC at 14.8% of revenue - unusually restrained for vertical SaaS.
Concerns 2
m30
SBC not fully offset by buyback
SBC at 14.8% of revenue with buybacks recovering only 9% of SBC means most of the equity comp cost is absorbed by dilution rather than returned; still contained given low share-count growth.
m20
Insider selling only, no buys
4 sales totaling $10M and zero open-market buys in 12 months; magnitude small vs $40B cap and consistent with programmatic exercise-and-sell, so weak signal at best.
This is what a high-quality software business looks like on the tape: revenue compounding mid-teens, margins expanding not compressing, cash conversion above 100%, and a share count that has barely moved in four years. The FY24 operating-margin dip that has since fully reversed reads like an investment cycle, not a structural problem. The only genuine soft spots are SBC intensity and the fact I cannot see moat/concentration detail from the numbers alone. On the business itself, this sits comfortably in the top tier of listed companies - a Fortress read, though not one of the handful of untouchable global compounders.
Verify before trusting this (5)
  • Customer concentration and any life-sciences CRM churn/renewal metrics in the 10-K
  • Progress and cost of migrating Vault CRM off Salesforce infrastructure
  • Segment split between R&D (Vault) vs Commercial and growth rates within each
  • RPO/backlog trend and net revenue retention if disclosed
  • Any change in buyback authorization vs SBC run-rate going forward
Valuation / Mispricing
-59
Rich
edge √Σ 20 · risk √Σ 88 · conf 7/10
Price $247.90 vs deserved ~$195-210; roughly 15-25% overpriced, no margin of safety. attractive below $190.00

The composite fair value of $43.82 and signal-adjusted $46.27 are almost certainly runaway-low outputs of an EPV floor method that ignores Veeva's mid-teens growth and 100%+ cash conversion — I discount them heavily rather than take the implied -81% at face value. But even generously re-anchoring: at ~$40B market cap on a business doing high-single-digit-billions of revenue with ~30%+ FCF margins, the stock trades near the top of vertical-SaaS multiples (roughly 12-14x sales, 30x+ forward EBIT). That is a full-quality price for a fortress-quality asset — the gap the value lens is paid to find isn't here. For $247.90 to be cheap, you need Veeva to durably grow mid-teens for a decade-plus with margins still expanding and no meaningful commercial-cloud share loss to Salesforce's replacement product. That is the bull case, not a margin of safety. The bear framing — 'priced for perfection, minimal room for disappointment' — matches the tape. Deserved value on skeptical-but-fair assumptions sits somewhere in the $180-215 range; today's price is a 15-30% premium to that. Not egregiously overvalued, but no discount to underwrite.

Cheap signals 1
m20
Fortress balance sheet and 100%+ cash conversion
Net cash position and pristine earnings quality justify a premium multiple versus generic SaaS, softening the overvaluation call from severe to modest.
Rich / priced-in 4
m62
Priced for flawless multi-year compounding
~$40B cap on a ~$2.8B revenue base implies ~14x sales and 30x+ forward EBIT — pricing in mid-teens growth and margin expansion for a decade with no slippage.
m45
Commercial Cloud transition risk not discounted
Salesforce's Life Sciences Cloud is a real 2025-2030 overhang for the CRM leg; the multiple leaves no cushion if churn or discounting shows up.
m35
SBC dilutes the FCF headline
High-quality lens flagged SBC intensity; adjusting FCF for stock-based comp trims the true owner-earnings yield below 3%, thin for the growth rate implied.
m25
EPV floor at $43.82 is not the real anchor
The composite FV is an unreliable low-end method that ignores growth; I flag it but don't use it — the mispricing case does not depend on it.
Fully valued to modestly rich. The business is genuinely elite and I understand why the market pays up, but my job is the gap and there isn't one at $247.90 — the price already reflects the fortress. I'd want it in the $180s before this is interesting on valuation alone; anywhere above $220 I'm a holder at best, not a buyer. The e2e $43 fair value is a broken input I'm ignoring, but even reasonable numbers don't get me to cheap.
Verify before trusting this (4)
  • Development Cloud vs Commercial Cloud growth split and any CRM churn commentary
  • FY26 subscription revenue guide and operating-margin trajectory
  • Net-revenue-retention disclosure and Vault platform attach rates
  • SBC as % of revenue and buyback pace vs dilution
General Sentiment
+52
Tailwind
tail √Σ 109 · head √Σ 51 · conf 6/10

VEEV is riding a genuinely hot narrative right now: platform-monopoly archetype with strong intensity, freshly reinforced by Eli Lilly committing to Vault CRM globally - exactly the kind of anchor-customer proof point that keeps the 'critical infrastructure for life sciences' story intact. The stock is up ~34% in a month, analyst fair-value estimates are being nudged UP (245 to 251), and the news flow is almost uniformly constructive, with the Q2 print as the next reflexive catalyst. That is a tailwind, not a mania. The tape itself is mildly risk-on but jittery (VIX 15, off recent highs), and macro is a soft headwind (10y 4.69%, market PE 25.7) - normally a modest drag on a premium-multiple SaaS name. But VEEV's 0.92 beta and healthcare-software profile blunt that; it is not a high-beta unprofitable story stock that gets mauled on rate ticks. The bigger latent risk is that 82% of the price is narrative premium per the story-vs-fundamentals gap, so any Q2 wobble or AI/CRM competitive whisper could crack the story fast - but as of today the narrative is winning and pressing the stock up.

Tailwinds 3
m72
Lilly Vault CRM global deal reinforces the monopoly story
A top-tier pharma standardizing globally on Vault CRM is the exact proof point the platform-monopoly narrative needs, and it lands right before earnings - narrative fuel with visible price impact.
m60
Analyst tone drifting higher
Fair-value marks are being revised up (245 to 251) and commentary frames the 34% run as 'premium justified' rather than stretched - sell-side is not fading the move.
m55
Strong momentum into a catalyst
16% revenue CAGR, low vol, +34% in a month, and Q2 earnings imminent - reflexive setup where positive tape begets positive positioning in a low-beta name.
Headwinds 3
m40
Narrative-heavy price is fragile
With ~82% of the price described as narrative premium, sentiment can whip fast on any Q2 miss, guide cut, or AI/CRM competitive scare - a latent pressure, not an active one yet.
m25
Mild macro drag on premium SaaS multiples
10y at 4.69% and market PE 25.7 pressure long-duration SaaS multiples, but 0.92 beta and healthcare defensiveness mute the hit on this specific name.
m20
Executive departure noise
President/CCO Schwenger leaving in October is minor sentiment friction - framed as amicable and backfilled, but a talking point bears can lean on if execution slips.
Net, sentiment is pressing VEEV up, not down. The platform-monopoly story just got a fresh Lilly stamp, momentum is strong, and analysts are nudging fair values higher into the print - that is a real tailwind for a low-beta name that macro barely touches. I would call it a moderate Tailwind rather than Strong, because so much of the price is narrative premium and Q2 is a binary reflexive event; the same story that is lifting it now can crack it in a session. But as of today the wind is at the stock's back.
Verify before trusting this (5)
  • Q2 print reaction - especially subscription revenue and Vault CRM/Development Cloud commentary
  • Whether more top-20 pharma follow Lilly onto Vault CRM (or any defect to Salesforce Life Sciences Cloud)
  • AI-disruption chatter aimed at vertical SaaS - if that narrative rotates onto VEEV, the premium compresses fast
  • Sell-side target revisions in the two weeks post-earnings
  • Any rotation out of premium-multiple software into value/cyclicals
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
+25
Growing
edge √Σ 117 · risk √Σ 91 · conf 8/10

Life sciences IT spend is being reallocated rather than cut: pharma is trimming commercial headcount and legacy services while still funding compliance, trial digitization and data infrastructure — the parts Veeva sells. Macro headwinds (10y at 4.69) squeeze emerging-biotech formation, which is the marginal customer cohort, and IRA pricing pressure keeps large-pharma budgets disciplined. Net: the world supports steady mid-teens compounding for a validated, regulation-anchored system of record, but it no longer supports the 25-30% land-grab growth of the last cycle. AI is the genuine two-sided variable — it can expand Veeva's per-customer value (AI agents on proprietary regulated data) or deflate the content/services layer it monetizes today.

Growth drivers 4
m69
Vault platform migration + cross-sell
The commercial CRM base is moving onto Veeva's own Vault stack, and each migration is a re-contracting event that adds modules (data, medical, safety) rather than just renewing seats. This is a company-specific mechanism for mid-teens subscription growth that does not depend on new pharma budget dollars — it re-prices and expands existing relationships.
m63
Mission-critical regulatory workflow lock-in
Clinical, quality and regulatory content sit inside validated, audited systems; ripping them out means re-validating GxP processes. That produces near-total gross retention and lets price/module escalators land with little churn drag — the reason revenue volatility is measured at 0.0007 with all years positive.
m53
Operating leverage on a scaled subscription base
Operating income (+16.9%) and multi-year earnings CAGR (31.5%) outrun revenue (+16.3%/16.3% CAGR); FCF CAGR 24.6%. Industry-wide operating margin expansion (+12.8pp/3yr) confirms the category structurally converts scale to profit, so earnings can keep growing faster than revenue even as top-line decelerates.
m46
Development Cloud / clinical data share taking
The R&D-side products (CDMS, clinical ops, safety) are the newer, less-penetrated half of the franchise and are displacing incumbent trial systems. Category median growth is 15.5% and Veeva is at 16.3% — the R&D suite is what keeps it at or above the tide rather than merely riding it.
Growth risks 5
m61
Visible deceleration
Quarterly trend is flagged decelerating; landscape shows industry recent YoY 14.6% vs 29.6% long-term. The law of large numbers plus fully-penetrated commercial CRM means the top line most likely steps down toward low-teens over the next two years. Growth is real but the second derivative is negative.
m49
Customer budget pressure: pharma patent cliff and biotech funding
Sector demand cycle reads contraction (score -2). Large-pharma cost programs ahead of 2027-28 LOEs and thin emerging-biotech funding shrink the seat and module expansion pool, especially in commercial. Veeva's growth is a derivative of customer headcount and trial starts.
m33
Competitive re-entry in commercial
Salesforce's life-sciences push and IQVIA's data/CRM assets contest the commercial layer now that the historical partnership is gone. Losing a few large commercial accounts would not break the R&D franchise but would cap the highest-margin, most penetrated segment.
m28
AI reshaping the content/services layer
A meaningful slice of revenue is content, MLR review and services workflow — exactly the work generative AI compresses. Veeva is shipping its own AI, but if customers use AI to shrink content volume and reviewer seats, consumption-linked expansion softens even with retention intact.
m16
Price-implied growth not supplied
The expectations panel gives no reverse-DCF figure, so the structural rung is judged against the narrative framing of embedded premium growth rather than a stated number. Lower confidence on the structural creme as a result.
vs expectations: ~6m above · 1y inline · 2-3y below
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
Please log in to view trade setups
The Augustus trade-setup read is a members feature.
Log in
Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -8.0% v0.6.0 View full prediction →

When we made this prediction on Aug 23, 2026, VEEV was $247.90. We expect it to be $228.00 by Feb 2027, and we consider it great value under $190.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 23, 2026.

Price when predicted$247.90
Our estimate for Feb 2027$228.00-8.0%
Great value below$190.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

Community AI Feedback
No community reviews yet for VEEV. Be the first — hit How to Contribute, have any AI review this page, and paste its take back here.
My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06