Veeva Systems Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ken Wong - Oppenheimer & Co Inc - Analyst : Hey. Fantastic. Peter, I wanted to touch on the resolution, in terms of lawsuit with IQVIA. Can you help us walk through what led to that resolution and what potential opportunities this could potentially unlock? And then, for Brian, just on the billing side, a nice increase there, although with an in line 2Q, just help us understand the confidence in increasing

Question: Ken Wong - Oppenheimer & Co Inc - Analyst : Thank you, guys.

Question: Brent Bracelin - Piper Jaffray Inc - Analyst : Good afternoon. First one for Peter here. I'd like to go back to the longstanding dispute with IMS and IQVIA that you settled. Specifically, we would love to get your thoughts on one, what's been the initial customer reaction feedback to the news, just last week here? Do you have any? And then, two, how should we think about IQVIA that historically has been a CRM competitor, as we're going back to the (inaudible) days, sold some of the CRM business to Salesforce? How has that CRM-specific relationship with IQVIA changed? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2025 / 9:00PM, VEEV.N - Q2 2026 Veeva Systems Inc Earnings Call

Question: Brent Bracelin - Piper Jaffray Inc - Analyst : A full color there. And then, Brian, just a quick follow-up on that R&D subscription growth. Sequentially, it looks like it rose the most in two years. What drove the momentum in that side in R&D, this quarter? Thanks.

Question: Dylan Becker - William Blair Capital Partners - Analyst : Hey. Appreciate it. Nice job. Andy, Peter, going back to the idea of around the opportunity with AI, how you're thinking about Veeva's platform approach, the network you've built, the scale you've built, giving you that right to win as you embed more AI functionality across the platform? How more of these top 20 enterprises are going all in? How that can serve as gravity, supporting some of that AI momentum with embedded intelligence and things of the like in the future

Question: Dylan Becker - William Blair Capital Partners - Analyst : That's very helpful. Thank you. That does make sense. Paul, for you, with the two top 20 customers live on CRM -- and I know there's been a handful of more momentum of others coming online over the past few months -- wondering how the evidence of that live and successful implementation is resonating with customers? How that stacks up

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : First, Peter, for you. Going back to the IQVIA news, just with Nitro and Network getting a second life here, can you just size the dollar opportunity for these products? What uptake should we anticipate from clients?

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Got it. Thank you. And then a follow-up for Brian. On the Commercial Cloud subscriptions, they were flattish quarter on quarter here. In the prepared remarks, Crossix was called out as seeing continued strength and momentum here in the quarter. First, wondering if there's anything offsetting that momentum here in the fiscal 2Q? And then, what is factored into the raised guidance for Commercial subscriptions?

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : If you could just comment why was the quarter, like, flat or sequentially, if there's any offsets there? What drove the raised guidance for the back half of the year for Commercial Cloud?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Peter, on the IQVIA partnership, I know a lot of questions have been asked on that but is there immediate, imminent revenue unlocks that is perhaps driving the higher forecast for this year around some of the data products? If you could just hit on, like, what this year this unlocks, if anything?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Okay. Great. And then, more of a product and technology question, you talked a lot about your optimism, maybe a bit more medium to long term, around AI and agents. Could you just articulate what you view as the unique differentiator from an architecture perspective of Vault versus Agentforce or even the back end of IQVIA? Like, what do you think puts you at an advantage? Are there certain design or technologies that you made?

Question: Rishi Jaluria - RBC Capital Markets Inc - Analyst : Wonderful. Nice to see continued progress here. I want to ask two questions on the AI front, which I know has been dominating this call. Number one, Peter, you talked about the ability to leverage (inaudible) and agent-to-agent transaction. I just want to understand, are you going to be architecting our agents out in a way/have you already started to see this, where it's not only living within the Vault ecosystem or the Veeva ecosystem but you have the ability to do agent-to-agent transactions outside of Veeva, whether that's with completely different vendors like a Workday or ServiceNow or even something that might be a little bit of coopetition like an Agentforce from Salesforce or something from IQVIA? Then, I've got a quick follow-up.

Question: Rishi Jaluria - RBC Capital Markets Inc - Analyst : All right. Got it. That's really helpful. And then, maybe just sticking with AI agents. One of the things that have led to some customers dragging their feet on migration to, what, CRM have been rebuilding some of the customizations that they've done on, like, the previous Veeva CRM. Is there an opportunity that you can leverage your agents to make that is movement of applications, as well?

Question: Ryan MacDonald - Needham & Company LLC - Analyst : Peter, I was fascinated about the comments on the use of Veeva Business Consulting to help push forward your AI initiatives, particularly because we obviously hear plenty about agent fatigue amongst buyers and organizations, just broadly these days. Can you just talk about what level of demand that you're seeing from customers for some of these consulting services to help with change management? Moving forward, should we look at projects from Business Consulting as a leading indicator for Agentic AI adoption of your Veeva AI tools?

Question: Ryan MacDonald - Needham & Company LLC - Analyst : I don't think I'm that clever. So I'll say it's the industry.

Question: Ryan MacDonald - Needham & Company LLC - Analyst : Yeah. Makes a lot of sense. I appreciate all the color there. Maybe as a follow-up, it's great to see some of the continued progress with the Compass product suite. You did call out Compass Prescriber seeing a bit of resistance in the marketplace or resistance to change. Can you just talk about maybe what's driving that resistance, whether it's macro driven? Is there incremental product investments you need to make there? Just any target you can provide on that?. Thanks.

Question: Craig Hettenbach - Morgan Stanley & Co Ltd - Analyst : Great. Just a question on the macro backdrop, which hasn't changed for prepared remarks in the last 90 days. Crossix is highlighted as an area of relative strength. Any other segments that you would call out -- in terms of, despite some of the macro uncertainty -- that are still performing really well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2025 / 9:00PM, VEEV.N - Q2 2026 Veeva Systems Inc Earnings Call

Question: William McNamara - Evercore ISI - Analyst : This is Bill, on for Kirk. Brian, you already have great margins but are you seeing any in-house benefits yet from AI and R&D or sales and marketing functions?

Question: William McNamara - Evercore ISI - Analyst : Great. Thanks.

Question: Rishi Jaluria - RBC Capital Markets Inc - Analyst : Okay. Got it. Thank you.

Question: Jailendra Singh - Truist Financial Corporation - Analyst : I wanted to follow up on the Crossix comments. Can you be a little bit more specific there? It seems Crossix still remain strong. But how would trend there compared to Q1? Broadly, what would you attribute some of the key drivers behind Crossix' performance? Is it strength in industry trends? Or are you gaining market share? Just trying to better understand if all the noise around other marketing channels for pharma companies is creating more opportunity for you guys and your confidence in sustainability of those trends, going forward.

Question: Saket Kalia, CFA - Barclays Services Corp - Analyst : Okay. Great. Peter, maybe for you. It's great to get to see the IQVIA stuff behind us. Nitro, in my view, was really one of Veeva's early AI products. We didn't hear much about that product earlier on because of the data challenges with IQVIA. But now that that's out of the way, how quickly can we get Nitro back in front of customers? How much of a multiplier could that be to your CRM deals or however you think about the revenue opportunity?

Question: Saket Kalia, CFA - Barclays Services Corp - Analyst : Sounds like a great outcome for everybody. Thanks.

Question: Andrew DeGasperi - Exane Bnp Paribas - Analyst : Just a follow-up. I appreciate the color on the verbal commitments on the CRM side. I was just wondering, are you seeing -- can you comment on any potential verbal commitments on [EDC]? If you can't answer that question, I was just going to add, in terms of the head count growth you had, I know it's a recent graduate class, I'm just wondering, is this like a once-a-year event because I didn't see that level of additions in the past 12 months, at least? Thank you.

Question: Andrew DeGasperi - Exane Bnp Paribas - Analyst : Thank you.

Question: David Larsen - BTIG LLC - Analyst : How many total Vault CRM wins were there in the quarter? I think there were 28 last quarter. Just, any color on the trends sequentially and where those wins are coming from, please? Thank you.