Veeva Systems Inc Q3 2026 Earnings Call Transcript

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

Question: Saket Kalia - Barclays Services Corp - Analyst : Okay. Great. I appreciate the prepared remarks that were posted. Brian, maybe I'd love to start with you and maybe just hit one of the points in the prepared remarks kind of head on, where I think we said that 14 of top 20 customers are expected to migrate to Vault CRM, and so six are potentially opting for other solutions. Now there's clearly the potential to -- for win back, as we said, but maybe the first question is, how do you sort of think about the size of the revenue that might be at risk from those 6 customers on the CRM side?And how do you think about the time line of that potentially kind of transitioning? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Saket Kalia - Barclays Services Corp - Analyst : Got it. Got it. That's super helpful, actually. Peter, maybe for you. On the other side of the business, I'd love to talk about R&D a little bit with you. Of course, one of your competitors talked about winning back a top 20 on the EDC side. I was wondering, just since we're all together, can you just talk about that? And maybe just comment on kind of the state of the union in that EDC market in terms of the competitive landscape and your pipeline for further market share gains?

Question: Joe Vruwink - Robert W. Baird & Co Inc - Analyst : Great. I wanted to dig a bit more into the CRM topic. Obviously, attrition carries an implication on revenue over time. But I sit here today and I think commercial subscription revenues have been raised by about $60 million year-to-date. And then every Vault CRM customer you're retaining now has the opportunity to have service center and marketing automation and Veeva AI. So how should we think about all of that netting together? I mean, is it the case where ultimately, you're netting out, and there's an increment here. I think the market is focusing on the lost value to Saket's question, but how to think about the offsets in the equation over the next five years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Joe Vruwink - Robert W. Baird & Co Inc - Analyst : Okay. That's great color. Maybe one on Veeva AI. You had a few summits within the last quarter. I think you've also been making around on forum gathering feedback from your customers. I guess, what stood out to you both in terms of, I'll say, positive reception, but then also maybe any pushback or things where you walk away and you have more you need to work on coming out of this initial experience with AI?

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : Hello, everyone. Thank you for question. I have my first question. Maybe I appreciate the comments you made in prepared remarks that you have not observed material change to customer buying behaviors. But could you double click on the demand environment and the financial health of the pharma end market?

Question: Alexei Gogolev - JPMorgan Chase & Co - Analyst : And a very quick follow-up on the comments. First, congrats with another commitment for Vault CRM. So you suggested that you're looking to win another four out of the remaining X undecided. Do you have any durable indications from those clients already?

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Well, first, a follow-up on Crossix. I'm just curious, given the regulatory focus on direct-to-consumer advertising. Have you seen any changes in where audience targeting is happening on the platform? Is it changing at all?

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Very helpful. And maybe a quick follow-up on your sales pipeline. I'm curious a couple of comments here. First, I think historically, Peter, you called out safety and regulatory as potentially having a little bit less of a predictable sales cycle, maybe a bit longer than usual. Any changes there from customers in the sales pipeline on those products? And then maybe related to this, I'm just curious, are you seeing anything coming from IQVIA partnership? Any clients potentially coming through that pipeline? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Dylan Becker - William Blair Capital Partners - Analyst : I appreciate it. Maybe, Peter, starting with you to -- if we think about the service strength you entered at this as it relates to business consulting, but maybe the need for change management that you're seeing and kind of the strong services outlook, how that -- or how you maybe think about the implications of that, maybe driving more kind of wall-to-wall broad-based platform adoption in the future, the role that business consulting can play in driving kind of the broader platform momentum over time, whether that's commercial or R&D?

Question: Dylan Becker - William Blair Capital Partners - Analyst : Certainly. That makes sense. And maybe you just kind of teased this, and so I'd be remiss if I didn't kind of double click on the momentum in safety. I know you called out another top 20 customer and I think another top 20 go-lives there alongside the fact that it's maybe the opportunity that's most ripe for labor disruption, I guess, I know these are still long-term decisions. but how you think about the innovation you're delivering to the safety space and how that's met with receptivity from a decisioning perspective as you have kind of more of these proof points and validation points in market?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Yes. Peter, just going back to the op CRM top 20 customers there. You referenced that this was like unique customer one-off example. I was wondering if you could just sort of elaborate on it? Is this something specific to their negotiations or discounts that they beginning with another vendor? If you could just talk through that and then maybe the time frame on when you think you could go them back?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : Yes. And for sure, over 100 customers live is a good proof point. Maybe, Brian, just on the margin side, it looks like hiring picked up again a little bit this quarter relative to kind of the trends we saw last year. Can you help us just understand where those heads are focused. And then anything you would call out in terms of how to think about margin expansion into next year?

Question: Charles Rhyee - Cowen and Company LLC - Analyst : Peter, obviously, we're continuing to get these wins in Development Cloud with starting start-up and study training. For the clients, I guess, in Development Cloud, among the top 20 biopharma, what was the average number of Veeva development cloud products do they have on average? And where would you see as the tipping point? Because if I recall a couple of years back, there was an announcement that Merck was going to move to sort of a full Veeva environment over time. Just trying to get a sense on what you would consider someone being a full Veeva on the R&D side, what does that look like? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Charles Rhyee - Cowen and Company LLC - Analyst : That's helpful. And maybe just a follow-up there. Some other asked earlier about what are your competitors kind of went back an EDC client. But what does the overall competitive landscape look quite commonly because it seems like one of your other main competitors in development in R&D, it seems to be focused a little bit elsewhere in health care? Just curious how you're seeing the overall preventive landscape kind of shaping up currently?

Question: Craig Hettenbach - Morgan Stanley & Co Ltd - Analyst : On Crossix, before the acceleration this year, I think the business has grown roughly kind of low to mid-teens. You talked about some of the drivers that are driving growth above that. Do you think in the next couple of years, it reverts back to kind of that mid-teens level? Or do you think some of these drivers can kind of sustain stronger growth in the next few years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Andrew DeGasperi - Exane Bnp Paribas - Analyst : I wanted to ask the top 20 CRM question on a different way. In particular, how it relates to your 2030 targets. I know you mentioned that it doesn't impact that your capability to reach it. And I was just wondering why is that the case? Is it because you either -- the low expectations is mostly tied to very small number of clients that have decided to go differently like one or two? Or is it a factor of that you have these other alt CRM customers that are smaller, the 100 plus that you've listed that could be also contributing in offsetting some of that potential weakness you would see in that business?

Question: Jailendra Singh - Truist Securities - Analyst : I want to follow up on the macro environment question earlier. You did note in the prepared remarks that the guidance raise is driven by improved visibility into Q4. Can you elaborate on that? Is it stronger renewal activity, upsell momentum or new logo wins? And related to that, we have seen some good clarity for pharma industry in recent months with all the discussions with the administration. Do you get a sense based on your conversations that we could see a potential uptick in client buying trends in the coming year or so?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : For Paul and Peter, I wanted to get your thoughts on the risk that the CRM market becomes more competitive over time. For example, could the large competitor that has 6 out of the top 20, could they use that as a beachhead to expand their presence with time -- with the road map that will improve over time? Or for example, the 14 that have committed to Veeva, could they be thinking about the structure of the ecosystem changing? Because for example, a year from now or three years from now, because they can set a competition? So maybe just give us a little bit of a sense of your conviction on the long term and how Veeva can continue to have the dominant position that it has in the event that the competitive environment does change more structurally on the commercial side?

Question: Tucker Remmers - Jefferies LLC - Analyst : So my question rolls around the development of AI agents in the clinical suite. I just want to get a sense of how soon you think you can develop some clinical agents for example you can give? And how can Veeva monetize that in the future?

Question: David Larsen - BTIG LLC - Analyst : Just going back to these top 20 biopharma clients. Can you maybe -- I just saw a tough time believing like with your R&D capabilities, if you have 20 of the top 20 on your electronic trial master file platform, that's where all of the R&D flows out of like, did these four already sign with Salesforce? Or did they just verbally tell you they're going to go with Salesforce? How sort of fine are those decisions? And then we keep saying you may win them back. Like how would that work? Is there like a trial period they have with Salesforce? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 20, 2025 / 10:00PM, VEEV.N - Q3 2026 Veeva Systems Inc Earnings Call

Question: Sean Dodge - Bank of Montreal - Analyst : Okay. Great. Maybe just on the Veeva Basics offering you rolled out, it was about, I think, a little over a year back. You had a release a few weeks ago that there are about 100 clients that have selected that. I guess just wondering how we should think about sizing the longer-run opportunity for Veeva in that part of the end market? Obviously, R&D budgets for small biotechs are small. But on the other hand, there are a lot of them. So just maybe kind of thinking about does that have the potential to be a real needle mover for Veeva at some point here soon?