Veeva beats Q2 2027 estimates with non-GAAP EPS $2.35, revenue $928M, raises FY27 outlook

 

Veeva beats Q2 2027 estimates with non-GAAP EPS $2.35, revenue $928M, raises FY27 outlook on record CRM and Falcon AI

• Q2 2027 revenue rose 18% YoY to $928M, while non-GAAP EPS increased 18% YoY to $2.35.
• Investor Takeaway: Q2 revenue of $928M and profit were ahead of guidance, led by record CRM.
• Investor Takeaway: Commercial subscriptions grew ~13% YoY, with double-digit growth even excluding Crossix.
• Investor Takeaway: Management is highly bullish on Falcon agentic AI, but emphasized the offering is still early.
• Key Results: Non-GAAP operating income was $416M (~45% margin), underscoring a very profitable model.
• Guidance: FY27 outlook was raised again, though specific revenue and EPS figures were not disclosed on the call.
• Growth Drivers: Broad-based strength across CRM, content, data, Crossix, China, and Data Cloud new wins.
• Problem Areas: R&D is in a 'changing of the guard' as EDC, Safety, LIMS products ramp while legacy modules mature.
• Margins: Falcon, Aspen, and Vault AI investments are baked into guidance and seen as immaterial near term.
• Margins: AI is expected to sustain software-like gross margins over time, according to management commentary.
• Key Metrics: 12 of top 20 pharmas committed to Vault CRM, with more than 180 customers live.
• Key Metrics: 9 of top 20 pharmas are now on Veeva EDC.
• Investor Focus: Q&A centered on Falcon economics, CRM share and win-backs versus Salesforce, and timing of R&D growth.
• Main concern: Falcon and Aspen are still early, making AI execution, pricing, and monetization timing uncertain.
• Strong quarter, driven by record commercial CRM performance and growing confidence in long-term AI and R&D growth initiatives.

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