Veeva Systems Inc. VEEV is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid first-quarter fiscal 2026 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern.\n\nThis Zacks Rank #2 (Buy) company’s shares have risen 31.7% in the year-to-date period compared with 19.9% growth of the industry. The S&P 500 composite has declined 8.5% during the said time frame.\n\nThe renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $46.1 billion. The company anticipates 26.2% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 10%.\n\nReasons Favoring VEEV’s Growth\n\nRobust Product Portfolio: Veeva Systems continues to drive the migration to its next-gen Vault CRM, with 20 new customers adopting the solution, particularly small and mid-sized biotech firms preparing for commercial launches. The company expects most top 20 pharma firms to make migration decisions by fiscal 2026, ahead of the 2030 sunset of the legacy CRM.\n\nVeeva Systems has introduced AI-driven innovations like CRM Voice Control, CRM Bot and MLR Bot to enhance efficiency, compliance and automation. Meanwhile, VEEV’s Clinical Development Cloud sees growing adoption, with 17 of the top 20 pharma companies using its CTMS and a ninth committing to an EDC solution. Investments in RTSM and eCOA further expand its market opportunities.\n\nVeeva Systems’ Data Cloud solutions — Compass, OpenData, Link and the new Pulse — are gaining momentum. Compass supports more than 100 brands and Pulse secured its first seven-figure deal to enhance pharma segmentation and targeting. While enterprise-wide licensing is still in the early stages, larger contracts are expected. Veeva Systems is also expanding its Safety suite, offering a fully cloud-based solution for signal detection, adverse event reporting and regulatory compliance, with automated updates and seamless clinical integration.\n\nStrategic Deals: The company has secured several key deals in recent months, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM, expanding its use of Veeva Commercial Cloud and Development Cloud. Additionally, ACTO joined the Veeva AI Partner Program to enhance generative AI capabilities for field representatives in life sciences. In October, Veeva Systems and Walgreens Boots Alliance announced a long-term partnership to leverage the former’s Data Cloud and Clinical Platform, aiming to improve patient outcomes by connecting the latter’s community locations with diverse patient populations for easier clinical research access.\n\nStrong Q1 Results: Veeva Systems exited the first quarter of fiscal 2026 with better-than-expected results, wherein both earnings and revenues beat their respective consensus estimate. The uptick in the overall top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. Revenue uptick in Professional services and others also bodes well.\n\nVeeva Systems also announced a significant step forward in its artificial intelligence strategy with the introduction of Veeva AI. Set for an initial release in December 2025, Veeva AI will embed intelligent automation and productivity tools directly into its applications and Vault Platform. Features will include AI Agents and user-defined AI Shortcuts tailored to specific workflows in clinical and commercial functions. This initiative complements other key developments like the Veeva Direct Data API and the Veeva AI Partner Program, which are collectively aimed at transforming operational efficiency across life sciences.\n\nFactor That May Offset the Gains of VEEV\n\nRising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. General and administrative expenses for the first quarter of fiscal 2026 increased 12.3% year over year. Management expects sales and marketing expenses to increase in fiscal 2026, primarily due to employee-related expenses as the company raises its headcount to support sales and marketing efforts associated with product offerings and the continued expansion of sales capacity across all solutions.\n\nIn the fiscal first quarter, the total operating expenses increased 9.4% year over year. Veeva Systems expects operating expenses to increase in fiscal 2026, primarily due to employee compensation-related costs.\n\nEstimate Trend\n\nVeeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved 3 cents north to $7.64.\n\nThe Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $767.6 million, indicating a 13.5% improvement from the year-ago quarter’s reported number. The EPS estimate for the second quarter of fiscal 2026 is pinned at $1.90, implying a 17.3% improvement year over year.\n\nKey Picks\n\nSome other top-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.\n\nMedpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.\n\nRevenues of $603.3 million outpaced the consensus mark by 11.5%. Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.\n\nWest Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million beat the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.\n\nWest Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.\n\nBoston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion beat the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.\n\nBoston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

Reasons to Add Veeva Systems Stock to Your Portfolio for Now

Veeva Systems Inc. (VEEV) is projected for strong growth in the coming quarters due to its robust product portfolio, strategic partnerships, and strong first-quarter fiscal 2026 performance. The company has seen a 31.7% year-to-date share rise, outpacing industry growth and the declining S&P 500. Key drivers include the migration of top pharma firms to its next-gen Vault CRM, adoption of AI-driven tools like CRM Voice Control and Veeva AI, and strategic deals such as with Boehringer Ingelheim and Walgreens Boots Alliance. Despite strong performance, rising operational costs—particularly in general and administrative expenses and sales and marketing—are a concern. The company anticipates 26.2% annual growth over the next five years and has received positive estimate revisions for fiscal 2026 earnings and revenue. Other medical sector stocks like Medpace Holdings (MEDP), West Pharmaceutical Services (WST), and Boston Scientific (BSX) are also highlighted for strong quarterly results.