Veeva Systems Inc. Q2 FY2026 earnings call

• Resolution of long-standing lawsuit with IQVIA, which resolved restrictions on product development and data integration, unlocking opportunities in commercial cloud.
• Progress on Veeva AI, with anticipation of transformative impact on the industry though material revenue contribution not expected in the short term.
• Strength in segments like Crossix, with broad-based execution and continued growth.
• Vault CRM has seen wins, including top 20 customers, with progress in migrations and market share gains.
• Elevated focus on quality cloud, with investment in areas like laboratory information management (LIMS) and validation management.

Total revenue in the quarter was $789 million. No specific detailed breakdown of product segments beyond the overall revenue figure was provided in the transcript.

• Brian Van Wagener mentioned billings guidance was raised to full-year, with annual billings considered a better indicator due to quarterly lumps.
• Confidence in the firm's revenue plan, with $6 billion revenue target on track.

Forward-looking statements are subject to various risks and uncertainties, as noted in the opening remarks, referring to risks listed in the earnings release and risk factors in the most recent Form 10-Q.

Q: Ken Wong asked about the resolution of the lawsuit with IQVIA and billings guide.

A: Peter Gassner discussed the resolution of the lawsuit, stating it unlocks opportunities in commercial cloud, and Brian Van Wagener talked about billings, noting annual billings are a better indicator due to quarterly lumps.

Q: Joe Vruwink asked about Quality Cloud and AI excitement.

A: Peter Gassner responded on Quality Cloud, highlighting elevated focus and investment in areas like LIMS, and on AI opportunities, emphasizing Veeva's structural advantage in the industry.

Q: Brent Bracelin asked about R&D subscription growth and Crossix.

A: Brian Van Wagener spoke on R&D subscription growth, noting broad-based execution, and on Crossix, stating it continues to be a meaningful driver of growth in commercial.

Q: Dylan Becker asked about Veeva's platform advantage and CRM wins.

A: Paul Shawah discussed Veeva's platform advantage and CRM wins, mentioning 9 top 20 commitments to Vault CRM vs. Salesforce's 3, and Peter Gassner elaborated on CRM progress.

Q: Brian Peterson asked about AgenTeq opportunities and horizontal software.

A: Peter Gassner responded on AgenTeq opportunities in different areas like clinical and commercial, and on horizontal software progress, stating a platform-first approach is being taken.

Q: Stan Berenshteyn asked about IQVIA deal impact and Crossix momentum.

A: Peter Gassner addressed the impact of the IQVIA deal on commercial products, and Brian Van Wagener spoke on Crossix momentum, noting continued strong performance.

Q: David Windley asked about CRM evolution and AI agents.

A: Peter Gassner spoke on CRM evolution, stating the runway is clear in commercial after resolving restrictions, and on AI agents, explaining their role in expanding opportunity in commercial products.

Q: Tyler Radke asked about IQVIA partnership revenue unlock and Vault architecture.

A: Peter Gassner responded on no immediate material revenue unlock from the IQVIA partnership this year, and on Vault architecture, highlighting deep application integration as a structural advantage.

Q: Rishi Jaluria asked about AI agent interoperability and CRM migration.

A: Peter Gassner discussed AI agent interoperability across systems and CRM migration, noting tooling refinement has helped migrations but AI in CRM will drive pull for migration.

Q: Ryan MacDonald asked about business consulting and Compass product.

A: Peter Gassner talked about business consulting as a leading indicator for AI adoption and on Compass product, noting resistance to change but turning the corner.

Q: Craig Hettenbach asked about macro backdrop and segment performance.

A: Brian Van Wagener spoke on the stable macro environment and continued good execution across the business.

Q: Kirk Materne asked about AI in-house benefits.

A: Brian Van Wagener responded on AI in-house, stating no immediate material contribution but use as a tool for productivity and quality.

Q: DJ Hynes asked about Vault CRM customers' economics.

A: Peter Gassner discussed Vault CRM customers' economics, stating revenue-wise roughly neutral in short term with better long-term cost of goods sold.

Q: Jailendra Singh asked about Crossix trends.

A: Brian Van Wagener and Peter Gassner spoke on Crossix trends, noting continued strong performance and growth on market share and product footprint axes.

Q: Saket Kalia asked about Nitro product and IQVIA deal.

A: Peter Gassner talked about Nitro product potential, noting excitement from customers and joint calls with IQVIA leading to productive collaboration.

Q: Jeff Garro asked about AI in R&D and partners.

A: Peter Gassner responded on AI in R&D, stating measured progress with big goals and partners playing a role in interoperability.

Q: Steven Valiquette asked about Crossix lumpiness and growth.

A: Brian Van Wagener spoke on Crossix, noting good growth in both measurement and audiences businesses, with audiences being a higher growth segment.

Q: Andrew DeGasperi asked about CRM verbal commitments and headcount.

A: Peter Gassner and Brian Van Wagener addressed CRM verbal commitments (not specific details) and headcount, noting Generation Veeva hiring program was a driver of headcount growth.

Q: David Larsen asked about Vault CRM wins.

A: Paul Shawah responded on Vault CRM wins, mentioning 13 total wins in the quarter, a mix of new customers and migrations.