Veeva Systems Inc. Q4 FY2026 earnings call

Peter noted a strong finish to the year with results ahead of guidance, and mentioned surpassing the $3 billion revenue run rate in 2025 and deepening strategic partnerships. Paul discussed over 140 live bulk CRM customers and opportunities for cross-selling. Brian talked about strong execution in services, CRM migration activity, and the importance of annual normalized billings as a better indicator of business momentum.

In the quarter, total revenue was $836 million with non-GAAP operating income of $366 million. For the full year, total revenue was $3.195 billion and non-GAAP operating income was $1.434 billion. 2025 saw Viva surpass its $3 billion revenue run rate goal and deepen strategic partnerships across the life sciences industry.

Guidance assumes no significant changes in the macro environment. They provide annual normalized billings and update on a quarterly basis, not giving quarterly guidance. The industry's uncertainty has been tracked, but they provide guidance based on customer conversations and long-term planning rather than short-term macro environment ups and downs.

Forward-looking statements are subject to various risks and uncertainties. Actual results may differ materially. Refer to the risks listed in the earnings release and the risk factors in the most recent Form 10-Q.

Q: Joe Vronwink with Baird asked about AI influence on demand.

A: Peter said AI is a driver but not major, more about modernizing legacy systems.

Q: Saket Kalia with Barclays asked about AI adoption by customers.

A: Peter said customers are interested in AI, bucket into infrastructure providers, point solution providers, etc., and want Viva to provide tightly integrated AI solutions.

Q: Brian Peterson with Raymond James asked about bridging gap between subscription growth and normalized billings.

A: Brian said it's due to mix shift in products from mature to new large products.

Q: Ken Wong with Oppenheimer & Co. asked about professional services outperformance.

A: Brian said it's from business consulting, R&D, etc., and margins are profitable.

Q: Stan Berenstein with Wells Fargo Security asked about RTSM ramping.

A: Peter said RTSM is a significant product area with different selling motion.

Q: Rishi Jaluria with RBC asked about Ziva working with model providers.

A: Peter said it's symbiotic, AI helps Viva's software development.

Q: Jaylandra Singh with Trust Securities asked about macro environment and guidance.

A: Peter said guidance is based on customer conversations and long-term planning.

Q: Dylan Baker with William Blair asked about AI and platform vs point solutions.

A: Peter said trust and operating model are key.

Q: David Henley asked about automation and EDC.

A: Peter said automation is a theme, EDC has structural advantage.

Q: Andrew De Gasparri with BNP Paribas asked about vault CRM commitments.

A: Peter said commitments are firm.

Q: Ryan McDonald with Medem asked about AI in safety.

A: Peter said safety has momentum with AI replacing labor.

Q: Adam Hotchkiss with Goldman Sachs asked about AI impact on R&D.

A: Brian said it's early, focused on product excellence.

Q: Craig Hettenbach with Morgan Stanley asked about AI and customer base.

A: Peter said symbiotic relationship.

Q: DJ Hines with Canaccord Genuity asked about AI pricing.

A: Brian said it's early, token-based pricing.

Q: Carl Kirstead with UBS asked about fiscal 2027 guidance.

A: Brian said guidance is based on best information.

Q: Hannah Rudolph with Piper Sandler asked about AI customer adoption.

A: Brian said bulk is with prepackaged agents.

Q: Tyler Radke with Citi asked about R&D implementation times.

A: Peter said good execution and some timing benefits from AI