Veeva Systems Q2 2026 Earnings Call | Q2 2026 Earnings Conference Call | Q2 2026 Results

This earnings call provides an in-depth strategic update on Veeva Systems' performance in Q2 Fiscal Year 2026, centering on the advancement of its "Industry Cloud Vision" which integrates industry-specific software, data, and business consulting. CEO Peter Gastner highlighted two major transformative developments: the rapid progress of Veeva AI and the resolution of the decade-long legal dispute with IQVIA. The discussion emphasized that these moves are designed to remove structural limitations, particularly in the Commercial Cloud, and significantly expand Veeva's total addressable market through innovative, deeply embedded technology solutions. The company reported strong financial results ahead of guidance, with total revenue of $789 million and non-GAAP operating income of $353 million, driven by broad-based execution across both R&D and Commercial segments.

A central theme was the strategic liberation of the Commercial Cloud. The resolution with IQVIA removes a critical barrier, allowing Veeva to integrate industry-leading IQVIA data directly into its commercial products like Veeva Network, Veeva Nitro (commercial analytics), and other offerings. This integration was previously impractical, creating a "hole in the boat" for these products. This resolution, combined with the earlier migration of CRM off the Salesforce OEM platform to Vault CRM, means the Commercial Cloud now has "no limits," mirroring the integrated maturity and growth potential previously seen primarily in the Development Cloud. Management anticipates this will be transformative, driving broader adoption of the commercial suite—including Campaign Manager, Service Center, and Patient CRM—and increasing the stickiness of their business consulting services.

The company detailed its long-term strategy around "Agentic AI," positioning it as the next fundamental phase of the Vault platform, which now incorporates content, data, and intelligent agents. Veeva asserts a "structural advantage" or "right to win" in developing deep, industry-specific agents because its applications are the systems of record, placing the AI directly within the user's workflow and adhering to existing security and transactional rules. While AI is expected to create billions of dollars of value for the industry—through productivity gains in commercial operations and potential reduction of outsourced labor in R&D (e.g., a 50% reduction goal for TMF processing)—management stressed a measured approach to monetization, projecting no material revenue contribution from Veeva AI until FY 2027. Furthermore, the company emphasized that every AI project is inherently a business consulting project, requiring significant change management to redefine human and agent workflows.

In terms of execution, the migration to Vault CRM continues to gain momentum, with nine Top 20 pharmaceutical companies now committed, compared to three for Salesforce. Crucially, two Top 20 customers are now live in major markets less than two years after commitment, providing critical proof points for successful implementation. This success is contrasted with the perceived high risk and long timeline (potentially extending to 2029) associated with Salesforce's competitive efforts. R&D Cloud performance remains strong, with particular focus on the elevated stature of Quality Cloud, which is expanding into Laboratory Information Management Systems (LIMS) and batch release products. Finally, the Crossix business continues to be a meaningful driver of growth in commercial, fueled by market share gains and an expanding product footprint, particularly in the high-growth, usage-based Audiences segment and HCP marketing measurement.

Key Takeaways: • Veeva AI is the Next Platform Evolution: Veeva is embedding Agentic AI deeply into the Vault platform (Model-Context-Protocol or MCP model), combining content, data, and agents. This platform-first approach ensures wide adoption across all 50+ Veeva applications and provides a "structural advantage" for building industry-specific solutions. • Long-Term AI Value, Short-Term Focus on Execution: While AI is projected to generate billions in industry value and significantly increase Veeva's market size, management does not expect material revenue contribution until FY 2027. IntuitionLabs.ai should focus on early adopter projects now to build expertise ahead of the broader market rollout. • AI Targets Outsourced Labor in R&D: Specific, aggressive goals include reducing outsourced labor and processing needed around the Clinical Trial Master File (TMF) by up to 50% through agent automation (e.g., document filing, quality checks, compliance tracking). This highlights a major automation opportunity for CROs and clinical operations. • IQVIA Resolution Unlocks Commercial Suite: The settlement allows full integration of industry-leading IQVIA data into Veeva Network and Veeva Nitro, removing a decade-long barrier. This revitalizes Veeva’s commercial analytics and data products, making the full commercial suite a more wholesome and competitive offering. • Vault CRM Migration Momentum is Strong: Veeva has secured commitments from nine Top 20 pharmaceutical companies for Vault CRM, significantly outpacing Salesforce (3 commitments). The successful go-live of two Top 20 customers in major markets validates the migration process and reduces perceived risk for remaining customers. • Migration Timeline Confirmed: The bulk of the remaining 300+ migrations from legacy Veeva CRM to Vault CRM are expected to occur in 2026 and 2027. This provides a clear window for IntuitionLabs.ai to ramp up its Veeva CRM consulting and migration services. • AI Requires Business Consulting: Every AI project is fundamentally a business consulting project because it necessitates redefining workflows and the division of labor between humans and agents. IntuitionLabs.ai should lead with consulting services focused on change management and process transformation to drive AI adoption. • Crossix Drives Commercial Growth: Crossix continues strong performance, driven by market share gains and an expanding product footprint, particularly in the high-growth Audiences (usage-based) and HCP marketing measurement segments. This indicates continued investment by pharma in digital marketing optimization. • Quality Cloud Expansion: Quality Cloud is receiving elevated focus, expanding into high-value areas like Laboratory Information Management Systems (LIMS) and batch release/validation management, presenting new opportunities for GxP and 21 CFR Part 11 compliance consulting. • Agent Interoperability is Key: Veeva is architecting its agents to communicate seamlessly with agents from other enterprise systems (e.g., SAP, Workday, Microsoft Co-Pilot) using a common protocol (MCP), making cross-system workflows much less brittle than traditional data integration methods.

Tools/Resources Mentioned:

• Veeva Vault Platform
• Vault CRM
• Veeva AI
• Veeva Nitro (Commercial Analytics)
• Veeva Network (Reference Data)
• Crossix (Audiences, Measurement)
• IQVIA Data
• Veeva Quality Cloud (LIMS, Batch Release)
• Veeva TMF (Trial Master File)

Key Concepts:

• Industry Cloud Vision: Veeva's strategy to combine industry-specific software, data, and business consulting into integrated suites for life sciences.
• Agentic AI: Intelligent software agents that can act autonomously on behalf of a user within a workflow, interacting with content and data.
• Structural Advantage/Right to Win: Veeva's competitive edge derived from its applications being the systems of record, allowing AI to be deeply embedded within the user's workflow, security, and transactional controls.
• MCP (Model-Context-Protocol): A framework enabling easy agent-to-agent interoperability across different enterprise systems.

Examples/Case Studies:

• Vault CRM Success: Nine Top 20 pharmaceutical companies committed to Vault CRM; two Top 20 customers are now live in major markets.
• TMF Automation Goal: Internal goal to reduce outsourced labor and processing related to Clinical TMF documentation by 50% using Agentic AI.
• IQVIA Partnership: Joint calls between Veeva, IQVIA, and Top 20 pharma customers immediately following the resolution, signaling high customer interest in exploring new, integrated commercial solutions.