Veeva Systems (VEEV) is likely to post fiscal Q2 results that come in line to better and maintain its H2 outlook, supported by steady business trends at peers and survey indications of expanded budgets for drug commercialization, Truist said in a Wednesday research report.

The brokerage noted, however, that with shares up about 20% since last quarter's report, investor expectations already anticipate a slight beat-and-raise.

The firm expects Q2 revenue of $767 million, comprising $649 million of subscription revenue and $118 million of professional revenue. It modeled adjusted earnings per share of $1.89.

Truist forecasts fiscal 2026 revenue of $3.09 billion and billings of $3.32 billion, with roughly 44% expected in Q4. The firm noted that Veeva's largely subscription-based business is resilient to macro uncertainty and contracts are progressing as expected.

While Merck's (MRK) commitment to Veeva's Vault CRM solution is encouraging, Truist highlighted risks around potential market share shifts as Salesforce (CRM) continues to leverage recent wins from Pfizer (PFE) and Takeda (TAK) to pursue additional pharma deals in 2025.

Truist reiterated its hold rating on the stock and raised its price target to $268 per share from $230.

Price: 280.86, Change: -3.49, Percent Change: -1.23