Veeva Systems stock spiked Thursday after the cloud-solutions company beat analysts' first-quarter earnings forecasts and issued better-than-expected fiscal-year guidance.
The company, which primarily sells software to life sciences companies, posted adjusted earnings of $1.97 a share, topping Wall Street's consensus call for $1.74. Revenue of $759 million also topped expectations $728 million analysts had anticipated.
Management boosted revenue and earnings guidance for the fiscal year, forecasting adjusted earnings of $7.63 a share, up from $7.32.
Investors flocked to Veeva in the wake of the earnings report. Shares were up 20%, putting the stock on track for its highest close since Nov. 29, 2021, according to Dow Jones Market Data.
"Although the macro environment is more uncertain today compared to 90 days ago, we have not seen a material change to our financial results or pipeline at this time," CEO Peter Gassner said on a conference call Wednesday.
Most analysts on Wall Street reacted positively to the report, citing the company's willingness to expand beyond the life sciences sector and its ability to deliver strong financial results even as biopharma clients face a turbulent economic backdrop.
Steven Valiquette of Mizuho Group said in a research note Thursday that the company demonstrated its subscription revenue model can withstand economic uncertainty. Valiquette maintained an Outperform rating and a $280 price target on the stock.
Calling the print "arguably Veeva's best quarter in recent memory," analysts at Oppenheimer held their Outperform rating and boosted their target price to $325 from $280. In addition to Veeva's durable revenue, Oppenheimer's team was optimistic about the company's plans to build and sell CRM software for clients in other sectors. Veeva is expected to unveil the CRM application for trial customers at some point in 2025.
Not everyone on Wall Street was so sanguine about the earnings beat, however. Veeva isn't immune from the pressures facing the life sciences industry, including cuts at the Food and Drug Administration and President Donald Trump's plans to introduce most-favored-nation drug pricing, analysts at Morgan Stanley wrote in a research note Thursday.
"Veeva deserves credit for navigating through a tumultuous backdrop in Life Sciences that has tripped up most companies selling into this vertical," said the Morgan Stanley analysts, who maintained an Underweight rating for the stock. "Unless conditions stabilize it could eventually catch up with them."
Write to Nate Wolf at nate.wolf@barrons.com
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May 29, 2025 10:39 ET (14:39 GMT)
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