Veeva Systems (NYSE: VEEV) saw its stock price plummet 9.61% in pre-market trading on Friday, following the release of its third-quarter results for fiscal year 2026. The sharp decline comes despite the cloud-computing company reporting better-than-expected earnings and revenue figures.

For the fiscal third quarter ended October 31, 2025, Veeva surpassed analyst expectations with adjusted earnings of $2.04 per share, up 16.57% year-over-year, and revenue of $811.2 million, marking a 16.02% increase. Subscription services revenues, a key metric for the company, grew 17% to $682.5 million. However, these strong results were overshadowed by concerns about the company's forward guidance and customer acquisition outlook.

The primary driver of the stock's decline appears to be Veeva's announcement regarding its Vault CRM product. The company stated it now expects to secure only 14 of the largest 20 biopharmaceutical companies as Vault CRM customers, lower than previous expectations. This revelation suggests stronger competition from rival Salesforce, which is likely to secure the remaining six customers. Additionally, while Veeva raised its fiscal year 2026 outlook, projecting non-GAAP earnings per share of approximately $7.93 on revenue between $3,166 million and $3,169 million, the guidance may not have met the market's high expectations given the company's history of conservative forecasts. The sell-off indicates that investors are concerned about potential headwinds in Veeva's growth trajectory, particularly in its CRM business.