Veeva Systems (NYSE: VEEV) experienced a sharp 6.10% decline in after-hours trading on Thursday, despite reporting better-than-expected third-quarter results and raising its full-year guidance. The cloud-computing company, which specializes in software for the life sciences industry, delivered strong financial performance but failed to impress investors.

For the fiscal third quarter ended October 31, 2025, Veeva reported earnings of $2.04 per share on an adjusted basis, surpassing the analyst consensus estimate of $1.95. This represents a 16.57% increase from the same period last year. Revenue also exceeded expectations, coming in at $811.2 million, beating the estimated $792.816 million and marking a 16.02% year-over-year growth.

Despite the positive results, investors appeared to focus on the company's forward guidance. 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. While this guidance is above the previous estimates, it may not have been as strong as some investors hoped for, given the company's history of conservative forecasts. The after-hours sell-off suggests that market participants may have been expecting even more robust growth or were concerned about potential headwinds in the coming quarters.