VEEVA SYSTEMS INC
For the period ended Jul 31, 2026. Filed Aug 27, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Aug 27, 2026
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Item 2. Results of Operations
Results of Operations
The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated:
Revenues
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| Revenues: | ||||||||||
| Subscription | $766,764 | $659,183 | $107,581 | 16% | $1,496,939 | $1,293,951 | $202,988 | 16% | ||
| Professional services and other | 161,199 | 129,898 | 31,301 | 24% | 313,972 | 254,173 | 59,799 | 24% | ||
| Total revenues | $927,963 | $789,081 | $138,882 | 18% | $1,810,911 | $1,548,124 | $262,787 | 17% | ||
| Percentage of revenues: | ||||||||||
| Subscription | 83% | 84% | 83% | 84% | ||||||
| Professional services and other | 17 | 16 | 17 | 16 | ||||||
| Total revenues | 100% | 100% | 100% | 100% | ||||||
The increase in subscription revenues for the three months ended July 31, 2026 consisted of $68 million attributable to R&D and Quality Solutions and $40 million attributable to Commercial Solutions. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the three months ended July 31, 2026, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the three months ended July 31, 2025.
The increase in subscription revenues for the six months ended July 31, 2026 consisted of $131 million attributable to R&D and Quality Solutions and $72 million attributable to Commercial Solutions. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the six months ended July 31, 2026, as compared to 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025.
The increase in subscription revenues attributable to R&D and Quality Solutions and Commercial Solutions for the three and six months ended July 31, 2026 was driven by the expanding use by existing customers and higher prices in connection with our annual inflation adjustment for our products.
The increase in professional services and other revenues for the three and six months ended July 31, 2026 was primarily due to an increase in implementation services and business consulting.
The geographic mix of professional services and other revenues was 55% from North America, 39% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended July 31, 2026, as compared to 58% from North America, 36% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended July 31, 2025.
The geographic mix of professional services and other revenues was 56% from North America, 38% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2026, as compared to 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025.
| Veeva Systems Inc. | Form 10-Q | 23 |
|---|
Cost of Revenue and Gross Margin
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| Cost of revenues: | ||||||||||
| Cost of subscription | $105,677 | $93,830 | $11,847 | 13% | $204,780 | $172,176 | $32,604 | 19% | ||
| Cost of professional services and other | 126,335 | 101,423 | 24,912 | 25% | 248,156 | 196,901 | 51,255 | 26% | ||
| Total cost of revenues | $232,012 | $195,253 | $36,759 | 19% | $452,936 | $369,077 | $83,859 | 23% | ||
| Gross margin percentage: | ||||||||||
| Subscription | 86% | 86% | 86% | 87% | ||||||
| Professional services and other | 22% | 22% | 21% | 23% | ||||||
| Total gross margin percentage | 75% | 75% | 75% | 76% | ||||||
| Gross profit | $695,951 | $593,828 | $102,123 | 17% | $1,357,975 | $1,179,047 | $178,928 | 15% | ||
The increase in cost of subscription for the three and six months ended July 31, 2026 was primarily due to an increase of $12 million and $32 million, respectively, in computing infrastructure and data costs. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in data costs was related to investment in our data solutions.
The increase in cost of professional services and other for the three and six months ended July 31, 2026 was primarily due to an increase of $19 million and $38 million in employee compensation-related costs, respectively. The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount.
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