VEEVA SYSTEMS INC
For the period ended Jul 31, 2026. Filed Aug 27, 2026.
View on SEC.govAbout this filing
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
Extracted filing text, with the paragraph anchors used by the comparison.
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Operating Expenses and Operating Margin
Research and Development
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| Research and development | $222,918 | $192,677 | $30,241 | 16% | $431,241 | $376,710 | $54,531 | 14% | ||
| Percentage of total revenues | 24% | 24% | 24% | 24% | ||||||
The increase in research and development expenses for the three and six months ended July 31, 2026 was primarily due to an increase of $24 million and $42 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.
Sales and Marketing
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| Sales and marketing | $126,701 | $109,439 | $17,262 | 16% | $237,818 | $208,067 | $29,751 | 14% | ||
| Percentage of total revenues | 14% | 14% | 13% | 13% | ||||||
The increase in sales and marketing expenses for the three and six months ended July 31, 2026 was primarily due to an increase of $11 million and $23 million in employee compensation-related costs, respectively, and $5 million and $4 million in marketing program costs related to events, respectively.
| 24 | Veeva Systems Inc. | Form 10-Q |
The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount.
General and Administrative
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| General and administrative | $71,314 | $95,804 | $(24,490) | (26)% | $140,786 | $164,630 | $(23,844) | (14)% | ||
| Percentage of total revenues | 8% | 12% | 8% | 11% | ||||||
The decrease in general and administrative expenses for the three and six months ended July 31, 2026 was primarily due to $31 million in litigation settlement-related charges that was incurred in the quarter ended July 31, 2025. The decrease for the three and six months ended July 31, 2026 was partially offset by an increase of $2 million and $3 million in employee compensation-related costs, respectively.
Other Income, Net
| Three months ended July 31, | Six months ended July 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change | |
| (dollars in thousands) | ||||||||
| Other income, net | $74,512 | $69,456 | $5,056 | 7% | $148,930 | $134,545 | $14,385 | 11% |
The increase in other income, net, for the three and six months ended July 31, 2026 was primarily due to an increase in interest income from higher cash and short-term investments balances.
Provision for Income Taxes
| Three months ended July 31, · Six months ended July 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · $ Change · % Change · 2026 · 2025 · $ Change · % Change | ||||||||||
| (dollars in thousands) | ||||||||||
| Income before income taxes | $349,530 | $265,364 | $84,166 | 32% | $697,060 | $564,185 | $132,875 | 24% | ||
| Income tax provision | $76,101 | $65,055 | $11,046 | 17% | $162,695 | $135,686 | $27,009 | 20% | ||
| Effective tax rate | 21.8% | 24.5% | 23.3% | 24.0% | ||||||
The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, equity compensation, tax credits, and FDDEI deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.
During the three and six months ended July 31, 2026, as compared to the same periods in the prior fiscal year, our effective tax rate decreased primarily due to an increase in FDDEI deduction under the OBBBA provisions effective in the current fiscal year, partially offset by discrete tax deficiencies related to equity compensation.
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