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What changed in VEEVA SYSTEMS INC's 10-K — 2025 vs 2026

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Paragraph-level year-over-year comparison of VEEVA SYSTEMS INC's 2025 and 2026 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2026 report.

+321 added−328 removedSource: 10-K (2026-03-20) vs 10-K (2025-03-24)

Top changes in VEEVA SYSTEMS INC's 2026 10-K

321 paragraphs added · 328 removed · 263 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe may face new allegations in the future that we have infringed the patents, trademarks, copyrights, trade secrets, and other intellectual property rights of others. We expect that we and others in our industry will continue to be subject to third-party infringement claims by competitors as the functionality of applications in different industry segments overlaps, and by non-practicing entities.
Biggest changeFor example, we are aware of a non-practicing entity alleging that we infringed its patents. We have faced and may face new allegations in the future that we have infringed the patents, trademarks, copyrights, trade secrets, and other intellectual property rights of others.
Our Industry Cloud Solutions for Life Sciences Our industry cloud solutions for the life sciences industry are grouped into four major product categories—Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud—and are designed to address pharmaceutical, biotechnology, and medical devices and diagnostics (MedTech) companies’ most pressing strategic needs in their commercial and R&D operations.
Our Industry Cloud Solutions for Life Sciences Our industry cloud solutions for the life sciences industry are grouped into four major product categories—Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud—and are designed to address pharmaceutical, biotechnology, and medical devices and diagnostics (MedTech) companies’ most pressing strategic needs in their commercial, R&D, and quality operations.
These offerings include applications that enable life sciences companies to manage, track, and report product and registration information and to facilitate content planning, authoring, publishing, and archiving of regulatory submissions to healthcare authorities. Veeva Quality Cloud unifies quality applications, processes, and partners across content management, training, quality management, quality assurance, and quality control lab solutions on the Veeva Vault platform.
These offerings include applications that enable life sciences companies to manage, track, and report product and registration information and to facilitate content planning, authoring, publishing, and archiving of regulatory submissions to healthcare authorities. Veeva Quality Cloud unifies quality applications, processes, and partners across content management, training, quality assurance, and quality control lab solutions on the Veeva Vault platform.
We offer the following professional services: • implementation and deployment planning and project management; • requirements analysis, solution design and configuration; • systems environment management and deployment services; • services focused on advancing or transforming business and operating processes related to Veeva solutions; • technical consulting services related to data migration and systems integrations; • training on our solutions; and • ongoing managed services, such as outsourced systems administration.
We offer the following professional services: • implementation and deployment planning and project management; • requirements analysis, solution design and configuration; • ongoing managed services, such as outsourced systems administration; • systems environment management and deployment services; • services focused on advancing or transforming business and operating processes related to Veeva solutions; • technical consulting services related to data migration and systems integrations; and • training on our solutions.
Veeva Clinical Operations Suite offers applications s u ch as Veeva eTMF , an electronic trial master file application, Veeva CTMS for clinical trial management, solutions for randomization and trial supply management, and solutions for automating the flow of clinical trial information between sponsors, CROs, and clinical research sites for better collaboration and faster clinical trials. • Veeva Safety is a suite of applications that unifies systems and processes to enable proactive patient safety.
Veeva Clinical Operations Suite offers applications s u ch as Veeva eTMF , an electronic trial master file application, Veeva CTMS for clinical trial management, solutions for randomization and trial supply management (RTSM), and solutions for automating the flow of clinical trial information between sponsors, CROs, and clinical research sites for better collaboration and faster clinical trials. • Veeva Safety is a suite of applications that unifies systems and processes to enable proactive patient safety.
Veeva Development Cloud includes application suites for the clinical, regulatory, and safety functions of life sciences companies, all built on our proprietary Veeva Vault platform. Veeva Vault’s unique ability to handle content and data allows us to build content and data-centric applications to help customers streamline end-to-end business processes and eliminate manual processes and siloed systems.
Veeva Development Cloud includes application suites for the clinical, regulatory, and safety functions of life sciences companies, all built on our Veeva Vault platform. Veeva Vault’s unique ability to handle content and data allows us to build content and data-centric applications to help customers streamline end-to-end business processes and eliminate manual processes and siloed systems.
In large life sciences companies, the R&D and commercial business functions commonly have separate technology and business decision makers. Accordingly, we market and sell our solutions to align with the distinct characteristics of those decision makers.
In large life sciences companies, the R&D and quality and commercial business functions commonly have separate technology and business decision makers. Accordingly, we market and sell our solutions to align with the distinct characteristics of those decision makers.
We have distinct R&D and commercial sales teams, which we further segment to focus on selling to large global life sciences companies and smaller life sciences companies. We also have product specific and industry specific sales teams for certain of our products.
We have distinct R&D and quality and commercial sales teams, which we further segment to focus on selling to large global life sciences companies and smaller life sciences companies. We also have product specific and industry specific sales teams for certain of our products.
We enable multiple customers to share the same version of our solutions while securely partitioning their respective data. Certain of our other applications rely on technology platforms provided by third parties. For example, our commercial data warehouse application utilizes Amazon Redshift and our digital engagement application utilizes Zoom.
We enable multiple customers to share the same version of our solutions while securely partitioning their respective data. Certain of our other applications rely on technology platforms provided by third parties. For example, our commercial data science application utilizes Amazon Redshift and our digital engagement application utilizes Zoom.
For example, for Veeva CRM and certain of our multichannel CRM applications, we currently utilize the hosting infrastructure provided by Salesforce, Inc. For our Veeva Vault applications, including Vault CRM, and certain other Veeva Commercial Cloud applications, we utilize Amazon Web Services.
For our Veeva Vault applications, including Vault CRM, and certain other Veeva Commercial Cloud applications, we utilize Amazon Web Services. For Veeva CRM and certain of our multichannel CRM applications, we currently utilize the hosting infrastructure provided by Salesforce.
Health Insurance Portability and Accountability Act (HIPAA). We have a Chief Privacy Officer who collaborates with our Chief Information Security Officer and business and product leaders throughout our organization.
Health Insurance Portability and Accountability Act (“HIPAA”). We have a Chief Privacy Officer who collaborates with our Chief Information Security Officer and business and product leaders throughout our organization.
Our Customers As of January 31, 2025, we served 1,477 customers. For an explanation of how we define current customers, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Results of Operations.” We deliver solutions to companies throughout the life sciences industry, including pharmaceutical, biotechnology, and medical device companies, contract sales organizations, and contract research organizations.
Our Customers As of January 31, 2026, we served 1,552 customers. For an explanation of how we define current customers, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Components of Results of Operations.” We deliver solutions to companies throughout the life sciences industry, including pharmaceutical, biotechnology, and medical device companies, contract sales organizations, and contract research organizations.
ITEM 1. BUSINESS. Overview Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization.
ITEM 1. BUSINESS. Overview Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (“R&D”) through commercialization.
These offerings include applications that manage drug safety content as well as the intake, processing, and submission of adverse event data. • Veeva RIM is a suite of applications that provides fully integrated regulatory information management capabilities on a single cloud platform.
These offerings include applications that manage drug safety content, reporting and analytics, signal detection, as well as the intake, processing, and submission of adverse event data. • Veeva RIM is a suite of applications that provides fully integrated regulatory information management capabilities on a single cloud platform.
FDA requirement for maintenance of electronic records EU Annex 11 EU Good Manufacturing Processes (GMP) requirement for maintenance of electronic records 21 CFR 203 Drug sample tracking as required by the Prescription Drug Marketing Act PFSB Notification, No. 0401022 (Japan) Use of Electromagnetic Records and Electronic Signatures for Approval of, or License for, Drugs OECD No. 17 Application of Good Laboratory Practice (GLP) Principles to Computerised Systems ICH E6(R3) Good Clinical Practice (GCP) Validation Principles Privacy Program Veeva maintains a data privacy program aligned to applicable laws such as the European Union’s General Data Protection Regulation (EU GDPR), the United Kingdom’s General Data Protection Regulation (UK GDPR), the California Consumer Privacy Act (CCPA), and the U.S.
FDA requirement for maintenance of electronic records EU Annex 11 EU Good Manufacturing Processes (“GMP”) requirement for maintenance of electronic records 21 CFR 203 Drug sample tracking as required by the Prescription Drug Marketing Act PFSB Notification, No. 0401022 (Japan) Use of Electromagnetic Records and Electronic Signatures for Approval of, or License for, Drugs OECD No. 17 Application of Good Laboratory Practice (“GLP”) Principles to Computerised Systems ICH E6(R3) Good Clinical Practice (“GCP”) Validation Principles Privacy Program Veeva maintains a data privacy program aligned to applicable laws such as the European Union’s General Data Protection Regulation (“EU GDPR”), the United Kingdom’s General Data Protection Regulation (“UK GDPR”), the California Consumer Privacy Act (“CCPA”), and the U.S.
In this segment of our business, we compete with solutions such as those offered by OpenText, Microsoft, Honeywell, EtQ Management Consultants, LLC, Oracle, and Box, and custom-built software developed by third-party vendors or in-house by our potential customers. Our business consulting and professional services offerings compete with a range of professional services firms.
In this segment of our business, we compete with solutions such as those offered by OpenText, Microsoft, Honeywell, EtQ Management Consultants, LLC, Oracle, and Box, and custom-built software developed by third-party vendors or in-house by our potential customers.
Our life sciences customers range from the largest global pharmaceutical and biotechnology companies such as Bayer AG, Boehringer Ingelheim GmbH, Eli Lilly and Company, Gilead Sciences, Inc., Merck Sharp & Dohme Corp., Veeva Systems Inc. | Form 10-K 4 Table of Contents and Novartis Pharma AG, to emerging growth pharmaceutical and biotechnology companies, including Alkermes Inc., Alnylam Pharmaceuticals, Inc., bluebird bio, Inc., and Idorsia Pharmaceuticals Ltd.
Our life sciences customers range from the largest global pharmaceutical and biotechnology companies such as Bayer AG, Boehringer Ingelheim GmbH, Eli Lilly and Company, Gilead Sciences, Inc., Merck Sharp & Dohme Corp., and Novartis Pharma AG, to emerging growth pharmaceutical and biotechnology companies, including Alkermes Inc., Alnylam Pharmaceuticals, Inc., bluebird bio, Inc., and Idorsia Pharmaceuticals Ltd.
Veeva Systems Inc. | Form 10-K 8 Table of Contents
Veeva Systems Inc. | Form 10-K 12 Table of Contents
Our customers may also choose to use cloud-based applications or platforms that are not life sciences specific—such as Salesforce, Inc., Box, Inc., Amazon Web Services, or Microsoft—for certain of the functions our applications provide.
Our customers may also choose to use cloud-based applications or platforms that are not life sciences specific—such as Salesforce, Box, Inc., Amazon Web Services, or Microsoft—for certain of the functions our applications provide. We sell certain of our Development Cloud and Quality Cloud applications to companies outside the life sciences industry.
Both Vault CRM and Veeva CRM include multichannel CRM applications that can enhance and extend our core CRM and Medical CRM products, providing customers with an end-to-end solution across all key channels, including face-to-face, email, and virtual engagement, live and virtual enterprise events, and field collaboration. • Veeva Medical provides a single, validated source of medical content across multiple channels and geographies with capabilities for medical affairs teams to centralize medical inquiries and content. • Veeva PromoMats is an end-to-end content and digital asset management (DAM) solution through which life sciences companies can collaborate, review, distribute, and update commercial content and manage assets. • Veeva Crossix provides pharmaceutical brands a best-in-class analytics platform to maximize media investments and drive greater marketing effectiveness.
Both Vault CRM and Veeva CRM include multichannel CRM applications that can enhance and extend our core CRM and Medical CRM products, providing customers with an end-to-end solution across all key channels, including face-to-face, email, and virtual engagement, live and virtual enterprise events, and field collaboration. • Veeva Medical provides a single, validated source of medical content across multiple channels and geographies with capabilities for medical affairs teams to centralize medical inquiries and content. • Veeva PromoMats is an end-to-end content and digital asset management (“DAM”) solution through which life sciences companies can collaborate, review, distribute, and update commercial content and manage assets.
For financial reporting purposes, revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutions are classified as “Commercial Solutions” revenues, and revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions are classified as “R&D Solutions” revenues.
For financial reporting purposes, “Commercial Solutions” revenues refer to revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutions, and “R&D and Quality Solutions” revenues refer to revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions.
FDA pharma GMP regulation on system validation 21 CFR 11 U.S.
FDA device regulation on system validation 21 CFR 211.68 U.S. FDA pharma GMP regulation on system validation 21 CFR 11 U.S.
Companies in our industry, as well as non-practicing entities, often own a number of patents, copyrights, trademarks, and trade secrets, and frequently enter into litigation based on allegations of infringement, misappropriation, or other violations of intellectual property or other rights.
Veeva Systems Inc. | Form 10-K 11 Table of Contents Companies in our industry, as well as non-practicing entities, often own a number of patents, copyrights, trademarks, and trade secrets, and frequently enter into litigation based on allegations of infringement, misappropriation, or other violations of intellectual property or other rights.
This includes demographic information, license information and status, specialty information, affiliations, and other key data about healthcare professionals and organizations that is crucial to customer engagement and compliance. • Veeva Link applications are built on a modern data platform that combines intelligent software automation with human curation to provide deep data across a growing number of areas, including key people, key accounts, publications, conferences, medical insights, and digital engagement. • Veeva Compass is a suite of de-identified U.S. longitudinal patient, projected prescriber, and national data designed for a wide range of commercial use cases, including business planning, patient finding, patient journey analytics, segmentation and targeting, forecasting, and incentive compensation. • Veeva CRM Pulse is a data subscription that provides access and multichannel engagement metrics about healthcare professionals that are used by our life sciences customers for segmentation, targeting, and engagement planning.
Veeva Systems Inc. | Form 10-K 7 Table of Contents • Veeva Link applications are built on a modern data platform that combines intelligent software automation with human curation to provide deep data across a growing number of areas, including key people, key accounts, publications, conferences, medical insights, and digital engagement. • Veeva Compass is a suite of de-identified U.S. longitudinal patient, projected prescriber, and national data designed for a wide range of commercial use cases, including business planning, patient finding, patient journey analytics, segmentation and targeting, forecasting, and incentive compensation. • Veeva HCP Access is a data subscription that provides access and multichannel engagement metrics about healthcare professionals that are used by our life sciences customers for segmentation, targeting, and engagement planning.
Our clinical platform is designed to enable seamless execution and flow of data between clinical trial stakeholders—including patients, research sites, contract research organizations Veeva Systems Inc. | Form 10-K 2 Table of Contents (CROs), and trial sponsors—for faster, more efficient trials that achieve higher data accuracy and increased patient diversity .
Our clinical platform is designed to enable seamless execution and flow of data between clinical trial stakeholders—including patients, research sites, contract research organizations (“CROs”), and trial sponsors—for faster, more efficient trials that achieve higher data accuracy and increased patient diversity .
Despite our efforts to protect our proprietary technology and our intellectual property rights, unauthorized parties may attempt to copy or obtain and use our technology to develop applications with the same functionality as our Veeva Systems Inc. | Form 10-K 7 Table of Contents application.
Despite our efforts to protect our proprietary technology and our intellectual property rights, unauthorized parties may attempt to copy or obtain and use our technology to develop applications with the same functionality as our application.
Robust audit trail tracking, compliant electronic signature capture, data encryption, and secure access controls are required for these software offerings, and they must be thoroughly tested for compliance with applicable life sciences industry regulations, which include: Regulation Regulation Description 21 CFR 820.75 U.S. FDA device regulation on system validation 21 CFR 211.68 U.S.
Robust audit trail tracking, compliant electronic signature capture, data encryption, and secure Veeva Systems Inc. | Form 10-K 9 Table of Contents access controls are required for these software offerings, and they must be thoroughly tested for compliance with applicable life sciences industry regulations, which include: Regulation Regulation Description 21 CFR 820.75 U.S.
We do not require any of our employees anywhere in the world to enter into non-compete agreements. While we experience intense competition for talent, we believe we have been effective at attracting and retaining talented employees. Research and Development Our R&D organization is responsible for the design, development, and testing of our solutions and applications.
While we experience intense competition for talent, we believe we have been effective at attracting and retaining talented employees. Research and Development Our R&D organization is responsible for the design, development, and testing of our solutions and applications.
The table below provides a summary of our issued patents and pending patent applications as of January 31, 2025: Issued U.S. patents (expiring between May 2027 and May 2044) 83 Issued international patents (expiring between April 2025 and June 2037) 13 U.S. and international pending patent applications 121 Our patents and patent applications cover technology within our Veeva Development Cloud, Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Quality Cloud product families.
The table below provides a summary of our issued patents and pending patent applications as of January 31, 2026: Issued U.S. patents (expiring between March 2028 and April 2048) 111 Issued international patents (expiring between December 2029 and December 2038) 11 U.S. and international pending patent applications 164 Our patents and patent applications cover technology within our Veeva Development Cloud, Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Quality Cloud product families.
Our goal is to become the most strategic software, data, and business consulting partner to the life sciences industry, supporting the industry’s most critical drug development, quality and manufacturing, and commercialization functions.
Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our goal is to become the most strategic software, data, and business consulting partner to the life sciences industry, supporting the industry’s most critical drug development, quality and manufacturing, and commercialization functions.
Veeva Systems Inc. | Form 10-K 5 Table of Contents Quality and Compliance Program Veeva maintains a quality management system certified to ISO9001 to ensure process controls conform to established industry standards for our cloud software offerings that are subject to good practice regulations for the life sciences industry.
Moreover, our AI Agents use large language models from Anthropic and Amazon, hosted on Amazon Bedrock. Quality and Compliance Program Veeva maintains a quality management system certified to ISO9001 to ensure process controls conform to established industry standards for our cloud software offerings that are subject to good practice regulations for the life sciences industry.
Our suite of applications for clinical research sites and patient engagement facilitates clinical trial participation for patients and streamlines study execution for research sites and trial sponsors.
Our suite of applications for clinical research sites and patient engagement facilitates clinical trial participation for patients and streamlines study execution for research sites and trial sponsors. These offerings include applications that enable sites to manage study documents electronically and securely capture and exchange information with sponsors and CROs.
Our Veeva Data Cloud products as well as Veeva Crossix compete with IQVIA, Ipsos Group S.A., Definitive Health Corp., and smaller data and data analytics providers.
Our CRM solutions primarily compete with Salesforce, which has developed a life sciences industry-specific CRM application. IQVIA, which historically offered a competitive CRM solution, has licensed its CRM software to Salesforce. Our Veeva Data Cloud products, as well as Veeva Crossix, compete with IQVIA Holdings, Inc., Ipsos Group S.A., Definitive Health Corp., and smaller data and data analytics providers.
Because of our industry focus, we have a unique, in-depth perspective into the needs and best practices of life sciences companies and clinical research sites. This allows us to develop targeted solutions, quickly adapt to regulatory changes, and incorporate highly relevant enhancements into our existing solutions at a rapid pace.
This allows us to develop targeted solutions, quickly adapt to regulatory changes, and incorporate highly relevant enhancements into our existing solutions at a rapid pace. We are a Delaware public benefit corporation (“PBC”).
These offerings include applications that enable sites to manage study documents electronically and securely exchange information with sponsors and CROs. • Veeva Clinical Data Management helps sponsors and CROs design and run trials with tools to speed the build process and eliminate manual steps.
Veeva Systems Inc. | Form 10-K 6 Table of Contents • Veeva Clinical Data Management helps sponsors and CROs design and run trials with tools to speed the build process and eliminate manual steps.
We also deliver solutions to companies in the consumer products industries. Our Human Capital Resources As of January 31, 2025, we had 7,291 employees worldwide, up by 119 from the previous year. Our employees in the United States are not represented by a labor union; however, in certain foreign locations, local workers’ councils represent our employees.
We also deliver solutions to companies in the consumer products industries. Veeva Systems Inc. | Form 10-K 8 Table of Contents Our Human Capital Resources As of January 31, 2026, we had 7,928 employees worldwide, up by 637 from the previous year.
We have not experienced any work stoppages, and we consider our relations with our employees to be very good. We use a combination of base salary and equity to compensate our employees. We also offer a range of benefits to our employees, including comprehensive healthcare and other wellness programs. We believe our compensation and benefits programs are competitive.
Our employees in the United States are not represented by a labor union; however, in certain foreign locations, local workers’ councils represent our employees. We have not experienced any work stoppages, and we consider our relations with our employees to be very good. We use a combination of base salary and equity to compensate our employees.
Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Customer success is one of our core values, and our focus on it has allowed us to deepen and expand our strategic relationships with customers over time.
Customer success is one of our core values, and our focus on it has allowed us to deepen and expand our strategic relationships with customers over time. Because of our industry focus, we have a unique, in-depth perspective into the needs and best practices of life sciences companies and clinical research sites.
Any of these third parties might make a claim of infringement against us at any time. For examples, see the description of our current litigations in note 14 of the notes to our consolidated financial statements. Corporate Information Our website address is http://www.veeva.com.
We expect that we and others in our industry will continue to be subject to third-party infringement claims by competitors as the functionality of applications in different industry segments overlaps, and by non-practicing entities. Any of these third parties might make a claim of infringement against us at any time. Corporate Information Our website address is http://www.veeva.com.
Vault CRM includes the full functionality of our legacy product, Veeva CRM , with additional applications like Campaign Manager for coordination across engagement channels and Service Center for customer support. Veeva CRM and some of its related applications are built on a platform provided by Salesforce, Inc. and will be supported until September 1, 2030.
Veeva CRM and some of its related applications are built on a platform provided by Salesforce, Inc. and will be supported until December 31, 2029.
Veeva Data Cloud is a modern data platform comprised of connected reference data, deep data, and transaction data. The platform is designed to bring greater efficiency and precision across clinical and commercial operations of a life sciences company: Veeva Systems Inc. | Form 10-K 3 Table of Contents • Veeva OpenData is customer reference data.
The platform is designed to bring greater efficiency and precision across clinical and commercial operations of a life sciences company: • Veeva OpenData is customer reference data. This includes demographic information, license information and status, specialty information, affiliations, and other key data about healthcare professionals and organizations that is crucial to customer engagement and compliance.
Removed
Our commercial solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns.
Added
Veeva AI adds agentic artificial intelligence (“AI”) to our proprietary Veeva Vault platform and deep, industry-specific agents for Veeva applications. Veeva AI Agents work seamlessly within Veeva applications and have direct, secure access to data, documents, and workflows.
Removed
Our R&D solutions for the clinical, regulatory, quality, and safety functions help life sciences companies streamline their end-to-end product development and quality and manufacturing processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle.
Added
Vault CRM includes the full functionality of our legacy product, Veeva CRM , with additional applications such as Campaign Manager for coordination across engagement channels, Patient CRM for patient services, and integrated AI Agents that enhance field productivity and data quality by providing data-driven pre-call insights, enabling voice-activated data entry and follow-up actions, and identifying potential issues in call notes to ensure accuracy and compliance.
Removed
Our solutions for clinical research sites enable regulatory documents and trial information to be managed in a modern cloud solution that is intended to accelerate the clinical research process for the life sciences industry overall. On February 1, 2021, after approval by our stockholders, we became a Delaware public benefit corporation (PBC).
Added
PromoMats also includes integrated AI Agents that assist with document review. • Veeva Crossix provides biopharmaceutical brands best-in-class marketing analytics platform and audience targeting solutions to drive greater marketing effectiveness. Veeva Data Cloud is a modern data platform comprised of connected reference data, deep data, and transaction data.
Removed
Our CRM solutions primarily compete with Salesforce, Inc., which is developing a life sciences industry-specific CRM application and has entered into a partnership with IQVIA Holdings, which also offers various data products and other applications that compete with our products.
Added
We also offer a range of benefits to our employees, including comprehensive healthcare and other wellness programs. We believe our compensation and benefits programs are competitive. We do not require any of our employees anywhere in the world to enter into non-compete agreements.
Removed
Veeva Systems Inc. | Form 10-K 6 Table of Contents We sell certain of our Development Cloud and Quality Cloud applications to companies outside the life sciences industry.
Added
Veeva Systems Inc. | Form 10-K 10 Table of Contents Our business consulting and professional services offerings compete with a range of professional services firms.
Removed
We are currently engaged in legal proceedings with competitors in which the competitors are asserting trade secret misappropriation and other claims, as well as discussions with a non-practicing entity relating to alleged infringement of its patents.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

126 edited+34 added−39 removed175 unchanged
Biggest changeYou should read the more detailed discussion of risks set forth below and elsewhere in this report for a more complete discussion of the risks listed below and other risks. • If our security measures are breached or unauthorized access to customer data is otherwise obtained, our solutions may be perceived as not being secure, customers may reduce or stop the use of our solutions, and we may incur significant liabilities. • The markets in which we participate are highly competitive, and if we do not compete effectively, our business and operating results could be adversely affected. • If our newer solutions are not successfully adopted by new and existing customers, the growth rate of our revenues and operating results will be adversely affected. • Our revenues are relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could cause our revenues to decline. • Defects or disruptions in our solutions could result in diminished demand for our solutions and a reduction in our revenues, and subject us to substantial liability. • The migration of our customers to our Vault CRM applications built on our own Veeva Vault platform could cause business disruptions for customers, lead to the loss of our customers to competitors, and adversely affect our operating results. • Nearly all of our revenues are generated by sales to customers in the life sciences industry, and factors that adversely affect this industry (including regulatory, funding, or policy changes) could also adversely affect us. • Uncertain macroeconomic and geopolitical factors, including as a result of worldwide inflationary pressures and changes in interest rates, currency exchange fluctuations, changes in trade policies and practices (including the imposition of tariffs) or other economic policies, geopolitical conflicts (like the Russian invasion of Ukraine and the regional conflict in the Middle East), and concerns about a possible domestic or global recession, may cause instability in the global economy, and disruptions within the life sciences industry that may negatively impact our business, our financial results, and our stock price. • Over the longer term our revenue growth rates are likely to fluctuate from year to year and may decline, and, as our costs increase, we may not be able to sustain the same level of profitability we have achieved in the past. • Difficulty attracting and retaining highly skilled employees could adversely affect our business and efforts to attract and retain such employees may increase our expenses. • If the third-party providers of healthcare professional and healthcare organization data and prescription drug sales data, such as IQVIA for instance, do not allow our customers to upload and use such data in our solutions, the demand for our solutions may decrease, and our business may be negatively impacted. • We rely on third-party providers for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our cloud solutions, and any slowdown, failure, or disruption in the services provided by them could adversely affect our business and subject us to liability. • Changing laws, regulations, and enforcement priorities, including increasingly complex U.S. and international data privacy and information security regulations and measures specific to the life sciences Veeva Systems Inc. | Form 10-K 9 Table of Contents industry, may impose additional costs for compliance, reduce demand for our solutions, and subject us to significant liabilities. • We are currently being sued by third parties for alleged misappropriation of trade secrets.
Biggest changeYou should read the more detailed discussion of risks set forth below and elsewhere in this report for a more complete discussion of the risks listed below and other risks. • If our security measures are breached or unauthorized access to customer data is otherwise obtained, our solutions may be perceived as not being secure, customers may reduce or stop the use of our solutions, and we may incur significant liabilities. • We face intense competition in markets in which we operate—particularly in the CRM market as we transition customers from our legacy CRM application to our Vault CRM application—and if we do not compete effectively, we may lose customers and our business and operating results could be adversely affected. • Defects or disruptions in our solutions could result in diminished demand for our solutions and a reduction in our revenues, and subject us to substantial liability. • If our newer solutions are not successfully adopted by new and existing customers, the growth rate of our revenues and operating results will be adversely affected. • Our revenues are relatively concentrated within a small number of key customers, and the loss of one or more of such key customers could cause our revenues to decline. • Nearly all of our revenues are generated by sales to customers in the life sciences industry, and factors that adversely affect this industry (including government funding and staffing of relevant agencies and research, drug pricing regulation, healthcare funding and eligibility reforms, regulation of pharmaceutical advertising, or other regulatory or policy changes) could also adversely affect us. • Uncertain macroeconomic and geopolitical factors, including as a result of changes in trade policies and practices (including the imposition of additional tariffs or threats to impose additional tariffs), worldwide inflationary pressures, currency exchange fluctuations, changes in interest rates or other economic policies, geopolitical conflicts (like the Russian invasion of Ukraine and the conflict in the Middle East), and concerns about a possible domestic or global recession, may cause instability in the global economy, and disruptions within the life sciences industry that may negatively impact our business, our financial results, and our stock price. • The migration of our customers to our Vault CRM applications built on our own Veeva Vault platform could cause business disruptions for customers and adversely affect our operating results. • Over the longer term our revenue growth rates are likely to fluctuate from year to year and may decline, and, as our costs increase, we may not be able to sustain the same level of profitability we have achieved in the past. • We rely on third-party providers for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our cloud solutions, and any slowdown, failure, or disruption in the services provided by them could adversely affect our business and subject us to liability. • Difficulty attracting and retaining highly skilled employees could adversely affect our business and efforts to attract and retain such employees may increase our expenses. • Changing laws, regulations, and enforcement priorities, including increasingly complex U.S. and international data privacy and information security regulations and measures specific to the life sciences Veeva Systems Inc. | Form 10-K 13 Table of Contents industry, may impose additional costs for compliance, reduce demand for our solutions, and subject us to significant liabilities. • We have been and may in the future be sued for infringement or misappropriation of third-party intellectual property.
Because we recognize subscription services revenues ratably over the term of an order for our subscription services, our short-term results of operations may not reflect a decline in sales and may not be indicative of future results. We generally recognize subscription services revenues ratably over the term of an order under our subscription agreements.
Because we recognize subscription revenues ratably over the term of an order for our subscription services, our short-term results of operations may not reflect a decline in sales and may not be indicative of future results. We generally recognize subscription revenues ratably over the term of an order under our subscription agreements.
Our customers may also choose to use cloud-based applications or platforms that are not life sciences specific—such as Salesforce, Inc., Box.com, Amazon Web Services, or Microsoft—for certain of the functions our applications provide. Our business consulting and professional services offerings compete with a range of professional services firms, which include, at times, some of our partners.
Our customers may also choose to use cloud-based applications or platforms that are not life sciences specific—such as Salesforce, Box.com, Amazon Web Services, or Microsoft—for certain of the functions our applications provide. Our business consulting and professional services offerings compete with a range of professional services firms, which include, at times, some of our partners.
It is possible that our risk of cyberattacks and other sources of security breaches and incidents may be elevated as a result of Russia’s invasion of Ukraine, the regional conflict in the Middle East, or other geopolitical tensions or conflicts, due to an increase in cyberattack attempts on us, our customers, our partners, or our technology infrastructure providers.
It is possible that our risk of cyberattacks and other sources of security breaches and incidents may be elevated as a result of Russia’s invasion of Ukraine, the conflict in the Middle East, or other geopolitical tensions or conflicts, due to an increase in cyberattack attempts on us, our customers, our partners, or our technology infrastructure providers.
For example, the Network and Information Security Directive II (NIS2), adopted in 2023, aims to enhance cybersecurity across critical infrastructure and essential services in the EU. NIS2 provides for all 27 EU member states to have issued implementing legislation by October 2024; however, several EU member states have not finalized their respective legislation and guidance.
For example, the Network and Information Security Directive II (“NIS2”), adopted in 2023, aims to enhance cybersecurity across critical infrastructure and essential services in the EU. NIS2 provides for all 27 EU member states to have issued implementing legislation by October 2024; however, several EU member states have not finalized their respective legislation and guidance.
As a customer’s total spend on Veeva solutions increases, we expect purchasing scrutiny at renewal to increase as well, which may result in reductions in user subscriptions or increased pricing pressure. Other factors that are not within our control may contribute to a reduction in our subscription services revenues.
As a customer’s total spend on Veeva solutions increases, we expect purchasing scrutiny at renewal to increase as well, which may result in reductions in user subscriptions or increased pricing pressure. Other factors that are not within our control may contribute to a reduction in our subscription revenues.
Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property (for example, if an entity against which we have asserted an intellectual property claim is successful in attacking the validity of our intellectual property).
Litigation brought to defend, protect, and enforce our intellectual property rights could be costly, time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property (for example, if an entity against which we have asserted an intellectual property claim is successful in attacking the validity of our intellectual property).
For example, we have recently experienced increased scrutiny for certain potential projects, particularly for our professional services offerings, which may continue for the foreseeable future. If our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our operating results and growth would be harmed.
For example, we have experienced increased scrutiny for certain potential projects, particularly for our professional services offerings, which may continue for the foreseeable future. If our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our operating results and growth would be harmed.
Risks Related to Our Financial Performance, How We Contract with Customers, and the Financial Position of Our Business Our historic growth rates of total revenues and subscription services revenues should not be viewed as indicative of our future performance. While we have experienced significant revenue growth in prior periods, it is not indicative of our future revenue growth.
Risks Related to Our Financial Performance, How We Contract with Customers, and the Financial Position of Our Business Our historic growth rates of total revenues and subscription revenues should not be viewed as indicative of our future performance. While we have experienced significant revenue growth in prior periods, it is not indicative of our future revenue growth.
As a result, a substantial majority of our quarterly subscription services revenues are generated from subscription agreements entered into during prior periods. Consequently, a decline in new subscriptions in any quarter may not affect our results of operations in that quarter but could reduce our revenues in future quarters.
As a result, a substantial majority of our quarterly subscription revenues are generated from subscription agreements entered into during prior periods. Consequently, a decline in new subscriptions in any quarter may not affect our results of operations in that quarter but could reduce our revenues in future quarters.
For example, Salesforce, Inc. and Amazon Web Services have experienced significant service outages in the past and may do so again in the future. Additionally, our failure to manage or react to an increase in customer demand could have an adverse effect on our business.
For example, Salesforce and Amazon Web Services have experienced significant service outages in the past and may do so again in the future. Additionally, our failure to manage or react to an increase in customer demand could have an adverse effect on our business.
Additionally, as we expand our data product offerings into new jurisdictions, we are required to assess, monitor, and comply with additional laws and regulations related to our collection and processing of data, which may include new registration, consent, and notification obligations.
As we expand our data product offerings into new jurisdictions, we are required to assess, monitor, and comply with additional laws and regulations related to our collection and processing of data, which may include new registration, consent, and notification obligations.
Any actual or perceived failure to comply with such laws and regulations or other actual or asserted obligations relating to privacy, data protection, or cybersecurity could lead to inspections, audits, regulatory investigations and other proceedings, significant fines, penalties, and other relief imposed by government agencies and regulatory bodies, and claims, demands, and litigation by our customers or third parties, which may reduce demand for our solutions and result in reputational harm, substantial damages and other liabilities.
Any actual or perceived failure to comply with such laws and regulations or other actual or asserted obligations relating to privacy, data protection, cybersecurity, or our processing of data could lead to inspections, audits, regulatory investigations and other proceedings, significant fines, penalties, and other relief imposed by government agencies and regulatory bodies, and claims, demands, and litigation by our customers or third parties, which may reduce demand for our solutions and result in reputational harm, substantial damages and other liabilities.
As our costs increase, we may not be able to sustain the level of profitability we have achieved in the past. We expect our future expenses to increase as we continue to invest in and grow our business.
We may not be able to sustain the level of profitability we have achieved in the past. We expect our future expenses to increase as we continue to invest in and grow our business.
Uncertain macroeconomic and geopolitical factors, including as a result of worldwide inflationary pressures and changes in interest rates, currency exchange fluctuations, changes in trade policies and practices (including the imposition of tariffs) or other economic policies, geopolitical conflicts (like the Russian invasion of Ukraine and the regional conflict in the Middle East), and concerns about a possible domestic or global recession have led to volatility in the stock market.
Uncertain macroeconomic and geopolitical factors, including as a result of changes in trade policies and practices (including the imposition or threatened imposition of tariffs), worldwide inflationary pressures, currency exchange fluctuations, changes in interest rates, or other economic policies, geopolitical conflicts (like the Russian invasion of Ukraine and the conflict in the Middle East), and concerns about a possible domestic or global recession have led to volatility in the stock market.
Our international expansion efforts may not be successful in creating further demand for our solutions outside of the United States or in effectively selling our solutions in the international markets we enter.
Our efforts may not be successful in creating further demand for our solutions outside of the United States or in effectively selling our solutions in the international markets we enter.
If our competitors’ products, services, or technologies become more accepted than our solutions, if they are successful in bringing their products or services to market earlier than we are, if their products or services are more technologically capable than ours (including as a result of new or better use of evolving AI technologies), or if customers replace our solutions with custom-built software, then our revenues could be adversely affected.
If our actual or potential competitors’ products, services, or technologies become more accepted than our solutions, if they are successful in bringing their products or services to market earlier than we are, if their products or services are more technologically capable than ours (including as a result of new or better use of evolving AI technologies), or if customers replace our solutions with custom-built software, then our revenues could be adversely affected.
Evolving expectations and disclosure requirements related to environmental, social and governance matters expose us to risks that could adversely affect our reputation and performance. The positions we take on environmental, social, and corporate governance (ESG) matters may impact our brand and reputation, our ability to attract or retain customers, or our relationships with our employees, stockholders, and other stakeholders.
Evolving expectations and disclosure requirements related to environmental, social and governance matters expose us to risks that could adversely affect our reputation and performance. The positions we take on environmental, social, and corporate governance (“ESG”) matters may impact our brand and reputation, our ability to attract or retain customers, or our relationships with our employees, stockholders, and other stakeholders.
Changes in public Veeva Systems Inc. | Form 10-K 17 Table of Contents perception regarding the practices of the life sciences industry may result in political pressure to increase the regulation of life sciences companies in one or more of the areas described above, which may negatively impact demand for our solutions.
Changes in public Veeva Systems Inc. | Form 10-K 21 Table of Contents perception regarding the practices of the life sciences industry may result in political pressure to increase the regulation of life sciences companies in one or more of the areas described above, which may negatively impact demand for our solutions.
For example, our current and prospective customers may be required to comply with the U.S. federal legislation commonly referred to as the Physician Payments Sunshine Act, enacted as part of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, and its implementing regulations (Sunshine Act).
For example, our current and prospective customers may be required to comply with the U.S. federal legislation commonly referred to as the Physician Payments Sunshine Act, enacted as part of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, and its implementing regulations (“Sunshine Act”).
Our estimate of the market size for our solutions that we have provided publicly, sometimes referred to as total addressable market (TAM), is subject to significant uncertainty and is based on assumptions and estimates, including our internal analysis and industry experience, which may not prove to be accurate.
Our estimate of the market size for our solutions that we have provided publicly, sometimes referred to as total addressable market (“TAM”), is subject to significant uncertainty and is based on assumptions and estimates, including our internal analysis and industry experience, which may not prove to be accurate.
The risks we face in doing business internationally that have in the past adversely affected, and could in the future adversely affect, our business include: • the need and expense to localize and adapt our solutions for specific countries, including translation into foreign languages, and ensuring that our solutions enable our customers to comply with local laws and regulations; • data privacy and data sovereignty laws which require that customer data be stored and processed in a designated territory; • difficulties in staffing and managing foreign operations; • different pricing environments, longer sales cycles and longer accounts receivable payment cycles, and collections issues; • new and different sources of competition; • weaker protection for intellectual property and other legal rights than in the United States and practical difficulties in enforcing intellectual property and other rights outside of the United States; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations, including those related to employment, tax, privacy and data protection, anti-bribery, and environmental, social and governance matters; • increased financial accounting and reporting burdens and complexities; • difficulties in repatriating funds without adverse tax consequences or restrictions on the transfer of funds more generally, including as a result of sanctions, including those arising from the Russian invasion of Ukraine, which may limit our ability to receive payment from Russian banks; Veeva Systems Inc. | Form 10-K 13 Table of Contents • adverse tax consequences, including the potential for required withholding taxes; • fluctuations in the exchange rates of foreign currency in which our foreign revenues or expenses may be denominated; • changes in diplomatic relations and trade policy, including the status of relations between the United States and other countries, including China and Russia, and the implementation of or changes to export controls, trade sanctions, tariffs, and embargoes, including if the United States and other countries were to impose more significant general sanctions against Russia in response to the continuing conflict in Ukraine, which could ban the use of our products by companies or users in Russia; • public health crises, such as epidemics and pandemics; and • unstable regional and economic political conditions or armed conflicts in the markets in which we operate, including as a result of the Russian invasion of Ukraine and the regional conflict in the Middle East.
The risks we face in doing business internationally that have in the past adversely affected, and could in the future adversely affect, our business include: • the need and expense to localize and adapt our solutions for specific countries, including translation into foreign languages, and ensuring that our solutions enable our customers to comply with local laws and regulations; • data privacy and data sovereignty laws which require that customer data be stored and processed in a designated territory; • difficulties in staffing and managing foreign operations; • different pricing environments, longer sales cycles and longer accounts receivable payment cycles, and collections issues; • new and different sources of competition; • weaker protection for intellectual property and other legal rights than in the United States and practical difficulties in enforcing intellectual property and other rights outside of the United States; • laws and business practices favoring local competitors; • compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations, including those related to employment, tax, privacy and data protection, anti-bribery, and environmental, social and governance matters; • increased financial accounting and reporting burdens and complexities; • difficulties in repatriating funds without adverse tax consequences or restrictions on the transfer of funds more generally, including as a result of sanctions, including those arising from the Russian invasion of Ukraine, which may limit our ability to receive payment from Russian banks; • adverse tax consequences, including the potential for required withholding taxes; • fluctuations in the exchange rates of foreign currency in which our foreign revenues or expenses may be denominated; • changes in diplomatic relations and trade policy, including the status of relations between the United States and other countries, including China and Russia, and the implementation or threatened implementation of tariffs, export controls, trade sanctions, and embargoes, including if the United States and other countries were to impose more significant general sanctions against Russia in response to the continuing conflict in Ukraine, which could ban the use of our products by companies or users in Russia; • public health crises, such as epidemics and pandemics; and • unstable regional and economic political conditions or armed conflicts in the markets in which we operate, including as a result of the Russian invasion of Ukraine and the conflict in the Middle East.
For instance, as artificial intelligence (AI) technologies, including generative AI models, develop rapidly, threat actors are using these technologies to create sophisticated new attack methods that are increasingly automated, targeted, coordinated, and difficult to defend against.
For instance, as AI technologies, including generative AI models, develop rapidly, threat actors are using these technologies to create sophisticated new attack methods that are increasingly automated, targeted, coordinated, and difficult to defend against.
These and other developments may require us to make significant changes to our use of AI, including by limiting or restricting our use of AI, and which may require us to make significant changes to our policies and practices, which may necessitate expenditure of significant time, expense, and other resources.
These and other developments may require us to make significant changes to our use of AI, including by limiting or restricting our use of AI or AI-enabled processes, and which may require us to make significant changes to our policies and practices, which may necessitate expenditure of significant time, expense, and other resources.
Pursuant to the terms of our agreement, during the wind-down period from September 1, 2025 to September 1, 2030, we may not sell applications that utilize the Salesforce platform to new customers and our sales of applications that utilize the Salesforce platform to a customer existing at September 1, 2025 may not exceed 150% of the seats in use by each such customer as of September 1, 2025.
Our agreement with Salesforce expired on September 1, 2025, and pursuant to the terms of our agreement, during the wind-down period from September 1, 2025 to September 1, 2030, we may not sell applications that utilize the Salesforce platform to new customers and our sales of applications that utilize the Salesforce platform to a customer existing at September 1, 2025 may not exceed 150% of the seats in use by each such customer as of September 1, 2025.
Section 404 of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act) requires that we evaluate and determine the effectiveness of our internal controls over financial reporting and provide a management report on internal controls over financial reporting.
Section 404 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) requires that we evaluate and determine the effectiveness of our internal controls over financial reporting and provide a management report on internal controls over financial reporting.
In our fiscal years ended January 31, 2025, 2024, and 2023, our subscription services revenues grew by 20%, 10%, and 17% respectively, as compared to subscription services revenues from the prior fiscal years. Over the longer term, our revenue growth rates are likely to fluctuate from year to year and may decline.
In our fiscal years ended January 31, 2026, 2025, and 2024, our subscription revenues grew by 17%, 20%, and 10% respectively, as compared to subscription revenues from the prior fiscal years. Over the longer term, our revenue growth rates are likely to fluctuate from year to year and may decline.
GAAP) or difficulty identifying and correcting deficiencies in the internal controls over financial reporting of the acquired business; • adverse effects to business relationships with our existing business partners and customers as a result of the acquisition; • difficulty in retaining key personnel of the acquired business; • use of substantial portions of our available cash to consummate the acquisition; • use of resources that are needed in other parts of our business; • significant changes beyond our control to the worldwide economic environment that could negatively impact our underlying assumptions and expectations for performance of the acquired business; and • the possibility of investigation by, or the failure to obtain required approvals from, governmental authorities on a timely basis, if at all, under various regulatory schemes, including competition laws, Veeva Systems Inc. | Form 10-K 15 Table of Contents which could, among other things, delay or prevent us from completing a transaction, subject the transaction to divestiture after the fact, or otherwise restrict our ability to realize the expected financial or strategic goals of the acquisition.
GAAP) or difficulty identifying and correcting deficiencies in the internal controls over financial reporting of the acquired business; • adverse effects to business relationships with our existing business partners and customers as a result of the acquisition; • difficulty in retaining key personnel of the acquired business; • use of substantial portions of our available cash to consummate the acquisition; • use of resources that are needed in other parts of our business; • significant changes beyond our control to the worldwide economic environment that could negatively impact our underlying assumptions and expectations for performance of the acquired business; and • the possibility of investigation by, or the failure to obtain required approvals from, governmental authorities on a timely basis, if at all, under various regulatory schemes, including competition laws, which could, among other things, delay or prevent us from completing a transaction, subject the transaction to divestiture after the fact, or otherwise restrict our ability to realize the expected financial or strategic goals of the acquisition.
Our total revenues and subscription services revenue growth rates have declined in the past and may decline in the future. In our fiscal years ended January 31, 2025, 2024, and 2023, our total revenues grew by 16%, 10%, and 16% respectively, as compared to total revenues from the prior fiscal years.
Our total revenue and subscription revenue growth rates have declined in the past and may decline in the future. In our fiscal years ended January 31, 2026, 2025, and 2024, our total revenues grew by 16%, 16%, and 10% respectively, as compared to total revenues from the prior fiscal years.
Sales to customers outside the United States or with international operations expose us to risks inherent in international sales. In our fiscal year ended January 31, 2025, customers outside North America accounted for approximately 41% of our total revenues. A key element of our growth strategy is to further expand our international operations and worldwide customer base.
Sales to customers outside the United States or with international operations expose us to risks inherent in international sales. In our fiscal year ended January 31, 2026, customers outside North America accounted for approximately 40% of our total revenues. A key element of our growth strategy is to further expand our international operations and worldwide customer base.
Changes in exchange rates may negatively affect our revenues, expenses, and other operating results as expressed in U.S. dollars in the future.
Changes in exchange rates has in the past and may in the future negatively affect our revenues, expenses, and other operating results as expressed in U.S. dollars in the future.
In addition, reductions in funding of government agencies and programs relevant to the life sciences industry—such as the Food and Drug Administration, the National Institutes of Health, and Medicaid—or changes in funding priorities relevant to the life sciences industry could adversely affect the life sciences industry. • Consolidation of companies within the life sciences industry —Consolidation within the life sciences industry has accelerated in recent years, and this trend could continue.
In addition, reductions in funding and staffing of government agencies and changes in the funding and eligibility for healthcare programs relevant to the life sciences industry—such as the Food and Drug Administration, the National Institutes of Health, and Medicaid—or changes in funding priorities relevant to the life sciences industry could adversely affect the life sciences industry. • Consolidation of companies within the life sciences industry —Consolidation within the life sciences industry has accelerated in recent years, and this trend could continue.
Interruptions in our services might reduce our revenues, cause us to issue refunds to customers for prepaid and unused subscriptions, subject us to service level credit claims and potential liability, or adversely affect our renewal rates. We are currently dependent upon Salesforce, Inc’s. platform for our Veeva CRM application.
Interruptions in our services might reduce our revenues, cause us to issue refunds to customers for prepaid and unused subscriptions, subject us to service level credit claims and potential liability, or adversely affect our renewal rates. We are currently dependent upon Salesforce’s platform for our Veeva CRM application. We are currently dependent upon the Salesforce platform to deliver Veeva CRM.
In the event of a major earthquake, hurricane, or other natural disaster, or catastrophic event such as an actual or threatened public health emergency (e.g., a global pandemic), fire, extreme weather event, power loss, telecommunications failure, cyberattack, armed conflicts (including the Russian invasion of Ukraine and the regional conflict in the Middle East), or terrorist attack, we may be unable to continue our operations at full capacity or at all and may experience system interruptions, reputational harm, delays in our solution development, lengthy interruptions in our services, breaches of data security, loss of key employees, and loss of critical data, all of which could have an adverse effect on our future operating results.
In the event of a major earthquake, hurricane, or other natural disaster, or catastrophic event such as an actual or threatened public health emergency (e.g., a global pandemic), fire, extreme weather event, power loss, telecommunications failure, cyberattack, armed conflicts (including the Russian invasion of Ukraine and the conflict in the Middle East), or terrorist attack, we may be unable to continue our operations at full capacity or at all and may experience system interruptions, reputational harm, delays in our solution development, lengthy interruptions in our services, breaches Veeva Systems Inc. | Form 10-K 18 Table of Contents of data security, loss of key employees, and loss of critical data, all of which could have an adverse effect on our future operating results.
The migration of our CRM customers to our Vault CRM applications built on our own Veeva Vault platform could cause business disruptions for customers, lead to the loss of our customers to competitors, and adversely affect our operating results.
The migration of our CRM customers to our Vault CRM applications built on our own Veeva Vault platform could cause business disruptions for customers and adversely affect our operating results.
These positions or a failure or perceived failure to meet certain stated ESG commitments could adversely affect our reputation, financial performance, and growth, and expose us to increased scrutiny from the investment community as well as enforcement authorities. Standards for tracking and reporting ESG matters continue to evolve.
These positions or a failure or perceived failure to meet certain stated ESG commitments could adversely affect our reputation, financial performance, and growth, and expose us to increased scrutiny from the investment community as well as enforcement authorities. Standards for tracking and reporting ESG matters continue to evolve on a state, national, and international level.
As a PBC, we have unique legal obligations. We are required to adopt and include in our certificate of incorporation a public benefit purpose that is intended to have positive effects on a category of persons, entities or communities other than stockholder financial interest.
We are required to adopt and include in our certificate of incorporation a public benefit purpose that is intended to have positive effects on a category of persons, entities or communities other than stockholder financial interest.
We rely on third-party providers—including Salesforce, Inc. and Amazon Web Services—for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our cloud solutions. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability. Our solutions are hosted from and use computing infrastructure provided by third parties.
Risks Related to Our Reliance on Third Parties We rely on third-party providers—including Amazon Web Services and Salesforce—for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our cloud solutions. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability.
If we are not timely or are unable to provide this report, or if the report is not viewed favorably, our reputation and status as a public benefit corporation may be harmed.
If we are not timely or are unable to provide this report, or if the report is not viewed favorably, our reputation and status as a PBC may be harmed.
Uncertainty around new and emerging AI applications and regulations may require us to make significant changes to our use of AI, including by limiting or restricting such use, and may cause us to incur increased research and development costs or compliance costs, or divert resources from other development efforts to address issues related to AI governance.
Uncertainty around new and emerging AI applications and regulations may also require us to make significant changes to our use of AI and may cause us to incur increased research and development costs or compliance costs, or divert resources from other development efforts to address issues related to AI governance.
Factors that may affect the renewal rate for our solutions and our ability to sell additional solutions and user subscriptions include: • the price, performance, and functionality of our solutions; • the effectiveness of our professional services; • the strength of our business relationships with our customers; • the availability, price, performance, and functionality of competing solutions and services; • our ability to develop complementary solutions, applications, and services; • the stability, performance, and security of our hosting infrastructure and hosting services; and Veeva Systems Inc. | Form 10-K 23 Table of Contents • the business environment of our customers and, in particular, reductions in spending or headcount, and acquisitions of or business combinations between our customers or other business developments that may result in reductions in user subscriptions.
Factors that may affect the renewal rate for our solutions and our ability to sell additional solutions and user subscriptions include: • the price, performance, and functionality of our solutions; • the effectiveness of our professional services; • the strength of our business relationships with our customers; • the availability, price, performance, and functionality of competing solutions and services; • our ability to develop complementary solutions, applications, and services; • the stability, performance, and security of our hosting infrastructure and hosting services; and • the business environment of our customers and, in particular, reductions in spending or headcount, and acquisitions of or business combinations between our customers or other business developments that may result in reductions in user subscriptions.
These various laws, regulations, and legislative developments have potentially far-reaching consequences and have and may continue to require us to modify our solutions and data management practices and incur substantial expense in order to comply.
These various laws, regulations, and legislative developments have potentially far-reaching consequences and have and may continue to require us to modify our solutions, our global support business, and our data management practices and incur substantial expense in our efforts to comply.
Also, particularly with respect to expansion orders for our Commercial Solutions, because the term of orders for additional end users or applications is commonly less than one year to align to the renewal date of existing Commercial Solutions orders, the annualized value of such orders may not be completely reflected in deferred revenue at any single point in time.
Also, particularly with respect to expansion orders for our Commercial Solutions, because the term of orders for additional end users or applications is commonly less than one year to align to the renewal date of existing Commercial Solutions orders, the annualized value of such orders Veeva Systems Inc. | Form 10-K 28 Table of Contents may not be completely reflected in deferred revenue at any single point in time.
Our success and ability to compete depend in part upon our intellectual property. As of January 31, 2025, we have filed numerous domestic and foreign patent applications and have been issued 83 U.S. patents and 13 international patents.
Our success and ability to compete depend in part upon our intellectual property. As of January 31, 2026, we have filed numerous domestic and foreign patent applications and have been issued 111 U.S. patents and 11 international patents.
If we are unable to effectively manage this increased complexity or if we are not able to provide solutions that can be used in compliance with applicable laws and regulations, customers may be unwilling to use our solutions, and any such non-compliance could result in the termination of our customer agreements or claims arising from such agreements with our customers.
If we are unable to effectively manage this increased complexity or if we are not able to provide solutions that can be Veeva Systems Inc. | Form 10-K 22 Table of Contents used in compliance with applicable laws and regulations, customers may be unwilling to use our solutions, and any such non-compliance could result in the termination of our customer agreements or claims arising from such agreements with our customers.
Additionally, the gross margin generated from professional services fees fluctuates based on a number of factors which may vary from period to period, including the average billable hours worked by our billable professional services personnel, our average hourly rates for professional services, and the margin on Veeva Systems Inc. | Form 10-K 24 Table of Contents professional services subcontracted to our third-party systems integrator partners.
Additionally, the gross margin generated from professional services fees fluctuates based on a number of factors which may vary from period to period, including the average billable hours worked by our billable professional services personnel, our average hourly rates for professional services, and the margin on professional services subcontracted to our third-party systems integrator partners.
Veeva Systems Inc. | Form 10-K 18 Table of Contents Additionally, any failure of our customers to comply with laws and regulations applicable to the functions for which they use our solutions could result in investigations by regulatory authorities, fines, penalties, or claims for substantial damages against our customers that may, in turn, harm our business or reputation.
Additionally, any failure of our customers to comply with laws and regulations applicable to the functions for which they use our solutions could result in investigations by regulatory authorities, fines, penalties, or claims for substantial damages against our customers that may, in turn, harm our business or reputation.
Any changes in third-party service levels at our computing infrastructure service providers or any related disruptions, slowdowns, failures, or other performance problems with our solutions could result in lengthy interruptions in our services, damage our customers’ stored files, or result in potential losses of customer data, any Veeva Systems Inc. | Form 10-K 21 Table of Contents of which could adversely affect our reputation.
Any changes in third-party service levels at our computing infrastructure service providers or any related disruptions, slowdowns, failures, or other performance problems with our solutions could result in lengthy interruptions in our services, damage our customers’ stored files, or result in potential losses of customer data, any of which could adversely affect our reputation.
In the event that portions of our proprietary software are determined Veeva Systems Inc. | Form 10-K 22 Table of Contents to be subject to an open-source license, we could be required to publicly release the affected portions of our source code, re-engineer all or a portion of our solutions, or otherwise be limited in the licensing of our solutions, each of which could reduce or eliminate the value of our solutions.
In the event that portions of our proprietary software are determined to be subject to an open-source license, we could be required to publicly release the affected portions of our source code, re-engineer all or a portion of our solutions, or otherwise be limited in the licensing of our solutions, each of which could reduce or eliminate the value of our solutions.
Accordingly, our quarterly results should not be relied upon as an indication of future performance. Additionally, from time to time, we issue guidance and provide commentary regarding our expectations for certain future financial results and other metrics on both a near-term and long-term basis.
Accordingly, our Veeva Systems Inc. | Form 10-K 26 Table of Contents quarterly results should not be relied upon as an indication of future performance. Additionally, from time to time, we issue guidance and provide commentary regarding our expectations for certain future financial results and other metrics on both a near-term and long-term basis.
Salesforce, Inc. also has the right to terminate the agreement early in certain circumstances, including in the event of a material breach of the agreement by us, or if Salesforce, Inc. is subjected to third-party intellectual property infringement claims based on our solutions (except to the extent based on the Salesforce platform) or our trademarks and we do not remedy such infringement in accordance with the agreement.
Salesforce also has the right, in certain circumstances, to terminate the wind-down period early, including in the event of a material breach of the agreement by us, or if Salesforce is subjected to third-party intellectual property infringement claims based on our solutions (except to the extent based on the Salesforce platform) or our Veeva Systems Inc. | Form 10-K 25 Table of Contents trademarks and we do not remedy such infringement in accordance with the agreement.
Unanticipated changes in our effective tax rate and additional tax liabilities, including as a result of our international operations or implementation of new tax rules, could harm our future results. We are subject to income taxes in the United States and various foreign jurisdictions.
Veeva Systems Inc. | Form 10-K 29 Table of Contents Unanticipated changes in our effective tax rate and additional tax liabilities, including as a result of our international operations or implementation of new tax rules, could harm our future results. We are subject to income taxes in the United States and various foreign jurisdictions.
In addition, if the public perceives that we are not successful in our public benefit purpose, or that our pursuit of our public benefit purpose is having a negative effect on the financial interests of our stockholders, that perception could negatively affect our reputation, which could adversely affect our business and results of operations.
In addition, if the public perceives that we are not successful in our public benefit purpose, or that our pursuit of our public benefit purpose is having a negative effect on the financial interests of our Veeva Systems Inc. | Form 10-K 32 Table of Contents stockholders, that perception could negatively affect our reputation, which could adversely affect our business and results of operations.
In addition to those risks described in this “Risk Factors” section, other factors have in the past and could in the future impact the value of our common stock, including: • fluctuations in the valuation of companies perceived by investors to be comparable to us, such as high-growth or cloud companies, or in valuation metrics, such as our price to revenues ratio; • overall performance of the stock market; • changes in our financial, operating or other metrics, regardless of whether we consider those metrics as reflective of the current state or long-term prospects of our business, and how those results compare to securities analyst expectations, including whether those results fail to meet, exceed, or significantly exceed securities analyst expectations; • changes in the forward-looking estimates of our financial, operating, or other metrics, how those estimates compare to securities analyst expectations, or changes in recommendations by securities analysts that follow our common stock; • announcements of customer additions and customer cancellations or delays in customer purchases; • the net increase in the number of customers, either independently or as compared to published expectations of industry, financial or other analysts that cover us; • announcements by us or by our competitors of technological innovations, new solutions, enhancements to services, strategic alliances or significant agreements; • announcements by us or by our competitors of mergers or other strategic acquisitions or rumors of such transactions; • the economy as a whole and market conditions within our industry and the industries of our customers; • macroeconomic and geopolitical factors and instability and volatility in the global financial markets; • future monetary policy changes in the United States and globally; • the operating performance and market value of other comparable companies; • securities or industry analysts downgrading our common stock or publishing inaccurate or unfavorable research about our business; • trading activity by directors, executive officers (in particular our Chief Executive Officer who holds a significant portion of our outstanding common stock and a significant number of vested options), and other significant stockholders, or the perception in the market that the holders of a large number of shares intend to sell their shares; • issuances of shares of common stock in connection with our equity compensation plan, acquisitions, financings, and exercises of stock options resulting in dilution to our existing stockholders; and • any other factors discussed herein.
In addition to those risks described in this “Risk Factors” section, other factors have in the past and could in the future impact the value of our common stock, including: • fluctuations in the valuation of companies perceived by investors to be comparable to us, such as high-growth, cloud, or AI companies, or in valuation metrics, such as our price to revenues ratio; • overall performance of the stock market; • changes in our financial, operating or other metrics, regardless of whether we consider those metrics as reflective of the current state or long-term prospects of our business, and how those results compare to securities analyst expectations, including whether those results fail to meet, exceed, or significantly exceed securities analyst expectations; • changes in the forward-looking estimates of our financial, operating, or other metrics, how those estimates compare to securities analyst expectations, or changes in recommendations by securities analysts that follow our common stock; • announcements of customer additions and customer cancellations or delays in customer purchases; • the net increase in the number of customers, either independently or as compared to published expectations of industry, financial or other analysts that cover us; • announcements by us or by our competitors of technological innovations, new solutions, enhancements to services, strategic alliances or significant agreements; • announcements by us or by our competitors of mergers or other strategic acquisitions or rumors of such transactions; • the economy as a whole and market conditions within our industry and the industries of our customers, including economic and regulatory uncertainty, as well as market perception of the software industry generally; • macroeconomic and geopolitical factors and instability and volatility in the global financial markets; Veeva Systems Inc. | Form 10-K 33 Table of Contents • future monetary policy changes in the United States and globally; • factors that impact the life sciences industry (including government funding and staffing of relevant agencies and research, drug pricing regulation, healthcare funding and eligibility reforms, or other regulatory or policy changes); • the operating performance and market value of other comparable companies; • securities or industry analysts downgrading our common stock or publishing inaccurate or unfavorable research about our business; • trading activity by directors, executive officers (in particular our Chief Executive Officer who holds a significant portion of our outstanding common stock and a significant number of vested options), and other significant stockholders, or the perception in the market that the holders of a large number of shares intend to sell their shares; • our ability to execute on our share repurchase program as planned, including whether we meet internal or external expectations around the timing or price of share repurchases, and any changes to the program; • issuances of shares of common stock in connection with our equity compensation plan, acquisitions, financings, and exercises of stock options resulting in dilution to our existing stockholders; and • any other factors discussed herein.
Risks Related to the Principal Industry We Serve Nearly all of our revenues are generated by sales to customers in the life sciences industry, and factors that adversely affect this industry, including mergers within the life sciences industry or regulatory changes, could also adversely affect us. Nearly all of our sales are to customers in the life sciences industry.
Veeva Systems Inc. | Form 10-K 20 Table of Contents Risks Related to the Principal Industry We Serve Nearly all of our revenues are generated by sales to customers in the life sciences industry, and factors that adversely affect this industry, including mergers within the life sciences industry or regulatory changes, could also adversely affect us.
Negative publicity related to a decision by us to initiate such enforcement actions against a customer or former customer, regardless of its accuracy, may adversely impact our other customer relationships or prospective customer relationships, harm our brand and business and could cause the market price of our common stock to decline.
Furthermore, negative publicity related to a Veeva Systems Inc. | Form 10-K 31 Table of Contents decision by us to initiate such enforcement actions against a customer or former customer, regardless of its accuracy, may adversely impact our other customer relationships or prospective customer relationships, harm our brand and business and could cause the market price of our common stock to decline.
In our fiscal years ended January 31, 2025, 2024, and 2023, our top 10 customers accounted for 28%, 28%, and 29% of our total revenues, respectively.
In each of our fiscal years ended January 31, 2026, 2025, and 2024, our top 10 customers accounted for 28% of our total revenues.
The occurrence of any of these events could result in diminishing demand for our solutions, a reduction of our revenues, an increase in our bad debt expense or in collection cycles for accounts receivable, or could require us to incur the expense of litigation or substantial liability.
The occurrence of any of these events could result in diminishing demand for our Veeva Systems Inc. | Form 10-K 15 Table of Contents solutions, a reduction of our revenues, an increase in our bad debt expense or in collection cycles for accounts receivable, or could require us to incur the expense of litigation or substantial liability.
Our insurance may not be Veeva Systems Inc. | Form 10-K 10 Table of Contents adequate to cover losses associated with such events, and such insurance may not cover all of the types of costs, expenses, and losses we could incur to respond to and remediate a security breach or incident.
Our insurance may not be adequate to cover losses associated with such events, and such insurance may not cover all of the types of costs, expenses, and losses we could incur to respond to and remediate a security breach or incident.
We utilize Amazon Web Services with respect to applications built on the Veeva Vault platform. Our Veeva CRM application is built on a platform provided by Salesforce, Inc. that utilizes hosting and computing infrastructure provided by Salesforce, Inc.
Our solutions are hosted from and use computing infrastructure provided by third parties. We utilize Amazon Web Services with respect to applications built on the Veeva Vault platform. Our Veeva CRM application is built on a platform provided by Salesforce that utilizes hosting and computing infrastructure provided by Salesforce.
Veeva Systems Inc. | Form 10-K 11 Table of Contents Our revenues are relatively concentrated within a small number of key customers, and the loss of one or more of such key customers, or their failure to renew or expand user subscriptions, could slow the growth rate of our revenues or cause our revenues to decline.
Our revenues are relatively concentrated within a small number of key customers, and the loss of one or more of such key customers, or their failure to renew or expand user subscriptions, could slow the growth rate of our revenues or cause our revenues to decline.
Veeva Systems Inc. | Form 10-K 12 Table of Contents Our sales cycles can be long and unpredictable, and our sales efforts require considerable investment of resources. If our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our operating results and growth would be harmed.
Our sales cycles can be long and unpredictable, and our sales efforts require considerable investment of resources. If our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our operating results and growth would be harmed.
We may suffer damages, which could be significant, or other harm from these lawsuits and we may be sued for infringement or misappropriation of third-party intellectual property in the future. • We may acquire other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders, and otherwise disrupt our operations and adversely affect our operating results.
We may suffer damages, which could be significant, or other harm from these lawsuits. • We may acquire other companies or technologies, which could divert our management’s attention, result in additional dilution to our stockholders, and otherwise disrupt our operations and adversely affect our operating results.
We also expect laws, regulations, industry standards and other obligations in relating to privacy, data protection, and cybersecurity to continue to evolve, and that there will continue to be new, modified, and re-interpreted laws, regulations, standards, and other obligations in these areas.
We expect these laws and regulations to continue to evolve, and that there will continue to be new, modified, and re-interpreted laws, regulations, standards, and other obligations relating to privacy, data protection, and cybersecurity, introducing uncertainty and increasing complexity.
As a result, our stock price has changed significantly in recent periods, and we expect the trading price of our common stock will likely continue to be volatile for the Veeva Systems Inc. | Form 10-K 29 Table of Contents foreseeable future.
As a result, our stock price has changed significantly in recent periods, and we expect the trading price of our common stock will likely continue to be volatile for the foreseeable future.
In addition, we have experienced, and may in the future experience, service disruptions, degradations, outages, and other performance problems. These types of problems may be caused by a variety of factors, including human or software errors, viruses, cyberattacks, fraud, spikes in customer usage, problems associated with our third-party computing infrastructure and network providers, infrastructure changes, and denial of service issues.
These types of problems may be caused by a variety of factors, including human or software errors, viruses, cyberattacks, fraud, spikes in customer usage, problems associated with our third-party computing infrastructure and network providers, infrastructure changes, and denial of service issues.
If we fail to maintain employee productivity and collaboration, our ability to attract and retain highly qualified employees and to achieve our business objectives could be negatively affected. Veeva Systems Inc. | Form 10-K 14 Table of Contents Catastrophic events could disrupt our business and adversely affect our operating results.
If we fail to maintain employee productivity and collaboration, our ability to attract and retain highly qualified employees and to achieve our business objectives could be negatively affected. Catastrophic events could disrupt our business and adversely affect our operating results.
We may be unable to sufficiently accommodate short-term increases in customer demand for technical support services to our customers’ satisfaction. Increased customer demand for our technical support services, without corresponding revenues, could increase costs and adversely affect our operating results.
Once our solutions are deployed, our customers depend on our support organization to resolve technical issues relating to our solutions. We may be unable to sufficiently accommodate short-term increases in customer demand for technical support services to our customers’ satisfaction. Increased customer demand for our technical support services, without corresponding revenues, could increase costs and adversely affect our operating results.
We anticipate that we will continue to rely on such third-party software and development tools in the future. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace.
Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace.
In addition, our master subscription agreements governing multi-year orders generally include a right to terminate for convenience. Certain customers have exercised that right prior to the contracted end date, and other customers may also choose to do so in the future.
In addition, certain customers have in the past exercised their right to reduce usage or exercise termination rights, and other customers may also choose to do so in the future. Our master subscription agreements governing multi-year orders generally include a right to terminate for convenience.
Customers expect that our solutions can be used in compliance with applicable data protection, data privacy and cybersecurity laws and regulations.
In addition to our own processing of personal data, our customers expect that our solutions can be used to enable their compliance with applicable data protection, data privacy, and cybersecurity laws and regulations.
Our experience in the United States and other international markets in which we already have a presence may not be relevant to our ability to expand in other markets.
Our experience in the United States and other international markets in which we already have a presence may not be relevant to our ability to expand in Veeva Systems Inc. | Form 10-K 16 Table of Contents other markets.
On February 1, 2021, after approval by our stockholders, we became a Delaware public benefit corporation (PBC). There are a very limited number of publicly traded PBCs, we are the first publicly traded company to convert to a PBC, and we are the largest publicly traded company, as measured by revenue or market capitalization, to operate as a PBC.
We are a Delaware public benefit corporation (“PBC”). There are a very limited number of publicly traded PBCs, we are the first publicly traded company to convert to a PBC, and we are the largest publicly traded company, as measured by revenue or market capitalization, to operate as a PBC. As a PBC, we have unique legal obligations.
Significant changes in drug pricing policy or regulation could result in lower revenues and profits for life sciences companies and reduced demand for our products.
Other drug pricing reforms have been discussed and may be proposed in the future. Significant changes in drug pricing policy or regulation could result in lower revenues and profits for life sciences companies and reduced demand for our products.
Other countries have imposed or may in the future impose data localization obligations, cross-border data transfer restrictions, and other country specific privacy and security requirements which could be problematic to cloud software and data providers.
In addition, certain laws and regulations impose data localization obligations, cross-border data transfer restrictions, and other country-specific privacy and security requirements, which could be problematic to cloud software and data providers.
Moreover, a significant portion of the purchase price of companies we acquire may be allocated to acquired intangible assets and goodwill, which we must assess for impairment at least annually.
In addition, if an acquired business fails to meet our expectations, our operating results, business, and financial position may suffer. Moreover, a significant portion of the purchase price of companies we acquire may be allocated to acquired intangible assets and goodwill, which we must assess for impairment at least annually.
Increasingly complex regulations relating to privacy, data protection, and cybersecurity are burdensome, may reduce demand for our solutions, and non-compliance may impose significant liabilities. Our customers use our solutions to collect, use, store, disclose, and otherwise process personal data regarding their employees, healthcare professionals, and patients. Patient data may include sensitive health data.
Increasingly complex regulations relating to privacy, data protection, and cybersecurity are burdensome, may reduce demand for our solutions, and non-compliance may impose significant liabilities. We process personal data on behalf of our customers, who use our solutions to manage personal data of their employees, healthcare professionals, patients, and related individuals.
It may take us significant time, and we may incur significant expense, to effectively market and sell these solutions, develop other new solutions, or make enhancements to our existing solutions.
We cannot be certain that we will be successful with respect to newer solutions, including AI technologies, and markets. It may take us significant time, and we may incur significant expense, to effectively market and sell these solutions, develop other new solutions, or make enhancements to our existing solutions.
This balancing obligation may allow our directors to make decisions that they could not have made pursuant to the fiduciary duties applicable prior to our PBC conversion, and such decisions may not maximize short-term stockholder value.
Our directors have significant latitude under this standard and there is no guarantee that a conflict would be resolved in favor of our stockholders. This balancing obligation may allow our directors to make decisions that they could not have made pursuant to the fiduciary duties applicable prior to our PBC conversion, and such decisions may not maximize short-term stockholder value.
Each of the GDPR and UK GDPR impose significant data protection obligations and provide for substantial penalties and other remedies for noncompliance. We maintain active self-certifications under the EU-U.S. Data Privacy Framework, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. Data Privacy Framework as set forth by the U.S. Department of Commerce.
We maintain active self-certifications under the EU-U.S. Data Privacy Framework, the UK Extension to the EU-U.S. Data Privacy Framework, and the Swiss-U.S. Data Privacy Framework as set forth by the U.S. Department of Commerce.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur CISO’s cybersecurity experience includes serving as a security architect and Director of Security Engineering at Veeva, and overseeing security, automation, and performance testing for other technology companies. Cybersecurity risk management is integrated into our broader risk management framework. We have a security points of contact program, which embeds security experts into product development, services, and IT teams.
Biggest changeCybersecurity risk management is integrated into our broader risk management framework. We have a security points of contact program, which embeds security experts into product development, services, and IT teams. In addition, a security council, chaired by our CISO, meets monthly to discuss the security program, security incidents, and ongoing program objectives.
These solutions and practices include identity and access management, separation of duties, secure software development, network and data security, and system hardening. Veeva Systems Inc. | Form 10-K 32 Table of Contents • Vulnerability and penetration testing . We commission annual vulnerability and penetration testing of certain systems by industry-recognized, third-party security specialists.
These solutions Veeva Systems Inc. | Form 10-K 36 Table of Contents and practices include identity and access management, separation of duties, secure software development, network and data security, and system hardening. • Vulnerability and penetration testing . We commission annual vulnerability and penetration testing of certain systems by industry-recognized, third-party security specialists.
Our day-to-day cybersecurity and technology risk management efforts, including oversight of our information security management system, are led by our EVP of Internal Operations, a member of our executive leadership team with over three decades of experience in the field, whose cybersecurity experience includes serving as our Chief Information Officer and in executive roles at other companies leading security, operations, audit, and compliance teams.
Our day-to-day cybersecurity and technology risk management efforts, including oversight of our information security management system, are led by our Chief Information Officer (“CIO”), a member of our executive leadership team with over three decades of experience in the field, whose cybersecurity experience includes serving in executive roles at other companies leading security, operations, audit, and compliance teams.
Process for Identifying Material Cybersecurity Incidents Potentially material cybersecurity incidents are escalated according to our Security Incident Management Policy to a management response team comprising our EVP of Internal Operations, Chief Financial Officer, Chief Accounting Officer, General Counsel, Chief Privacy Officer, and Associate General Counsel (Corporate).
Process for Identifying Material Cybersecurity Incidents Potentially material cybersecurity incidents are escalated according to our Security Incident Management Policy to a management response team comprising our Chief Information Officer, Chief Financial Officer, Chief Accounting Officer, General Counsel, Chief Privacy Officer, and Associate General Counsel (Corporate).
Risks Management and Strategy Information Security Management System We maintain a comprehensive Information Security Management System (ISMS) that is designed to ensure the confidentiality, integrity, and availability of customer data, corporate data (such as intellectual property or source code), employee data, and our systems.
Risks Management and Strategy Information Security Management System We maintain a comprehensive Information Security Management System (“ISMS”), which is managed by our CISO and is designed to ensure the confidentiality, integrity, and availability of customer data, corporate data (such as intellectual property or source code), employee data, and our systems.
We have application, database, network, and resource monitoring in place that are designated to identify vulnerabilities, protect our applications, and alert incident response personnel. Security incidents are addressed by our Security Incident Management Policy, which includes a formal incident response process.
Critical elements of our ISMS include: • Operational measures to monitor and respond to data breaches and cyberattacks . We have application, database, network, and resource monitoring in place that are designated to identify vulnerabilities, protect our applications, and alert incident response personnel. Security incidents are addressed by our Security Incident Management Policy, which includes a formal incident response process.
Our ISMS is founded on the following industry-leading and regulatory standards: • ISO 9001:2015 – Quality Management Systems • ISO/IEC 27001:2013 – Information Security Management • SOC2 Type II – System and Organization Controls • SEI Capability Maturity Model Integration (v1.3) • IT Infrastructure Library (ITIL) version 3 • ICH Q9 – Quality Risk Management We have achieved ISO 27001 certification for our ISMS, which is managed by our CISO.
Our ISMS is founded on the following industry-leading and regulatory standards: • ISO 9001:2015 – Quality Management Systems • ISO/IEC 27001:2022 – Information Security Management • SOC2 Type II – System and Organization Controls • SEI Capability Maturity Model Integration (v1.3) • IT Infrastructure Library (“ITIL”) version 3 • ICH Q9 – Quality Risk Management Our ISMS is certified to ISO/IEC 27001 and incorporates the ISO/IEC 27017 and ISO/IEC 27018 codes of practice for cloud security and privacy.
In addition, a security council, chaired by our CISO, meets monthly to discuss the security program, security incidents, and ongoing program objectives. The council is comprised of senior leaders in product development, operations, security, quality, and services, and helps ensure that security remains a top priority across the enterprise.
The council is comprised of senior leaders in product development, operations, security, quality, and services, and helps ensure that security remains a top priority across the enterprise.
ITEM 1C. CYBERSECURITY. We recognize the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data.
ITEM 1C. CYBERSECURITY. We recognize the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data. Governance The Cybersecurity Committee of our board of directors exercises oversight over our cybersecurity and privacy programs and controls for our products and our internal-use information technology.
Our Chief Information Security Officer (CISO), who has over two decades of experience in cybersecurity, including over five years at Veeva, reports to the EVP of Internal Operations and oversees our security team.
Our Chief Information Security Officer (“CISO”), who has over two decades of experience in cybersecurity, including over five years at Veeva, reports to the CIO and oversees our security team. Our CISO’s cybersecurity experience includes serving as a security architect and Director of Security Engineering at Veeva, and overseeing security, automation, and performance testing for other technology companies.
Veeva Systems Inc. | Form 10-K 31 Table of Contents Governance Our board of directors formed a Cybersecurity Committee to exercise oversight over our cybersecurity and privacy programs and controls for our products and our internal-use information technology. The Cybersecurity Committee is chaired by a director with cybersecurity expertise and board and executive experience at large technology companies.
The Cybersecurity Committee is chaired by a director with cybersecurity expertise and board and executive experience at large technology companies.
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As a data processor, we are the custodian of customer information that can be both confidential and sensitive. We are also certified to ISO 27018 for privacy controls. Critical elements of our ISMS include: • Operational measures to monitor and respond to data breaches and cyberattacks .

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe believe that we will be able to obtain additional space on commercially reasonable terms. See note 10 of the notes to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for more information about our lease commitments.
Biggest changeWe believe that we will be able to obtain additional space on commercially reasonable terms. See note 9 of the notes to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for more information about our lease commitments. Veeva Systems Inc. | Form 10-K 37 Table of Contents
We also lease offices in various locations, including North America, Europe, Asia Pacific, and Latin America. We expect to expand our facilities capacity in certain field locations during our fiscal year ending January 31, 2026 and may further expand our facilities capacity after January 31, 2026 as our employee base grows.
We also lease offices in various locations, including North America, Europe, Asia Pacific, and Latin America. We expect to expand our facilities capacity in certain field locations during our fiscal year ending January 31, 2027 and may further expand our facilities capacity after January 31, 2027 as our employee base grows.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS. From time to time, we may be involved in legal proceedings and subject to claims incident to the ordinary course of business.
Biggest changeITEM 3. LEGAL PROCEEDINGS. From time to time, we may be involved in legal proceedings and subject to claims incident to the ordinary course of business. For information regarding certain legal proceedings, see note 13 of the notes to our consolidated financial statements, which is incorporated herein by reference.
Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any other legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial position.
Although the results of legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial position.
Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. PART II.
Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained.
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For information regarding certain current legal proceedings, see note 1 4 of the notes to our consolidated Veeva Systems Inc. | Form 10-K 33 Table of Contents financial statements, which is incorporated herein by reference.
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In addition to the legal proceedings referenced in note 1 4 , we are involved in the following additional legal proceedings which may be material to our business. California Non-Compete Matter On July 17, 2017, we filed a complaint in the Superior Court of the State of California in the County of Alameda against Medidata, IQVIA, and Sparta Systems, Inc.
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(Veeva Systems Inc. v. Medidata Solutions, Inc., Quintiles IMS Incorporated, IMS Software Services, LTD., and Sparta Systems, Inc., Case No. RG17868081). Our lawsuit seeks declaratory and injunctive relief concerning the use of non-compete, confidentiality, and non-disparagement agreements by these companies. Since the original complaint was filed, there have been extensive requests to the court for rulings on contested questions.
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On June 9, 2023, IQVIA, the only defendant remaining in the case, filed a counter-complaint seeking a declaration that its non-compete agreements comply with California law. On March 25, 2024, the trial court judge set a trial date of June 16, 2025 on the consolidated claims.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe chart assumes $100 was invested at the close of market on January 31, 2020 in the common stock of Veeva Systems Inc., the S&P 500 Index, and the S&P 1500 Application Software Index and Veeva Systems Inc. | Form 10-K 34 Table of Contents assumes the reinvestment of any dividends.
Biggest changeThe chart assumes $100 was invested at the close of market on January 31, 2021 in the common stock of Veeva Systems Inc., the S&P 500 Index, and the S&P 1500 Application Software Index and assumes the reinvestment of any dividends. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Price of Common Stock Our common stock is listed on the New York Stock Exchange under the symbol “VEEV.” Stockholders As of January 31, 2025, we had 17 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Price of Common Stock Our common stock is listed on the New York Stock Exchange under the symbol “VEEV.” Stockholders As of January 31, 2026, we had 17 holders of record of our common stock.
Stock Performance Graph This performance graph shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or incorporated by reference into any of our other filings under the Exchange Act or the Securities Act except to the extent we specifically incorporate it by reference into such filing.
Stock Performance Graph This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference into any of our other filings under the Exchange Act or the Securities Act except to the extent we specifically incorporate it by reference into such filing.
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Purchases of Equity Securities by the Issuer and Affiliated Purchasers None. Recent Sales of Unregistered Securities None.
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Dividend Policy We have never declared or paid any cash dividends on our capital stock. We currently anticipate that we will retain future earnings for the development, operation, and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future.
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The stock price performance on the following graph is not necessarily indicative of future stock price performance. January 31, 2020 2021 2022 2023 2024 2025 Veeva Systems Inc. 100.00 188.55 161.34 116.33 141.47 159.10 S&P 500 100.00 117.25 144.56 132.68 160.30 202.59 S&P 1500 Application Software Index 100.00 131.94 146.32 118.53 178.89 194.28 ITEM 6. [RESERVED].
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Purchases of Equity Securities by the Issuer and Affiliated Purchasers The following table presents information with respect to our repurchases of common stock during the three months ended January 31, 2026: Period Total Number of Shares Purchased (2) Average Price Paid per Share (1) Total Number of Shares Purchased as a Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under Publicly Announced Program (in millions) November 1 - 30, 2025 — $ — — $ — December 1 - 31, 2025 — $ — — $ — January 1 - 31, 2026 801,735 $ 224.43 801,735 $ 1,820 Total 801,735 $ 224.43 801,735 $ 1,820 (1) Amounts exclude commissions.
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(2) On January 5, 2026, we announced that our board of directors authorized a share repurchase program of up to $2 billion of our outstanding shares of common stock. Under the program, we may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, and other transactions in accordance with applicable securities laws.
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The share repurchase program has a term of two years, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. See note 10 of of the notes to our consolidated financial statements for additional information related to share repurchases. Recent Sales of Unregistered Securities None.
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Veeva Systems Inc. | Form 10-K 39 Table of Contents January 31, 2021 2022 2023 2024 2025 2026 Veeva Systems Inc. 100.00 85.57 61.70 75.03 84.38 73.77 S&P 500 100.00 123.29 113.16 136.72 172.78 201.03 S&P 1500 Application Software Index 100.00 110.90 89.84 135.58 147.25 125.07

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeResults of Operations The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Fiscal year ended January 31, 2025 2024 (in thousands) Consolidated Statements of Comprehensive Income Data: Revenues: Subscription services $ 2,284,659 $ 1,901,593 Professional services and other 461,960 462,080 Total revenues 2,746,619 2,363,673 Cost of revenues (1) : Cost of subscription services 323,070 290,577 Cost of professional services and other 376,566 386,714 Total cost of revenues 699,636 677,291 Gross profit 2,046,983 1,686,382 Operating expenses (1) : Research and development 693,078 629,031 Sales and marketing 396,726 381,472 General and administrative 265,744 246,545 Total operating expenses 1,355,548 1,257,048 Operating income 691,435 429,334 Other income, net 227,946 158,689 Income before income taxes 919,381 588,023 Income tax provision 205,243 62,318 Net income $ 714,138 $ 525,705 (1) Includes stock-based compensation as follows: Cost of revenues: Cost of subscription services $ 6,591 $ 6,483 Cost of professional services and other 51,377 53,237 Research and development 185,901 172,876 Sales and marketing 90,178 90,865 General and administrative 103,303 70,272 Total stock-based compensation $ 437,350 $ 393,733 Fiscal Year Ended January 31, 2025 and 2024 The following is a discussion of our results of operations for the year ended January 31, 2025 compared to the year ended January 31, 2024 .
Biggest changeVeeva Systems Inc. | Form 10-K 43 Table of Contents Results of Operations The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Fiscal year ended January 31, 2026 2025 (in thousands) Consolidated Statements of Comprehensive Income Data: Revenues: Subscription $ 2,684,194 $ 2,284,659 Professional services and other 511,117 461,960 Total revenues 3,195,311 2,746,619 Cost of revenues (1) : Cost of subscription 362,888 323,070 Cost of professional services and other 419,131 376,566 Total cost of revenues 782,019 699,636 Gross profit 2,413,292 2,046,983 Operating expenses (1) : Research and development 767,386 693,078 Sales and marketing 428,798 396,726 General and administrative 300,739 265,744 Total operating expenses 1,496,923 1,355,548 Operating income 916,369 691,435 Other income, net 278,139 227,946 Income before income taxes 1,194,508 919,381 Income tax provision 285,602 205,243 Net income $ 908,906 $ 714,138 (1) Includes stock-based compensation as follows: Cost of subscription $ 7,342 $ 6,591 Cost of professional services and other 57,376 51,377 Research and development 204,893 185,901 Sales and marketing 97,355 90,178 General and administrative 105,737 103,303 Total stock-based compensation $ 472,703 $ 437,350 Fiscal Year Ended January 31, 2026 and 2025 The following is a discussion of our results of operations for the year ended January 31, 2026 compared to the year ended January 31, 2025 .
We refer to these costs as “allocated overhead.” Cost of Revenues Cost of subscription services revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including Salesforce, Inc. and Amazon Web Services, personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, expenses associated with computer equipment and software, and allocated overhead.
We refer to these costs as “allocated overhead.” Cost of Revenues Cost of subscription revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including Amazon Web Services and Salesforce, Inc., personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, expenses associated with computer equipment and software, and allocated overhead.
Our agreements typically provide that orders will automatically renew unless notice of non-renewal is provided in advance. Subscription services revenues are affected primarily by the number of customers, the scope of the subscription purchased by each customer (for example, the number of end users or other subscription usage metric) and the number of solutions subscribed to by each customer.
Our agreements typically provide that orders will automatically renew unless notice of non-renewal is provided in advance. Subscription revenues are affected primarily by the number of customers, the scope of the subscription purchased by each customer (for example, the number of end users or other subscription usage metric) and the number of solutions subscribed to by each customer.
Sales commissions are costs of obtaining new customer contracts and are capitalized and then amortized over a period of benefit that we have determined to be three years. General and Administrative . General and administrative expenses consist of employee-related expenses for our executive, finance and accounting, legal, employee success, management information systems personnel, and other administrative employees.
Sales commissions are costs of obtaining new customer contracts and are capitalized and then amortized over a period of benefit that we have determined to be three years. General and Administrative . General and administrative expenses consist of employee-related expenses for our finance and accounting, legal, employee success, management information systems personnel, and other administrative employees.
The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Many of our applications for R&D are used by smaller, earlier-stage, pre-commercial companies, some of which may not reach the commercialization stage.
The combined customer counts for Commercial Solutions and R&D and Quality Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Many of our applications for R&D are used by smaller, earlier-stage, pre-commercial companies, some of which may not reach the commercialization stage.
Subscription services revenues are recognized ratably over the respective noncancellable subscription term because of the continuous transfer of control to the customer. Our master subscription agreements governing multi-year orders generally include a termination for convenience right for our customers.
Subscription revenues are generally recognized ratably over the respective noncancellable subscription term because of the continuous transfer of control to the customer. Our master subscription agreements governing multi-year orders generally include a termination for convenience right for our customers.
Under currently enacted tax laws, if we were to choose to repatriate the funds we have designated as indefinitely Veeva Systems Inc. | Form 10-K 44 Table of Contents reinvested outside the United States, such amounts may be subject to certain jurisdictional taxes (e.g., withholding taxes). We have financed our operations primarily through cash generated from operations.
Under currently enacted tax laws, if we were to choose to repatriate the funds we have designated as indefinitely Veeva Systems Inc. | Form 10-K 49 Table of Contents reinvested outside the United States, such amounts may be subject to certain jurisdictional taxes (e.g., withholding taxes). We have financed our operations primarily through cash generated from operations.
Long-term cash requirements for items other than normal operating expenses could include the following: the acquisition of businesses, or technologies complementary to our business, and capital expenditures. Our non-U.S. cash and cash equivalents are not considered indefinitely reinvested outside the United States, except in certain designated jurisdictions.
Long-term cash requirements for items other than normal operating expenses could include the following: the acquisition of businesses, or technologies complementary to our business, share repurchases, and capital expenditures. Our non-U.S. cash and cash equivalents are not considered indefinitely reinvested outside the United States, except in certain designated jurisdictions.
The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures.
The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are adjusted to calculate our non-GAAP financial measures.
Cost of professional services and other consists primarily of employee-related expenses associated with providing professional and business consulting services. The cost of providing professional services is significantly higher as a percentage of the related revenues than for our subscription services due to the direct labor costs and costs of third-party subcontractors. Operating Expenses Research and Development .
Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing professional and business consulting services. The cost of providing professional services is significantly higher as a percentage of the related revenues than the cost of subscription due to the direct labor costs and costs of third-party subcontractors. Operating Expenses Research and Development .
Sales and marketing expenses consist primarily of employee-related expenses, sales commissions, marketing program costs, amortization expense associated with purchased intangibles related to our customer contracts, customer relationships and brand development, travel-related expenses and allocated overhead. Marketing program costs include advertising, customer events, corporate communications, brand awareness, and product marketing activities.
Sales and marketing expenses consist primarily of employee-related expenses, sales commissions, marketing program costs, travel-related expenses, amortization expense associated with purchased intangibles primarily related to our customer relationships, and allocated overhead. Marketing program costs include advertising, customer events, corporate communications, brand awareness, and product marketing activities.
For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.
For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures. • Excess tax benefits.
As of January 31, 2025, we have not recorded any taxes, such as withholding taxes, associated with the foreign earnings that are indefinitely reinvested outside of the United States.
As of January 31, 2026, we have not recorded any taxes, such as withholding taxes, associated with the foreign earnings that are indefinitely reinvested outside of the United States.
Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations.
Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (“R&D”) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations.
We believe our existing cash, cash equivalents, and short-term investments generated from operations will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months.
We believe our existing cash, cash equivalents, and short-term investments will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months.
We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, and intellectual property rights. We may be required to seek additional equity or debt financing for those arrangements or for other reasons.
In addition to share repurchase activity, we may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, and intellectual property rights. We may be required to seek additional equity or debt financing for those arrangements or for other reasons.
Components of Results of Operations Revenues We derive our revenues primarily from subscription services fees and professional services fees. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and fees for our data solutions.
Components of Results of Operations Revenues We derive our revenues primarily from subscription fees and professional services fees. Subscription revenues consist of fees from customers accessing our software and data solutions.
For a discussion of our cash flows for the year ended January 31, 2024 compared to the year ended January 31, 2023, please refer to Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended January 31, 2024, which is hereby incorporated by reference.
For a discussion of our cash flows for the year ended January 31, 2025 compared to the year ended January 31, 2024, please refer to Part II, Item 7, “Management ’ s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended January 31, 2025, which is hereby incorporated by reference.
For a discussion of our results of operations for the year ended January 31, 2024 compared to the year ended January 31, 2023 , please refer to Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended January 31, 2024 , which is hereby incorporated by reference.
For a discussion of our results of operations for the year ended January 31, 2025 compared to the year ended January 31, 2024 , please refer to Part II, Item 7, “Management ’ s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended January 31, 2025 , which is hereby incorporated by reference.
Cash Flows from Financing Activities The cash flows from financing activities relate primarily to stock option exercises offset by taxes paid on behalf of employees related to the net share settlement of restricted stock units (RSUs).
Cash Flows from Financing Activities The cash flows from financing activities relate primarily to share repurchases and taxes paid on behalf of employees related to the net share settlement of restricted stock units (“RSUs”), offset by stock option exercises.
The increase in subscription services revenue attributable to Commercial Solutions was primarily due to expanding use of our Veeva Commercial Cloud products by both existing and new customers and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment.
The increase in subscription revenue attributable to Commercial Solutions was primarily driven by the expanding use by existing customers of our Veeva Commercial Cloud and Veeva Data Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Commercial Cloud products.
Significant judgment is sometimes required in developing an estimate of the standalone selling price for each distinct performance obligation based on our overall pricing objectives, market conditions, and other factors, including other groupings such as customer type and geography.
The transaction price is allocated to the distinct performance obligations on a relative standalone selling price basis. Significant judgment is sometimes required in developing an estimate of the standalone selling price for each distinct performance obligation based on our overall pricing objectives, market conditions, and other factors, including other groupings such as customer type and geography.
In our fiscal year ended January 31, 2025, we derived approximately 48% and 52% of our subscription services revenues and 47% and 53% of our total revenues from our Commercial Solutions and R&D Solutions, respectively.
For the fiscal year ended January 31, 2025, we derived approximately 48% and 52% of our subscription revenues and 47% and 53% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively.
See note 8 of the notes to our consolidated financial statements. Veeva Systems Inc. | Form 10-K 38 Table of Contents Recent Accounting Pronouncements See note 1 of the notes to our consolidated financial statements in “Part II, Item 8. Consolidated Financial Statements and Supplementary Data” of this Annual Report on Form 10-K for a discussion of recent accounting pronouncements.
See note 7 of the notes to our consolidated financial statements. Recent Accounting Pronouncements See note 1 of the notes to our consolidated financial statements in “Part II, Item 8. Consolidated Financial Statements and Supplementary Data” of this Annual Report on Form 10-K for a discussion of recent accounting pronouncements.
The geographic mix of professional services and other revenues was 60% from North America, 33% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025, as compared to 61% from North America, 32% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2024.
The geographic mix of professional services and other revenues was 58% from North America, 36% from Europe, and 6% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2026, as compared to 60% from North America, 33% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025.
As of January 31, 2025, 2024, and 2023, we had 730, 693, and 684 Commercial Solutions customers, respectively, and 1,125, 1,078, and 1,025 R&D Solutions customers, respectively. These customer count totals are net of customer attrition during each period.
As of January 31, 2026, 2025, and 2024, we had 767, 730, and 693 Commercial Solutions customers, respectively, and 1,196, 1,125, and 1,078 R&D and Quality Solutions customers, respectively. These customer count totals are net of customer attrition during each period.
The following is a discussion of our cash flows for the year ended January 31, 2025 compared to the year ended January 31, 2024.
Fiscal Year Ended January 31, 2026 and 2025 The following is a discussion of our cash flows for the year ended January 31, 2026 compared to the year ended January 31, 2025.
For our fiscal years ended January 31, 2025, 2024, and 2023, our total revenues were $2,747 million, $2,364 million, and $2,155 million, respectively, representing year-over-year growth in total revenues of 16% in our fiscal year ended January 31, 2025, and 10% in our fiscal year ended January 31, 2024.
For our fiscal years ended January 31, 2026, 2025, and 2024, our total revenues were $3,195 million, $2,747 million, and $2,364 million, respectively, representing year-over-year growth in total revenues of 16% in our fiscal year ended January 31, 2026, and 16% in our fiscal year ended January 31, 2025.
We generated net income of $714 million, $526 million, and $488 million for our fiscal years ended January 31, 2025, 2024, and 2023, respectively. As of January 31, 2025, 2024, and 2023, we served 1,477, 1,432, and 1,388 customers, respectively.
We generated net income of $909 million, $714 million, and $526 million for our fiscal years ended January 31, 2026, 2025, and 2024, respectively. As of January 31, 2026, 2025, and 2024, we served 1,552, 1,477, and 1,432 customers, respectively.
For financial reporting purposes, revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutions are classified as “Commercial Solutions” revenues, and revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions are classified as “R&D Solutions” revenues.
For financial reporting purposes, “Commercial Solutions” revenues refer to revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutions, and “R&D and Quality Solutions” revenues refer to revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions.
The geographic mix of subscription services revenues was 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025, as compared to 58% from North America, 27% from Europe, and 15% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2024.
The geographic mix of subscription revenues was 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2026, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025.
For our fiscal years ended January 31, 2025, 2024, and 2023, our subscription services revenues were $2,285 million, $1,902 million, and $1,733 million, respectively, representing year-over-year growth in subscription services revenues of 20% in our fiscal year ended January 31, 2025, and 10% in our fiscal year ended January 31, 2024.
For our fiscal years ended January 31, 2026, 2025, and 2024, our subscription revenues were $2,684 million, $2,285 million, and $1,902 million, respectively, representing year-over-year growth in subscription revenues of 17% in our fiscal year ended January 31, 2026, and 20% in our fiscal year ended January 31, 2025.
Because these fluctuations are not directly related to our business operations, we exclude excess tax benefits for our internal management reporting processes. Our management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities.
Because these fluctuations are not directly related to our business operations, we find it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities.
Veeva Systems Inc. | Form 10-K 42 Table of Contents • Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter.
Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Veeva Systems Inc. | Form 10-K 35 Table of Contents You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.
The increase in employee compensation-related costs was primarily driven by the increase in headcount during the period to support our sales and marketing efforts associated with our product offerings. We expect sales and marketing expenses to increase in the near term, primarily due to employee compensation-related costs and the increase in marketing program costs related to events.
The expansion of our headcount was to support our sales and marketing efforts associated with our product offerings. We expect sales and marketing expenses to increase in the future, primarily due to employee compensation-related costs and the increase in marketing program costs related to events.
Liquidity and Capital Resources Fiscal year ended January 31, 2025 2024 2023 (in thousands) Net cash provided by operating activities $ 1,090,051 $ 911,339 $ 780,470 Net cash used in investing activities (700,138) (1,076,351) (1,007,683) Net cash provided by (used in) financing activities 26,115 (16,188) (19,376) Effect of exchange rate changes on cash and cash equivalents (1,735) (1,780) (4,986) Net change in cash and cash equivalents $ 414,293 $ (182,980) $ (251,575) Our principal sources of liquidity continue to be comprised of our existing cash, cash equivalents, and short-term investments.
Liquidity and Capital Resources Fiscal year ended January 31, 2026 2025 2024 (in thousands) Net cash provided by operating activities $ 1,415,225 $ 1,090,051 $ 911,339 Net cash used in investing activities (1,104,362) (700,138) (1,076,351) Net cash (used in) provided by financing activities (9,333) 26,115 (16,188) Effect of exchange rate changes on cash and cash equivalents 919 (1,735) (1,780) Net change in cash and cash equivalents $ 302,449 $ 414,293 $ (182,980) Our principal sources of liquidity continue to be comprised of our existing cash, cash equivalents, and short-term investments.
As of January 31, 2025, our cash, cash equivalents, and short-term investments totaled $5.2 billion, of which $50 million represented cash and cash equivalents held outside of the United States.
As of January 31, 2026, our cash, cash equivalents, and short-term investments totaled $6.6 billion, of which $86 million represented cash and cash equivalents held outside of the United States.
For the fiscal year ended January 31, 2025, subscription services revenues constituted 83% of total revenues and professional services and other revenues constituted 17% of total revenues.
For the fiscal year ended January 31, 2026, subscription revenues constituted 84% of total revenues and professional services and other revenues constituted 16% of total revenues.
Our primary uses of cash from operating activities are for employee-related expenditures, expenses related to our computing infrastructure (including Amazon Web Services and Salesforce, Inc.), building infrastructure costs (including leases for office space), and fees for third-party legal counsel and accounting services. Note that our net income reflects the impact of excess tax benefits related to equity compensation.
Our primary uses of cash from operating activities are for employee-related expenditures, expenses related to our computing infrastructure (including Amazon Web Services and Salesforce), building infrastructure costs (including leases for office space), and fees for third-party legal counsel and accounting services.
Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training, and managed services related to our solutions and services related to our Veeva Systems Inc. | Form 10-K 36 Table of Contents Veeva Business Consulting offering.
Professional services and other revenues consist primarily of fees from implementation services, configuration, and managed services in connection with our solutions, as well as services related to our speakers bureau logistics and Veeva Business Consulting Veeva Systems Inc. | Form 10-K 41 Table of Contents offering.
Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recorded.
Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recorded. Veeva Systems Inc. | Form 10-K 51 Table of Contents
Other Income, Net Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Other income, net $ 227,946 $ 158,689 44% Other income, net, for the fiscal year ended January 31, 2025 increased $69 million due to an increase in interest income from higher investment asset balances and higher yields from investments.
Other Income, Net Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Other income, net $ 278,139 $ 227,946 22% Other income, net, for the fiscal year ended January 31, 2026 increased $50 million, primarily due to an increase in interest income from higher investment asset and cash balances.
Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. • Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business.
Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. • Litigation settlement-related charges.
Veeva Systems Inc. | Form 10-K 43 Table of Contents The following table reconciles the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Fiscal year ended January 31, 2025 2024 (in thousands) Net cash provided by operating activities on a GAAP basis $ 1,090,051 $ 911,339 Excess tax benefits from employee stock plans (8,932) (71,049) Net cash provided by operating activities on a non-GAAP basis $ 1,081,119 $ 840,290 Net cash used in investing activities on a GAAP basis $ (700,138) $ (1,076,351) Net cash provided by (used in) financing activities on a GAAP basis $ 26,115 $ (16,188) Operating income on a GAAP basis $ 691,435 $ 429,334 Stock-based compensation expense 437,350 393,733 Amortization of purchased intangibles 18,558 19,459 Litigation settlement 5,000 — Operating income on a non-GAAP basis $ 1,152,343 $ 842,526 Net income on a GAAP basis $ 714,138 $ 525,705 Stock-based compensation expense 437,350 393,733 Amortization of purchased intangibles 18,558 19,459 Litigation settlement 5,000 — Income tax effect on non-GAAP adjustments (1) (84,618) (147,937) Net income on a non-GAAP basis $ 1,090,428 $ 790,960 Diluted net income per share on a GAAP basis $ 4.32 $ 3.22 Stock-based compensation expense 2.65 2.41 Amortization of purchased intangibles 0.11 0.12 Litigation settlement 0.03 — Income tax effect on non-GAAP adjustments (1) (0.51) (0.91) Diluted net income per share on a non-GAAP basis $ 6.60 $ 4.84 (1) For the fiscal years ended January 31, 2025 and 2024, we used an estimated annual effective non-GAAP tax rate of 21%.
Veeva Systems Inc. | Form 10-K 48 Table of Contents The following table reconciles the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Fiscal year ended January 31, 2026 2025 (in thousands) Net cash provided by operating activities on a GAAP basis $ 1,415,225 $ 1,090,051 Excess tax benefits from employee stock plans (25,273) (8,932) Net cash provided by operating activities on a non-GAAP basis $ 1,389,952 $ 1,081,119 Net cash used in investing activities on a GAAP basis $ (1,104,362) $ (700,138) Net cash (used in) provided by financing activities on a GAAP basis $ (9,333) $ 26,115 Operating income on a GAAP basis $ 916,369 $ 691,435 Stock-based compensation expense 472,703 437,350 Amortization of purchased intangibles 14,146 18,558 Litigation settlement-related charges 30,627 5,000 Operating income on a non-GAAP basis $ 1,433,845 $ 1,152,343 Net income on a GAAP basis $ 908,906 $ 714,138 Stock-based compensation expense 472,703 437,350 Amortization of purchased intangibles 14,146 18,558 Litigation settlement-related charges 30,627 5,000 Income tax effect on non-GAAP adjustments (1) (73,915) (84,618) Net income on a non-GAAP basis $ 1,352,468 $ 1,090,428 Diluted net income per share on a GAAP basis $ 5.44 $ 4.32 Stock-based compensation expense 2.83 2.65 Amortization of purchased intangibles 0.08 0.11 Litigation settlement-related charges 0.18 0.03 Income tax effect on non-GAAP adjustments (1) (0.43) (0.51) Diluted net income per share on a non-GAAP basis $ 8.10 $ 6.60 (1) For the fiscal years ended January 31, 2026 and 2025, we used an estimated annual effective non-GAAP tax rate of 21%.
Veeva Systems Inc. | Form 10-K 39 Table of Contents Revenues Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Revenues: Subscription services $ 2,284,659 $ 1,901,593 20% Professional services and other 461,960 462,080 —% Total revenues $ 2,746,619 $ 2,363,673 16% Percentage of revenues: Subscription services 83 % 80 % Professional services and other 17 20 Total revenues 100 % 100 % Total revenues for the fiscal year ended January 31, 2025 increased $383 million, all of which was from growth in subscription services revenues.
Veeva Systems Inc. | Form 10-K 44 Table of Contents Revenues Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Revenues: Subscription $ 2,684,194 $ 2,284,659 17% Professional services and other 511,117 461,960 11% Total revenues $ 3,195,311 $ 2,746,619 16% Percentage of revenues: Subscription 84 % 83 % Professional services and other 16 17 Total revenues 100 % 100 % Total revenues for the fiscal year ended January 31, 2026 increased $449 million, of which $400 million was from growth in subscription revenue.
Net cash used in investing activities was $700 million for the fiscal year ended January 31, 2025 compared to $1,076 million used in investing activities for the fiscal year ended January 31, 2024.
Net cash used in investing activities was $1,104 million for the fiscal year ended January 31, 2026 compared to $700 million used in investing activities for the fiscal year ended January 31, 2025. The increase in cash used in investing activities was primarily due to the increase in purchases of short-term investments.
We expect research and development expenses to increase in the near term, primarily due to employee compensation-related costs and hosting fees as we continue to invest in our product offerings.
The expansion of our headcount in research and development was to support development work for the products that we offer or may offer in the future. We expect research and development expenses to increase in the future, primarily due to employee compensation-related costs and hosting fees as we continue to invest in our product offerings.
Given the nature of the excess tax benefits, we believe excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. • Stock-based compensation expenses. We exclude stock-based compensation expenses primarily because they are non-cash expenses that we exclude from our internal management reporting processes.
Given the nature of the excess tax benefits, we believe excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. Veeva Systems Inc. | Form 10-K 47 Table of Contents • Stock-based compensation expenses.
We also offer certain of our R&D Solutions to industries outside the life sciences industry primarily in North America and Europe.
Revenues associated with our R&D and Quality Solutions are expected to increase as a percentage of both subscription revenues and total revenues in the future. We also offer certain of our R&D and Quality Solutions to industries outside the life sciences industry primarily in North America and Europe.
We also find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods.
We exclude stock-based compensation expenses primarily because they are non-cash expenses that we exclude from our internal management reporting processes. We also find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods.
Provision for Income Taxes Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Income before income taxes $ 919,381 $ 588,023 56% Income tax provision $ 205,243 $ 62,318 229% Effective tax rate 22.3 % 10.6 % The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, tax credits, equity compensation, and foreign income subject to taxation in the United States.
Provision for Income Taxes Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Income before income taxes $ 1,194,508 $ 919,381 30% Income tax provision $ 285,602 $ 205,243 39% Effective tax rate 23.9 % 22.3 % 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 foreign-derived intangible income (“FDII”) deduction.
Net cash provided by financing activities was $26 million for the fiscal year ended January 31, 2025 compared to $16 million used in financing activities for the fiscal year ended January 31, 2024.
Net cash provided by operating activities was $1,415 million for the fiscal year ended January 31, 2026 compared to $1,090 million provided by operating activities for the fiscal year ended January 31, 2025.
Sales and Marketing Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Sales and marketing $ 396,726 $ 381,472 4% Percentage of total revenues 14 % 16 % Sales and marketing expenses for the fiscal year ended January 31, 2025 increased $15 million, primarily due to an increase of $6 million in employee compensation-related costs and an increase of $4 million in travel costs.
Sales and Marketing Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Sales and marketing $ 428,798 $ 396,726 8% Percentage of total revenues 13 % 14 % Sales and marketing expenses for the fiscal year ended January 31, 2026 increased $32 million, primarily due to an increase of $29 million in employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount.
Professional services and other revenues for the fiscal year ended January 31, 2025 remained flat compared to the fiscal year ended January 31, 2024 due to a decline in implementation services, offset by an increase in business consulting services.
Professional services and other revenues for the fiscal year ended January 31, 2026 increased $49 million. The increase was primarily due to an increase in business consulting and implementation services.
Professional services revenues are affected primarily by our customers’ demands for implementation services, configuration, data services, training, speakers bureau logistics, and managed services in connection with our solutions. Our business consulting revenues are affected primarily by our customers’ demands for services related to a particular customer success initiative, strategic analysis, or business process change, and not by cloud software implementation.
Our business consulting revenues are affected primarily by our customers’ demands Veeva Systems Inc. | Form 10-K 42 Table of Contents for services related to a particular customer success initiative, strategic analysis, or business process change, and not by cloud software implementation.
Research and Development Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Research and development $ 693,078 $ 629,031 10% Percentage of total revenues 25 % 27 % Research and development expenses for the fiscal year ended January 31, 2025 increased $64 million due to an increase of $46 million in employee compensation-related costs and an increase of $16 million in technology and infrastructure costs.
Research and Development Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Research and development $ 767,386 $ 693,078 11% Percentage of total revenues 24 % 25 % Research and development expenses for the fiscal year ended January 31, 2026 increased $74 million, primarily due to an increase of $64 million in employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount.
We believe that of our significant accounting policies, which are described in note 1 of the notes to the consolidated financial statements, the following accounting policies involve a greater degree of judgment and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations.
On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions. We believe that of our significant accounting policies, which are described in note 1 of the notes to the consolidated financial statements, the following accounting policies involve a greater degree of judgment and complexity.
We expect operating expenses to increase in the near term, primarily due to employee compensation-related costs.
Operating Expenses and Operating Margin Operating expenses include research and development, sales and marketing, and general and administrative expenses. We expect operating expenses to increase in the future, primarily due to employee compensation-related costs.
The increase in cost of subscription services was primarily due to an increase of $21 million related to computing infrastructure costs, which 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 Veeva Systems Inc. | Form 10-K 45 Table of Contents 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 is related to our continued investment in our data solutions.
Net cash provided by operating activities was $1,090 million for the fiscal year ended January 31, 2025 compared to $911 million provided by operating activities for the fiscal year ended January 31, 2024. The $179 million increase in cash provided by operating activities was primarily due to increased sales and the related cash collections, partially offset by increased expenses.
The increase in cash provided by operating activities was primarily due to increased sales and the related cash collections and the impact of the OBBBA, partially offset by increased expenses.
In the preparation of these consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.
Critical Accounting Policies and Estimates Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the preparation of these consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures.
Cost of Revenue and Gross Margin Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) Cost of revenues: Cost of subscription services $ 323,070 $ 290,577 11% Cost of professional services and other 376,566 386,714 (3)% Total cost of revenues $ 699,636 $ 677,291 3% Gross margin percentage: Subscription services 86 % 85 % Professional services and other 18 % 16 % Total gross margin percentage 75 % 71 % Gross profit $ 2,046,983 $ 1,686,382 21% Cost of revenues for the fiscal year ended January 31, 2025 increased $22 million, comprising a $32 million increase in cost of subscription services, partially offset by a $10 million decrease in cost of professional services and other.
Cost of Revenue and Gross Margin Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) Cost of revenues: Cost of subscription $ 362,888 $ 323,070 12% Cost of professional services and other 419,131 376,566 11% Total cost of revenues $ 782,019 $ 699,636 12% Gross margin percentage: Subscription 87 % 86 % Professional services and other 18 % 19 % Total gross margin percentage 76 % 75 % Gross profit $ 2,413,292 $ 2,046,983 18% Cost of revenues for the fiscal year ended January 31, 2026 increased $82 million, comprised of a $42 million increase in cost of professional services and other and a $40 million increase in cost of subscription.
The increase in subscription services revenues consisted of $274 million of subscription services revenue attributable to R&D Solutions and $109 million of subscription services revenue attributable to Commercial Solutions. The increase in subscription services revenue attributable to R&D solutions was primarily due to expanding use of Veeva Development Cloud products by both existing and new customers.
The increase in subscription revenue attributable to R&D and Quality Solutions was primarily driven by the expanding use by existing customers of our Veeva Development Cloud and Veeva Quality Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Development Cloud products.
Certain professional services and business consulting arrangements are billed on a fixed fee basis and revenues are Veeva Systems Inc. | Form 10-K 37 Table of Contents typically recognized over time as the services are delivered based on time incurred. Data services and training revenues are generally recognized as the services are performed.
Certain professional services and business consulting arrangements are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred. Professional services revenues are affected primarily by our customers’ demands for implementation services, configuration, managed services, and speakers bureau logistics.
General and Administrative Fiscal year ended January 31, 2025 2024 % Change (dollars in thousands) General and administrative $ 265,744 $ 246,545 8% Percentage of total revenues 10 % 10 % General and administrative expenses for the fiscal year ended January 31, 2025 increased $19 million, primarily due to an increase of $34 million in employee compensation-related costs, partially offset by a reduction of $10 million in legal fees.
General and Administrative Fiscal year ended January 31, 2026 2025 % Change (dollars in thousands) General and administrative $ 300,739 $ 265,744 13% Percentage of total revenues 9 % 10 % Veeva Systems Inc. | Form 10-K 46 Table of Contents General and administrative expenses for the fiscal year ended January 31, 2026 increased $35 million, primarily due to a net increase of $26 million in litigation settlement-related charges.
For the fiscal year ended January 31, 2024, we derived approximately 52% and 48% of our subscription services revenues and 50% and 50% of our total revenues from our Commercial Solutions and R&D Solutions, respectively. Revenues associated with our R&D Solutions are expected to increase as a percentage of both subscription services revenues and total revenues in the future.
In our fiscal year ended January 31, 2026, we derived approximately 47% and 53% of our subscription revenues and 45% and 55% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively.
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 fiscal year ended January 31, 2025, as compared to the prior fiscal year, our effective tax rate increased primarily due to the reduced excess tax benefits related to equity compensation.
Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.
Revenue Recognition We derive our revenues primarily from subscription services and professional services. Some of our contracts with customers contain multiple performance obligations. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price basis.
Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations. Revenue Recognition We derive our revenues primarily from subscription services and professional services. Some of our contracts with customers contain multiple performance obligations.
The requirement may also impact our cash flows from operating activities in future periods, the amounts and specific periods of which we are unable to estimate at this time. Cash Flows from Investing Activities Investing activities primarily relate to cash used for the purchase of marketable securities, net of maturities, as well as capital expenditures.
Veeva Systems Inc. | Form 10-K 50 Table of Contents Cash Flows from Investing Activities Investing activities primarily relate to cash used for the purchase of marketable securities, net of maturities, as well as capital expenditures.
The increase in employee compensation-related costs was primarily driven by an increase in headcount and the increase in technology and infrastructure costs was primarily driven by higher hosting fees.
The $42 million increase in cost of professional services and other was primarily related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount. The increase in cost of subscription was primarily due to an increase of $36 million related to computing infrastructure and data costs.
Removed
For purposes of determining customers of Veeva Crossix that do not contract under a master subscription agreement, we count each entity that has a statement of work or services agreement and a recurring known payment obligation as a distinct customer if such entity is not otherwise a customer of ours.
Added
The increase in subscription revenues consisted of $247 million attributable to R&D and Quality Solutions and $153 million attributable to Commercial Solutions.
Removed
The decrease in cost of professional services and other was mainly due to lower utilization of third-party services, and reduction in employee related costs in our implementation and deployment-related activities.
Added
We expect cost of subscription to increase in absolute dollars in the future due to increased usage of our subscription services and continued investment in our data solutions. We expect cost of professional services and other to increase in absolute dollars in the future as we continue to invest in our services organization.
Removed
Veeva Systems Inc. | Form 10-K 40 Table of Contents We expect cost of subscription services to increase in absolute dollars in the near term due to increased usage of our subscription services. Operating Expenses and Operating Margin Operating expenses include research and development, sales and marketing, and general and administrative expenses.
Added
We expect general and administrative expenses to decrease in the next fiscal year, due to the litigation settlement-related charges discussed above.
Removed
The expansion of our headcount in research and development and the increased technology and infrastructure costs were to support development work for the products that we offer or may offer in the future.
Added
During the fiscal year ended January 31, 2026, as compared to the prior fiscal year, our effective tax rate increased primarily due to the indirect effects of the One Big Beautiful Bill Act (“OBBBA”), offset by increased excess tax benefits related to equity compensation.
Removed
The increase in employee compensation-related costs was primarily driven by stock-based compensation related to the equity grant to our Chief Executive Officer in June 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeRealized and unrealized foreign currency gains and losses were immaterial for both the fiscal years ended January 31, 2025 and 2024. Veeva Systems Inc. | Form 10-K 46 Table of Contents Interest rate sensitivity We had cash, cash equivalents and short-term investments totaling $5.2 billion as of January 31, 2025.
Biggest changeRealized and unrealized foreign currency gains and losses were immaterial for both the fiscal years ended January 31, 2026 and 2025. Interest rate sensitivity We had cash, cash equivalents, and short-term investments totaling $6.6 billion as of January 31, 2026.
This amount was held primarily in demand deposit accounts, money market funds, corporate notes and bonds, U.S. treasury securities and agency obligations, and asset-backed securities. The cash and cash equivalents are held for working capital purposes and other operational activities. We do not enter into investments for trading or speculative purposes.
This amount was held primarily in demand deposit accounts, money market funds, corporate notes and bonds, U.S. treasury securities, and asset-backed securities. The cash and cash equivalents are held for working capital purposes and other operational activities. We do not enter into investments for trading or speculative purposes.
We engage in the hedging of our foreign currency transactions as described in note 7 of the notes to our consolidated financial statements and may, in the future, hedge selected significant transactions or net monetary exposure positions denominated in currencies other than the U.S. dollar.
We engage in the hedging of our foreign currency transactions as described in note 6 of the notes to our consolidated financial statements and may, in the future, hedge selected significant transactions or net monetary exposure positions denominated in currencies other than the U.S. dollar.
An immediate increase of 100-basis points in interest rates would have resulted in a $58 million market value reduction in our investment portfolio as of January 31, 2025. An immediate decrease of 100-basis points in interest rates would have increased the market value by $58 million as of January 31, 2025.
An immediate increase of 100-basis points in interest rates would have resulted in a $88 million market value reduction in our investment portfolio as of January 31, 2026. An immediate decrease of 100-basis points in interest rates would have increased the market value by $90 million as of January 31, 2026.
For the fiscal year ended January 31, 2025, about 83% of our revenues and about 81% of our expenses were denominated in USD.
For the fiscal year ended January 31, 2026, about 83% of our revenues and about 80% of our expenses were denominated in USD.
Veeva Systems Inc. | Form 10-K 47 Table of Contents
Veeva Systems Inc. | Form 10-K 52 Table of Contents

Other VEEV 10-K year-over-year comparisons