VEEV
Veeva Systems Inc.
Healthcare · Health Information Services · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong growth and profitability factors — with revenue up 16.3%, net income up 27.3%, and margins above 28% — anchor the score in positive territory [growth.revenue.yoy, growth.net_income.yoy, profitability.net_margin_pct].
- Consistent quarter-over-quarter gains in revenue, net income, and operating income contributed a solid above-average momentum score, further supporting the composite [momentum.revenue_quarterly, momentum.operating_income_quarterly].
- Zero scores on both the dividend and macro theme factors, combined with a below-average financial health score, pulled the composite down to 54.9 out of 100 and a High risk rating [dividend.none, theme.assigned, financial_health.total_assets].
Why Not Higher
- The confirmed absence of any dividend payment results in a zero on the dividend factor, and the Enterprise AI Software theme assignment produced no score under the current methodology, both of which structurally constrained the composite [dividend.none, theme.assigned].
- The financial health factor scored only 8.0 out of 20, and without a detailed public explanation from the available filing evidence, this below-average component remains a drag on the overall score [financial_health.total_assets].
Data Confidence
6 / 10
Medium — some data gaps
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $2,746,619,000 to FY2026's $3,195,311,000, a gain of +16.3%. Net income rose +27.3% over the same period, from $714,138,000 in FY2025 to $908,906,000 in FY2026, while diluted EPS expanded +25.9% from $4.32 in FY2025 to $5.44 in FY2026.
The model rewarded the combination of double-digit top-line growth and even faster bottom-line expansion, which signals improving operating leverage. The near-perfect score reflects broad-based acceleration across revenue, net income, and per-share earnings.
In FY2026, Veeva posted an operating margin of 28.7%, a net margin of 28.4%, and a return on assets of 10.1%.
These figures indicate that the company converts a substantial share of revenue into both operating and net income while generating meaningful returns on its asset base, all of which the model rewards highly in its profitability assessment.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue has risen sequentially each quarter from $789,081,000 in 2026Q2 to $811,236,000 in 2026Q3, $835,951,000 in 2026Q4, and $882,948,000 in 2027Q1. Net income followed the same upward trajectory, moving from $200,309,000 in 2026Q2 to $260,936,000 in 2027Q1, while operating income climbed from $195,908,000 in 2026Q2 to $273,112,000 in 2027Q1.
The consistent quarter-over-quarter increases across revenue, net income, and operating income indicate sustained positive momentum, which the model recognizes with a solid above-average score.
Veeva Systems does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model's dividend component rewards income distributions to shareholders, a confirmed non-payer receives a score of zero on this factor by design.
Veeva Systems is assigned to the Enterprise AI Software macro theme.
Although the company carries an Enterprise AI Software theme assignment, this designation did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Veeva Systems delivered strong FY2026 results, with revenue rising 16.3% to $3,195,311,000 and net income climbing 27.3% to $908,906,000, reflecting meaningful operating leverage [growth.revenue.yoy, growth.net_income.yoy]. Profitability metrics are compelling, with a 28.7% operating margin, 28.4% net margin, and 10.1% return on assets [profitability.operating_margin_pct, profitability.net_margin_pct, profitability.roa_pct]. Quarterly momentum has been consistently positive, with revenue and operating income rising each successive quarter through 2027Q1 [momentum.revenue_quarterly, momentum.operating_income_quarterly]. However, the absence of a dividend and a zero score on the macro theme factor weighed on the composite, contributing to a total model score of 54.9/100 and a High risk rating [dividend.none, theme.assigned].
Plain English
Veeva is growing fast and keeping a lot of what it earns as profit, but because it pays no dividend and didn't score on the AI theme factor, its overall model score lands in the middle of the pack at 54.9 out of 100 with a High risk rating [growth.revenue.yoy, dividend.none, theme.assigned].
Bull Case vs. Bear Case
Bull Case
- Revenue grew 16.3% year-over-year to $3,195,311,000 in FY2026, while net income grew even faster at 27.3%, signaling that the business is scaling efficiently and converting more of each revenue dollar into profit [growth.revenue.yoy, growth.net_income.yoy].
- Operating and net margins of 28.7% and 28.4% respectively in FY2026, alongside a 10.1% return on assets, demonstrate that Veeva is a highly profitable enterprise with strong earnings quality [profitability.operating_margin_pct, profitability.net_margin_pct, profitability.roa_pct].
- Sequential quarterly growth in revenue from $789,081,000 in 2026Q2 to $882,948,000 in 2027Q1, and in operating income from $195,908,000 to $273,112,000 over the same span, points to sustained business momentum [momentum.revenue_quarterly, momentum.operating_income_quarterly].
Bear Case
- Veeva pays no dividend, and the model's dividend component rewards income distributions to shareholders, so confirmed non-payers receive a zero on this factor, which weighed on the composite score [dividend.none].
- Despite being assigned to the Enterprise AI Software macro theme, this designation did not translate into a positive score under the model's current methodology for the theme factor, leaving another component at zero [theme.assigned].
- The financial health factor received a below-average score of 8.0 out of 20, and the available filing evidence does not provide a more specific public explanation for this outcome, introducing an element of uncertainty into the overall assessment [financial_health.total_assets].
What Could Change the Picture
Bullish Triggers
- If the macro theme scoring methodology is updated to reward Veeva's Enterprise AI Software designation, the theme factor could shift from zero and meaningfully improve the composite score [theme.assigned].
- Continued acceleration in quarterly net income — which rose from $200,309,000 in 2026Q2 to $260,936,000 in 2027Q1 — would further validate the operating leverage story and could lift momentum and growth scores in future periods [momentum.net_income_quarterly].
Bearish Triggers
- A deceleration in the consistent quarterly revenue progression — which has moved upward every quarter from 2026Q2 through 2027Q1 — would undermine the momentum thesis and could signal a slowdown in underlying demand [momentum.revenue_quarterly].
- If the financial health factor's below-average score of 8.0 out of 20 reflects structural balance sheet concerns, that could limit the company's flexibility and weigh on future composite scores [financial_health.total_assets].
Risk Profile
High RiskThe financial health factor scored below average at 8.0 out of 20, and the filing evidence available does not clarify the specific drivers of this outcome, leaving a degree of uncertainty about the company's balance sheet position [financial_health.total_assets]. Quarterly momentum has been consistently positive through 2027Q1, but any reversal in the sequential growth trend across revenue or operating income could amplify downside risk given the High risk rating assigned to the stock [momentum.revenue_quarterly, momentum.operating_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.