Veeva Systems VEEV Q2 2026 Earnings Call

This video provides an in-depth exploration of Veeva Systems' fiscal 2026 second-quarter earnings call, offering significant insights into the company's strategic direction, product advancements, and market performance within the life sciences industry. The call, led by CEO Peter Gastner and other executives, highlights strong financial results and a clear vision for future growth, particularly emphasizing the transformative potential of AI, the strategic impact of resolving a long-standing dispute with IQVIA, and the continued momentum across its core product suites, including CRM, R&D, and Quality Cloud.

A central theme of the discussion revolves around "Viva AI" and its integration into the Vault platform. Gastner articulates a vision where AI agents, content, and data will seamlessly interact, creating deep industry-specific applications and significantly expanding Veeva's market opportunity. While acknowledging that material revenue contribution from AI is not expected in the immediate future (2026-2027), the company anticipates creating billions of dollars in value for the industry by enhancing efficiency, automating tasks, and potentially reducing the need for certain types of outsourced labor in areas like safety and clinical operations. The discussion also touches upon the unique "structural advantage" Veeva possesses in AI due to its deeply embedded applications and system-of-record status within customer workflows.

Another pivotal development discussed is the resolution of a decade-long lawsuit with IQVIA. This settlement is presented as a major unlock for Veeva's commercial cloud, removing previous restrictions that hindered the full potential of products like Veeva Network and Veeva Nitro, which can now integrate industry-leading IQVIA data. This move is expected to transform Veeva's commercial offerings, making them more comprehensive and practical for customers, fostering greater adoption of the entire commercial suite, and driving stickiness through enhanced business consulting. The call also provides updates on the competitive landscape for Veeva CRM, with the company reporting significant wins against Salesforce and successful go-lives with major pharmaceutical clients, underscoring the growing confidence in Vault CRM.

Key Takeaways:

• Transformative AI Vision: Veeva is making rapid progress on "Viva AI," deeply plumbing it into the Vault platform to create industry-specific agents that interact with content and data. This is expected to be transformative for the industry, generating billions in value by enhancing efficiency and automating tasks.
• Strategic IQVIA Resolution: The settlement of the 10-year dispute with IQVIA is a major unlock for Veeva's commercial cloud. It removes artificial barriers, allowing products like Veeva Network and Veeva Nitro to integrate IQVIA data, making them more practical and comprehensive.
• Enhanced Commercial Cloud Potential: The IQVIA resolution and the move to Vault CRM (away from Salesforce reliance) clear the runway for Veeva to significantly expand its commercial revenue by maturing existing applications (Campaign Manager, Service Center, Patient CRM) and driving customer adoption.
• Veeva CRM Dominance: Veeva continues to gain traction with Vault CRM, reporting nine top 20 pharma companies committed, compared to Salesforce's three. Two top 20 customers are already live in major markets, demonstrating successful implementation and a faster time-to-value compared to Salesforce's longer projected timelines.
• Agentic AI Monetization Strategy: Monetization of Viva AI will come from selling the platform for customers to create custom agents and, more importantly, from Veeva's industry-specific agents. While not expecting material revenue in 2026-2027, the long-term market size expansion is significant.
• Structural Advantage in AI: Veeva's deep application integration, where its AI agents are built within existing systems of record (e.g., CRM, TMF), provides a "structural advantage." This allows agents to operate seamlessly within user workflows, adhere to security rules, and perform transactional updates.
• Diverse AI Use Cases: Agentic AI is expected to impact all areas of life sciences differently. In commercial, it will enable greater productivity; in safety and clinical, it could significantly reduce outsourced labor (e.g., 50% reduction in TMF processing).
• Interoperable Agents: Veeva is architecting its agents to communicate with agents from other systems (e.g., SAP, Workday, Microsoft Office) using a common protocol (MCP model), which promises less brittle and more seamless cross-system automation.
• Elevated Quality Cloud Focus: Quality Cloud is receiving increased internal focus, with plans to extend into Laboratory Information Management Systems (LIMS), batch release, and validation management, indicating a significant growth area for Veeva.
• Business Consulting for AI Adoption: Every AI project is inherently a business consulting project, as it involves changing human-agent workflows. Veeva's business consulting group plays a crucial role in guiding customers through this transformation, which is seen as a major structural advantage for AI adoption.
• Crossix as a Growth Driver: Crossix, Veeva's commercial data and analytics product, continues to show strong momentum, driven by both market share gains and product footprint expansion (e.g., in audiences and HCP marketing).
• Migration Momentum for Vault CRM: While some customers are hesitant to migrate from legacy Veeva CRM, the "pull of AI" and the natural progression of time are expected to accelerate migrations, with the bulk anticipated in 2026 and 2027.
• Measured AI Approach with Large Goals: Veeva is taking a deliberate, platform-first approach to AI, but with very aggressive goals, such as potentially reducing outsourced labor in TMF by 50% across the industry. Partners are expected to play a role in developing agents and interoperating with Veeva's solutions.

Key Concepts:

• Veeva AI / Agentic AI: Veeva's proprietary artificial intelligence initiatives focused on creating industry-specific intelligent agents that automate tasks and enhance productivity within life sciences workflows.
• Vault Platform: Veeva's foundational cloud platform that supports its suite of applications, integrating content, data, and now AI agents.
• Vault CRM: Veeva's next-generation customer relationship management platform built on the Vault platform, designed specifically for the pharmaceutical industry.
• Veeva Network & Veeva Nitro: Commercial data and analytics products that, following the IQVIA resolution, can now integrate industry-leading IQVIA data, enhancing their utility and effectiveness.
• Quality Cloud: Veeva's suite of applications for managing quality processes, with an elevated focus on expanding into areas like LIMS (Laboratory Information Management Systems) and manufacturing.
• Crossix: Veeva's commercial data and analytics business, focusing on measuring and optimizing marketing to both consumers (patients) and healthcare providers (HCPs).
• TMF (Trial Master File): A critical collection of documents for clinical trials, an area identified for significant AI-driven automation.
• MCP Model (Context Protocol): A common protocol enabling seamless agent-to-agent interoperability across different systems and vendors.
• Structural Advantage: Veeva's inherent competitive edge in AI adoption due to its deep integration into customer workflows and its applications serving as systems of record.

Examples/Case Studies:

• Vault CRM Go-Lives: Two top 20 pharmaceutical companies successfully went live with Vault CRM in major markets within two years of commitment.
• TMF Processing Automation: Agentic AI is envisioned to automate tasks such as document filing, verifying documentation completeness against protocols, and identifying illegible documents within the clinical trial master file.
• Commercial Content Workflow: An early adopter AI project in commercial content involved intricate workflows between medical, regulatory, legal, different brands, and countries, demonstrating how AI and business consulting can transform complex processes.
• IQVIA Data Integration: The resolution allows Veeva Network and Nitro to integrate IQVIA data, which was previously a "hole in our boat," making these products more viable and powerful for commercial analytics.