Why Veeva Systems Stock Is Soaring This Week
Key Points
Veeva Systems published its fiscal Q2 results on Wednesday and beat Wall Street's forecasts.
The company's full-year guidance also topped expectations.
Veeva Systems (NYSE: VEEV) stock is seeing big gains this week following the publication of the company's second-quarter report. Heading into this Friday's market open, the company's share price was up 13.8% from its level at the previous week's market close. b
After Wednesday's market close, Veeva Systems published results for the second quarter of its 2027 fiscal year -- which ended July 31. The company posted fiscal Q2 results that beat Wall Street's forecasts, and the company also issued stronger-than-expected forward guidance.
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Veeva Systems served up strong Q2 print
Veeva's fiscal Q2 results came in significantly ahead of Wall Street's targets, with non-GAAP (adjusted) earnings per share of $2.35 on sales of $928 million surpassing the average analyst forecast for adjusted per-share earnings of $2.22 on sales of roughly $905.3 million. Overall revenue was up roughly 18% year over year, subscription revenue was up roughly 16%, and adjusted earnings per share rose approximately 18% compared to the prior-year period.
What's next for Veeva?
For the current fiscal year, Veeva is targeting sales between $3.682 billion and $3.687 billion -- exceeding the average analyst estimate's call for revenue of $3.65 billion. Meanwhile, the company's guide for adjusted earnings per share of $9.21 for the year significantly surpassed the average analyst target for earnings per share of $9.06.
Along with the beats in fiscal Q2, strong forward guidance has spurred a significant uptick in bullish sentiment on the stock. Veeva's artificial intelligence technologies appear to be powering real performance improvements, and encouraging results for its Vault CRM and Falcon offerings suggest a strong near-term outlook.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Veeva Systems. The Motley Fool has a disclosure policy.