Aug 26, 2026 earnings call — AI launch and Falcon progress
Veeva reported total revenue of $928 million this quarter, with non-GAAP operating income of $416 million.
Revenue $0.9B (est $0.9B) · EPS $2.35 (est $2.23)
Key quotes
"Yes, it is a major change for Veeva. So Falcon is agentic labor. That's something different than we've done before, right? We've done cloud software, data consulting. Now we have this fourth thing, agentic labor."
"We have over 180 customers live. We have customers that are turning AI on. We had a big milestone in CRM this quarter where one of our top 20 turned AI on in CRM for their entire field force."
"Crossix continues to be a strong performer with a lot of headroom for growth."
Analyst Q&A 17
Customer interest in new AI products
Q (Joseph Vruwink · Baird): Are customers showing early interest in new Veeva AI offerings like Vault agents and Falcon? Is that interest reflecting fast value recognition?
A: Management said customer interest in Falcon is very high. They said customers prioritize quick cost savings, compliance and efficiency, and Veeva is the rate limiter until the product is ready for early adopters.
"Quick cost savings and compliance and efficiency, that's high on everybody's priority." — Peter Gassner (CEO)
Commercial subs growth drivers
Q (Brian Peterson · Raymond James): What drove the acceleration in Commercial subscription revenue? And how should we think about Aspen's market and investment sizing?
A: Management said Commercial subscription strength was broad-based across CRM, content, data, Crossix and other areas, with Crossix strong and room to grow. For Aspen, they said it's very early, run like a start-up with small investment on Veeva's scale, focused on product and early adopters, and not included in revenue plans now.
"So it's quite a broad-based strength in the commercial offering across CRM, content, data, Crossix, Ostro most recently." — Brian Van Wagener (CFO)
Who buys Falcon and budget shifts
Q (Hoi-Fung Wong · Oppenheimer): Will Falcon be sold to different buyers than Veeva usually sells to? How hard is shifting budget from IT to business or HR budgets?
A: Management said Falcon selling cycles should be easier because IT is less involved; buyers are heads of business units and operations. They noted Falcon buyers are largely the same business buyers Veeva already knows, with about a 60% business-sell profile in relevant areas.
"First off, it's actually going to be an easier selling cycle because IT is really not involved in the agentic labor." — Peter Gassner (CEO)
Customers moving to Salesforce and win backs
Q (Ryan Powderly-Gross · Barclays): What are customers saying when they move from Veeva CRM to Salesforce, and can Veeva win some back? Also, how is R&D revenue mix shifting between old and new products?
A: Management said some large customers picked Salesforce but have had troubled projects, so Veeva expects opportunities to win some back in 2027 and 2028 as commitments end in 2029. On R&D, they said the business is transitioning from legacy products like eTMF/CTMS to newer ones like EDC, eCOA, RTSM, Safety and LIMS, which are early but have large headroom.
"I think the bulk of that win back would probably be in 2027 and 2028 because Veeva CRM, they have that backstop until the end of 2029." — Peter Gassner (CEO)
Falcon readiness and Data Cloud role
Q (Alexei Gogolev · JPMorgan): What regulatory and readiness gates must Falcon clear for early go-lives, and how will human-in-the-loop needs change? Also, where is Data Cloud most differentiated?
A: Management said agents are nondeterministic and must have training and guardrails similar to human labor, with visibility of agent outcomes inside Vault. On Data Cloud, they said it is an accelerator not a prerequisite; OpenData, Compass and Link products are proving differentiated, and data progress is a long, steady effort that pairs well with Veeva's applications and services.
"Agentic labor is like human labor in a way." — Peter Gassner (CEO)
Who are Falcon early adopters and China outlook
Q (David Windley · Jefferies): Are Falcon early adopters sponsors or service providers? And how does Veeva view growth opportunity in China now?
A: Management said early adopters are sponsors; service providers have shown interest but Veeva is focused on sponsors first. On China, they said the market is moving fast, Veeva has products built in China for China like China CRM and local data, it's profitable and synergistic with the global business.
"Our early adopters are with sponsors." — Peter Gassner (CEO)
Aspen pricing and Falcon margins
Q (Rishi Jaluria · RBC): How will Aspen's per-user pricing work and what does it teach about pricing Falcon and AI features? Will Falcon pressure gross margins?
A: Management described Aspen's simple per-user pricing, with predictable base fees and usage overage charges, and said they will listen to early customers and keep investments customer-focused. On margins, they said they don't expect a gross margin problem because much work will move from nondeterministic models into deterministic software, and they expect model costs to decrease over time.
"It's more like modeled off of Amazon Web Services" — Peter Gassner (CEO)
Timing and ICP for Aspen
Q (Tyler Radke · Citi): When will R&D products like EDC/eCOA/RTSM/Safety/LIMS inflect, and who is Aspen's ideal customer?
A: Management said all five R&D products are large and strategic but early, and they are confident in the long-term trajectory though they won't give year-by-year timing. For Aspen, the ideal customers are nimble, often young tech start-ups that want a modern, AI-enabled horizontal CRM and can work closely with Veeva.
"The ideal customer profile when you're just starting out is really a nimble type of company that really wants to work with you." — Peter Gassner (CEO)
Falcon replacing labor and CRM win-backs
Q (Jailendra Singh · Truist): Will Falcon displace CROs or in-house work? Any pricing details? And are CRM win-back opportunities driven by Salesforce rollout issues?
A: Management said displacement will be a mix of internal and outsourced work but generally not CROs, and early pricing will aim for predictability with likely enterprise subscription agreements that rise as Falcon matures. On CRM win-backs, they said confidence comes from Veeva's execution and many customers' rollout delays with Salesforce, plus Veeva's live customers and AI milestones.
"In terms of the pricing, it's very early for that." — Peter Gassner (CEO)
Customer investment focus and EDC progress
Q (Craig Hettenbach · Morgan Stanley): Outside of agentic solutions, what are customers investing in now? And how are EDC ramp deals progressing?
A: Management said the industry has steadied and is focused on getting jobs done despite macro moves, and noted AI disruption alongside geopolitical risks. On EDC, they said wins are ramping over long implementation cycles, Veeva has 9 of the top 20, and progress will continue over the next couple of years.
"EDC is one of the larger areas, and it's certainly a long implementation cycle." — Peter Gassner (CEO)
IQVIA partnership and Commercial growth mix
Q (Andrew DeGasperi · BNP Paribas): How is the IQVIA partnership performing after one year? And what drove Commercial Cloud double-digit growth excluding Crossix?
A: Management said the IQVIA partnership is going very well, both companies are happy and customers appreciate less hassle, with more benefits expected. On Commercial growth, they said it was broad-based across CRM, add-ons, content, Data Cloud and Crossix, reflecting the full commercial story resonating in the market.
"We're really happy with that IQVIA partnership, gosh, that's -- and I discussed with the management team of IQVIA, and I can represent that they represent to me that they're very happy with the partnership as well." — Peter Gassner (CEO)
Value of tech-enabled services
Q (Dylan Becker · William Blair): Is consulting growth from doing more with same resources or from enabling customers to move faster and capture AI opportunities?
A: Management said tech-enabling consulting makes software more valuable because faster, cheaper, more accurate implementations increase application adoption. They expect services to grow as companies favor specialized, tech-enabled partners to get outcomes quicker and better.
"So the faster you can have your implementations go and the more accurate, the less cost, the more valuable your applications become." — Peter Gassner (CEO)
Impact of executive departure
Q (Tamjid Md Moinuddin Chowdhury · Guggenheim): What is the impact of Tom Schwenger leaving for a partner on top-20 customer relationships and CRM business?
A: Management said they are sad to see him go but expect his relationships to continue and that his move could make him a great partner. They do not expect his departure to affect CRM business because CRM decisions involve many people and products, and CRM is an enduring, product-driven attachment.
"Those relationships don't go away that Tom has." — Peter Gassner (CEO)
Why top 20 chose Vault CRM
Q (William Fitzsimmons · Piper Sandler): Why did two top-20 biopharma choose Vault CRM over Salesforce, and has confidence in winning remaining top-20 deals changed?
A: Management said the wins came down to trust and product excellence, with Veeva delivering innovations and customers trusting Veeva to deliver. They said two top-20 commitments remain and they feel good about both, expecting them to play out by year-end.
"It goes back to trust, so they trust Veeva to be able to deliver." — Paul Shawah
Customers prefer incumbents for AI; M&A for talent
Q (Ryan MacDonald · Needham & Company): Are customers preferring incumbents to deliver AI rather than many point vendors? Will Veeva use M&A to buy AI point solutions to scale faster?
A: Management said customers want to move out of experimentation and prefer a single incumbent like Veeva to avoid evaluating many small vendors. They said acquisitions will be selective and more for talent or cultural fit; Copli was a good example, but they don't expect product acquisitions to be required for Falcon now.
"The customers want to be out of the experimentation phase." — Peter Gassner (CEO)
Aspen problems solved and milestones
Q (Gabriela Borges · Goldman Sachs): What specific CRM problems does Aspen solve versus horizontal CRM platforms, and what milestones should investors watch next year?
A: Management said there are no specific visible milestones to call out now and they'll give updates when appropriate. They said Aspen targets price predictability, vendor dependability and scalability, reducing manual data entry with AI, and delivering a fundamentally better CRM with faster implementations and simpler pricing.
"One is price, price being unpredictable, getting out of control, that would be one." — Peter Gassner (CEO)
Crossix revenue and AI as a catalyst
Q (Scott Schoenhaus · KeyBanc): Are pharma marketing budgets and digital ad spend better than 90 days ago, and is AI catalyzing pharma budgets and Crossix demand?
A: Management said pharma marketing budgets and digital spend remain strong and Crossix had another strong quarter. They view AI as a long-term tailwind that will make Crossix more important for measuring and optimizing AI-driven commercial engagement.
"We continue to see strength in the pharma marketing budgets and spend on digital, and that's playing out in Crossix." — Paul Shawah