-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Shares of Veeva Systems jumped over 10% following news of its S&P 500 inclusion on May 7, replacing Coterra Energy. VEEV reported revenues of nearly $3.2B in FY 26 (Jan.), up over 16% Y/Y and marking a strong 23% CAGR since 2016. The index inclusion will likely drive greater institutional demand for shares, in our view. As of January 31, 2026, VEEV served 1,552 customers, including major global pharma companies like Bayer, Eli Lilly, and Merck. Management aims to deliver industry-specific AI integrated into core applications, leveraging unique datasets and deep process integration. We note shares have been under pressure since late CY 25 due to broader software industry concerns about rising AI competition compressing valuations. VEEV also faces new competition from former partner Salesforce after their long-standing non-compete agreement ended in September 2025. We look forward to Q1 FY 27 earnings in early June for updates on product development and subscription sales trends.