Veeva Systems reported a solid QQ2 2025 quarter with revenue of USD 676.2 million, marking a year-over-year increase of approximately 14.6% and a quarter-over-quarter rise of about 4.0%. The company posted a gross margin of 74.8% and an operating margin of 24.6%, yielding an operating income of USD 166.5 million. Net income reached USD 171.0 million, translating to a net margin near 25.3% and earnings per diluted share of USD 1.04 (basic USD 1.06). Free cash flow was USD 92.9 million, underscoring the company’s strong cash-generation profile in a capital-light, subscription-backed model. Veeva finished the period with a robust balance sheet: cash and short-term investments of USD 4.89 billion and a small net debt position (net cash) of approximately USD 1.11 billion, highlighting substantial liquidity to fund ongoing product development and strategic M&A or investments in data assets.
The quarterly results reflect sustained demand for Veeva’s cloud-platform suite (Commercial Cloud, Vault, OpenData, and Data Cloud) with meaningful backlog evidenced by deferred revenue of USD 956.4 million, implying revenue visibility into future periods. Margins expanded on favorable mix and scale, while cash flow remained constructive despite investing activity in securities. Absent formal forward-looking guidance in the provided materials, the implied trajectory appears favorable given renewal strength and cross-sell opportunities across the installed base. Investors should monitor platform adoption (Vault/Data Cloud), cadence of renewals, and competitive dynamics in life sciences IT spend as key swing factors for the back-half of 2025 and beyond.