What Happened?
Shares of life sciences cloud software provider Veeva Systems (NYSE:VEEV) fell 10.6% in the afternoon session after the company reported third-quarter results that beat Wall Street's expectations, but the market seemingly hoped for more, focusing on a potential slowdown in future growth.
For its third quarter, Veeva's revenue grew 16% year over year to $811.2 million, and its adjusted earnings per share of $2.04 also came in ahead of estimates. The company provided better-than-expected revenue guidance for the upcoming fourth quarter and raised its full-year profit forecast. However, the positive results were overshadowed by concerns about decelerating growth. According to sell-side analysts, Veeva's revenue growth is expected to slow to 10.8% over the next 12 months, a notable step down from its recent performance. This projection likely tempered investor enthusiasm, leading to a sell-off despite the solid quarterly report.
The shares closed the day at $244.03, down 9.9% from previous close.
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What Is The Market Telling Us
Veeva Systems’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Veeva Systems and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 17.6% on the news that the company reported a "beat and raise" quarter (fiscal Q1 2026), with revenue and EPS exceeding estimates. Also, it provided optimistic EPS guidance for the next quarter, which blew past analysts' expectations. In addition, its full-year EPS guidance trumped Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside.
Veeva Systems is up 16.3% since the beginning of the year, but at $244.85 per share, it is still trading 20% below its 52-week high of $306.22 from October 2025. Investors who bought $1,000 worth of Veeva Systems’s shares 5 years ago would now be looking at an investment worth $899.40.
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