Item 1. FINANCIAL STATEMENTS.

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Item 1. FINANCIAL STATEMENTS.

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except number of shares and par value)

(Unaudited)


	October 31, 2025		January 31, 2025

Assets
Current assets:
Cash and cash equivalents	$	1,660,137	$	1,118,785
Short-term investments	4,977,164		4,031,442
Accounts receivable, net of allowance for credit losses of $171 and $57, respectively	314,227		1,016,356
Unbilled accounts receivable	57,549		40,761
Prepaid expenses and other current assets	102,777		101,458
Total current assets	7,111,854		6,308,802
Property and equipment, net	66,117		55,912
Deferred costs, net	25,304		26,383
Lease right-of-use assets	73,839		63,863
Goodwill	439,877		439,877
Intangible assets, net	32,650		44,460
Deferred income taxes	286,966		343,919
Other long-term assets	60,544		56,540
Total assets	$	8,097,151	$	7,339,756
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	32,671	$	30,447
Accrued compensation and benefits	41,485		39,429
Accrued expenses and other current liabilities	31,707		35,557
Income tax payable	6,020		9,024
Deferred revenue	822,466		1,273,978
Lease liabilities	10,529		9,969
Total current liabilities	944,878		1,398,404
Deferred income taxes	367		587
Long-term lease liabilities	79,267		65,806
Other long-term liabilities	32,008		42,586
Total liabilities	1,056,520		1,507,383
Commitments and contingencies (note 11)
Stockholders’ equity:
Common stock	2		2
Additional paid-in capital	2,911,418		2,386,192
Accumulated other comprehensive income (loss)	9,914		(8,416)
Retained earnings	4,119,297		3,454,595
Total stockholders’ equity	7,040,631		5,832,373
Total liabilities and stockholders’ equity	$	8,097,151	$	7,339,756

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)


	Three months ended October 31,				Nine months ended October 31,
	2025		2024		2025		2024


Revenues:
Subscription services	$	682,498	$	580,850	$	1,976,449	$	1,676,082
Professional services and other	128,738		118,357		382,911		349,651
Total revenues	811,236		699,207		2,359,360		2,025,733
Cost of revenues (1):
Cost of subscription services	94,171		82,638		266,347		239,577
Cost of professional services and other	105,294		91,751		302,195		279,068
Total cost of revenues	199,465		174,389		568,542		518,645
Gross profit	611,771		524,818		1,790,818		1,507,088
Operating expenses (1):
Research and development	191,883		172,411		568,593		511,551
Sales and marketing	110,552		98,695		318,619		297,524
General and administrative	68,483		72,359		233,113		195,001
Total operating expenses	370,918		343,465		1,120,325		1,004,076
Operating income	240,853		181,353		670,493		503,012
Other income, net	71,933		60,937		206,478		171,239
Income before income taxes	312,786		242,290		876,971		674,251
Income tax provision	76,583		56,482		212,269		155,738
Net income	$	236,203	$	185,808	$	664,702	$	518,513
Net income per share:
Basic	$	1.44	$	1.15	$	4.06	$	3.21
Diluted	$	1.40	$	1.13	$	3.96	$	3.15
Weighted-average shares used to compute net income per share:
Basic	164,049		161,987		163,676		161,707
Diluted	168,935		164,979		167,953		164,838
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments	$	12,283	$	(738)	$	18,350	$	5,576
Net change in cumulative foreign currency translation loss	(372)		(146)		(20)		(1,398)
Comprehensive income	$	248,114	$	184,924	$	683,032	$	522,691


(1) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services	$	1,842	$	1,696	$	5,498	$	4,892
Cost of professional services and other	14,789		12,929		42,362		38,640
Research and development	52,791		48,014		154,128		138,741
Sales and marketing	24,509		21,214		72,222		67,928
General and administrative	26,337		34,006		80,234		71,945
Total stock-based compensation	$	120,268	$	117,859	$	354,444	$	322,146

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)


	Three months ended October 31, 2025											Three months ended October 31, 2024
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive (loss) income		Total stockholders’ equity		Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
	Shares	Amount						Shares		Amount

Balances at beginning of period	163,877,694	$	2	$	2,757,440	$	3,883,094	$	(1,997)	$	6,638,539	161,830,287	$	2	$	2,117,109	$	3,073,162	$	(5,575)	$	5,184,698
Issuance of common stock upon exercise of stock options	312,734	—		57,699		—		—		57,699		174,384	—		30,270		—		—		30,270
Issuance of common stock upon vesting of restricted stock units	238,442	—		—		—		—		—		240,316	—		—		—		—		—
Shares withheld related to net share settlement	(85,999)	—		(25,206)		—		—		(25,206)		(86,519)	—		(17,811)		—		—		(17,811)
Stock-based compensation expense	—	—		121,485		—		—		121,485		—	—		119,322		—		—		119,322
Other comprehensive income (loss)	—	—		—		—		11,911		11,911		—	—		—		—		(884)		(884)
Net income	—	—		—		236,203		—		236,203		—	—		—		185,808		—		185,808
Balances at end of period	164,342,871	$	2	$	2,911,418	$	4,119,297	$	9,914	$	7,040,631	162,158,468	$	2	$	2,248,890	$	3,258,970	$	(6,459)	$	5,501,403


	Nine months ended October 31, 2025											Nine months ended October 31, 2024
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive (loss) income		Total stockholders’ equity		Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
	Shares	Amount						Shares		Amount

Balances at beginning of period	162,583,789	$	2	$	2,386,192	$	3,454,595	$	(8,416)	$	5,832,373	161,260,172	$	2	$	1,915,002	$	2,740,457	$	(10,637)	$	4,644,824
Issuance of common stock upon exercise of stock options	1,297,259	—		239,996		—		—		239,996		401,974	—		65,104		—		—		65,104
Issuance of common stock upon vesting of restricted stock units	731,949	—		—		—		—		—		782,798	—		—		—		—		—
Shares withheld related to net share settlement	(270,126)	—		(71,989)		—		—		(71,989)		(286,476)	—		(59,399)		—		—		(59,399)
Stock-based compensation expense	—	—		357,219		—		—		357,219		—	—		328,183		—		—		328,183
Other comprehensive income	—	—		—		—		18,330		18,330		—	—		—		—		4,178		4,178
Net income	—	—		—		664,702		—		664,702		—	—		—		518,513		—		518,513
Balances at end of period	164,342,871	$	2	$	2,911,418	$	4,119,297	$	9,914	$	7,040,631	162,158,468	$	2	$	2,248,890	$	3,258,970	$	(6,459)	$	5,501,403

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Nine months ended October 31,
		2025			2024

Cash flows from operating activities
Net income			$	664,702		$	518,513
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			29,654			29,451
Reduction of lease right-of-use assets			9,405			8,348
Accretion of discount on short-term investments			(6,613)			(20,442)
Stock-based compensation			354,444			322,146
Amortization of deferred costs			12,173			11,507
Deferred income taxes			50,185			(91,231)
Other, net			(562)			(465)
Changes in operating assets and liabilities:
Accounts receivable			701,016			595,940
Unbilled accounts receivable			(16,788)			(9,107)
Deferred costs			(11,094)			(10,106)
Prepaid expenses and other current and long-term assets			(6,810)			1,354
Accounts payable			3,190			424
Accrued expenses and other current liabilities			(3,260)			(10,240)
Income tax payable			(3,004)			(1,059)
Deferred revenue			(466,118)			(321,090)
Lease liabilities			(6,170)			(7,131)
Other long-term liabilities			4,028			3,695
Net cash provided by operating activities			1,308,378			1,020,507
Cash flows from investing activities
Purchases of short-term investments			(2,386,193)			(2,206,521)
Maturities and sales of short-term investments			1,471,683			1,537,874
Long-term assets			(22,102)			(15,799)
Net cash used in investing activities			(936,612)			(684,446)
Cash flows from financing activities
Proceeds from exercise of common stock options			239,996			65,104
Taxes paid related to net share settlement of equity awards			(71,281)			(59,800)
Net cash provided by financing activities			168,715			5,304
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			871			(1,346)
Net change in cash, cash equivalents, and restricted cash			541,352			340,019
Cash, cash equivalents, and restricted cash at beginning of period			1,120,963			706,670
Cash, cash equivalents, and restricted cash at end of period			$	1,662,315		$	1,046,689

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents			$	1,660,137		$	1,044,511
Restricted cash included in other long-term assets			2,178			2,178
Total cash, cash equivalents, and restricted cash at end of period			$	1,662,315		$	1,046,689

Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds			$	164,908		$	238,935
Excess tax benefits from employee stock plans			$	23,302		$	5,160

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Summary of Business and Significant Accounting Policies

Description of Business

Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (“R&D”) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our Commercial Solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D Solutions for the clinical, regulatory, quality, and safety functions help life sciences companies streamline their end-to-end product development and quality and manufacturing processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. Our solutions for clinical research sites enable regulatory documents and trial information to be managed in a modern cloud solution that is intended to accelerate the clinical research process for the life sciences industry overall. Our fiscal year end is January 31.

Principles of Consolidation and Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany balances and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed on March 24, 2025. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes.

The unaudited condensed consolidated balance sheet as of January 31, 2025 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income, and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2026 or any other period.

New Accounting Pronouncements Issued and Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction, among other amendments. This new standard is effective for our fiscal year beginning on February 1, 2025 on a prospective basis. Retrospective application is permitted. The adoption of ASU 2023-09 will modify our disclosures but will not have an impact on our financial position or results of operations. The Company will adopt ASU 2023-09 in the fiscal quarter ended January 31, 2026 and is assessing the appropriate transition method.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure, in the notes to the financial statements, of additional information about certain costs and expenses for interim and annual reporting periods. This new standard is effective for our fiscal year beginning on February 1, 2027 and interim periods beginning on February 1, 2028 on a prospective basis. Retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures.


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Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the recognition and capitalization framework for internal-use software development costs in order to reflect current software development practices. The amendments also require Subtopic 360-10 disclosures for all capitalized internal-use software costs. This new standard is effective for our fiscal year beginning on February 1, 2028 and interim periods within that fiscal year and may be applied prospectively, retrospectively, or using a modified transition approach. Early adoption is permitted. We are currently evaluating this ASU to determine its impact on our consolidated financial statements and disclosures.

Note 2. Short-Term Investments

As of October 31, 2025, short-term investments consisted of the following (in thousands):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
Certificates of deposit	$	20,000	$	—	$	(22)	$	19,978
Asset-backed securities	329,600		2,428		(56)		331,972
Commercial paper	163,369		10		(53)		163,326
Corporate notes and bonds	2,876,564		22,373		(938)		2,897,999
Foreign government bonds	230,578		1,303		(119)		231,762
Municipal securities	55,610		251		(1)		55,860
U.S. agency obligations	11,586		46		—		11,632
U.S. treasury securities	1,259,512		5,446		(323)		1,264,635
Total available-for-sale securities	$	4,946,819	$	31,857	$	(1,512)	$	4,977,164

As of January 31, 2025, short-term investments consisted of the following (in thousands):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
Certificates of deposit	$	64,045	$	69	$	(21)	$	64,093
Asset-backed securities	526,986		3,257		(232)		530,011
Commercial paper	74,468		108		(1)		74,575
Corporate notes and bonds	2,202,150		10,588		(5,782)		2,206,956
Foreign government bonds	176,684		442		(1,023)		176,103
Municipal securities	67,780		173		(122)		67,831
U.S. agency obligations	24,616		94		(1)		24,709
U.S. treasury securities	888,968		1,440		(3,244)		887,164
Total available-for-sale securities	$	4,025,697	$	16,171	$	(10,426)	$	4,031,442

The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands):



	October 31, 2025		January 31, 2025
Due in one year or less	$	1,159,122	$	1,066,558
Due in greater than one year	3,818,042		2,964,884
Total	$	4,977,164	$	4,031,442

We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high credit quality of our investments. It is more likely than not we will hold such securities until maturity or a recovery of the cost basis.


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The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of October 31, 2025 (in thousands):


	12 months or less				Greater than 12 months
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
Certificates of deposit	$	19,978	$	(22)	$	—	$	—
Asset-backed securities	211		—		2,082		(56)
Commercial paper	131,187		(53)		—		—
Corporate notes and bonds	411,651		(938)		4,998		(1)
Foreign government bonds	54,398		(97)		8,035		(21)
Municipal securities	5,829		(1)		3,000		—

U.S. treasury securities	256,296		(311)		27,773		(12)
Total	$	879,550	$	(1,422)	$	45,888	$	(90)

The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2025 (in thousands):


	12 months or less				Greater than 12 months
	Fair value		Gross unrealized losses		Fair Value		Gross unrealized losses

Certificates of deposit	$	20,095	$	(21)	$	—	$	—
Asset-backed securities	25,220		(31)		44,789		(201)
Commercial paper	4,944		(1)		—		—
Corporate notes and bonds	616,379		(5,569)		71,331		(213)
Foreign government bonds	76,856		(1,023)		—		—
Municipal securities	22,593		(122)		—		—
U.S. agency obligations	1,865		(1)		—		—
U.S. treasury securities	439,382		(3,072)		173,071		(172)
Total	$	1,207,334	$	(9,840)	$	289,191	$	(586)

Note 3. Deferred Costs

Deferred costs, which consist of deferred sales commissions, were $25 million and $26 million as of October 31, 2025 and January 31, 2025, respectively. Amortization expense for deferred costs included in sales and marketing expenses in the condensed consolidated statements of comprehensive income was $4 million and $12 million for the three and nine months ended October 31, 2025, respectively, and $4 million and $12 million for the three and nine months ended October 31, 2024, respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented.

Note 4. Goodwill and Intangible Assets

Goodwill was $440 million as of both October 31, 2025 and January 31, 2025.

The following table presents the details of intangible assets as of October 31, 2025 (in thousands):


	Gross carrying amount		Accumulated amortization		Net
Existing technology	$	28,580	$	(28,040)	$	540
Customer relationships	113,157		(81,519)		31,638

Other intangibles	21,405		(20,933)		472
Total intangible assets	$	163,142	$	(130,492)	$	32,650


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The following table presents the details of intangible assets as of January 31, 2025 (in thousands):


	Gross carrying amount		Accumulated amortization		Net
Existing technology	$	28,580	$	(24,878)	$	3,702
Customer relationships	113,157		(73,223)		39,934

Other intangibles	21,405		(20,581)		824
Total intangible assets	$	163,142	$	(118,682)	$	44,460

Amortization expense associated with intangible assets was $4 million and $12 million for the three and nine months ended October 31, 2025, respectively, and $5 million and $14 million for the three and nine months ended October 31, 2024, respectively.

As of October 31, 2025, the estimated future amortization expense for intangible assets is as follows (in thousands):


Fiscal Year	Estimated amortization expense
Remaining for 2026	$	2,336
2027	8,922
2028	7,778
2029	7,782
2030	5,832

Total	$	32,650

Note 5. Fair Value Measurements

The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2025 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	505,249	$	—	$	505,249

U.S. Treasury securities	—		6,430		6,430



Short-term investments:
Certificates of deposit	—		19,978		19,978
Asset-backed securities	—		331,972		331,972
Commercial paper	—		163,326		163,326
Corporate notes and bonds	—		2,897,999		2,897,999
Foreign government bonds	—		231,762		231,762
Municipal securities	—		55,860		55,860
U.S. agency obligations	—		11,632		11,632
U.S. Treasury securities	—		1,264,635		1,264,635
Foreign currency derivative contracts	—		1,296		1,296
Total financial assets	$	505,249	$	4,984,890	$	5,490,139
Liabilities
Foreign currency derivative contracts	$	—	$	(50)	$	(50)
Total financial liabilities	$	—	$	(50)	$	(50)


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The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2025 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	314,872	$	—	$	314,872
U.S. Treasury securities	—		3,301		3,301

Short-term investments:
Certificates of deposit	—		64,093		64,093
Asset-backed securities	—		530,011		530,011
Commercial paper	—		74,575		74,575
Corporate notes and bonds	—		2,206,956		2,206,956
Foreign government bonds	—		176,103		176,103
Municipal securities	—		67,831		67,831
U.S. agency obligations	—		24,709		24,709
U.S. Treasury securities	—		887,164		887,164
Foreign currency derivative contracts	—		96		96
Total financial assets	$	314,872	$	4,034,839	$	4,349,711
Liabilities
Foreign currency derivative contracts	$	—	$	(525)	$	(525)
Total financial liabilities	$	—	$	(525)	$	(525)

We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs).

Balance Sheet Hedges

We enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities.

For the nine months ended October 31, 2025, net realized and unrealized foreign currency losses on hedging were $7 million. The net realized and unrealized foreign currency losses on hedging were not material for the three months ended October 31, 2025 and for the three and nine months ended October 31, 2024.

The fair value of our outstanding derivative instruments is summarized below (in thousands):



	October 31, 2025		January 31, 2025
Notional amount of foreign currency derivative contracts	$	108,138	$	130,122
Fair value of foreign currency derivative contracts	$	106,892	$	130,552

Note 6. Income Taxes

For the three months ended October 31, 2025 and 2024, our effective tax rates were 24.5% and 23.3%, respectively. For the nine months ended October 31, 2025 and 2024, our effective tax rates were 24.2% and 23.1%, respectively. During the three and nine months ended October 31, 2025, as compared to the same periods in the prior fiscal year, our effective tax rate increased primarily due to the indirect effects of the One Big Beautiful Bill Act (“OBBBA”), offset by increased excess tax benefits related to equity compensation.


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Note 7. Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable

Deferred Revenue

Of the beginning deferred revenue balance for the respective periods, we recognized $581 million and $1,090 million in revenue for the three and nine months ended October 31, 2025, respectively, and $492 million and $914 million for the three and nine months ended October 31, 2024, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of October 31, 2025 and January 31, 2025, the amount of the transaction price allocated to remaining performance obligations for noncancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months.

Unbilled Accounts Receivable

As of October 31, 2025, unbilled accounts receivable consisted of (i) receivables of $45 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $13 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

As of January 31, 2025, unbilled accounts receivable consisted of (i) receivables of $33 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

Note 8. Leases

We have operating leases for our corporate offices with various expiration dates, some of which include options to extend the leases for up to five years.

For the three months ended October 31, 2025 and 2024, our operating lease expense was $4 million and $3 million, respectively. For the nine months ended October 31, 2025 and 2024, our operating lease expense was $13 million and $10 million, respectively.

Supplemental cash flow information related to leases was as follows (in thousands):


	Nine months ended October 31,
	2025		2024
Cash paid for lease liabilities	$	9,597	$	8,984
Lease right-of-use assets obtained in exchange for new lease liabilities	$	19,242	$	21,480

Supplemental balance sheet information related to operating leases was as follows:



	October 31, 2025		January 31, 2025
Weighted average remaining lease term	7.9 years		7.7 years
Weighted average discount rate	4.7	%	4.6	%


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As of October 31, 2025, remaining maturities of lease liabilities are as follows (in thousands):


Fiscal Year
Remaining for 2026	$	453
2027	14,301
2028	17,512
2029	13,629
2030	12,737
Thereafter	51,602
Total lease payments	110,234
Less imputed interest	(20,438)
Total lease liabilities	$	89,796

Note 9. Stockholders’ Equity

Common Stock

As of October 31, 2025, we had 164,342,871 shares of common stock outstanding.

Stock Option Activity

A summary of stock option activity for the nine months ended October 31, 2025 is as follows:


	Number of shares	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Options outstanding at January 31, 2025	14,633,921	$	177.65	6.8	$	860
Options granted	2,210,273	$	216.02
Options exercised	(1,297,259)	$	185.01
Options forfeited/cancelled	(274,704)	$	210.00
Options outstanding at October 31, 2025	15,272,231	$	182.00	6.5	$	1,669
Options vested and exercisable at October 31, 2025	6,598,881	$	137.04	4.2	$	1,019
Options vested and exercisable at October 31, 2025 and expected to vest thereafter	15,272,231	$	182.00	6.5	$	1,669

The options granted during the nine months ended October 31, 2025 were primarily made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $126.62 and $97.72 per option for the three and nine months ended October 31, 2025, respectively.

As of October 31, 2025, there was $481 million in unrecognized compensation cost related to unvested stock options granted under the 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 2.2 years.

The total intrinsic value of options exercised was approximately $34 million and $114 million for the three and nine months ended October 31, 2025, respectively.


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Stock Option Valuation Assumptions

The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented:


	Three months ended October 31,						Nine months ended October 31,
	2025			2024			2025			2024
Volatility	39%	-	40%	39%	-	40%	39%	-	40%	39%	-	41%
Expected term (in years)	6.25			5.54	-	7.25	6.25	-	7.00	5.54	-	7.63
Risk-free interest rate	3.68%	-	3.97%	3.46%	-	4.07%	3.68%	-	4.41%	3.46%	-	4.65%
Dividend yield	—%			—%			—%			—%

Restricted Stock Units (“RSUs”)

A summary of RSU activity for the nine months ended October 31, 2025 is as follows:


	Unreleased restricted stock units	Weighted average grant date fair value
Balance at January 31, 2025	880,026	$	206.25
RSUs granted	1,037,518	$	217.30
RSUs vested	(731,949)	$	210.98
RSUs forfeited/cancelled	(48,516)	$	214.69
Balance at October 31, 2025	1,137,079	$	212.93

As of October 31, 2025, there was a total of $122 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 0.7 years. The total grant date fair value of RSUs vested for the three and nine months ended October 31, 2025 was $70 million and $195 million, respectively.

Note 10. Net Income per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock is determined using the treasury stock method.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Three months ended October 31,						Nine months ended October 31,
2025			2024			2025			2024
Numerator:
Net income	$	236,203		$	185,808		$	664,702		$	518,513

Denominator:
Basic shares:
Weighted average common shares outstanding, basic	164,049			161,987			163,676			161,707
Diluted shares:
Weighted average common shares outstanding, basic	164,049			161,987			163,676			161,707

Effect of potentially dilutive common shares	4,886			2,992			4,277			3,131
Weighted average common shares outstanding, diluted	168,935			164,979			167,953			164,838
Net income per share:
Basic	$	1.44		$	1.15		$	4.06		$	3.21
Diluted	$	1.40		$	1.13		$	3.96		$	3.15


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Potential common share equivalents excluded because their inclusion would be anti-dilutive are as follows (in thousands):


	Three months ended October 31,				Nine months ended October 31,
2025		2024		2025		2024
Options and RSUs	2,626		10,234		6,738		8,621

Note 11. Commitments and Contingencies

Litigation

On August 13, 2025, Veeva and IQVIA entered into a settlement agreement that resolved all ongoing litigations between Veeva and IQVIA. Prior to that, IQVIA and Veeva had been involved in a series of litigations since 2017, including IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177) and IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517). Under the terms of the settlement agreement, neither party paid damages to the other party and both parties agreed to dismiss with prejudice all claims and counterclaims currently pending. Accordingly, all claims and counterclaims were dismissed.

From time to time, we may be involved in other legal proceedings and subject to claims incident to the ordinary course of business. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any other legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources, and other factors, and there can be no assurances that favorable outcomes will be obtained.

Note 12. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer (“CEO”). Our CEO reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company operates as a single operating and reportable segment that is focused on providing industry cloud solutions tailored to the global life sciences industry.

The CEO gauges the effectiveness of investment and resourcing decisions and trends in the overall efficiency of the business over time using multiple measures of performance, including consolidated net income and adjusted operating income, which is an additional measure of our segment profitability. The measure of segment assets is reported on the consolidated balance sheets as total assets.

The following table reconciles the Company’s revenues to consolidated net income and the specific items excluded from cost of revenues and operating expenses to calculate adjusted operating income (in thousands):


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	Three months ended October 31,				Nine months ended October 31,
	2025		2024		2025		2024
Revenues	$	811,236	$	699,207	$	2,359,360	$	2,025,733

Cost of revenues - adjusted:
Cost of subscription services revenues	91,283		79,899		257,745		231,420
Cost of professional services and other revenues	90,367		78,683		259,422		240,016
Operating expenses - adjusted:
Research and development	139,092		124,368		414,465		372,725
Sales and marketing	83,433		73,937		238,102		219,038
General and administrative	42,146		38,296		122,252		117,886
Operating income - adjusted	364,915		304,024		1,067,374		844,648
Other segment items (1)	124,062		122,671		396,881		341,636
Other income, net	71,933		60,937		206,478		171,239
Income tax provision	76,583		56,482		212,269		155,738
Consolidated net income	$	236,203	$	185,808	$	664,702	$	518,513
(1) Other segment items included in consolidated net income consist primarily of stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges.

Cost of revenues - adjusted, and operating expenses - adjusted, are segment expenses that are regularly provided to the CEO and do not include stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges, as we exclude them from our internal management reporting processes. We find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods.

Note 13. Information about Geographic Areas and Products

Information about Geographic Areas

We track and allocate revenues by principal geographic area rather than by individual country, which makes it impractical to disclose revenues for the United States or other specific foreign countries. We measure subscription services revenue primarily by the estimated location of the end users in each geographic area for our Commercial Solutions and primarily by the estimated location of usage in each geographic area for our R&D Solutions. We measure professional services revenue primarily by the location of the resources performing the professional services.

Total revenues by geographic area were as follows for the periods shown below (in thousands):


	Three months ended October 31,				Nine months ended October 31,
	2025		2024		2025		2024
Revenues by geography
North America	$	483,542	$	414,474	$	1,411,017	$	1,192,044
Europe	238,256		198,667		688,103		586,897
Asia Pacific	71,140		68,655		206,638		195,974
Middle East, Africa, and Latin America	18,298		17,411		53,602		50,818
Total revenues	$	811,236	$	699,207	$	2,359,360	$	2,025,733


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Long-lived assets by geographic area are as follows as of the periods shown below (in thousands):



	October 31, 2025		January 31, 2025
Long-lived assets by geography
North America	$	52,768	$	47,144
Europe	9,176		6,778
Asia Pacific	3,485		1,295
Middle East, Africa, and Latin America	688		695
Total long-lived assets	$	66,117	$	55,912

Revenues by Product

We group our revenues into two product areas: Commercial Solutions and R&D Solutions. Commercial Solutions revenues consist of revenues from our Veeva Commercial Cloud and Veeva Data Cloud solutions. R&D Solutions revenues consist of revenues from our Veeva Development Cloud and Veeva Quality Cloud solutions.

Total revenues consist of the following (in thousands):


	Three months ended October 31,				Nine months ended October 31,
	2025		2024		2025		2024
Subscription services
Commercial Solutions	$	317,650	$	278,377	$	930,584	$	811,503
R&D Solutions	364,848		302,473		1,045,865		864,579
Total subscription services	682,498		580,850		1,976,449		1,676,082
Professional services
Commercial Solutions	47,457		45,855		141,727		139,695
R&D Solutions	81,281		72,502		241,184		209,956
Total professional services	128,738		118,357		382,911		349,651
Total revenues	$	811,236	$	699,207	$	2,359,360	$	2,025,733


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