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)


	April 30, 2026		January 31, 2026

Assets
Current assets:
Cash and cash equivalents	$	1,896,580	$	1,421,233
Short-term investments	5,416,139		5,139,581
Accounts receivable, net of allowance for credit losses of $66 and $256, respectively	568,020		1,259,737
Unbilled accounts receivable	59,752		50,609
Prepaid expenses and other current assets	122,770		126,470
Total current assets	8,063,261		7,997,630
Property and equipment, net	73,484		70,261
Deferred costs, net	28,686		29,961
Lease right-of-use assets	82,060		75,626
Goodwill	488,161		439,877
Intangible assets, net	55,508		30,314
Deferred income taxes	272,665		273,417
Other long-term assets	65,733		62,257
Total assets	$	9,129,558	$	8,979,343
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	40,657	$	37,644
Accrued compensation and benefits	52,572		45,857
Accrued expenses and other current liabilities	50,974		45,885
Income tax payable	67,897		6,698
Deferred revenue	1,476,539		1,488,819
Lease liabilities	13,131		12,153
Total current liabilities	1,701,770		1,637,056
Deferred income taxes	1,148		558
Long-term lease liabilities	89,936		83,706
Other long-term liabilities	32,350		43,271
Total liabilities	1,825,204		1,764,591
Commitments and contingencies (note 12)
Stockholders’ equity:
Common stock	2		2
Additional paid-in capital	2,699,707		2,843,089
Accumulated other comprehensive (loss) income	(19,792)		8,160
Retained earnings	4,624,437		4,363,501
Total stockholders’ equity	7,304,354		7,214,752
Total liabilities and stockholders’ equity	$	9,129,558	$	8,979,343

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 April 30,
		2026		2025


Revenues:
Subscription		$	730,175	$	634,768
Professional services and other		152,773		124,275
Total revenues		882,948		759,043
Cost of revenues (1):
Cost of subscription		99,103		78,346
Cost of professional services and other		121,821		95,478
Total cost of revenues		220,924		173,824
Gross profit		662,024		585,219
Operating expenses (1):
Research and development		208,323		184,033
Sales and marketing		111,117		98,628
General and administrative		69,472		68,826
Total operating expenses		388,912		351,487
Operating income		273,112		233,732
Other income, net		74,418		65,089
Income before income taxes		347,530		298,821
Income tax provision		86,594		70,631
Net income		$	260,936	$	228,190
Net income per share:
Basic		$	1.60	$	1.40
Diluted		$	1.57	$	1.37
Weighted-average shares used to compute net income per share:
Basic		163,345		162,749
Diluted		165,989		166,229
Other comprehensive income:
Net change in unrealized (loss) gain on available-for-sale investments		$	(27,451)	$	17,367
Net change in cumulative foreign currency translation loss		(501)		(38)
Comprehensive income		$	232,984	$	245,519


(1) Includes stock-based compensation as follows:
Cost of subscription	$	1,761	$	1,715
Cost of professional services and other	14,151		12,769
Research and development	51,563		47,949
Sales and marketing	24,594		22,321
General and administrative	27,190		27,456
Total stock-based compensation	$	119,259	$	112,210

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 April 30, 2026
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
	Shares	Amount

Balances at beginning of period	163,778,271	$	2	$	2,843,089	$	4,363,501	$	8,160	$	7,214,752
Issuance of common stock upon exercise of stock options	19,448	—		2,939		—		—		2,939
Issuance of common stock upon vesting of restricted stock units	648,811	—		—		—		—		—
Shares withheld related to net share settlement	(248,754)	—		(42,977)		—		—		(42,977)
Repurchase and retirement of common stock	(1,255,029)	—		(222,603)		—		—		(222,603)
Stock-based compensation expense	—	—		119,259		—		—		119,259
Other comprehensive loss	—	—		—		—		(27,952)		(27,952)
Net income	—	—		—		260,936		—		260,936
Balances at end of period	162,942,747	$	2	$	2,699,707	$	4,624,437	$	(19,792)	$	7,304,354


	Three months ended April 30, 2025
			Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive (loss) income		Total stockholders’ equity
		Shares	Amount

Balances at beginning of period				162,583,789	$	2	$	2,386,192	$	3,454,595	$	(8,416)	$	5,832,373
Issuance of common stock upon exercise of stock options				242,713	—		40,605		—		—		40,605
Issuance of common stock upon vesting of restricted stock units				237,956	—		—		—		—		—
Shares withheld related to net share settlement				(89,377)	—		(20,410)		—		—		(20,410)
Stock-based compensation expense				—	—		113,011		—		—		113,011
Other comprehensive income				—	—		—		—		17,329		17,329
Net income				—	—		—		228,190		—		228,190
Balances at end of period				162,975,081	$	2	$	2,519,398	$	3,682,785	$	8,913	$	6,211,098

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three months ended April 30,
		2026			2025

Cash flows from operating activities
Net income			$	260,936		$	228,190
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			11,587			9,822
Reduction of lease right-of-use assets			3,279			3,265
Accretion of discount on short-term investments			(1,788)			(2,509)
Stock-based compensation			119,259			112,210
Amortization of deferred costs			4,900			4,043
Deferred income taxes			14,337			(27,418)
Other, net			(1,777)			4,327
Changes in operating assets and liabilities:
Accounts receivable			696,614			522,686
Unbilled accounts receivable			(9,143)			(7,672)
Deferred costs			(3,625)			(4,055)
Prepaid expenses and other current and long-term assets			(7,984)			(4,501)
Accounts payable			4,473			7,743
Accrued expenses and other current liabilities			8,923			(8,720)
Income tax payable			61,199			82,345
Deferred revenue			(32,963)			(41,361)
Lease liabilities			(2,460)			(2,543)
Other long-term liabilities			1,349			1,306
Net cash provided by operating activities			1,127,116			877,158
Cash flows from investing activities
Purchases of short-term investments			(982,315)			(667,100)
Maturities and sales of short-term investments			670,835			620,903
Long-term assets			(1,751)			(5,910)
Acquisitions, net of cash acquired			(75,480)			—
Net cash used in investing activities			(388,711)			(52,107)
Cash flows from financing activities
Proceeds from exercise of common stock options			2,939			40,605
Repurchases of common stock			(226,947)			—
Taxes paid related to net share settlement of equity awards			(38,518)			(20,225)
Net cash (used in) provided by financing activities			(262,526)			20,380
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(532)			766
Net change in cash, cash equivalents, and restricted cash			475,347			846,197
Cash, cash equivalents, and restricted cash at beginning of period			1,423,412			1,120,963
Cash, cash equivalents, and restricted cash at end of period			$	1,898,759		$	1,967,160

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents			$	1,896,580		$	1,964,982
Restricted cash included in other long-term assets			2,179			2,178
Total cash, cash equivalents, and restricted cash at end of period			$	1,898,759		$	1,967,160

Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds			$	7,203		$	13,850
Excess tax (deficiency) benefit from employee stock plans			$	(4,092)		$	2,579

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, artificial intelligence (“AI”), 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 Veeva Commercial Cloud and Veeva Data Cloud solutions (“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 Veeva Development Cloud and Veeva Quality Cloud solutions ("R&D and Quality 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. Veeva AI adds agentic AI capabilities to our Vault platform and deep, industry-specific agents to our Commercial and R&D and Quality Solutions. 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, 2026, filed on March 20, 2026. 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, 2026 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, 2027 or any other period.

Recently Adopted Accounting Pronouncements

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. We early adopted the new standard during the fiscal quarter ended April 30, 2026 on a prospective basis and there was no material impact on our consolidated financial statements.

New Accounting Pronouncements Issued and Not Yet Adopted

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


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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.

Note 2. Acquisitions

Ostro

On March 9, 2026, we acquired all outstanding stock of Rise Healthcare Tech, Inc. (“Ostro”) in exchange for a total consideration of $90 million, or $70 million net of cash acquired, which includes the impact of adjustments to purchase price associated with the net working capital of the acquired entity at close and excludes equity awards to certain Ostro employees that are accounted for separately from the business combination. Ostro provides an engagement platform for life sciences that gives patients and doctors immediate, compliant answers through an AI-driven chat.

The following table summarizes the estimated fair values of the identifiable intangible assets, useful lives, and goodwill at the acquisition date (in thousands):


	Useful life	Fair Value
Identifiable intangible assets:
Trade names and trademarks	3 years	$	1,300
Developed technology	5 years	14,500
Customer relationships	7 years	9,700
Total purchased intangible assets		25,500
Goodwill		44,423

Goodwill, which is not deductible for income tax purposes, is primarily attributed to the value expected from synergies resulting from the business combination.

Note 3. Short-Term Investments

As of April 30, 2026, 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	$	27,710	$	—	$	(41)	$	27,669
Asset-backed securities	204,923		1,091		(48)		205,966
Commercial paper	44,755		1		(3)		44,753
Corporate notes and bonds	3,293,436		7,838		(11,568)		3,289,706
Foreign government bonds	219,830		511		(645)		219,696
Municipal securities	41,453		75		(72)		41,456
U.S. agency obligations	1,484		4		—		1,488
U.S. treasury securities	1,590,298		1,070		(5,963)		1,585,405
Total available-for-sale securities	$	5,423,889	$	10,590	$	(18,340)	$	5,416,139


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As of January 31, 2026, 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	$	27,710	$	—	$	(20)	$	27,690
Asset-backed securities	260,136		1,912		(131)		261,917
Commercial paper	75,367		8		—		75,375
Corporate notes and bonds	3,133,825		21,684		(950)		3,154,559
Foreign government bonds	232,271		1,206		(76)		233,401
Municipal securities	37,231		222		—		37,453
U.S. agency obligations	11,699		21		—		11,720
U.S. treasury securities	1,332,382		5,443		(359)		1,337,466
Total available-for-sale securities	$	5,110,621	$	30,496	$	(1,536)	$	5,139,581

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):



	April 30, 2026		January 31, 2026
Due in one year or less	$	1,152,147	$	1,025,871
Due in greater than one year	4,263,992		4,113,710
Total	$	5,416,139	$	5,139,581

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 April 30, 2026 (in thousands):


	Less than 12 months				12 months or greater
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
Certificates of deposit	$	27,669	$	(41)	$	—	$	—
Asset-backed securities	—		—		622		(48)
Commercial paper	34,796		(3)		—		—
Corporate notes and bonds	1,604,542		(11,568)		—		—
Foreign government bonds	111,351		(636)		8,048		(10)
Municipal securities	11,005		(72)		—		—

U.S. treasury securities	1,248,962		(5,962)		—		—
Total	$	3,038,325	$	(18,282)	$	8,670	$	(58)

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, 2026 (in thousands):


	Less than 12 months				12 months or greater
	Fair value		Gross unrealized losses		Fair Value		Gross unrealized losses

Certificates of deposit	$	27,690	$	(20)	$	—	$	—
Asset-backed securities	4,091		(80)		1,090		(51)
Commercial paper	9,960		(1)		—		—
Corporate notes and bonds	425,464		(950)		—		—
Foreign government bonds	69,877		(68)		8,049		(8)
Municipal securities	580		—		—		—
U.S. treasury securities	140,204		(358)		—		—
Total	$	677,866	$	(1,477)	$	9,139	$	(59)

Note 4. Deferred Costs

Deferred costs, which consist of deferred sales commissions, were $29 million and $30 million as of April 30, 2026 and January 31, 2026, respectively. Amortization expense for deferred costs included in sales and marketing expenses in the condensed consolidated statements of comprehensive income was $5 million and $4 million for the three months ended April 30, 2026 and 2025, respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented.

Note 5. Goodwill and Intangible Assets

Goodwill was $488 million and $440 million as of April 30, 2026 and January 31, 2026, respectively.

The following table presents the details of intangible assets as of April 30, 2026 (in thousands):


	Gross carrying amount		Accumulated amortization		Net		Remaining useful life (in years)
Customer relationships	$	124,057	$	(85,853)	$	38,204	4.7
Existing technology	44,280		(28,732)		15,548		4.8
Trade name and trademarks	15,500		(13,981)		1,519		2.6
Other intangibles	21,405		(21,168)		237		1.0
Total intangible assets	$	205,242	$	(149,734)	$	55,508


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The following table presents the details of intangible assets as of January 31, 2026 (in thousands):


	Gross carrying amount		Accumulated amortization		Net
Customer relationships	$	113,157	$	(83,606)	$	29,551
Existing technology	28,580		(28,170)		410

Other intangibles	21,405		(21,052)		353
Total intangible assets	$	163,142	$	(132,828)	$	30,314

Amortization expense associated with intangible assets was $3 million and $4 million for the three months ended April 30, 2026 and 2025, respectively.

As of April 30, 2026, the estimated future amortization expense for intangible assets is as follows (in thousands):


Fiscal Year	Estimated amortization expense
Remaining for 2027	$	11,058
2028	13,344
2029	13,325
2030	10,300
2031	4,283
Thereafter	3,198
Total	$	55,508

Note 6. 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 April 30, 2026 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	560,643	$	—	$	560,643





Short-term investments:
Certificates of deposit	—		27,669		27,669
Asset-backed securities	—		205,966		205,966
Commercial paper	—		44,753		44,753
Corporate notes and bonds	—		3,289,706		3,289,706
Foreign government bonds	—		219,696		219,696
Municipal securities	—		41,456		41,456
U.S. agency obligations	—		1,488		1,488
U.S. Treasury securities	—		1,585,405		1,585,405
Foreign currency derivative contracts	—		59		59
Total financial assets	$	560,643	$	5,416,198	$	5,976,841
Liabilities
Foreign currency derivative contracts	$	—	$	(791)	$	(791)
Total financial liabilities	$	—	$	(791)	$	(791)


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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, 2026 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	286,504	$	—	$	286,504
U.S. Treasury securities	—		2,611		2,611

Short-term investments:
Certificates of deposit	—		27,690		27,690
Asset-backed securities	—		261,917		261,917
Commercial paper	—		75,375		75,375
Corporate notes and bonds	—		3,154,559		3,154,559
Foreign government bonds	—		233,401		233,401
Municipal securities	—		37,453		37,453
U.S. agency obligations	—		11,720		11,720
U.S. Treasury securities	—		1,337,466		1,337,466
Foreign currency derivative contracts	—		822		822
Total financial assets	$	286,504	$	5,143,014	$	5,429,518
Liabilities
Foreign currency derivative contracts	$	—	$	(3,187)	$	(3,187)
Total financial liabilities	$	—	$	(3,187)	$	(3,187)

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.

In the three months ended April 30, 2026, net realized and unrealized foreign currency gain on hedging was $2 million. In the three months ended April 30, 2025, net realized and unrealized foreign currency loss on hedging was $7 million.

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



	April 30, 2026		January 31, 2026
Notional amount of foreign currency derivative contracts	$	120,426	$	354,696
Fair value of foreign currency derivative contracts	$	121,209	$	356,320

Note 7. Income Taxes

For the three months ended April 30, 2026 and 2025, our effective tax rates were 24.9% and 23.6%, respectively. During the three months ended April 30, 2026, as compared to the same period in the prior fiscal year, our effective tax rate increased primarily due to discrete tax deficiencies related to equity compensation.


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Note 8. Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable

Deferred Revenue

Of the beginning deferred revenue balance for the respective periods, we recognized $606 million and $518 million in revenue for the three months ended April 30, 2026 and 2025, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of April 30, 2026 and January 31, 2026, 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 April 30, 2026, 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 $15 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, 2026, unbilled accounts receivable consisted of (i) receivables of $40 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $11 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

Note 9. Leases

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

For the three months ended April 30, 2026 and 2025, our operating lease expense was $5 million and $4 million, respectively.

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


	Three months ended April 30,
	2026		2025
Cash paid for lease liabilities	$	3,605	$	3,359
Lease right-of-use assets obtained in exchange for new lease liabilities	$	12,156	$	2,976

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



	April 30, 2026		January 31, 2026
Weighted average remaining lease term	7.9 years		7.8 years
Weighted average discount rate	4.8	%	4.8	%

As of April 30, 2026, remaining maturities of lease liabilities are as follows (in thousands):


Fiscal Year
Remaining for 2027	$	11,268
2028	19,354
2029	15,815
2030	15,188
2031	13,077
Thereafter	50,720
Total lease payments	125,422
Less imputed interest	(22,355)
Total lease liabilities	$	103,067


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Note 10. Stockholders’ Equity

Common Stock

As of April 30, 2026, we had 162,942,747 shares of common stock outstanding.

Stock Option Activity

A summary of stock option activity for the three months ended April 30, 2026 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, 2026	15,134,876	$	181.99	6.3	$	523
Options granted	97,300	$	175.42
Options exercised	(19,448)	$	151.04
Options forfeited/cancelled	(91,993)	$	216.62
Options outstanding at April 30, 2026	15,120,735	$	181.78	6.0	$	291
Options vested and exercisable at April 30, 2026	9,444,451	$	159.56	4.8	$	291
Options vested and exercisable at April 30, 2026 and expected to vest thereafter	15,120,735	$	181.78	6.0	$	291

As of April 30, 2026, there was $365 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 grant-date fair value of options vested was $253 million and $128 million for the three months ended April 30, 2026 and 2025, respectively.

The weighted average grant-date fair value of options granted was $79.15 and $96.83 per option for the three months ended April 30, 2026 and 2025, respectively. The total intrinsic value of options exercised was approximately $1 million and $16 million for the three months ended April 30, 2026 and 2025, respectively.

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 April 30,
		2026		2025
Volatility				39%	-	40%		39%	-	40%
Expected term (in years)			6.3			6.3	-	7.0
Risk-free interest rate				3.7%	-	4.0%		3.8%	-	4.4%
Dividend yield		—%		—%

Restricted Stock Units (“RSUs”)

A summary of RSU activity for the three months ended April 30, 2026 is as follows:


	Unreleased restricted stock units	Weighted average grant date fair value
Balance at January 31, 2026	890,056	$	211.42
RSUs granted	3,867,310	$	173.52
RSUs vested	(648,811)	$	211.79
RSUs forfeited/cancelled	(19,053)	$	184.31
Balance at April 30, 2026	4,089,502	$	175.65

As of April 30, 2026, there was a total of $667 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 2.8 years. The total fair


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value of RSUs vested was $112 million and $54 million for the three months ended April 30, 2026 and 2025, respectively.

The RSUs granted during the three months ended April 30, 2026 primarily consisted of awards made in connection with our annual compensation review cycle that vest over one year or at the completion of four years. The weighted average grant-date fair value of RSUs granted was $173.52 and $214.17 per award for the three months ended April 30, 2026 and 2025, respectively.

In April 2026, we transitioned our long-term equity incentive for employees (excluding our CEO) from annual stock option grants to RSUs that generally cliff-vest after four years of continuous service (each a "Long-Term Grant"). Long-Term Grants are generally not expected to be annually recurring, and eligible employees are generally expected to be limited to a single Long-Term Grant at any point in time.

Share Repurchase Program

In January 2026, our board of directors authorized a share repurchase program of up to $2 billion of our outstanding shares of common stock. Under the program, we may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under the Exchange Act. The timing and total amount of any share repurchases depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program has a term of two years, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. Any repurchased shares of common stock are retired.

The table below sets forth information regarding repurchase of shares under our share repurchase program (in thousands, except number of shares and per share data):


	Three months ended April 30,
		2026
Total number of shares repurchased		1,255,029
Average price paid per share (1)		$	176.17
Amount repurchased (1)		$	221,100
(1) Amounts exclude commissions and excise taxes.

All repurchases were made in open market transactions. As of April 30, 2026, $1.6 billion remained available for future repurchase.

Note 11. 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.


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


	Three months ended April 30,
2026			2025
Numerator:
Net income	$	260,936		$	228,190

Denominator:
Basic shares:
Weighted average common shares outstanding, basic	163,345			162,749
Diluted shares:
Weighted average common shares outstanding, basic	163,345			162,749
Effect of potentially dilutive common shares	2,644			3,480
Weighted average common shares outstanding, diluted	165,989			166,229
Net income per share:
Basic	$	1.60		$	1.40
Diluted	$	1.57		$	1.37

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


	Three months ended April 30,
		2026		2025
Options and RSUs			11,158		7,078

Note 12. Commitments and Contingencies

Litigation

From time to time, we may be involved in 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 13. 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 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 April 30,
		2026		2025
Revenues		$	882,948	$	759,043

Cost of revenues - adjusted:
Cost of subscription revenues		96,668		75,619
Cost of professional services and other revenues		107,670		82,575
Operating expenses - adjusted:
Research and development		156,760		136,084
Sales and marketing		84,192		73,512
General and administrative		42,282		41,370
Operating income - adjusted		395,376		349,883
Other segment items (1)		122,264		116,151
Other income, net		74,418		65,089
Income tax provision		86,594		70,631
Consolidated net income		$	260,936	$	228,190
(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 14. 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 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 and Quality 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 April 30,
		2026		2025
Revenues by geography
North America		$	526,167	$	459,467
Europe		265,670		217,103
Asia Pacific		72,877		65,370
Other international		18,234		17,103
Total revenues		$	882,948	$	759,043

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



	April 30, 2026		January 31, 2026
Long-lived assets by geography
North America	$	54,680	$	54,089
Europe	10,299		11,018
Asia Pacific	4,116		4,239
Other international	4,389		915
Total long-lived assets	$	73,484	$	70,261


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Revenues by Product

We group our revenues into two product areas: Commercial Solutions and R&D and Quality Solutions. Commercial Solutions revenues consist of revenues from our Veeva Commercial Cloud and Veeva Data Cloud solutions. R&D and Quality 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 April 30,
		2026		2025
Subscription
Commercial Solutions		$	337,866	$	305,411
R&D and Quality Solutions		392,309		329,357
Total subscription		730,175		634,768
Professional services and other
Commercial Solutions		57,573		46,567
R&D and Quality Solutions		95,200		77,708
Total professional services and other		152,773		124,275
Total revenues		$	882,948	$	759,043


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