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)


	July 31, 2026		January 31, 2026

Assets
Current assets:
Cash and cash equivalents	$	1,812,012	$	1,421,233
Short-term investments	5,430,935		5,139,581
Accounts receivable, net of allowance for credit losses of $97 and $256, respectively	496,677		1,259,737
Unbilled accounts receivable	68,970		50,609
Prepaid expenses and other current assets	137,633		126,470
Total current assets	7,946,227		7,997,630
Property and equipment, net	79,483		70,261
Deferred costs, net	27,835		29,961
Lease right-of-use assets	129,320		75,626
Goodwill	492,991		439,877
Intangible assets, net	55,647		30,314
Deferred income taxes	268,250		273,417
Other long-term assets	60,470		62,257
Total assets	$	9,060,223	$	8,979,343

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	35,977	$	37,644
Accrued compensation and benefits	42,188		45,857
Accrued expenses and other current liabilities	49,634		45,885
Income tax payable	3,018		6,698
Deferred revenue	1,310,498		1,488,819
Lease liabilities	14,635		12,153
Total current liabilities	1,455,950		1,637,056
Deferred income taxes	2,056		558
Long-term lease liabilities	137,060		83,706
Other long-term liabilities	33,708		43,271
Total liabilities	1,628,774		1,764,591
Commitments and contingencies (note 12)
Stockholders’ equity:
Common stock	2		2
Additional paid-in capital	2,579,728		2,843,089
Accumulated other comprehensive (loss) income	(46,147)		8,160
Retained earnings	4,897,866		4,363,501
Total stockholders’ equity	7,431,449		7,214,752
Total liabilities and stockholders’ equity	$	9,060,223	$	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 July 31,				Six months ended July 31,
	2026		2025		2026		2025


Revenues:
Subscription	$	766,764	$	659,183	$	1,496,939	$	1,293,951
Professional services and other	161,199		129,898		313,972		254,173
Total revenues	927,963		789,081		1,810,911		1,548,124
Cost of revenues (1):
Cost of subscription	105,677		93,830		204,780		172,176
Cost of professional services and other	126,335		101,423		248,156		196,901
Total cost of revenues	232,012		195,253		452,936		369,077
Gross profit	695,951		593,828		1,357,975		1,179,047
Operating expenses (1):
Research and development	222,918		192,677		431,241		376,710
Sales and marketing	126,701		109,439		237,818		208,067
General and administrative	71,314		95,804		140,786		164,630
Total operating expenses	420,933		397,920		809,845		749,407
Operating income	275,018		195,908		548,130		429,640
Other income, net	74,512		69,456		148,930		134,545
Income before income taxes	349,530		265,364		697,060		564,185
Income tax provision	76,101		65,055		162,695		135,686
Net income	$	273,429	$	200,309	$	534,365	$	428,499
Net income per share:
Basic	$	1.68	$	1.23	$	3.28	$	2.63
Diluted	$	1.66	$	1.19	$	3.22	$	2.56
Weighted-average shares used to compute net income per share:
Basic	162,344		163,496		162,836		163,129
Diluted	165,057		167,685		166,072		167,272
Other comprehensive income:
Net change in unrealized (loss) gain on available-for-sale investments	$	(26,490)	$	(11,300)	$	(53,941)	$	6,067
Net change in cumulative foreign currency translation gain (loss)	135		390		(366)		352
Comprehensive income	$	247,074	$	189,399	$	480,058	$	434,918


(1) Includes stock-based compensation as follows:
Cost of subscription	$	2,224	$	1,941	$	3,985	$	3,656
Cost of professional services and other	15,939		14,804		30,090		27,573
Research and development	62,220		53,388		113,783		101,337
Sales and marketing	27,886		25,392		52,480		47,713
General and administrative	28,534		26,441		55,724		53,897
Total stock-based compensation	$	136,803	$	121,966	$	256,062	$	234,176

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 July 31, 2026											Three months ended July 31, 2025
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity		Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
	Shares	Amount						Shares		Amount

Balances at beginning of period	162,942,747	$	2	$	2,699,707	$	4,624,437	$	(19,792)	$	7,304,354	162,975,081	$	2	$	2,519,398	$	3,682,785	$	8,913	$	6,211,098
Issuance of common stock upon exercise of stock options	86,544	—		14,204		—		—		14,204		741,812	—		141,692		—		—		141,692
Issuance of common stock upon vesting of restricted stock units	341,056	—		—		—		—		—		255,551	—		—		—		—		—
Shares withheld related to net share settlement	(127,173)	—		(23,332)		—		—		(23,332)		(94,750)	—		(26,373)		—		—		(26,373)
Repurchase and retirement of common stock	(1,408,414)	—		(247,654)		—		—		(247,654)		—	—		—		—		—		—
Stock-based compensation expense	—	—		136,803		—		—		136,803		—	—		122,723		—		—		122,723
Other comprehensive loss	—	—		—		—		(26,355)		(26,355)		—	—		—		—		(10,910)		(10,910)
Net income	—	—		—		273,429		—		273,429		—	—		—		200,309		—		200,309
Balances at end of period	161,834,760	$	2	$	2,579,728	$	4,897,866	$	(46,147)	$	7,431,449	163,877,694	$	2	$	2,757,440	$	3,883,094	$	(1,997)	$	6,638,539


	Six months ended July 31, 2026											Six months ended July 31, 2025
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		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	163,778,271	$	2	$	2,843,089	$	4,363,501	$	8,160	$	7,214,752	162,583,789	$	2	$	2,386,192	$	3,454,595	$	(8,416)	$	5,832,373
Issuance of common stock upon exercise of stock options	105,992	—		17,143		—		—		17,143		984,525	—		182,297		—		—		182,297
Issuance of common stock upon vesting of restricted stock units	989,867	—		—		—		—		—		493,507	—		—		—		—		—
Shares withheld related to net share settlement	(375,927)	—		(66,309)		—		—		(66,309)		(184,127)	—		(46,783)		—		—		(46,783)
Repurchase and retirement of common stock	(2,663,443)	—		(470,257)		—		—		(470,257)		—	—		—		—		—		—
Stock-based compensation expense	—	—		256,062		—		—		256,062		—	—		235,734		—		—		235,734
Other comprehensive (loss) income	—	—		—		—		(54,307)		(54,307)		—	—		—		—		6,419		6,419
Net income	—	—		—		534,365		—		534,365		—	—		—		428,499		—		428,499
Balances at end of period	161,834,760	$	2	$	2,579,728	$	4,897,866	$	(46,147)	$	7,431,449	163,877,694	$	2	$	2,757,440	$	3,883,094	$	(1,997)	$	6,638,539

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six months ended July 31,
		2026			2025

Cash flows from operating activities
Net income			$	534,365		$	428,499
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			22,458			19,948
Reduction of lease right-of-use assets			7,038			6,316
Accretion of discount on short-term investments			(2,841)			(4,535)
Stock-based compensation			256,062			234,176
Amortization of deferred costs			9,805			8,205
Deferred income taxes			26,529			31,699
Other, net			(1,127)			(1,414)
Changes in operating assets and liabilities:
Accounts receivable			768,314			593,032
Unbilled accounts receivable			(18,361)			(9,587)
Deferred costs			(7,679)			(7,721)
Prepaid expenses and other current and long-term assets			(21,394)			(21,232)
Accounts payable			(652)			3,361
Accrued expenses and other current liabilities			(1,578)			23,763
Income tax payable			(3,945)			(5,362)
Deferred revenue			(200,001)			(180,888)
Lease liabilities			(4,426)			(5,300)
Other long-term liabilities			3,258			2,631
Net cash provided by operating activities			1,365,825			1,115,591
Cash flows from investing activities
Purchases of short-term investments			(1,706,632)			(1,452,857)
Maturities and sales of short-term investments			1,345,987			1,023,691
Long-term assets			(9,773)			(12,213)
Acquisitions, net of cash acquired			(81,833)			—
Net cash used in investing activities			(452,251)			(441,379)
Cash flows from financing activities
Proceeds from exercise of common stock options			17,143			182,297
Repurchases of common stock			(472,673)			—
Taxes paid related to net share settlement of equity awards			(66,304)			(46,228)
Net cash (used in) provided by financing activities			(521,834)			136,069
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(831)			1,365
Net change in cash, cash equivalents, and restricted cash			390,909			811,646
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			$	1,814,321		$	1,932,609

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents			$	1,812,012		$	1,930,431
Restricted cash included in other long-term assets			2,309			2,178
Total cash, cash equivalents, and restricted cash at end of period			$	1,814,321		$	1,932,609

Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds			$	151,543		$	126,683
Excess tax (deficiency) benefit from employee stock plans			$	(824)		$	15,610

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 applications, agents, data, and 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.

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 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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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 July 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	$	—	$	(25)	$	27,685
Asset-backed securities	133,834		501		(50)		134,285

Corporate notes and bonds	3,373,271		2,326		(27,453)		3,348,144
Foreign government bonds	224,309		148		(1,321)		223,136
Municipal securities	35,032		12		(227)		34,817
U.S. agency obligations	1,497		1		—		1,498
U.S. treasury securities	1,678,454		168		(17,252)		1,661,370
Total available-for-sale securities	$	5,474,107	$	3,156	$	(46,328)	$	5,430,935


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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):



	July 31, 2026		January 31, 2026
Due in one year or less	$	1,011,053	$	1,025,871
Due in greater than one year	4,419,882		4,113,710
Total	$	5,430,935	$	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 July 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	$	27,685	$	(25)	$	—	$	—
Asset-backed securities	5		—		359		(50)

Corporate notes and bonds	2,494,400		(27,453)		—		—
Foreign government bonds	159,422		(1,317)		8,055		(4)
Municipal securities	26,599		(227)		—		—

U.S. treasury securities	1,553,073		(17,252)		—		—
Total	$	4,261,184	$	(46,274)	$	8,414	$	(54)

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 $28 million and $30 million as of July 31, 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 July 31, 2026 and 2025, respectively, and $10 million and $8 million for the six months ended July 31, 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 $493 million and $440 million as of July 31, 2026 and January 31, 2026, respectively.

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


	Gross carrying amount		Accumulated amortization		Net		Remaining useful life (in years)
Customer relationships	$	125,657	$	(88,565)	$	37,092	4.0
Existing technology	46,880		(29,779)		17,101		4.2
Trade name and trademarks	15,500		(14,165)		1,335		2.3
Other intangibles	21,405		(21,286)		119		0.3
Total intangible assets	$	209,442	$	(153,795)	$	55,647	4.0


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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 $4 million for both the three months ended July 31, 2026 and 2025, and $7 million and $8 million for the six months ended July 31, 2026 and 2025, respectively.

As of July 31, 2026, the estimated future amortization expense for intangible assets is as follows (in thousands):


Fiscal Year	Estimated amortization expense
Remaining for 2027	$	8,509
2028	14,828
2029	14,194
2030	10,634
2031	4,283
Thereafter	3,199
Total	$	55,647

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 July 31, 2026 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	556,885	$	—	$	556,885





Short-term investments:
Certificates of deposit	—		27,685		27,685
Asset-backed securities	—		134,285		134,285

Corporate notes and bonds	—		3,348,144		3,348,144
Foreign government bonds	—		223,136		223,136
Municipal securities	—		34,817		34,817
U.S. agency obligations	—		1,498		1,498
U.S. Treasury securities	—		1,661,370		1,661,370
Foreign currency derivative contracts	—		7		7
Total financial assets	$	556,885	$	5,430,942	$	5,987,827
Liabilities
Foreign currency derivative contracts	$	—	$	(1,288)	$	(1,288)
Total financial liabilities	$	—	$	(1,288)	$	(1,288)


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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 July 31, 2026 and 2025, there was a net realized and unrealized foreign currency gain on hedging of $2 million and $1 million, respectively. In the six months ended July 31, 2026, there was a net realized and unrealized foreign currency gain on hedging of $3 million. In the six months ended July 31, 2025, there was a net realized and unrealized foreign currency loss on hedging of $6 million.

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



	July 31, 2026		January 31, 2026
Notional amount of foreign currency derivative contracts	$	116,037	$	354,696
Fair value of foreign currency derivative contracts	$	117,332	$	356,320

Note 7. Income Taxes

For the three months ended July 31, 2026 and 2025, our effective tax rates were 21.8% and 24.5%, respectively. For the six months ended July 31, 2026 and 2025, our effective tax rates were 23.3% and 24.0%, respectively. During the three and six months ended July 31, 2026, as compared to the same periods in the prior fiscal year, our effective tax rate decreased primarily due to an increase in foreign-derived deduction eligible income (“FDDEI”) deduction under the One Big Beautiful Bill Act (“OBBBA”) provisions effective in the current fiscal year, partially offset by 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 $640 million and $556 million in revenue for the three months ended July 31, 2026 and 2025, respectively, and $992 million and $851 million in revenue for the six months ended July 31, 2026 and 2025, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of July 31, 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 July 31, 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 $24 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.

Our operating lease expense was $6 million and $4 million for the three months ended July 31, 2026 and 2025, respectively, and $11 million and $8 million for the six months ended July 31, 2026 and 2025, respectively.

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


	Six months ended July 31,
	2026		2025
Cash paid for lease liabilities	$	7,314	$	6,992
Lease right-of-use assets obtained in exchange for new lease liabilities	$	63,189	$	14,015

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



	July 31, 2026		January 31, 2026
Weighted average remaining lease term	9.5 years		7.6 years
Weighted average discount rate	5.0	%	4.7	%

As of July 31, 2026, remaining maturities of lease liabilities are as follows (in thousands):


Fiscal Year
Remaining for 2027	$	7,581
2028	13,795
2029	22,275
2030	21,652
2031	19,546
Thereafter	112,694
Total lease payments	197,543
Less imputed interest	(45,848)
Total lease liabilities	$	151,695


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Note 10. Stockholders’ Equity

Common Stock

As of July 31, 2026, we had 161,834,760 shares of common stock outstanding.

Stock Option Activity

A summary of stock option activity for the six months ended July 31, 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	128,705	$	174.30
Options exercised	(105,992)	$	161.73
Options forfeited/cancelled	(235,140)	$	213.64
Options outstanding at July 31, 2026	14,922,449	$	181.57	5.7	$	521
Options vested and exercisable at July 31, 2026	9,464,222	$	159.94	4.5	$	503
Options vested and exercisable at July 31, 2026 and expected to vest thereafter	14,922,449	$	181.57	5.7	$	521

As of July 31, 2026, there was $312 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 2.0 years. The grant-date fair value of options vested was $267 million and $138 million for the six months ended July 31, 2026 and 2025, respectively.

The weighted average grant-date fair value of options granted was $79.05 and $97.28 per option for the six months ended July 31, 2026 and 2025, respectively. The total intrinsic value of options exercised was approximately $3 million and $80 million for the six months ended July 31, 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 July 31,						Six months ended July 31,
	2026			2025			2026			2025
Volatility	38%	-	40%	39%	-	40%	38%	-	40%	39%	-	40%
Expected term (in years)	6.3			6.3			6.3			6.3	-	7.0
Risk-free interest rate	4.3%	-	4.4%	4.0%	-	4.2%	3.7%	-	4.4%	3.8%	-	4.4%
Dividend yield	—%			—%			—%			—%

Restricted Stock Units (“RSUs”)

A summary of RSU activity for the six months ended July 31, 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	3,962,556	$	173.46
RSUs vested	(989,867)	$	199.81
RSUs forfeited/cancelled	(90,871)	$	179.21
Balance at July 31, 2026	3,771,874	$	175.36

As of July 31, 2026, there was a total of $581 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 2.7 years. The total fair


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value of RSUs vested was $175 million and $126 million for the six months ended July 31, 2026 and 2025, respectively.

The RSUs granted during the six months ended July 31, 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 $173.46 and $215.98 per award for the six months ended July 31, 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 July 31,		Six months ended July 31,
	2026			2026
Total number of shares repurchased	1,408,414			2,663,443
Average price paid per share (1)	$	174.48		$	175.28
Amount repurchased (1)	$	245,736		$	466,835
(1) Amounts exclude commissions and excise taxes.

All repurchases were made in open market transactions. As of July 31, 2026, $1.4 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 July 31,						Six months ended July 31,
2026			2025			2026			2025
Numerator:
Net income	$	273,429		$	200,309		$	534,365		$	428,499

Denominator:
Basic shares:
Weighted average common shares outstanding, basic	162,344			163,496			162,836			163,129
Diluted shares:
Weighted average common shares outstanding, basic	162,344			163,496			162,836			163,129
Effect of potentially dilutive common shares	2,713			4,189			3,236			4,143
Weighted average common shares outstanding, diluted	165,057			167,685			166,072			167,272
Net income per share:
Basic	$	1.68		$	1.23		$	3.28		$	2.63
Diluted	$	1.66		$	1.19		$	3.22		$	2.56

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


	Three months ended July 31,				Six months ended July 31,
2026		2025		2026		2025
Options and RSUs	10,965		7,298		9,858		6,746

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 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, legal 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 July 31,				Six months ended July 31,
	2026		2025		2026		2025
Revenues	$	927,963	$	789,081	$	1,810,911	$	1,548,124

Cost of revenues - adjusted:
Cost of subscription revenues	102,381		90,843		199,049		166,462
Cost of professional services and other revenues	110,396		86,480		218,066		169,055
Operating expenses - adjusted:
Research and development	160,428		139,289		317,188		275,373
Sales and marketing	96,095		81,157		180,287		154,669
General and administrative	42,780		38,736		85,062		80,106
Operating income - adjusted	415,883		352,576		811,259		702,459
Other segment items (1)	140,865		156,668		263,129		272,819
Other income, net	74,512		69,456		148,930		134,545
Income tax provision	76,101		65,055		162,695		135,686
Consolidated net income	$	273,429	$	200,309	$	534,365	$	428,499
(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 July 31,				Six months ended July 31,
	2026		2025		2026		2025
Revenues by geography
North America	$	549,207	$	468,008	$	1,075,374	$	927,475
Europe	283,855		232,744		549,525		449,847
Asia Pacific	76,327		70,128		149,204		135,498
Other international	18,574		18,201		36,808		35,304
Total revenues	$	927,963	$	789,081	$	1,810,911	$	1,548,124

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



	July 31, 2026		January 31, 2026
Long-lived assets by geography
North America	$	56,140	$	54,089
Europe	11,697		11,018
Asia Pacific	5,932		4,239
Other international	5,714		915
Total long-lived assets	$	79,483	$	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 July 31,				Six months ended July 31,
	2026		2025		2026		2025
Subscription
Commercial Solutions	$	347,389	$	307,523	$	685,255	$	612,934
R&D and Quality Solutions	419,375		351,660		811,684		681,017
Total subscription	766,764		659,183		1,496,939		1,293,951
Professional services and other
Commercial Solutions	59,742		47,703		117,315		94,270
R&D and Quality Solutions	101,457		82,195		196,657		159,903
Total professional services and other	161,199		129,898		313,972		254,173
Total revenues	$	927,963	$	789,081	$	1,810,911	$	1,548,124


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