VEEV 10-K & 10-Q changes, risk factors and insider trading

•TheWe face intense competition in markets in which we participateoperate—particularly arein highlythe competitive,CRM market as we transition customers from our legacy CRM application to our Vault CRM application—and if we do not compete effectively, we may lose customers and our business and operating results could be adversely affected.

•Nearly all of our revenues are generated by sales to customers in the life sciences industry, and factors that adversely affect this industry (including regulatory,government funding,funding and staffing of relevant agencies and research, drug pricing regulation, healthcare funding and eligibility reforms, regulation of pharmaceutical advertising, or other regulatory or policy changes) could also adversely affect us.

•Uncertain macroeconomic and geopolitical factors, including as a result of worldwide inflationary pressures and changes in interest rates, currency exchange fluctuations, changes in trade policies and practices (including the imposition of additional tariffs or threats to impose additional tariffs), worldwide inflationary pressures, currency exchange fluctuations, changes in interest rates or other economic policies, geopolitical conflicts (like the Russian invasion of Ukraine and the regional conflict in the Middle East), and concerns about a possible domestic or global recession, may cause instability in the global economy, and disruptions within the life sciences industry that may negatively impact our business, our financial results, and our stock price.

•We arehave currentlybeen beingand may in the future be sued by third parties for allegedinfringement or misappropriation of tradethird-party secrets.intellectual property. We may suffer damages, which could be significant, or other harm from these lawsuits and we may be sued for infringement or misappropriation of third-party intellectual property in the future.lawsuits.

Unauthorized access or other security breaches or incidents, as a result of third-party action (e.g., cyberattacks, or the introduction into our networks or systems of ransomware or other malware), employee or contractor error or malfeasance, product defect, or otherwise, have resulted in and could in the future result in the loss of information or intellectual property, inappropriate access to or use, disclosure, unavailability, modification, destruction, or other processing of information, service interruption, degradation, disruption, and outages, service level credits, claims, demands, litigation, regulatory investigations and other proceedings, indemnity obligations, damage to our reputation, and other liability. It is possible that our risk of cyberattacks and other sources of security breaches and incidents may be elevated as a result of Russia’s invasion of Ukraine, the regional conflict in the Middle East, or other geopolitical tensions or conflicts, due to an increase in cyberattack attempts on us, our customers, our partners, or our technology infrastructure providers.

While we maintain and continue to improve our security measures, we may be unable to adequately anticipate security threats or to implement adequate preventative measures, in part, because the techniques used to obtain unauthorized access or sabotage systems change frequently and are becoming increasingly sophisticated and complex, and generally are not identified until they are launched against a target. For instance, as artificial intelligence (AI) technologies, including generative AI models, develop rapidly, threat actors are using these technologies to create sophisticated new attack methods that are increasingly automated, targeted, coordinated, and difficult to defend against. Moreover, our efforts to detect, prevent, and remediate known or unknown security vulnerabilities, including those arising from third-party hardware or software in our supply chain, may be insufficient to prevent security breaches or incidents resulting from such vulnerabilities, and may result in additional direct or indirect costs and liabilities and time of management and technical personnel. We may be required to expend significant capital and financial resources to protect against the foregoing threats and to alleviate problems caused by actual or perceived security breaches or incidents. Additionally, we and our service providers may face difficulties or delays in identifying, remediating, and otherwise responding to any cybersecurity attack or other security breach or incident.

TheWe face intense competition in markets in which we participate are highly competitive,operate and if we do not compete effectively, we may lose customers and our business and operating results could be adversely affected.

The markets for our solutions are highly competitive. In new sales cycles within our largest product categories, we generally compete with other cloud-based solutions from providers that make applications geared toward the life sciences industry. Our CRM solutions primarily compete with Salesforce, Inc., which ishas developingdeveloped a life sciences industry-specific CRM applicationapplication. andIQVIA, which historically offered a competitive CRM solution, has enteredlicensed intoits aCRM partnershipsoftware withto IQVIA Holdings, which also offers various data products and other applications that compete with our products.Salesforce. Our Veeva Data Cloud products as well as Veeva Crossix, compete with IQVIA, Ipsos Group S.A., Definitive Health Corp., and smaller data and data analytics providers. IQVIA, Dassault Systèmes, OpenText Corporation, Oracle Corporation, Honeywell International Inc., and other smaller application providers offer applications that compete with certain of our Veeva Development Cloud or Veeva Quality Cloud applications. Our Veeva Commercial Cloud, Veeva Development Cloud, and Veeva Quality Cloud applications also compete to replace client server-based legacy solutions offered by companies such as Oracle, Microsoft Corporation, and other smaller application providers. Our customers may also choose to use cloud-based applications or platforms that are not life sciences specific—such as Salesforce, Inc., Box.com, Amazon Web Services, or Microsoft—for certain of the functions our applications provide. Our business consulting and professional services offerings compete with a range of professional services firms, which include, at times, some of our partners. With the introduction of new technologies, we expect competition to intensify in the future, and we may face competition from new market entrants as well.

As we transition from our legacy Veeva CRM application to our Vault CRM application, as discussed in more detail below, certain customers have chosen, and other customers may in the future choose, to purchase CRM solutions from a competitor. For example, Salesforce, our primary CRM competitor, recentlyhas announced that acertain large Veeva CRM customercustomers hashave committed to purchasing its CRM solutions.solutions and a number of our customers have informed us of their intent to move to Salesforce as their CRM provider.

If our actual or potential competitors’ products, services, or technologies become more accepted than our solutions, if they are successful in bringing their products or services to market earlier than we are, if their products or services are more technologically capable than ours (including as a result of new or better use of evolving AI technologies), or if customers replace our solutions with custom-built software, then our revenues could be adversely affected. Moreover, if we enter new markets, we will likely face competition and will need to adapt to competitive factors that may be different from those we face today. Pricing pressures and increased competition could result in reduced sales, reduced margins, losses, or a failure to maintain or improve our competitive market position, any of which could adversely affect our business. For all of these reasons, we may not be able to compete favorably against our current and future competitors.

Our continued growth and profitability will depend on our ability to successfully develop and sell new solutions. It is uncertain whether these newer solutions will continue to grow as a percentage of revenues at a pace significant enough to support our expected overall growth. For example, as discussed in more detail below, we have begun to migrate our Veeva CRM customers to Vault CRM. We cannot be certain that we will be successful with respect to newer solutionssolutions, including AI technologies, and markets. It may take us significant time, and we may incur significant expense, to effectively market and sell these solutions, develop other new solutions, or make enhancements to our existing solutions. If our newer solutions do not continue to gain traction in the market, or other solutions that we may develop and introduce in the future do not achieve market acceptance in a timely manner, the growth rate of our revenues and operating results will be adversely affected.

In each of our fiscal years ended January 31, 2026, 2025, 2024, and 2023,2024, our top 10 customers accounted for 28%, 28%, and 29%28% of our total revenues, respectively.revenues. We rely on our reputation and recommendations from key customers in order to promote our solutions to potential customers, which we call “reference selling.” The loss of any of our key customers, or a failure of one or more of them to renew or expand user subscriptions for some or all our products, could have a significant impact on the growth rate of our revenues, our reputation, and our ability to obtain new customers. In the event of an acquisition of one of our customers or a business combination between two of our customers, we have in the past and may in the future suffer reductions in user subscriptions or nonrenewal of certain or all of their subscription orders. We are also likely to face increasing purchasing scrutiny at the renewal of large customer subscription orders, which may result in reductions in user subscriptions or increased pricing pressure. The business impact of any of these negative events could be particularly pronounced with respect to our largest customers.

Our sales process entails planning discussions with prospective customers, analyzing their existing solutions, and identifying how these potential customers could use and benefit from our solutions. The sales cycle for a new customer, from the time of prospect qualification to the completion of the first sale, may span 12 months or longer. Sales cycles for our newer applications or in newer markets or industries are also lengthy and difficult to predict. We spend substantial time, effort, and expense in our sales efforts without any assurance that our efforts will result in the sale of our solutions. In addition, our sales cycle can vary substantially from customer to customer because of various factors, including the discretionary nature of potential customers’ purchasing and budget decisions, the macroeconomic and regulatory environments, the availability of funding in the life sciences industry, the announcement or planned introduction of new solutions by us or our competitors, and the purchasing approval processes of potential customers. For example, we have recently experienced increased scrutiny for certain potential projects, particularly for our professional services offerings, which may continue for the foreseeable future. If our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our operating results and growth would be harmed.

In our fiscal year ended January 31, 2025,2026, customers outside North America accounted for approximately 41%40% of our total revenues. A key element of our growth strategy is to further expand our international operations and worldwide customer base. Operating in international markets requires significant resources and management attention and subjects us to regulatory, economic, and political risks that are different from those in the United States. We have limited operating experience in some international markets, and we cannot assure you that our expansion efforts into additional international markets will be successful. Our experience in the United States and other international markets in which we already have a presence may not be relevant to our ability to expand in other markets. Our international expansion efforts may not be successful in creating further demand for our solutions outside of the United States or in effectively selling our solutions in the international markets we enter.

•changes in diplomatic relations and trade policy, including the status of relations between the United States and other countries, including China and Russia, and the implementation or threatened implementation of or changes totariffs, export controls, trade sanctions, tariffs, and embargoes, including if the United States and other countries were to impose more significant general sanctions against Russia in response to the continuing conflict in Ukraine, which could ban the use of our products by companies or users in Russia;

•unstable regional and economic political conditions or armed conflicts in the markets in which we operate, including as a result of the Russian invasion of Ukraine and the regional conflict in the Middle East.

Our corporate headquarters are located in Pleasanton, California and our primary third-party hosted computing infrastructure is located in the United States, the European Union, Japan, and South Korea. The west coast of the United States, Japan, and South Korea each contain active earthquake zones. Additionally, we rely on our network and third-party infrastructure and enterprise applications, internal technology systems, and our website, for our development, marketing, operational support, hosted services, and sales activities. In the event of a major earthquake, hurricane, or other natural disaster, or catastrophic event such as an actual or threatened public health emergency (e.g., a global pandemic), fire, extreme weather event, power loss, telecommunications failure, cyberattack, armed conflicts (including the Russian invasion of Ukraine and the regional conflict in the Middle East), or terrorist attack, we may be unable to continue our operations at full capacity or at all and may experience system interruptions, reputational harm, delays in our solution development, lengthy interruptions in our services, breaches of data security, loss of key employees, and loss of critical data, all of which could have an adverse effect on our future operating results.

We have limited experience in acquiring other businesses. We may not be able to successfully integrate the acquired personnel, operations, and technologiestechnologies, or effectively manage the combined business following the acquisition. We also may not achieve the anticipated benefits from the acquired business due to a number of factors, including:

Acquisitions could also use substantial portions of our available cash and result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our operating results. In the event we require financing to complete an acquisition, we may not be able to raise it on terms acceptable to us or at all. In addition, if an acquired business fails to meet our expectations, our operating results, business, and financial position may suffer.

Our business depends on our ability to satisfy our customers, both with respect to our solutions and the professional services that are performed in connection with the implementation of our solutions, including training our customers’ employees on our solutions. Professional services may be performed by us, by a third party, or by a combination of the two. If a customer is not satisfied with the quality of work performed by us or a third party or with the solutions delivered, we could incur additional costs to address the situation, we may be required to issue credits or refunds for pre-paid amounts related to unused services, the profitability of that work might be impaired, and the customer’s dissatisfaction with our services could damage our ability to expand the number of solutions subscribed to by that customer. Moreover,Customers negativemay have requirements, including certain data access restrictions, that our support organizations need to meet. Negative publicity related to our customer relationships,relationships or satisfaction with our services, regardless of its accuracy, may further damage our business by affecting our ability to compete for new business with current and prospective customers.

Our estimate of the market size for our solutions that we have provided publicly, sometimes referred to as total addressable market (“TAM”), is subject to significant uncertainty and is based on assumptions and estimates, including our internal analysis and industry experience, which may not prove to be accurate. These estimates are, in part, based upon the size of the general application areas we target. Our ability to serve a significant portion of this estimated market is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties. For example, in order to address the entire TAM we have identified, we must continue to enhance and add functionality to our existing solutions and introduce new solutions. Accordingly, even if our estimate of the market size is accurate, we cannot assure you that our business will serve a significant portion of this estimated market for our solutions.

•Regulatory changes, government policies, and government funding decisions related to the life sciences industry—Changes in regulations could negatively impact the business environment for our life sciences customers and for us. Healthcare laws and regulations are rapidly evolving and may change significantly in the future. For example, regulatory changes with respect to life sciences advertising, such as limitations on or the elimination of the ability of pharmaceutical companies to engage in direct-to-consumer advertising, could negatively impact certain of our product offerings, including our Crossix business. Further, in recent years, there have been legislative and regulatory changes regarding the pricing of drugs and other healthcare treatments sold by life sciences companies, such as the drug pricing reforms in the Inflation Reduction Act, which went into effect in August 2022, drug pricing reforms proposed by the current administration, which would impose certain limits on drug prices in the U.S. relative to the prices paid in other countries, and additionaldrug price negotiations with the current administration and certain drug manufacturers. Other drug pricing reforms have been discussed and may be proposed in the future. Significant changes in drug pricing policy or regulation could result in lower revenues and profits for life sciences companies and reduced demand for our products. In addition, reductions in funding and staffing of government agencies and changes in the funding and eligibility for healthcare programs relevant to the life sciences industry—such as the Food and Drug Administration, the National Institutes of Health, and Medicaid—or changes in funding priorities relevant to the life sciences industry could adversely affect the life sciences industry.

•Changes in market conditions and practices within the life sciences industry—The expiration of key patents, the implications of precision medicine treatments, changes in the practices of prescribing physicians and patients, changes with respect to payer relationships, and the policies and preferences of healthcare professionals and healthcare organizations with respect to the sales and marketing efforts of life sciences companies could negatively impact demand for our solutions. Changes in public perception regarding the practices of the life sciences industry may result in political pressure to increase the regulation of life sciences companies in one or more of the areas described above, which may negatively impact demand for our solutions. Other factors could lead to a significant reduction in sales representatives that use our solutions or otherwise change the demand for our solutions. For example, in recent years, certain life sciences companies have reduced the number of sales representatives they employ due to an increased preference for digitally-enabled sales channels, which negatively impacted sales of our solutions, including Veeva CRM and certain of our other Commercial Solutions.

•Changes in trade policy or geopolitical conditions that impact the life sciences industry, changes in the ability to sell healthcare treatments in certain locations, and the global availability of healthcare treatments provided by the life sciences companies to which we sell—Tariffs imposed on the end products of the life sciences industry or on inputs relevant to the life sciences industry could increase costs for our customers or reduce demand for their products, which could delay or reduce their IT spending. The imposition of tariffs or other trade measures could also provoke retaliatory responses from affected countries, including the imposition of digital services taxes, consumer boycotts resulting in depressed demand for products of the United States, or other measures that could negatively impact our business, operations, or financial condition. If economic or geopolitical conditions deteriorate, or the ability to market life sciences products or conduct clinical trials in key markets is disrupted, including as a result of the Russian invasion of Ukraine; the regional conflict in the Middle East; changes in export controls; sanctions, tariffs, or other international laws; or if the demand for life sciences products globally deteriorates for other reasons, our customers may delay or reduce their IT spending, particularly within the regions impacted by negative economic or geopolitical conditions. For example, a number of significant life sciences companies have scaled back sales, operations, and investments in Russia, including curtailing sales and marketing and clinical trial activity in Russia.

In addition, many countries and self-regulatory bodies impose requirements regarding payments and transfers of value from life sciences companies to healthcare professionals. For example, our current and prospective customers may be required to comply with the U.S. federal legislation commonly referred to as the Physician Payments Sunshine Act, enacted as part of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, and its implementing regulations (“Sunshine Act”). The Sunshine Act requires certain manufacturers of drugs, devices, biologics, and medical supplies, with specific exceptions, to report annually to the government information related to certain payments and other transfers of value to physicians. Our solutions and services targeted at life sciences companies, including, for example, Veeva Digital Events, are used by our customers to assist with their reporting obligations under the Sunshine Act. If our solutions and services fail to assist our customers to meet such reporting obligations in a timely and accurate manner, demand for our solutions could decrease, which could adversely affect our business.

We also expect laws,these regulations, industry standardslaws and other obligations in relating to privacy, data protection, and cybersecurityregulations to continue to evolve, and that there will continue to be new, modified, and re-interpreted laws, regulations, standards, and other obligations inrelating theseto areas.privacy, data protection, and cybersecurity, introducing uncertainty and increasing complexity. For example, the Network and Information Security Directive II (“NIS2”), adopted in 2023, aims to enhance cybersecurity across critical infrastructure and essential services in the EU. NIS2 provides for all 27 EU member states to have issued implementing legislation by October 2024; however, several EU member states have not finalized their respective legislation and guidance. The EU Data Act, which came into effect September 12, 2025, allows our EU customers to cancel their subscriptions without cause upon providing the notice and after the transition period specified by the Act. Furthermore, new and evolving regulations relating to the use of data in AI and machine learning technologies, such as the EU AI Act, are creating an increasingly complex and fragmented regulatory framework.

Incorporating AI in our solutions or other uses of AI may result in reputational harm and increased liability.

WeVeeva recentlyAI, beganan incorporatinginitiative that adds AI capabilities into certain ofto our solutions,applications whichacross all major areas, including clinical, regulatory, safety, quality, medical, and commercial, presents new risks and challenges that could affect the adoption of our solutions and our business. If our AI offerings draw controversy due to their perceived or actual impact on privacy, security or confidentiality, inefficacy or inaccuracy, or contribution to bias, discrimination, other ethical harms, or other matters, we may experience new or enhanced governmental or regulatory scrutiny, brand or reputational harm, competitive harmharm, or legal liability. If our users lose confidence in the decisions, predictions, analyses, or other content that our AI offerings produce, the adoption of our offerings could be adversely affected, which may harm our operating results and financial condition. We may also use AI for research and development and other internal operational use cases, including the use of AI-enabled processes. The legal, regulatory, and policy environments around AI are evolving rapidly, such as the EU AI Act and legislation proposed and adopted in certain states in the U.S., and we may become subject to new and evolving legal and other obligations. These and other developments may require us to make significant changes to our use of AI, including by limiting or restricting our use of AI,AI or AI-enabled processes, and which may require us to make significant changes to our policies and practices, which may necessitate expenditure of significant time, expense, and other resources. Uncertainty around new and emerging AI applications and regulations may also require us to make significant changes to our use of AI, including by limiting or restricting such use,AI and may cause us to incur increased research and development costs or compliance costs, or divert resources from other development efforts to address issues related to AI governance. If we are unable to mitigate these risks, or if we incur excessive expenses in our efforts to do so, our reputation, business, operating results, and financial condition may be harmed.

We rely on third-party providers—including Salesforce, Inc. and Amazon Web Services and Salesforce—for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our cloud solutions. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability.

Our solutions are hosted from and use computing infrastructure provided by third parties. We utilize Amazon Web Services with respect to applications built on the Veeva Vault platform. Our Veeva CRM application is built on a platform provided by Salesforce, Inc.Salesforce that utilizes hosting and computing infrastructure provided by Salesforce, Inc.Salesforce. However, as discussed in more detail above, we have begun to migrate our Veeva CRM customers to Vault CRM, which is built on our Veeva Vault platform. We also utilize other computing infrastructure service providers to a lesser extent.

Problems faced by our computing infrastructure service providers could adversely affect the experience of our customers. For example, Salesforce, Inc.Salesforce and Amazon Web Services have experienced significant service outages in the past and may do so again in the future. Additionally, our failure to manage or react to an increase in customer demand could have an adverse effect on our business. A rapid expansion of our business or an increase in customer demand could affect our service levels or cause our systems to fail. Our agreements with third-party computing infrastructure service providers may not entitle us to corresponding service level credits to those we offer to our customers. Any changes in third-party service levels at our computing infrastructure service providers or any related disruptions, slowdowns, failures, or other performance problems with our solutions could result in lengthy interruptions in our services, damage our customers’ stored files, or result in potential losses of customer data, any of which could adversely affect our reputation. Interruptions in our services might reduce our revenues, cause us to issue refunds to customers for prepaid and unused subscriptions, subject us to service level credit claims and potential liability, or adversely affect our renewal rates.

We are currently dependent upon Salesforce, Inc’s.Salesforce’s platform for our Veeva CRM application.

We are currently dependent upon the Salesforce platform to deliver Veeva CRM. However, we have begun to migrate our Veeva CRM customers to Vault CRM, which is built on our Veeva Vault platform,platform. and we do not intend to renew ourOur agreement with Salesforce,Salesforce Inc. when the current term expiresexpired on September 1, 2025.2025, Pursuantand pursuant to the terms of our agreement, during the wind-down period from September 1, 2025 to September 1, 2030, we may not sell applications that utilize the Salesforce platform to new customers and our sales of applications that utilize the Salesforce platform to a customer existing at September 1, 2025 may not exceed 150% of the seats in use by each such customer as of September 1, 2025. After September 1, 2030, we will not be able to sell applications that utilize the Salesforce platform to any customers.

Salesforce, Inc.Salesforce also has the rightright, in certain circumstances, to terminate the agreementwind-down earlyperiod in certain circumstances,early, including in the event of a material breach of the agreement by us, or if Salesforce, Inc.Salesforce is subjected to third-party intellectual property infringement claims based on our solutions (except to the extent based on the Salesforce platform) or our trademarks and we do not remedy such infringement in accordance with the agreement. Also, if we are acquired by specified companies, Salesforce, Inc.Salesforce may terminate the agreement upon notice of not less than 12 months. On May 1, 2023, as allowed byIf the termsSalesforce ofplatform for Veeva CRM becomes unavailable earlier than we anticipate, our agreement, Salesforce Inc. terminated certain competition restrictions imposed by the agreement. Per the terms of the agreement, termination of those non-competition obligations by Salesforce, Inc. released us from our minimum order commitments in the future. Under the terms of our current agreement, Salesforce, Inc. is no longer prohibited from promoting third-party products that are competitive to Veeva CRM, treating another third party as a "preferred" vendor of a CRM solution in the pharmabusiness and biotechoperations market,would orbe developingadversely or promoting a product that competes with Veeva CRM. For example, Salesforce, Inc. is developing a life sciences industry-specific CRM application that will compete with our offerings and has entered into a partnership with IQVIA.affected.

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 industry cloud solutions are grouped into four major product categories—Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud. For financial reporting purposes, “Commercial Solutions” revenues refer to revenues associated with our Veeva Commercial Cloud and Veeva Data Cloud solutionssolutions, are classified asand “CommercialR&D and Quality Solutions” revenues,revenues andrefer to revenues associated with our Veeva Development Cloud and Veeva Quality Cloud solutions are classified as “R&D Solutions” revenues.solutions.

In our fiscal year ended January 31, 2026, we derived approximately 47% and 53% of our subscription revenues and 45% and 55% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively. For the fiscal year ended January 31, 2025, we derived approximately 48% and 52% of our subscription services revenues and 47% and 53% of our total revenues from our Commercial Solutions and R&D Solutions, respectively. For the fiscal year ended January 31, 2024, we derived approximately 52% and 48% of our subscription services revenues and 50% and 50% of our total revenues from our Commercial Solutions and R&DQuality Solutions, respectively. Revenues associated with our R&D and Quality Solutions are expected to increase as a percentage of both subscription services revenues and total revenues in the future. We also offer certain of our R&D and Quality Solutions to industries outside the life sciences industry primarily in North America and Europe.

For our fiscal years ended January 31, 2026, 2025, 2024, and 2023,2024, our total revenues were $2,747$3,195 million, $2,364$2,747 million, and $2,155$2,364 million, respectively, representing year-over-year growth in total revenues of 16% in our fiscal year ended January 31, 2025,2026, and 10%16% in our fiscal year ended January 31, 2024.2025. For our fiscal years ended January 31, 2026, 2025, 2024, and 2023,2024, our subscription services revenues were $2,684 million, $2,285 million, $1,902 million, and $1,733$1,902 million, respectively, representing year-over-year growth in subscription services revenues of 17% in our fiscal year ended January 31, 2026, and 20% in our fiscal year ended January 31, 2025, and 10% in our fiscal year ended January 31, 2024.2025. We generated net income of $714$909 million, $526$714 million, and $488$526 million for our fiscal years ended January 31, 2026, 2025, and 2024, and 2023, respectively.

As of January 31, 2026, 2025, 2024, and 2023,2024, we served 1,552, 1,477, 1,432, and 1,3881,432 customers, respectively. As of January 31, 2026, 2025, 2024, and 2023,2024, we had 767, 730, 693, and 684693 Commercial Solutions customers, respectively, and 1,196, 1,125, 1,078, and 1,0251,078 R&D and Quality Solutions customers, respectively. These customer count totals are net of customer attrition during each period. The combined customer counts for Commercial Solutions and R&D and Quality Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Many of our applications for R&D are used by smaller, earlier-stage, pre-commercial companies, some of which may not reach the commercialization stage.

We derive our revenues primarily from subscription services fees and professional services fees. Subscription services revenues consist of fees from customers accessing our cloud-based software solutions and fees for our data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, data services, training, and managed services in connection with our solutions, as well as services related to our solutionsspeakers bureau logistics and services related to our Veeva Business Consulting offering. For the fiscal year ended January 31, 2025,2026, subscription services revenues constituted 83%84% of total revenues and professional services and other revenues constituted 17%16% of total revenues.

We generally enter into master subscription agreements with our customers and count each distinct master subscription agreement that has not been terminated or expired and that has orders for which we have recognized revenue in the quarter as a distinct customer for purposes of determining our total number of current customers as of the end of that quarter. We generally enter into a single master subscription agreement with each customer, although in some instances, affiliated legal entities within the same corporate family may enter into separate master subscription agreements. Conversely, affiliated legal entities that maintain distinct master subscription agreements may choose to consolidate their orders under a single master subscription agreement, and, in that circumstance, our customer count would decrease. Divisions, subsidiaries, and operating units of our customers often place distinct orders for our subscription services under the same master subscription agreement, and we do not count such distinct orders as new customers for purposes of determining our total customer count. For purposes of determining customers of Veeva Crossix that do not contract under a master subscription agreement, we count each entity that has a statement of work or services agreement and a recurring known payment obligation as a distinct customer if such entity is not otherwise a customer of ours. For Veeva Crossix, we do not count as distinct customers agencies contracting with us on behalf of brands within life sciences companies.

Subscription services revenues are generally recognized ratably over the respective noncancellable subscription term because of the continuous transfer of control to the customer. Our master subscription agreements governing multi-year orders generally include a termination for convenience right for our customers. The amount of revenue recognized from such orders will generally be consistent with the amount invoiced for the relevant term of the order.

Our agreements typically provide that orders will automatically renew unless notice of non-renewal is provided in advance. Subscription services revenues are affected primarily by the number of customers, the scope of the subscription purchased by each customer (for example, the number of end users or other subscription usage metric) and the number of solutions subscribed to by each customer.

We utilize our own personnel to perform our professional services and business consulting engagements with customers. In certain cases, we may utilize third-party subcontractors to perform professional services engagements. The majority of our professional services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates. Certain professional services and business consulting arrangements are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred. Data services and training revenues are generally recognized as the services are performed. Professional services revenues are affected primarily by our customers’ demands for implementation services, configuration, datamanaged services, training,and speakers bureau logistics, and managed services in connection with our solutions.logistics. Our business consulting revenues are affected primarily by our customers’ demands for services related to a particular customer success initiative, strategic analysis, or business process change, and not by cloud software implementation.

Cost of subscription services revenues for all of our solutions consists of expenses related to our computing infrastructure provided by third parties, including Salesforce, Inc. and Amazon Web Services,Services and Salesforce, Inc., personnel related costs associated with hosting our subscription services and providing support, including our data stewards, data acquisition costs, and costs of delivering our data solutions, expenses associated with computer equipment and software, and allocated overhead.

Cost of professional services and other revenues consists primarily of employee-related expenses associated with providing professional and business consulting services. The cost of providing professional services is significantly higher as a percentage of the related revenues than forthe ourcost of subscription services due to the direct labor costs and costs of third-party subcontractors.

Sales and Marketing. Sales and marketing expenses consist primarily of employee-related expenses, sales commissions, marketing program costs, travel-related expenses, amortization expense associated with purchased intangibles primarily related to our customer contracts, customer relationships and brand development, travel-related expensesrelationships, and allocated overhead. Marketing program costs include advertising, customer events, corporate communications, brand awareness, and product marketing activities. Sales commissions are costs of obtaining new customer contracts and are capitalized and then amortized over a period of benefit that we have determined to be three years.

General and Administrative. General and administrative expenses consist of employee-related expenses for our executive, finance and accounting, legal, employee success, management information systems personnel, and other administrative employees. In addition, general and administrative expenses include fees related to third-party legal counsel, fees related to third-party accounting, tax and audit services, other corporate expenses, and allocated overhead.

Total revenues for the fiscal year ended January 31, 20252026 increased $383$449 million, all of which $400 million was from growth in subscription services revenues.revenue.

The increase in subscription services revenues consisted of $274$247 million of subscription services revenue attributable to R&D and Quality Solutions and $109$153 million of subscription services revenue attributable to Commercial Solutions. The increase in subscription services revenue attributable to R&D solutionsand Quality Solutions was primarily duedriven toby the expanding use by existing customers of our Veeva Development Cloud products by both existing and new customers. The increase in subscription services revenue attributable to Commercial Solutions was primarily due to expanding use of our Veeva CommercialQuality Cloud products by both existing and new customers and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment.adjustment for Veeva Development Cloud products. The increase in subscription revenue attributable to Commercial Solutions was primarily driven by the expanding use by existing customers of our Veeva Commercial Cloud and Veeva Data Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Commercial Cloud products. The geographic mix of subscription services revenues was 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2026, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025, as compared to 58% from North America, 27% from Europe, and 15% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2024.2025.

Professional services and other revenues for the fiscal year ended January 31, 20252026 remainedincreased flat$49 comparedmillion. toThe theincrease fiscalwas year ended January 31, 2024primarily due to a decline in implementation services, offset by an increase in business consulting and implementation services. The geographic mix of professional services and other revenues was 58% from North America, 36% from Europe, and 6% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2026, as compared to 60% from North America, 33% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025, as compared to 61% from North America, 32% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2024.2025.

Cost of revenues for the fiscal year ended January 31, 20252026 increased $22$82 million, comprisingcomprised of a $32$42 million increase in cost of subscription services, partially offset by a $10 million decrease in cost of professional services and other.other and a $40 million increase in cost of subscription. The $42 million increase in cost of professional services and other was primarily related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount. The increase in cost of subscription services was primarily due to an increase of $21$36 million related to computing infrastructure costs,and whichdata costs. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The decreaseincrease in costdata ofcosts professionalis services and other was mainly duerelated to lowerour utilizationcontinued of third-party services, and reduction in employee related costsinvestment in our implementationdata and deployment-related activities.solutions.

We expect cost of subscription services to increase in absolute dollars in the near termfuture due to increased usage of our subscription services.services and continued investment in our data solutions. We expect cost of professional services and other to increase in absolute dollars in the future as we continue to invest in our services organization.

Operating expenses include research and development, sales and marketing, and general and administrative expenses. We expect operating expenses to increase in the near term,future, primarily due to employee compensation-related costs.

Research and development expenses for the fiscal year ended January 31, 20252026 increased $64$74 millionmillion, primarily due to an increase of $46$64 million in employee compensation-related costscosts, and an increase of $16 million in technology and infrastructure costs. The increase in employee compensation-related costswhich was primarily driven by an increaseincreases in headcountsalaries and thebenefits, increaseas inwell technologyas and infrastructure costs was primarily driven by higher hosting fees.headcount. The expansion of our headcount in research and development and the increased technology and infrastructure costs werewas to support development work for the products that we offer or may offer in the future.

We expect research and development expenses to increase in the near term,future, primarily due to employee compensation-related costs and hosting fees as we continue to invest in our product offerings.

Sales and marketing expenses for the fiscal year ended January 31, 20252026 increased $15$32 million, primarily due to an increase of $6$29 million in employee compensation-related costscosts, and an increase of $4 million in travel costs. The increase in employee compensation-related costswhich was primarily driven by the increaseincreases in salaries and benefits, as well as headcount. The expansion of our headcount during the periodwas to support our sales and marketing efforts associated with our product offerings.

We expect sales and marketing expenses to increase in the near term,future, primarily due to employee compensation-related costs and the increase in marketing program costs related to events.

General and administrative expenses for the fiscal year ended January 31, 20252026 increased $19$35 million, primarily due to ana net increase of $34$26 million in employeelitigation compensation-relatedsettlement-related costs, partially offset by a reduction of $10 million in legal fees. The increase in employee compensation-related costs was primarily driven by stock-based compensation related to the equity grant to our Chief Executive Officer in June 2024.charges.

Other income, net, for the fiscal year ended January 31, 20252026 increased $69$50 millionmillion, primarily due to an increase in interest income from higher investment asset balances and highercash yields from investments.balances.

The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, equity compensation, tax credits, equity compensation, and foreignforeign-derived intangible income subject(“FDII”) to taxation in the United States.deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.

•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, we exclude excess tax benefits for our internal management reporting processes. Our management also findsfind it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, we believe excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.

•Litigation settlement.settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the settlementlaw offirms certainthat litigationrepresented mattersus, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.

The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgmentsjudgment by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures.

Our primary use of cash is payment of our operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, investments in our information technology infrastructure, and general operating expenses for marketing, facilities, and overhead costs. Long-term cash requirements for items other than normal operating expenses could include the following: the acquisition of businesses, or technologies complementary to our business, share repurchases, and capital expenditures.

We have financed our operations primarily through cash generated from operations. We believe our existing cash, cash equivalents, and short-term investments generated from operations will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the ongoing investments in technology infrastructure, the introduction of new and enhanced solutions, and the continuing market acceptance of our solutions. WeIn addition to share repurchase activity, we may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, and intellectual property rights. We may be required to seek additional equity or debt financing for those arrangements or for other reasons. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results, and financial condition would be adversely affected.

Our largest source of operating cash inflows is cash collections from our customers for subscription services. We also generate significant cash flows from our professional services arrangements. The first quarter of our fiscal year is seasonally the strongest quarter for cash inflows due to the collections from our annual subscription billings. As a result, we expect cash flows from operating activities to be substantially less in each of the subsequent quarters of the fiscal year. Our primary uses of cash from operating activities are for employee-related expenditures, expenses related to our computing infrastructure (including Amazon Web Services and Salesforce, Inc.Salesforce), building infrastructure costs (including leases for office space), and fees for third-party legal counsel and accounting services. Note that our net income reflects the impact of excess tax benefits related to equity compensation.

Net cash provided by operating activities was $1,090$1,415 million for the fiscal year ended January 31, 20252026 compared to $911$1,090 million provided by operating activities for the fiscal year ended January 31, 2024.2025. The $179 million increase in cash provided by operating activities was primarily due to increased sales and the related cash collections,collections and the impact of the OBBBA, partially offset by increased expenses.

Net cash used in investing activities was $700$1,104 million for the fiscal year ended January 31, 20252026 compared to $1,076$700 million used in investing activities for the fiscal year ended January 31, 2024.2025. The $376 million decreaseincrease in cash used in investing activities was mainlyprimarily due to the increase in proceeds from maturities and sales of short-term investments, and the decrease in purchases of short-term investments.

The cash flows from financing activities relate primarily to stockshare optionrepurchases exercises offset byand taxes paid on behalf of employees related to the net share settlement of restricted stock units (“RSUs”)., offset by stock option exercises.

Net cash providedused byin financing activities was $26$9 million for the fiscal year ended January 31, 20252026 compared to $16$26 million usedprovided inby financing activities for the fiscal year ended January 31, 2024.2025. The $42 million change in cash providedused byin financing activities was relatedprimarily due to share repurchases, offset by an increase of $43 million in proceeds from employee stock option exercises.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In the preparation of these consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

•We face intense competition in markets in which we operate—particularly in the CRM market as we transition customers from our legacy CRM application to our Vault CRM application—and if we do not compete effectively, we may lose customers and our business and operating results could be adversely affected.

Some of our actual and potential competitors have advantages over us, such as longer operating histories, significantly greater financial, technical, marketing or other resources, stronger brand and business recognition, larger intellectual property portfolios, and agreements with a broader set of system integrators and other partners. In addition, our competitors have offered price concessions, delayed payment terms, or other more favorable terms and conditions in light of the recent macroeconomic environment.

We have from time to time found defects in our solutions, and new defects may be detected in the future. In addition, we have experienced, and may in the future experience, service disruptions, degradations, outages, and other performance problems, including from routine maintenance. These types of problems may be caused by a variety of factors, including humanhuman, software, or softwareAI errors, viruses, cyberattacks, fraud, spikes in customer usage, problems associated with our third-party computing infrastructure and network providers, infrastructure changes, and denial of service issues. Service disruptions may result from errors we make in delivering, configuring, or hosting our solutions, or designing, installing, expanding, or maintaining our computing infrastructure. In some instances, we may not be able to identify the cause or causes of these performance problems within an acceptable period of time. It is also possible that such problems could result in losses of customer data.

Our continued growth and profitability will depend on our ability to successfully develop and sell new solutions. It is uncertain whether these newer solutions will continue to grow as a percentage of revenues at a pace significant enough to support our expected overall growth. For example, as discussed in more detail below, we have begun to migrate our Veeva CRM customers to Vault CRM. We cannot be certain that we will be successful with respect to newer solutions,solutions and markets, including our Veeva AI technologies,products and markets.Aspen CRM, our recently announced CRM offering for non-life science companies. It may take us significant time, and we may incur significant expense, to effectively market and sell these solutions, develop other new solutions, or make enhancements to our existing solutions. If our newer solutions do not continue to gain traction in the market, or other solutions that we may develop and introduce in the future do not achieve market acceptance in a timely manner, the growth rate of our revenues and operating results will be adversely affected.

We use the Salesforce platform to deliver our Veeva CRM application, but we are migrating our CRM customers to our Vault CRM solutions, which are built on our Veeva Vault platform. Veeva CRM will be supported until December 31, 2029. The migration of our Veeva CRM customers will requirerequires time and expense, which may be significant. These migration processes are complex and we cannot be certain that we will be successful. Additionally, the migration may lead to outages or performance problems with Vault CRM or other Vault applications if we encounter difficulties supporting the increased volume of users migrating from Veeva CRM. Any disruptions in our services or other migration-related problems, whether or not such incidents are our fault, could subject us to liability or harm our reputation. If we are unsuccessful migrating our Veeva CRM customers to Vault CRM, or encounter disruptions, delays, or other problems in the migration process, our business, operating results, and brand could be materially and adversely affected.

Many countries and governmental bodies have adopted or may adopt laws and regulations governing our processing of personal and other data, making compliance an increasingly complex task. For example, we are regulated under the European General Data Protection Regulation (“EU GDPR”) and the United Kingdom’s General Data Protection Regulation (“UK GDPR”), as amended by the Data (Use and Access) Act of 2025, where we act as a data controller for our data products and a data processor with respect to our software products. In China, we are regulated under China’s Personal Information Protection Law (“PIPL”), where we process data as an entrusted party on behalf of our customers who operate as data handlers. In certain cases, we are regulated under the U.S. Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) that covers protected health information collected or maintained by covered entities and their business associates. Additionally, manyalmost half of the states in the U.S. have passed comprehensive privacy legislation, such as the California Consumer Privacy Act. Some states in the U.S. also have passed legislation governing the processing of particular types of data, such as biometric data and certain other health-related data.

We expect these laws and regulations to continue to evolve, and that there will continue to be new, modified, and re-interpreted laws, regulations, standards, and other obligations relating to privacy, data protection, and cybersecurity, introducing uncertainty and increasing complexity. For example, the Network and Information Security Directive II (“NIS2”), adopted in 2023, aims to enhance cybersecurity across critical infrastructure and essential services in the EU. NIS2 provides for all 27 EU member states to have issued implementing legislation by October 2024; however, several EU member states have not finalized their respective legislation and guidance. The EU Data Act, which came into effect September 12, 2025, allows our EU customers to cancel their subscriptions without cause upon providing the notice and after the transition period specified by the Act. Furthermore, new and evolving regulations relating to the use of data in AI, such as the EU AI Act, are creating an increasingly complex and fragmented regulatory framework.

VeevaVeeva’s AI,AI anproducts initiative that addsadd AI to our applications across all major areas, including clinical, regulatory, safety, quality, medical, and commercial, presentsand present new risks and challenges that could affect the adoption of our solutions and our business. If our AI offerings draw controversy due to their perceived or actual impact on privacy, security or confidentiality, inefficacy or inaccuracy, or contribution to bias, discrimination, other ethical harms, or other matters, we may experience new or enhanced governmental or regulatory scrutiny, brand or reputational harm, competitive harm, or legal liability. If our users lose confidence in thetheir performance, including decisions, predictions, analyses, or other content that our AI offerings produce, the adoption of our offerings could be adversely affected, which may harm our operating results and financial condition. We may also use AI for research and development and other internal operational use cases, including the use of AI-enabled processes. The legal, regulatory, and policy environments around AI, such as the EU AI Act and legislation proposed and adopted in certain states in the U.S., are evolving rapidly and we may become subject to new and evolving legal and other obligations. These and other developments may force us to make significant changes to our AI strategy, including by limiting or restricting our use of AI or AI-enabled processes, which may cause us to incur increased research and development costs or compliance costs, divert resources from other development efforts to address issues related to AI governance, or otherwise necessitate expenditure of significant time, expense and other resources. If we are unable to mitigate these risks, or if we incur excessive expenses in our efforts to do so, our reputation, business, operating results, and financial condition may be harmed.

Our solutions are hosted from and use computing infrastructureinfrastructure, including large language models, provided by third parties. We utilize Amazon Web Services with respect to applications built on the Veeva Vault platform. Our Veeva CRM application is built on a platform provided by Salesforce that utilizes hosting and computing infrastructure provided by Salesforce. However, as discussed in more detail above, we haveare begun to migratemigrating our Veeva CRM customers to Vault CRM, which is built on our Veeva Vault platform. And, our Veeva AI products leverage large language models provided by third parties, including Anthropic. We also utilize other computing infrastructure service providers to a lesser extent.

We do not own or control the operation of the third-party facilitiesfacilities, equipment, or equipmentAI models used to provide the services described above. Our computing infrastructure service providers have no obligation to renew their agreements with us on commercially reasonable terms or at all. If we are unable to renew these agreements on commercially reasonable terms or if our computing infrastructure is unable to keep up with our needs for capacity, we may be required to transition to a new provider and we may incur significant costs and possible service interruption in connection with doing so. In addition, such service providers could decide to close their facilities or change or suspend their service offerings without adequate notice to us. Moreover, any financial difficulties, such as bankruptcy, faced by such service providers may have negative effects on our business, the nature and extent of which are difficult to predict. Access to certain frontier AI models may also be subject to sudden suspension or restriction by providers or by governments due to regulatory mandates. Since we cannot easily switch computing infrastructure service providers, any disruption with respect to our current providers would impact our operations and our business could be adversely impacted.

We are currently dependent upon the Salesforce platform to deliver Veeva CRM. However, we haveare begun to migratemigrating our Veeva CRM customers to Vault CRM, which is built on our Veeva Vault platform. Our agreement with Salesforce expired on September 1, 2025, and pursuant to the terms of our agreement, during the wind-down period from September 1, 2025 to September 1, 2030, we may not sell applications that utilize the Salesforce platform to new customers and our sales of applications that utilize the Salesforce platform to a customer existing at September 1, 2025 may not exceed 150% of the seats in use by each such customer as of September 1, 2025. After September 1, 2030, we will not be able to sell applications that utilize the Salesforce platform to any customers.

Our success and ability to compete depend in part upon our intellectual property. As of AprilJuly 30,31, 2026, we have filed numerous domestic and foreign patent applications and have been issued 123137 U.S. patents and 11 international patents. We also rely on copyright, trade secret and trademark laws, trade secret protection and confidentiality or license agreements with our employees, customers, partners, consultants and others to protect our intellectual property rights. However, the steps we take to protect our intellectual property rights may be inadequate and we may not be able to prevent the unauthorized or rogue disclosure or use of our technical knowledge, trade secrets or other confidential information. Further, if there is a breach or violation of the terms of our confidentiality agreements, we may not have adequate remedies.

Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloudapplications, software, AI,agents, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from 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. For a more detailed description of our business and products as of January 31, 2026, please see our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed on March 20, 2026.

In our fiscal year ended January 31, 2026, we derived approximately 47% and 53% of our subscription revenues and 45% and 55% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively. For the threesix months ended AprilJuly 30,31, 2026, we derived approximately 46% and 54% of our subscription revenues and 45%44% and 55%56% of our total revenues from our Commercial Solutions and R&D and Quality Solutions, respectively. Revenues associated with our R&D and Quality Solutions are expected to increase as a percentage of both subscription revenues and total revenues in the future. We also offer certain of our R&D and Quality Solutions to industries outside the life sciences industry primarily in North America and Europe.

We derive our revenues primarily from subscription fees and professional services fees. Subscription revenues consist of fees from customers accessing our software and data solutions. Professional services and other revenues consist primarily of fees from implementation services, configuration, and managed services in connection with our solutions, as well as services related to our speakers bureau logistics and Veeva Business Consulting offering. For the threesix months ended AprilJuly 30,31, 2026, subscription revenues constituted 83% of total revenues and professional services and other revenues constituted 17% of total revenues.

New subscription orders for our CRM applications generally have a one-year term. If a customer adds end users or additional Commercial Solutions to an existing order for a CRM application, such additional orders will generally be coterminous with the anniversary date of the CRM order, and as a result, orders for additional end users or additional Commercial Solutions will commonly have an initial term of less than one year.

The increase in subscription revenues for the three months ended July 31, 2026 consisted of $63$68 million attributable to R&D and Quality Solutions and $32$40 million attributable to Commercial Solutions. The increase in subscription revenue attributable to R&D and Quality Solutions and Commercial Solutions was driven by the expanding use by existing customers and higher prices in connection with our annual inflation adjustment for our products. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the three months ended AprilJuly 30,31, 2026, as compared to 61%59% from North America, 27%28% from Europe, and 12%13% from other locations, primarily Asia Pacific, for the three months ended AprilJuly 30,31, 2025.

ProfessionalThe servicesincrease andin othersubscription revenues for the threesix months ended AprilJuly 30,31, 2026 increasedconsisted $28of million.$131 Themillion increase was primarily dueattributable to an increase in implementation servicesR&D and businessQuality consulting.Solutions and $72 million attributable to Commercial Solutions. The geographic mix of professional services and othersubscription revenues was 57%60% from North America, 37%29% from Europe, and 6%11% from other locations, primarily Asia Pacific, for the threesix months ended AprilJuly 30,31, 2026, as compared to 60% from North America, 34%28% from Europe, and 6%12% from other locations, primarily Asia Pacific, for the threesix months ended AprilJuly 30,31, 2025.

Cost of revenues for the three months ended April 30, 2026 increased $47 million, comprised of a $26 million increase in cost of professional services and other and a $21 million increase in cost of subscription. The $26 million increase in cost of professional services and other was primarily related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as an increase in headcount. The $21 million increase in cost of subscription for the three and six months ended July 31, 2026 was primarily relateddue to an increase of $12 million and $32 million, respectively, in computing infrastructure and data costs. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in data costs was related to investment in our data solutions.

ResearchThe increase in research and development expenses for the three and six months ended AprilJuly 30,31, 2026 increased $24 million,was primarily due to an increase of $18$24 million and $42 million in employee compensation-related costs, whichrespectively. The increase in employee compensation-related costs was driven by increases in salaries and benefits, as well as an increase in headcount. The expansion of our headcount in research and development was to support development work for the products that we offer or may offer in the future.

WeThe expectincrease in sales and marketing expenses to increase infor the future,three and six months ended July 31, 2026 was primarily due to an increase of $11 million and $23 million in employee compensation-related costscosts, respectively, and the$5 increasemillion and $4 million in marketing program costs related to events.events, respectively.

OtherThe increase in other income, net, for the three and six months ended AprilJuly 30,31, 2026 increased $9 million,was primarily due to an increase in interest income from higher cash and short-term investments balances.

The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, equity compensation, tax credits, and foreign-derived deduction eligible income (“FDDEI”) deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.

During the three and six months ended AprilJuly 30,31, 2026, as compared to the same periodperiods in the prior fiscal year, our effective tax rate increaseddecreased primarily due to an increase in FDDEI deduction under the OBBBA provisions effective in the current fiscal year, partially offset by discrete tax deficiencies related to equity compensation.

Our principal sources of liquidity continue to be comprised of our existing cash, cash equivalents, and short-term investments. As of AprilJuly 30,31, 2026, our cash, cash equivalents, and short-term investments totaled $7.3$7.2 billion, of which $119$102 million represented cash and cash equivalents held outside of the United States.

Our non-U.S. cash and cash equivalents are not considered indefinitely reinvested outside the United States, except in certain designated jurisdictions. As of AprilJuly 30,31, 2026, we have not recorded any taxes, such as withholding taxes, associated with the foreign earnings that are indefinitely reinvested outside of the United States. Under currently enacted tax laws, if we were to choose to repatriate the funds we have designated as indefinitely reinvested outside the United States, such amounts may be subject to certain jurisdictional taxes (e.g., withholding taxes).

During the fiscalsix quartermonths ended AprilJuly 30,31, 2026, we repurchased and subsequently retired 1,255,0292,663,443 shares of our common stock for an aggregate amount of approximately $221$467 million.

Net cash provided by operating activities was $1,127$1,366 million for the threesix months ended AprilJuly 30,31, 2026 compared to $877$1,116 million provided by operating activities for the threesix months ended AprilJuly 30,31, 2025. The increase in cash provided by operating activities was primarily due to increased sales and the related cash collections and the reduction in income tax payments due to impact of the One Big Beautiful Bill Act (“OBBBA”),OBBBA, partially offset by increased expenses.

The OBBBA modified provisions around Foreign-Derived Deduction Eligible Income ("FDDEI") and we are in the final year of our two-year election to accelerate the deduction of unamortized capitalized domestic research and development expenditures. The OBBBA is expected to continue to reduce our cash tax obligations for the remainder of the fiscal year, the amount of which we are unable to estimate at this time.

Net cash used in investing activities was $389$452 million for the threesix months ended AprilJuly 30,31, 2026 compared to $52$441 million used in investing activities for the threesix months ended AprilJuly 30,31, 2025. The increase in cash used in investing activities was primarily due to the increase in purchases of short-term investments and the acquisition of Rise Healthcare Tech, Inc. (“Ostro”)., offset by the increase in proceeds from maturities and sales of short-term investments.

Net cash used in financing activities was $263$522 million for the threesix months ended AprilJuly 30,31, 2026 compared to $20$136 million provided by financing activities for the threesix months ended AprilJuly 30,31, 2025. The change in cash used in financing activities was primarily due to share repurchases.repurchases and a decrease in proceeds from stock options exercised.

There have been no material changes to our critical accounting policies and estimates during the threesix months ended AprilJuly 30,31, 2026 as compared to those disclosed in note 1 of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.