Veeva Systems Inc (NYSE:VEEV) stock fell 4.50% (As on August 28, 11:21:02 AM UTC-4, Source: Google Finance) after the company reported second-quarter earnings that exceeded analyst expectations, but shares tumbled as investors appeared disappointed by the absence of a share buyback announcement. Subscription services revenue, which forms the core of Veeva’s business model, grew 17% YoY to $659.2 million. The company’s non-GAAP operating income increased 26% YoY to $352.6 million. The company’s operating income rose to $195.9 million, an 18% increase from the previous year’s $166.5 million. Non-GAAP net income was $333.4 million, up 25% from $267.3 million a year ago.

Moreover, the company highlighted several achievements during the quarter, including progress with its AI initiatives. The company announced that its Veeva AI, which includes agentic AI in the Vault Platform and industry-specific application agents, is progressing rapidly. The first Veeva AI agents are set for release in December for CRM and commercial content, with additional agents planned for 2026 and clinical data targeted for 2027. The company also reported significant milestones for its Vault CRM Suite, with two top 20 biopharmas going live in major markets and more than 100 customers now using Vault CRM. Additionally, Veeva expanded its Vault CRM Suite with the release of Patient CRM and early customers are now live on Campaign Manager and Service Center. In the drug development and quality sector, Veeva continues to be a foundational choice for top biopharmas. All top 20 biopharmas have selected Veeva eTMF, 19 of the top 20 have chosen Veeva QualityDocs, and 18 of the top 20 have selected Veeva Submissions. Veeva also announced a long-term global partnership with IQVIA, resolving all pending legal disputes between the companies.

VEEV in the second quarter of FY26 has reported the adjusted earnings per share of $1.99, beating the analysts’ estimates for the adjusted earnings per share of $1.90. The company had reported the adjusted revenue growth of 17 percent to $789.1 million in the second quarter of FY26, beating the analysts’ estimates for revenue of $768.26 million.

For the third quarter, Veeva forecasts revenue between $790 million and $793 million, above analyst expectations of $779.3 million. The company projects adjusted EPS of $1.94-$1.95, higher than the consensus estimate of $1.89.

Veeva also updated its full-year fiscal 2026 guidance, now expecting total revenue between $3,134 million and $3,140 million, with non-GAAP operating income of approximately $1,388 million and non-GAAP fully diluted net income per share of approximately $7.78.