Veeva Systems Inc (NYSE:VEEV) stock fell 0.096% (As on October 9, 11:25:38 AM UTC-4, Source: Google Finance) after TD Cowen upgraded the company to Buy from Hold with a price target of $380, up from $297. The company is well positioned to post sales growth above consensus estimates due to multiple drivers, including the secular shift to large pharma insourcing and the Iqvia (IQV) partnership, the firm tells investors in a research note. The firm said Veeva is well positioned to see topline growth above current consensus estimates and expects FY2027 revenue to reach $3.58 billion, up from a prior estimate of $3.55 billion.
Key factors supporting the upgrade include a de-risked CRM replatforming, a secular shift toward large pharma insourcing and functional service providers, and a partnership with IQVIA that expands new opportunities. TD Cowen highlighted that Salesforce’s entry into Veeva’s CRM market is now less of a threat, noting that Veeva has signed nine of the top 20 pharma companies to its Vault CRM platform versus three for Salesforce. The analyst said this “gives us confidence in Veeva’s ability to maintain its leadership position.” The IQVIA partnership is expected to boost Veeva’s clinical software market share, allowing sponsors to leverage the full Veeva suite for trials, while also supporting commercial growth by integrating IQVIA data into Veeva’s Nitro and Network products. TD Cowen now forecasts FY2026 free cash flow of $1.34 billion and FY2027 of $1.59 billion, up from prior estimates, and sees the stock re-rating toward a 31x EV/2027 FCF multiple from the current 24x. The brokerage called Veeva the dominant player in the R&D software space like it already is in pharma commercial software.
Additionally, Veeva AI, which includes agentic AI in the Vault Platform and industry-specific application agents in all Veeva applications, is rapidly progressing with a clear and focused strategy that delivers significant, tangible value for customers. The first Veeva AI agents are planned for release in December for CRM and commercial content. New agents for clinical operations, regulatory, safety, quality, medical, and commercial are planned for 2026, and clinical data is targeted for 2027.
On the other hand, for fiscal 2026, the company expects total revenues to be between $3,134 and $3,140 million, Non-GAAP operating income of about $1,388 million and Non-GAAP fully diluted net income per share to be of approximately $7.78.