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QS Research · Michael Burry's Scion Capital analyst template · 2006

VEEVA SYSTEMS INC (VEEV)

As of 2026-11-02 · 12/15 boxes filled from SEC filings and market data

Conclusion: SHORT

Conviction high · base case -32% · downside -73% · upside 0%

At $313.38 Veeva trades at 50.0x TTM P/E and 14.15x EV/Sales, the highest in its comp set. Applying the highest profitable-peer P/E of 34.0x (SAP) to TTM net income of $1.01B gives $34.3B / 161.91M shares = $212, 32% below today's price; the lowest profitable-peer P/E of 13.4x gives $13.5B / 161.91M = $84, 73% below. Even assuming the market keeps Veeva's own current 50.0x multiple on unchanged TTM earnings, the value is just today's price, so there is no upside scenario above +25% on this base. The market is paying a premium for 16-18% growth while insiders have only sold and no source supports a higher multiple; I would short.

Key numbers

The 15 boxes

  1. ✓ 1. Long-form business notes

    Veeva sells industry cloud software, data, and business consulting to the global life sciences industry through a direct sales force. In FY2026 it generated $3.20B of revenue, $916.4M of operating income, and $1.42B of operating cash flow, serving 1,552 customers with 7,928 employees. The product architecture has expanded from two product areas (Commercial Cloud and Vault) in FY2021 to four clouds plus Veeva AI in FY2026, and the CRM is shifting from Salesforce to the proprietary Veeva Vault platform by end-2029. Veeva became a Delaware public benefit corporation on February 1, 2021.

  2. ✓ 2. Competitive advantage

    Veeva has a broad suite and life-sciences domain focus; management claims it competes favorably, but the sources do not establish a clear durable moat. Its CRM business faces direct Salesforce competition and disclosed customer losses during the Vault CRM transition. Financials show strong absolute profitability and cash generation: FY2026 revenue $3.20B, operating income $916.4M, operating cash flow $1.42B. Customer concentration (top 10 = 28% of revenues each FY2024-2026) and resource-rich competitors temper the advantage.

  3. ✓ 3. 10-Q takeaways

    For the three months ended July 31, 2026, total revenues rose 18% year over year to $927,963 thousand, with subscription up 16% and professional services up 24%; six-month total revenue grew 17%. Total gross margin held at 75%, but G&A comparisons were flattered by a $31 million litigation settlement charge in the prior-year quarter. Cash, cash equivalents, and short-term investments totaled $7.2 billion as of July 31, 2026, H1 operating cash flow was $1,365,825 thousand, and $467 million of buybacks were executed under a $2 billion authorization. No quantitative guidance was provided; updated risk factors highlight Vault CRM migration and macro/tariff uncertainty.

  4. ✓ 4. Corporate governance
  5. ✓ 5. Overview of the prior 3 years of 8-K filings
  6. ✓ 6. Other significant filings
  7. ✓ 7. Chronology of significant news and events
  8. ✓ 8. Comparables valuation interpretation
  9. ✓ 9. Insider trading interpretation
  10. ○ 10. Earnings-call notes
  11. ○ 11. Impression of the shareholder letter
  12. ○ 12. Scuttlebutt overview
  13. ✓ 13. Valuation and risk/reward summary
  14. ✓ 14. Current price suppression and potential catalysts

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