Veeva: Will Benefit From AI And Increase Its Revenues

Veeva Systems Inc. delivered accelerating revenue growth to 18% in Q2/27, surpassing guidance and analyst expectations. VEEV's aggressive $2B buyback program is offsetting SBC, reducing share count, and supporting EPS growth; $1.4B remains for future repurchases. The balance sheet is robust with $1.8B cash, $5.4B short-term investments, and minimal debt, providing downside protection. With a forward PEG of 0.77 and trading 58% below the sector median, I upgrade VEEV from Hold to Buy.

Veeva Systems Inc. (VEEV) and other software stocks had a hard time not so long ago, as the market assumed that large language models, or LLMs, would eat their lunch. I believe that