Veeva Systems Inc. stock research
FY2026 Q2
Veeva Systems (VEEV) Gross Margin — Quarter Ended Jul 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier. Gross margin was lower than the prior quarter but higher than the year-ago quarter, reflecting a mixed relationship between revenue growth and the change in cost of revenue.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier. Gross margin was lower than the prior quarter but higher than the year-ago quarter, reflecting a mixed relationship between revenue growth and the change in cost of revenue.
- The most observable margin driver is the proportion of cost of revenue relative to revenue. Sequentially, cost of revenue grew more than revenue, narrowing the margin; year-over-year, revenue grew more than cost of revenue, widening the margin.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved. This mixed performance stems from different rates of change between revenue and cost of revenue across the two periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.3%
Gross profit
$593.8M
Revenue
$789.1M
Cost of revenue
$195.3M
Quarter-over-quarter change
-1.8 pts
Year-over-year change
+0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Oct 31, 2024 | $699.2M | $524.8M | $174.4M | 75.1% |
| Jan 31, 2025 | $720.9M | $539.9M | $181.0M | 74.9% |
| Apr 30, 2025 | $759.0M | $585.2M | $173.8M | 77.1% |
| Jul 31, 2025 | $789.1M | $593.8M | $195.3M | 75.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
-1.8 pts
Year-over-year change
Jul 31, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the proportion of cost of revenue relative to revenue. Sequentially, cost of revenue grew more than revenue, narrowing the margin; year-over-year, revenue grew more than cost of revenue, widening the margin.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved. This mixed performance stems from different rates of change between revenue and cost of revenue across the two periods.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin movements.