Veeva Systems falls after Q1 beats, guidance raised; analysts cut price targets

Veeva Systems Inc. announced its financial results for the first quarter of fiscal year 2027, surpassing analyst expectations and raising its full-year financial guidance. The company anticipates approximately $10 million in contributions from Ostro across the remaining quarters of FY2027. Veeva also detailed its usage-based pricing model for Falcon. Despite these positive financial indicators, the company's stock price saw a decrease in after-hours trading following the announcement. Subsequently, Raymond James lowered its stock price target for Veeva Systems due to valuation concerns. Stifel has also lowered its stock price target for Veeva Systems due to concerns about the company's growth outlook, reflecting revised expectations for future performance. Mizuho has also reduced its stock price target for Veeva Systems, citing potential disruption from artificial intelligence as the primary reason for the adjustment. Separately, Needham has reiterated its stock rating for Veeva Systems following the company's launch of an AI platform.