Michael Burry Trims Veeva Stake After 15% Rally
Investor Michael Burry reduced his position in Veeva Systems following a sharp post-earnings rally but remains bullish on the stock.
Veeva Systems stock surged more than 15% in a single session after the company reported fiscal second-quarter earnings that beat estimates. The life sciences cloud software firm posted adjusted earnings per share of $2.35, surpassing the $2.22 consensus, and raised its fiscal 2027 adjusted EPS forecast to $9.21.
This rally marked a sharp reversal for VEEV, which had lagged the broader market for much of 2026. By mid-August, the stock was up only 8.7% year-to-date, compared to a 12.4% gain for the S&P 500. Following the earnings report, shares traded near $291, up from approximately $244.72 before the release, boosting the company's market capitalization to around $39.8 billion.
Veeva's Financial Performance
Veeva Systems provides cloud software for drugmakers, biotech firms, and medical-device companies. Its tools assist with clinical trials, regulatory filings, quality management, and sales support.
The company's latest results showed strong growth. Fiscal second-quarter revenue increased 18% year-over-year to $928.0 million. Subscription revenue, a key recurring income stream, grew 16% to $766.8 million. Profitability metrics were also strong.
| Metric | Q2 FY2027 Result |
|---|---|
| Operating Income | $275.0 million (up 40%) |
| Non-GAAP Operating Income | $415.9 million (up 18%) |
| Net Income | $273.4 million (up 37%) |
| Non-GAAP Net Income | $387.4 million (up 16%) |
| Diluted EPS | $1.66 (from $1.19) |
| Non-GAAP EPS | $2.35 (from $1.99) |
For the current quarter, Veeva expects revenue between $932 million and $935 million and non-GAAP EPS of $2.33 to $2.34. The full fiscal 2027 outlook projects revenue of $3.682 billion to $3.687 billion and non-GAAP EPS of approximately $9.21.
Burry's Bullish Trim
Investor Michael Burry, famous for "The Big Short," confirmed he trimmed his stake in Veeva Systems after the stock's powerful rally. He described the shares as having become "more expensive than the buy price by quite a bit" after nearly doubling in recent months. Burry reduced Veeva to about 3% of his portfolio.
He characterized the sale as taking profit and "playing with the house's money," not a shift in his positive view of the business. Burry still believes the stock trades below its intrinsic value and praised the company's Vault platform, which becomes entrenched in customers' workflows. He indicated he could buy more shares if the price pulls back.
Growth Initiatives and Analyst Outlook
Veeva has launched new products to fuel long-term growth. In June 2026, it introduced Veeva EHS, an environmental, health, and safety tool within its Quality Cloud. Around the same time, the company acquired Copli and launched Veeva Falcon MLR, a tool designed to accelerate medical, legal, and regulatory reviews. Veeva believes this product could reduce manual MLR work by 70% or more within five years.
Wall Street analysts see further upside. The company is scheduled to report earnings again on November 19, 2026. Analysts expect fiscal third-quarter EPS of $1.68, an 18.31% increase from the year-ago period.
Following the strong results, several analysts raised their price targets. Needham's Ryan MacDonald maintained a Buy rating and lifted his target to $310 from $270, citing major customer relationship management wins with Eli Lilly, Biogen, and Regeneron Pharmaceuticals. RBC Capital Markets analyst Rishi Jaluria kept an Outperform rating and raised his target to $325 from $275, noting over 180 customers now use Vault CRM.
The consensus among 27 analysts covering the stock is a Moderate Buy rating, with an average price target of $292.52 implying roughly 6% upside from recent levels. The stock trades at a forward price-to-earnings ratio of 41.92, more than double the sector average of 19.71.
