Michael Burry Remains Bullish on Veeva but Trimmed His Position. What This Means for VEEV Stock.

Software earnings have been strong lately, and Veeva Systems (VEEV) stood out with one of the market’s biggest post-earnings moves. Shares of the life sciences cloud software company jumped more than 15% in one session, making Veeva Systems one of the top gainers in the S&P 500 ($SPX).

The rally followed fiscal second-quarter adjusted EPS of $2.35, above the $2.22 consensus estimate. Veeva Systems also raised its fiscal 2027 adjusted EPS outlook to $9.21 from $9.05, ahead of the $9.06 analysts had expected.

The move was notable because VEEV had lagged for much of 2026. By mid-August, VEEV stock was up only 8.7% year-to-date (YTD), compared with a 12.4% gain for the S&P 500 ($SPX), while shares had fallen 14% over the prior year amid concerns about weaker demand and competition. After the earnings report, VEEV traded near $291, up from about $244.72 before the release, lifting Veeva Systems’ market cap to roughly $39.8 billion.

That sharp turnaround makes Michael Burry’s latest move worth watching. The “Big Short” investor reaffirmed his bullish view on Veeva Systems while confirming that he trimmed his stake after the rally. In the same comments, Burry called Snowflake (SNOW) overvalued. So, why would a well-known value investor take some profit in Veeva Systems but remain bullish? Let’s find out.

Veeva’s Financial Strength

Veeva Systems sells cloud software to drugmakers, biotech companies, and medical-device businesses. Its tools help customers run clinical trials, handle regulatory filings, manage quality controls, and support sales teams.

VEEV is up 2% over the past 52 weeks and 23% so far this year.

But the stock is not cheap. VEEV trades at 41.92x forward earnings, more than twice the sector average of 19.71x. That means investors are paying a premium.

Its latest results support some of that optimism. Fiscal 2027 second-quarter revenue rose 18% from a year earlier to $928.0 million. Subscription revenue, which gives Veeva Systems a steady stream of recurring sales, grew 16% to $766.8 million. The company also showed strong profit growth, with operating income up 40% to $275.0 million and non-GAAP operating income up 18% to $415.9 million.

Net income climbed 37% to $273.4 million, while non-GAAP net income increased 16% to $387.4 million. Diluted EPS rose to $1.66 from $1.19, and non-GAAP EPS grew to $2.35 from $1.99.

For the fiscal third quarter, Veeva Systems expects revenue of $932 million to $935 million and non-GAAP EPS of $2.33 to $2.34. For fiscal 2027, management expects $3.682 billion to $3.687 billion in revenue, about $1.64 billion in non-GAAP operating income, and non-GAAP EPS of roughly $9.21.

Growth Engines Behind Veeva

Michael Burry, best known for “The Big Short,” has stayed bullish on Veeva Systems even after cutting his position following the stock’s sharp run. He said the shares had become “more expensive than the buy price by quite a bit” after nearly doubling in recent months, so he reduced Veeva Systems to about 3% of his portfolio. 

Burry described the sale as taking some profit and “playing with the house’s money,” not a change in his view of the business. He still believes Veeva Systems trades below its intrinsic value and likes the company’s Vault platform, which is hard for life-sciences customers to replace once it is built into their day-to-day work. Burry also said he could buy more shares if the stock pulls back.

Veeva Systems has also been adding new products that could support its longer-term growth. In June 2026, Veeva Systems launched Veeva EHS, an environmental, health, and safety tool within its Quality Cloud. It helps manufacturing and testing sites spot and manage safety and environmental risks. Because it connects with Veeva QMS and Training, a safety issue can automatically trigger a quality review and employee retraining.

Around the same time, Veeva Systems acquired Copli and launched Veeva Falcon MLR, a tool designed to speed up medical, legal, and regulatory content reviews. It checks marketing and medical materials against approved product labels and local rules. Veeva Systems believes the product could cut manual MLR work by 70% or more within five years, helping customers review content faster while supporting the company’s broader growth story.

Wall Street Sees Further Upside for VEEV Stock

Veeva Systems is set to report earnings again on Nov. 19, 2026. Analysts expect the company to earn $1.68 per share for the fiscal third quarter ending October 2026, up 18.31% from $1.42 in the same quarter last year. For the full fiscal year ending January 2027, Wall Street expects earnings of $6.70 per share, up 14.33% from $5.86 a year earlier.

Analysts have also raised their targets after Veeva Systems’ strong recent results. Needham’s Ryan MacDonald kept a “Buy” rating and lifted his target price to $310 from $270. He pointed to major CRM wins with Eli Lilly (LLY), Biogen (BIIB), and Regeneron Pharmaceuticals (REGN). RBC Capital Markets analyst Rishi Jaluria also kept an “Outperform” rating and raised his target to $325 from $275. Jaluria noted that more than 180 customers are now using Vault CRM. He also highlighted a top-20 drugmaker rolling out Agentic Call Report to all of its U.S. field representatives, which could help Veeva Systems gain more traction in AI-based software tools.

The 27 analysts covering VEEV rate the stock a consensus “Moderate Buy.” Their average price target of $292.52 suggests about 6% upside from current levels.

Conclusion

Burry’s decision to trim Veeva looks more like valuation discipline than a retreat from the stock’s long-term story. The company continues to post solid revenue and earnings growth, expand its life sciences software platform, and win support from Wall Street, but its premium forward P/E leaves little room for a weaker-than-expected quarter. In the near term, VEEV could consolidate after its sharp earnings-driven rally, particularly with the consensus price target only modestly above current levels. Still, if Veeva continues converting CRM momentum, Vault adoption, and AI products into sustained growth, the shares are more likely to trend higher over the longer run.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.