Veeva Systems (VEEV) Surpassed Expectations in Q2

Conestoga Capital Advisors, an asset management company, recently released its second-quarter 2025 investor letter. The second quarter of 2025 started off poorly but gained momentum as tariff fears subsided and market volatility decreased significantly. The Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. Despite a strong first quarter, investor focus shifted towards high-beta and AI stocks following the “Liberation Day” announcements, creating a narrow leadership group that presented challenges for the Mid Cap Strategy in the second quarter.

One of the highlighted stocks in the investor letter was Veeva Systems Inc. (NYSE: VEEV), a company that offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. was 0.84%, with shares gaining 51.52% over the last 52 weeks. As of July 25, 2025, VEEV stock closed at $290.41 per share, with a market capitalization of $47.456 billion.

Conestoga Capital Advisors commended Veeva Systems Inc. in its investor letter, stating that the company had a strong start to its fiscal year, surpassing expectations across the board. VEEV added 28 new Vault CRM customers during the quarter, indicating significant growth in their customer base compared to the previous year. The company now expects to have around 200 Vault CRM customers by next year.

Veeva Systems Inc. (NYSE: VEEV) is not among the 30 most popular stocks held by hedge funds, according to Insider Monkey’s database. However, 55 hedge fund portfolios held VEEV at the end of the first quarter, down from 60 in the previous quarter. The company performed well in the first quarter, with total revenue reaching $759 million and a robust non-GAAP operating margin.

While Veeva Systems Inc. shows promise as an investment, Conestoga Capital Advisors believes that certain AI stocks offer greater upside potential with less downside risk. For investors seeking an undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend, a free report on the best short-term AI stock is available.

In conclusion, Conestoga Capital Advisors’ second-quarter 2025 investor letter highlights the performance of Veeva Systems Inc. and its outlook for the future. Despite facing challenges in the market, the company remains optimistic about the potential for growth and success in the coming quarters.