Veeva Systems falls after Citi downgrades to 'neutral' on slower near-term growth

Veeva Systems

10/04/2026 15:41

** Shares of healthcare tech firm Veeva Systems VEEV.N fall 3.94% to $150.89

** Citi downgrades VEEV to "neutral" from "buy", cuts PT to $176 from $291

** Brokerage says it sees 2026 as a "relatively inconsequential year," putting VEEV at risk of further multiple de-ratings as top-line growth slows and investments rise

** Says subscription revenue could fall below 20% for the first time this year

** Says VEEV is well placed in its commercial and R&D businesses but remains early in AI, with limited scope for growth to pick up over the next 12 months and little near-term benefit from AI

** Says margin gains are likely to stay limited, or turn slightly lower, as VEEV adds more engineers and absorbs higher AI-related costs

** Including session's moves, VEEV down 32.3% YTD

 (Reporting by Kunal Das in Bengaluru)

 ((Kunal.Das2@thomsonreuters.com;))