Company: VEEV
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001393052-25-000078
Chunk: 267

Company: VEEVA SYSTEMS INC
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 2
Chunk 267
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 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Other income, net$71,933 $60,937 18%$206,478 $171,239 21%

Other income, net, for the three and nine months ended October 31, 2025 increased $11 million and $35 million, respectively, primarily due to an increase in interest income from higher investment asset and cash balances. 

Provision for Income Taxes

Three months ended October 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Income before income taxes$312,786 $242,290 29%$876,971 $674,251 30%Income tax provision$76,583 $56,482 36%$212,269 $155,738 36%Effective tax rate24.5 %23.3 %24.2 %23.1 %

Veeva Systems Inc. | Form 10-Q25

Table of Contents

The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, tax credits, equity compensation, and foreign-derived intangible income (“FDII”) deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.

During the three and nine months ended October 31, 2025, as compared to the same periods in the prior fiscal year, our effective tax rate increased primarily due to the indirect effects of the One Big Beautiful Bill Act (“OBBBA”), offset by increased excess tax benefits related to equity compensation. In addition, the OBBBA restored the immediate expensing of certain domestic R&D expenditures and included an election to accelerate the unamortized capitalized R&D over a two-year period, which decreased our taxable income resulting in a decrease in our FDII benefit.

Non-GAAP Financial Measures

In our public disclosures, we have provided non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to our GAAP measures, we use these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results.

For the reasons set forth below, we believe that excluding the following