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Veeva Announces Fourth Quarter and Fiscal Year 2025 Results

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Fiscal Year 2025 Total Revenues of $2,746.6M, up 16% Year Over Year
Q4 Total Revenues of $720.9M, up 14% Year Over Year

Fiscal Year 2025 Subscription Services Revenues of $2,284.7M, up 20% Year Over Year
Q4 Subscription Services Revenues of $608.6M, up 17% Year Over Year

PLEASANTON, Calif., March 5, 2025 /PRNewswire/ — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2025.

“It was an outstanding quarter and year of execution and innovation in software, data, and business consulting,” said CEO Peter Gassner. “These advances set us up for the significant opportunity ahead to help life sciences bring better treatments to more patients, with greater speed and efficiency. I am excited to see what we can accomplish with our customers and the Veeva team in the coming years.”

Fiscal 2025 Fourth Quarter Results:

Revenues(1): Total revenues for the fourth quarter were $720.9 million, up from $630.6 million one year ago, an increase of 14% year over year. Subscription services revenues for the fourth quarter were $608.6 million, up from $521.5 million one year ago, an increase of 17% year over year.

Operating Income and Non-GAAP Operating Income(1)(2): Fourth quarter operating income was $188.4 million, compared to $135.3 million one year ago, an increase of 39% year over year. Non-GAAP operating income for the fourth quarter was $307.7 million, compared to $239.1 million one year ago, an increase of 29% year over year.

Net Income and Non-GAAP Net Income(1)(2): Fourth quarter net income was $195.6 million, compared to $147.4 million one year ago, an increase of 33% year over year. Non-GAAP net income for the fourth quarter was $287.9 million, compared to $226.3 million one year ago, an increase of 27% year over year.

Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the fourth quarter, fully diluted net income per share was $1.18, compared to $0.90 one year ago, while non-GAAP fully diluted net income per share was $1.74, compared to $1.38 one year ago.

Fiscal Year 2025 Results:

Revenues(1): Total revenues for the fiscal year ended January 31, 2025 were $2,746.6 million, up from $2,363.7 million one year ago, an increase of 16% year over year. Subscription services revenues were $2,284.7 million, up from $1,901.6 million one year ago, an increase of 20% year over year.

Operating Income and Non-GAAP Operating Income(1)(2): Fiscal year 2025 operating income was $691.4 million, compared to $429.3 million one year ago, an increase of 61% year over year. Non-GAAP operating income for fiscal year 2025 was $1,152.3 million, compared to $842.5 million one year ago, an increase of 37% year over year.

Net Income and Non-GAAP Net Income(1)(2): Fiscal year 2025 net income was $714.1 million, compared to $525.7 million one year ago, an increase of 36% year over year. Non-GAAP net income for fiscal year 2025 was $1,090.4 million, compared to $791.0 million one year ago, an increase of 38% year over year.

Net Income per Share and Non-GAAP Net Income per Share(1)(2): For fiscal year 2025, fully diluted net income per share was $4.32, compared to $3.22 one year ago, while non-GAAP fully diluted net income per share was $6.60, compared to $4.84 one year ago.

“We closed the year with results ahead of guidance for all metrics,” said CFO Brian Van Wagener. “Our execution continues to be strong and we see momentum across our product areas, positioning us well to consistently deliver on our goals.”

Recent Highlights:

Strong Finish to an Important Year Building the Industry Cloud for Life Sciences – Through customer success and product excellence, Veeva deepened its strategic partnerships across all customer segments – from top 20 biopharmas to emerging biotechs. Expanding with both new and existing customers, Veeva finished the year with a total of 1,477 customers, including 1,125 in Veeva R&D Solutions and 730 in Veeva Commercial Solutions.(3)(4)

Vault CRM Suite Delivers on Innovation Roadmap – The December release of Vault CRM represents the most advanced CRM for life sciences, which includes the full functionality of Veeva CRM, additional new capabilities, and a strong innovation roadmap ahead with AI coming to Vault CRM this year. The company also expanded the Vault CRM Suite in the quarter with the release of Campaign Manager, following the August availability of Service Center. More than 50 customers are now live on Vault CRM, and eight customers have migrated from Veeva CRM to Vault CRM with more underway.

Veeva Becoming the Standard for Drug Development and Quality – There were a number of notable wins, expansions, and go-lives in Q4 in clinical, regulatory, safety, and quality. Quality Cloud added 41 new customers and more than 20 existing customers expanded their use of Veeva Quality Cloud products. The fourth top 20 biopharma selected Veeva Safety. In February, the second top 20 biopharma went live with Veeva Safety and is now rolling out the full Safety Suite. Expansion across clinical continued in Q4 as well, including a top 20 biopharma taking a full Clinical Platform approach – adding six major clinical applications all at once – representing one of Veeva’s largest subscription orders ever.

Financial Outlook:

Veeva is providing guidance for its fiscal first quarter ending April 30, 2025 as follows:

Total revenues between $726 and $729 million.

Non-GAAP operating income between $307 and $309 million.(5)

Non-GAAP fully diluted net income per share between $1.74 and $1.75.(5)

Veeva is providing guidance for its fiscal year ending January 31, 2026 as follows:

Total revenues between $3,040 and $3,055 million.

Non-GAAP operating income of about $1,300 million.(5)

Non-GAAP fully diluted net income per share of approximately $7.32.(5)

Conference Call Information

Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva’s investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, March 5, 2025, and a replay of the call will be available on Veeva’s investor relations website.

What:

Veeva Systems Fourth Quarter and Fiscal Year 2025 Results Conference Call

When:

Wednesday, March 5, 2025

Time:

2:00 p.m. PT (5:00 p.m. ET)

Online Registration:

https://registrations.events/direct/Q4I2974099 

Webcast:

ir.veeva.com

(1)

The customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the fourth quarter and fiscal year ended January 31, 2024.

(2)

This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.

(3)

The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.

(4)

Customer count totals are presented net of customer attrition during the period.

(5)

Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2025 or the fiscal year ending January 31, 2026 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.

Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of March 5, 2025, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, changes in trade policy or practices, currency exchange fluctuations, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 36 and 37 in our filing on Form 10-Q for the period ended October 31, 2024 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

Investor Relations Contact:

Media Contact:

Gunnar Hansen

Maria Scurry

Veeva Systems Inc.

Veeva Systems Inc.

267-460-5839

781-366-7617

ir@veeva.com

pr@veeva.com

 

 

VEEVA SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

January 31,
2025

January 31,
2024

Assets

Current assets:

Cash and cash equivalents

$      1,118,785

$         703,487

Short-term investments

4,031,442

3,324,269

Accounts receivable, net

1,016,356

852,172

Unbilled accounts receivable

40,761

36,365

Prepaid expenses and other current assets

101,458

86,918

Total current assets

6,308,802

5,003,211

Property and equipment, net

55,912

58,532

Deferred costs, net

26,383

23,916

Lease right-of-use assets

63,863

45,602

Goodwill

439,877

439,877

Intangible assets, net

44,460

63,017

Deferred income taxes

343,919

233,463

Other long-term assets

56,540

43,302

Total assets

$      7,339,756

$      5,910,920

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$           30,447

$           31,513

Accrued compensation and benefits

39,429

43,433

Accrued expenses and other current liabilities

35,557

32,980

Income tax payable

9,024

11,862

Deferred revenue

1,273,978

1,049,761

Lease liabilities

9,969

9,334

Total current liabilities

1,398,404

1,178,883

Deferred income taxes

587

2,052

Long-term lease liabilities

65,806

46,441

Other long-term liabilities

42,586

38,720

Total liabilities

1,507,383

1,266,096

Stockholders’ equity:

Common stock

2

2

Additional paid-in capital

2,386,192

1,915,002

Accumulated other comprehensive loss

(8,416)

(10,637)

Retained earnings

3,454,595

2,740,457

Total stockholders’ equity

5,832,373

4,644,824

Total liabilities and stockholders’ equity

$      7,339,756

$      5,910,920

 

VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)

Three months ended
January 31,

Fiscal year ended
January 31,

2025

2024

2025

2024

Revenues:

Subscription services(6)

$     608,577

$     521,498

$  2,284,659

$  1,901,593

Professional services and other(7)

112,309

109,120

461,960

462,080

Total revenues

720,886

630,618

2,746,619

2,363,673

Cost of revenues(8):

Cost of subscription services

83,493

77,398

323,070

290,577

Cost of professional services and other

97,498

96,530

376,566

386,714

Total cost of revenues

180,991

173,928

699,636

677,291

Gross profit

539,895

456,690

2,046,983

1,686,382

Operating expenses(8):

Research and development

181,527

163,565

693,078

629,031

Sales and marketing

99,202

99,203

396,726

381,472

General and administrative

70,743

58,658

265,744

246,545

Total operating expenses

351,472

321,426

1,355,548

1,257,048

Operating income

188,423

135,264

691,435

429,334

Other income, net

56,707

47,429

227,946

158,689

Income before income taxes

245,130

182,693

919,381

588,023

Income tax provision

49,505

35,295

205,243

62,318

Net income

$     195,625

$     147,398

$     714,138

$     525,705

Net income per share:

Basic

$           1.20

$           0.92

$           4.41

$           3.27

Diluted

$           1.18

$           0.90

$           4.32

$           3.22

Weighted-average shares used to compute net income per share:

Basic

162,391

161,088

161,879

160,532

Diluted

165,674

164,071

165,232

163,486

Other comprehensive income:

Net change in unrealized gain (loss) on available-for-sale investments

$       (1,482)

$       28,135

$         4,094

$       22,038

Net change in cumulative foreign currency translation loss

(475)

(1,234)

(1,873)

(1,546)

Comprehensive income

$     193,668

$     174,299

$     716,359

$     546,197

(6) Includes subscription services revenues from the following product areas:

Veeva Commercial Solutions

$     293,385

$     261,882

$  1,104,888

$     995,803

Veeva R&D Solutions

315,192

259,616

1,179,771

905,790

Total subscription services

$     608,577

$     521,498

$  2,284,659

$  1,901,593

(7) Includes professional services and other revenues from the following product areas:

Veeva Commercial Solutions

$       45,607

$       45,899

$     185,302

$     185,981

Veeva R&D Solutions

66,702

63,221

276,658

276,099

Total professional services and other

$     112,309

$     109,120

$     461,960

$     462,080

(8) Includes stock-based compensation as follows:

Cost of revenues:

Cost of subscription services

$         1,699

$         1,626

$         6,591

$         6,483

Cost of professional services and other

12,737

13,356

51,377

53,237

Research and development

47,160

42,967

185,901

172,876

Sales and marketing

22,250

23,781

90,178

90,865

General and administrative

31,358

17,163

103,303

70,272

Total stock-based compensation

$     115,204

$       98,893

$     437,350

$     393,733

 

VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Fiscal year ended
January 31,

2025

2024

Cash flows from operating activities

Net income

$     714,138

$     525,705

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

39,383

32,628

Reduction of operating lease right-of-use assets

11,547

11,691

Accretion of discount on short-term investments

(24,443)

(26,515)

Stock-based compensation

437,350

393,733

Amortization of deferred costs

15,528

18,177

Deferred income taxes

(112,273)

(105,374)

Other, net

1,201

471

Changes in operating assets and liabilities:

Accounts receivable

(164,572)

(149,810)

Unbilled accounts receivable

(4,396)

45,809

Deferred costs

(17,995)

(10,268)

Prepaid expenses and other current and long-term assets

(17,453)

414

Accounts payable

(1,961)

(10,230)

Accrued expenses and other current liabilities

(1,414)

(4,249)

Income tax payable

(2,838)

6,916

Deferred revenue

227,838

188,164

Lease liabilities

(9,835)

(6,879)

Other long-term liabilities

246

956

Net cash provided by operating activities

1,090,051

911,339

Cash flows from investing activities

Purchases of short-term investments

(2,581,968)

(2,697,968)

Maturities and sales of short-term investments

1,902,349

1,647,813

Long-term assets

(20,519)

(26,196)

Net cash used in investing activities

(700,138)

(1,076,351)

Cash flows from financing activities

Proceeds from exercise of common stock options

105,538

62,687

Taxes paid related to net share settlement of equity awards

(79,423)

(78,875)

Net cash provided by (used in) financing activities

26,115

(16,188)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(1,735)

(1,780)

Net change in cash, cash equivalents, and restricted cash

414,293

(182,980)

Cash, cash equivalents, and restricted cash at beginning of period

706,670

889,650

Cash, cash equivalents, and restricted cash at end of period

$  1,120,963

$     706,670

Supplemental disclosures of other cash flow information:

Excess tax benefits from employee stock plans

$         8,932

$       71,049

Non-GAAP Financial Measures

In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.

Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.

Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.

Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.

Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.

Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

 

Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)

Three months ended
January 31,

Fiscal year ended
January 31,

2025

2024

2025

2024

Net cash provided by operating activities on a GAAP basis

$    69,544

$    57,769

$  1,090,051

$     911,339

Excess tax benefits from employee stock plans

(3,772)

(2,474)

(8,932)

(71,049)

Net cash provided by operating activities on a non-GAAP basis

$    65,772

$    55,295

$  1,081,119

$     840,290

Net cash used in investing activities on a GAAP basis

$   (15,692)

$   (86,703)

$    (700,138)

$ (1,076,351)

Net cash provided by (used in) financing activities on a GAAP basis

$    20,811

$   (10,484)

$       26,115

$      (16,188)

Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)

Three months ended
January 31,

Fiscal year ended
January 31,

2025

2024

2025

2024

Cost of subscription services revenues on a GAAP basis

$    83,493

$    77,398

$     323,070

$     290,577

Stock-based compensation expense

(1,699)

(1,626)

(6,591)

(6,483)

Amortization of purchased intangibles

(1,045)

(1,125)

(4,310)

(4,468)

Cost of subscription services revenues on a non-GAAP basis

$    80,749

$    74,647

$     312,169

$     279,626

Gross margin on subscription services revenues on a GAAP basis

86.3 %

85.2 %

85.9 %

84.7 %

Stock-based compensation expense

0.3

0.3

0.3

0.4

Amortization of purchased intangibles

0.1

0.2

0.1

0.2

Gross margin on subscription services revenues on a non-GAAP basis

86.7 %

85.7 %

86.3 %

85.3 %

Cost of professional services and other revenues on a GAAP basis

$    97,498

$    96,530

$     376,566

$     386,714

Stock-based compensation expense

(12,737)

(13,356)

(51,377)

(53,237)

Amortization of purchased intangibles

(138)

(139)

(550)

(550)

Cost of professional services and other revenues on a non-GAAP basis

$    84,623

$    83,035

$     324,639

$     332,927

Gross margin on professional services and other revenues on a GAAP basis

13.2 %

11.5 %

18.5 %

16.3 %

Stock-based compensation expense

11.3

12.3

11.1

11.6

Amortization of purchased intangibles

0.2

0.1

0.1

0.1

Gross margin on professional services and other revenues on a non-GAAP basis

24.7 %

23.9 %

29.7 %

28.0 %

Gross profit on a GAAP basis

$  539,895

$  456,690

$   2,046,983

$  1,686,382

Stock-based compensation expense

14,436

14,982

57,968

59,720

Amortization of purchased intangibles

1,183

1,264

4,860

5,018

Gross profit on a non-GAAP basis

$  555,514

$  472,936

$   2,109,811

$  1,751,120

Gross margin on total revenues on a GAAP basis

74.9 %

72.4 %

74.5 %

71.3 %

Stock-based compensation expense

2.0

2.4

2.1

2.6

Amortization of purchased intangibles

0.2

0.2

0.2

0.2

Gross margin on total revenues on a non-GAAP basis

77.1 %

75.0 %

76.8 %

74.1 %

Research and development expense on a GAAP basis

$  181,527

$  163,565

$     693,078

$     629,031

Stock-based compensation expense

(47,160)

(42,967)

(185,901)

(172,876)

Amortization of purchased intangibles

—

(29)

(85)

(114)

Research and development expense on a non-GAAP basis

$  134,367

$  120,569

$     507,092

$     456,041

Three months ended
January 31,

Fiscal year ended
January 31,

2025

2024

2025

2024

Sales and marketing expense on a GAAP basis

$    99,202

$    99,203

$     396,726

$     381,472

Stock-based compensation expense

(22,250)

(23,781)

(90,178)

(90,865)

Amortization of purchased intangibles

(2,885)

(3,552)

(13,443)

(14,102)

Sales and marketing expense on a non-GAAP basis

$    74,067

$    71,870

$     293,105

$     276,505

General and administrative expense on a GAAP basis

$    70,743

$    58,658

$     265,744

$     246,545

Stock-based compensation expense

(31,358)

(17,163)

(103,303)

(70,272)

Amortization of purchased intangibles

—

(56)

(170)

(225)

Litigation settlement

—

—

(5,000)

—

General and administrative expense on a non-GAAP basis

$    39,385

$    41,439

$      157,271

$     176,048

Operating expense on a GAAP basis

$  351,472

$  321,426

$   1,355,548

$  1,257,048

Stock-based compensation expense

(100,768)

(83,911)

(379,382)

(334,013)

Amortization of purchased intangibles

(2,885)

(3,637)

(13,698)

(14,441)

Litigation settlement

—

—

(5,000)

—

Operating expense on a non-GAAP basis

$  247,819

$  233,878

$      957,468

$     908,594

Operating income on a GAAP basis

$  188,423

$  135,264

$      691,435

$     429,334

Stock-based compensation expense

115,204

98,893

437,350

393,733

Amortization of purchased intangibles

4,068

4,901

18,558

19,459

Litigation settlement

—

—

5,000

—

Operating income on a non-GAAP basis

$  307,695

$  239,058

$   1,152,343

$     842,526

Operating margin on a GAAP basis

26.1 %

21.4 %

25.2 %

18.2 %

Stock-based compensation expense

16.0

15.7

15.9

16.6

Amortization of purchased intangibles

0.6

0.8

0.7

0.8

Litigation settlement

—

—

0.2

—

Operating margin on a non-GAAP basis

42.7 %

37.9 %

42.0 %

35.6 %

Net income on a GAAP basis

$  195,625

$  147,398

$      714,138

$     525,705

Stock-based compensation expense

115,204

98,893

437,350

393,733

Amortization of purchased intangibles

4,068

4,901

18,558

19,459

Litigation settlement

—

—

5,000

—

Income tax effect on non-GAAP adjustments(9)

(27,020)

(24,867)

(84,618)

(147,937)

Net income on a non-GAAP basis

$  287,877

$  226,325

$   1,090,428

$     790,960

Diluted net income per share on a GAAP basis

$        1.18

$        0.90

$            4.32

$           3.22

Stock-based compensation expense

0.70

0.60

2.65

2.41

Amortization of purchased intangibles

0.02

0.03

0.11

0.12

Litigation settlement

—

—

0.03

—

Income tax effect on non-GAAP adjustments(9)

(0.16)

(0.15)

(0.51)

(0.91)

Diluted net income per share on a non-GAAP basis

$        1.74

$        1.38

$            6.60

$           4.84

(9)   

For the three months and fiscal years ended January 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%.

 

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Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event

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RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.

During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.

GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.

The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.

Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.

Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.

Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.

Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.

He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.

SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.

The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.

Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.

Registration for participants from within and outside the Kingdom is available at gsts.sa.

Click here to view the media kit. 

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Axon Announces Body 5: Next-Generation Camera Built for the AI Era

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Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field

SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.

For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.

“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”

Axon Body 5: Built for the AI Era

Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day. 

For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.

Both models feature several key advancements, including:

25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.

The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:

A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.

Bringing More of Axon’s AI Era Into the Field

Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.

Increasingly, Axon is also bringing AI into real-time operations.

Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:

Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.

Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.

Innovating Responsibly

Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.

General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility. 

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com

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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design

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The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.

ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.

The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.

The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.

Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.

The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.

Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.

Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.

Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.

The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.

As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.

A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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