The Jensen Investment Team added Veeva Systems Inc. to the Quality Growth Strategy with an initial weighting of 1.5%.
September 2025
Company Overview
Veeva Systems Inc. was founded in 2007 by Peter Gassner, the company’s current CEO, and Matt Wallach, the company’s president until 2019 and current Board of Directors member. The company is headquartered in Pleasanton, California, with approximately 7,200 employees worldwide.
Veeva is a cloud-computing company that provides software-as-a-service, data, and consulting to the life-sciences industry, primarily to pharmaceutical and medical technology companies. Veeva’s software products assist customers in research, development, and commercialization of pharmaceuticals and medical devices, including bringing products to market faster and more efficiently, marketing and selling more effectively, and maintaining compliance with government regulations.
Investment Thesis and What Led Us to Buy Now
Our thesis for Veeva is driven by the alignment of its strong business fundamentals with key tenets of the Jensen Quality Growth Strategy’s investment selection process:
- Competitive Advantages: High customer switching costs and retention, economies of scale (software is highly scalable) and scope (adding additional applications to Veeva’s platform), best in class brand, and intellectual property
- Earnings Stability: Excellent balance sheet with no debt and large cash reserve, strong profitability metrics including high return on equity, high return on invested capital, and high profit margins
- Valuation: Stock trading at a reasonable discount from our estimate of its intrinsic value, especially given the company’s high quality and long-term growth drivers.
Our decision to add the company to the Strategy is based on our evaluation of the company’s fundamental attributes, stock valuation, and risk characteristics, both on an absolute basis and relative to other opportunities in the Strategy at the time.
Outlook
While software companies rarely trade at deep discounts due to their margin profile, we believe Veeva is trading at a reasonable discount to its intrinsic value, especially given the company’s competitive advantages described above. Our near-term outlook for Veeva is favorable, and we believe they will continue to post solid revenue and earnings growth driven by new customer acquisitions and share-of-wallet gains.
Longer-term, we believe Veeva is uniquely positioned and will continue to capture market share from less sophisticated rivals. Additionally, we expect Veeva’s more recent software products to gain traction outside of its traditional target markets, creating and diversifying revenue sources.
Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security. Please click here for a listing of the Quality Growth Strategy’s current holdings.
The company discussion is solely intended to illustrate the application of our investment approach and is not to be considered a recommendation by Jensen. The specific security identified is taken from a representative accounts of the Jensen Quality Growth Strategy and does not represent all of the securities purchased and sold for the Strategy. Our views expressed herein are subject to change and should not be construed as a recommendation or offer to buy or sell any security and are not designed or intended as a basis or determination for making any investment decision for any security. Our discussions should not be construed as an indication that an investment in a security has been or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of any security discussed herein.
Certain information contained in this material represents or is based upon forward-looking statements, which can be identified by the use of terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of a client account may differ materially from those reflected or contemplated in such forward-looking statements.
This information is current as of the date of this material and is subject to change at any time, based on market and other conditions.
Jensen Investment Management, Inc., is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training. Although taken from reliable sources, Jensen cannot guarantee the accuracy of the information received from third parties.
© 2025 Jensen Investment Management
Related Insights
Jensen News & Insights
The Jensen Investment Team sold portfolio holding Home Depot (HD) from the Quality Growth Strategy due to its elevated valuation.
Jannis brings a deep global perspective and sector knowledge to Jensen’s Global Quality Growth Investment Team.
The Jensen Investment Team sold long-term portfolio holding, Johnson & Johnson, from the Quality Growth Strategy due to the stock’s recent price appreciation.
For advisors looking to reduce concentration risk without adding excessive volatility, mid-caps may offer an elegant solution. Read article to discover why.
Market volatility is rising. Factor trends show a shift from growth and momentum to value, cash flow and quality. Read our full analysis.
Read our analysis on how Jensen portfolio companies are positioned to navigate the evolving tariff landscape. For most of our holdings, tariffs represent a manageable business challenge rather than an existential threat. Read our full analysis