Michael Burry Remains Bullish on Veeva but Trimmed His Position. What This Means for VEEV Stock.

Software earnings have been strong lately, and Veeva Systems (VEEV) stood out with one of the market's biggest post-earnings moves. Shares of the life sciences cloud software company jumped more than 15% in one session, making Veeva Systems one of the top gainers in the S&P 500 ($SPX).

The rally followed fiscal second-quarter adjusted EPS of $2.35, above the $2.22 consensus estimate. Veeva Systems also raised its fiscal 2027 adjusted EPS outlook to $9.21 from $9.05, ahead of the $9.06 analysts had expected.

The move was notable because VEEV had lagged for much of 2026. By mid-August, VEEV stock was up only 8.7% year-to-date (YTD), compared with a 12.4% gain for the S&P 500 ($SPX), while shares had fallen 14% over the prior year amid concerns about weaker demand and competition. After the earnings report, VEEV traded near $291, up from about $244.72 before the release, lifting Veeva Systems' market cap to roughly $39.8 billion.

That sharp turnaround makes Michael Burry's latest move worth watching. The "Big Short" investor reaffirmed his bullish view on Veeva Systems while confirming that he trimmed his stake after the rally. In the same comments, Burry called Snowflake (SNOW) overvalued. So, why would a well-known value investor take some profit in Veeva Systems but remain bullish? Let's find out.

Veeva Systems sells cloud software to drugmakers, biotech companies, and medical-device businesses. Its tools help customers run clinical trials, handle regulatory filings, manage quality controls, and support sales teams.

VEEV is up 2% over the past 52 weeks and 23% so far this year.

But the stock is not cheap. VEEV trades at 41.92x forward earnings, more than twice the sector average of 19.71x. That means investors are paying a premium.

Its latest results support some of that optimism. Fiscal 2027 second-quarter revenue rose 18% from a year earlier to $928.0 million. Subscription revenue, which gives Veeva Systems a steady stream of recurring sales, grew 16% to $766.8 million. The company also showed strong profit growth, with operating income up 40% to $275.0 million and non-GAAP operating income up 18% to $415.9 million.