### At a GlanceQ2 results beat expectations, with total revenue of $928 million, primarily driven by a record-high CRM business and accelerated progress of the AI product Falcon.

Key data: Total revenue of $928 million, up approximately 13% year-over-year; non-GAAP operating profit of $416 million; Commercial subscription revenue grew 13% year-over-year, still achieving double-digit growth excluding Crossix.

Business progress: The CRM business posted its best quarter ever, adding two new Top 20 pharma clients (Biogen, Regeneron), bringing the total to 12 out of the Top 20 choosing Vault CRM. The Falcon AI product secured five early adopters, including one Top 20 pharma company. Management emphasized Falcon's short implementation cycle, no data migration required, and extremely high client interest. Data Cloud added 14 new clients, with strong performance from OpenData and Compass products. The new Aspen CRM product remains in early stages, targeting small tech companies with a simple pricing model ($50/user/month). The China business continues to grow, with successful localization of CRM and data products.

Guidance & outlook: Full-year guidance was raised, though specific figures were not provided. Management expressed strong confidence in long-term R&D business growth, noting that new products such as EDC, eCOA, and Safety are in early ramp-up stages, with targets expected to be achieved by 2030.

Risk/highlight signals: Positive signals include management's strong optimism about Falcon and CRM win-back opportunities, believing Falcon could become a "fourth major business pillar," with CRM win-back opportunities concentrated in 2027-2028. Negative signals include Falcon still being in early stages, requiring product maturity and pricing model adjustments with clients, and the R&D business facing short-term growth pressure from the S-curve transition between old and new products.

### Position Moves| Company | Direction | Entry Price | Current Price | Return | Reason ||---------|-----------|-------------|---------------|--------|--------|| Veeva Systems | Long | $220 | $245 | +11.4% | Q2 beat, raised guidance, Falcon AI product shows early promise |

### Investment ImplicationsThe report maintains a positive view on Veeva Systems, believing its core CRM business remains strong and the Falcon AI product has the potential to become a new growth driver. However, given that Falcon is still in the early commercialization stage and the R&D business faces a product transition period, the report recommends holding the position and monitoring the commercialization progress of Falcon and the ramp-up of R&D new products in the coming quarters.