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Apr 30

Verint Q1 2026 Earnings Report

Verint reported a strong start to FY2026 with revenue and non-GAAP EPS exceeding guidance.

Key Takeaways

Verint delivered solid Q1 FY2026 results, with revenue of $208 million and strong AI momentum pushing AI ARR to nearly 50% of total ARR. Despite a GAAP net loss, the company achieved non-GAAP EPS of $0.29, driven by favorable timing of SaaS deals and growing demand for its AI-powered CX platform.

Revenue reached $208 million, ahead of guidance due to timing of two unbundled SaaS deals.

AI ARR grew 24% YoY to $353.9 million, now representing nearly 50% of total ARR.

Reported a GAAP net loss of $2.4 million, but achieved $18.4 million in non-GAAP net income.

Completed $41.8 million in stock buybacks during Q1, repurchasing 2.5 million shares.

Total Revenue
$208M
Previous year: $221M
-6.0%
EPS
$0.29
Previous year: $0.59
-50.8%
Subscription ARR
$710M
Previous year: $668M
+6.3%
AI ARR
$354M
Previous year: $285M
+24.1%
Free Cash Flow
$20.3M
Gross Profit
$139M
Previous year: $158M
-11.8%
Cash and Equivalents
$181M
Previous year: $237M
-23.6%
Free Cash Flow
$20.3M
Previous year: $57.1M
-64.5%
Total Assets
$2.26B
Previous year: $2.19B
+3.1%

Verint

Verint

Verint Revenue by Segment

Forward Guidance

Verint expects FY2026 to show continued AI-driven growth with 8% ARR growth and a 12% increase in free cash flow. Revenue guidance reflects ASC 606 timing dynamics.

Positive Outlook

  • Full-year Subscription ARR expected at $768 million (+8% YoY)
  • AI ARR expected to grow more than 20% YoY
  • Non-GAAP EPS forecasted at $2.93
  • Free cash flow expected to increase 12% YoY
  • Strong AI pipeline supporting growth trajectory

Challenges Ahead

  • ASC 606 revenue recognition introduces variability
  • Non-GAAP guidance excludes restructuring and acquisition impacts
  • GAAP net income guidance not provided
  • Stock-based compensation expenses expected up to $63M in FY26
  • SaaS deal timing may create quarterly revenue lumpiness

Revenue & Expenses

Visualization of income flow from segment revenue to net income