Verint Systems Reports Strong Start to FY 2026

Verint Systems ( (VRNT) ) has released its Q1 earnings. Here is a breakdown of the information Verint Systems presented to its investors.

Verint Systems Inc., known as The CX Automation Company™, is a leader in customer experience automation, leveraging AI-powered solutions to deliver business outcomes for over 80 of the Fortune 100 companies. The company operates primarily in the technology sector, focusing on enhancing customer engagement through its open platform and AI bots.

Verint Systems reported a strong start to its fiscal year ending 2026, with notable growth in its annual recurring revenue (ARR) and AI-driven solutions. The company’s Q1 results showed an acceleration in ARR growth to 6% year-over-year, with revenue and non-GAAP diluted EPS surpassing guidance due to the timing of two unbundled SaaS deals.

Key financial highlights include a 24% year-over-year increase in AI ARR, which now constitutes nearly half of the total ARR. The company reported a revenue of $208 million and a non-GAAP diluted EPS of $0.29, despite a GAAP net loss per share of $0.04. Verint’s strategic focus on AI and hybrid cloud deployments positions it to deliver immediate customer value and scale efficiently.

Verint’s outlook for the fiscal year ending January 31, 2026, includes an expected 8% growth in subscription ARR, with AI ARR projected to grow by more than 20%. The company anticipates a 12% increase in free cash flow, driven by ARR growth and cash contribution margin expansion, with significant allocations towards stock buybacks.

Looking ahead, Verint remains confident in achieving its annual targets, bolstered by a robust pipeline for its AI-powered solutions. The company’s strategic initiatives and focus on customer value through AI and cloud solutions are expected to sustain its growth trajectory in the competitive CX automation market.