Strong Q1 Performance and AI Adoption Drive Verint Systems’ Buy Rating

Analyst Joshua Reilly from Needham maintained a Buy rating on Verint Systems (VRNT – Research Report) and keeping the price target at $30.00.

Joshua Reilly has given his Buy rating due to a combination of factors including Verint Systems’ strong first-quarter performance, where the company exceeded revenue expectations by a significant margin. This was largely attributed to the timing of unbundled SaaS deals and robust performance in bundled SaaS revenue. Additionally, the company’s total Annual Recurring Revenue (ARR) grew by 6%, slightly surpassing expectations, and they introduced a new metric, AI ARR, which captures all revenue related to AI functionalities.
Reilly also highlights the company’s reaffirmed guidance for fiscal year 2026, which includes an 8% ARR growth target by the end of the year. The analyst believes that a pipeline of smaller deals enhances visibility, supporting the anticipated increase in net new ARR necessary to achieve this target. Furthermore, the rapid adoption of AI applications for customer support is expected to drive ARR growth, compensating for any minor declines in contact center workforce management seat sales.