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Verint Systems Inc (VRNT)
NASDAQ:VRNT

Verint Systems (VRNT) AI Stock Analysis

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Verint Systems

(NASDAQ:VRNT)

Rating:74Outperform
Price Target:
$24.00
▲(11.94%Upside)
Verint Systems' overall stock score is driven by strong earnings call results and positive technical indicators. Financial performance is stable, though revenue decline and valuation concerns weigh on the score. The absence of corporate events and dividend yield are minor factors.
Positive Factors
AI and Technology
The more rapid adoption of AI applications for customer support is set to drive ARR growth trends.
Financial Performance
Verint reported a solid 1Q with revenue beating by 800 bps vs estimate and guidance primarily due to unbundled SaaS deal timing.
Negative Factors
Earnings
Verint Systems reported non-GAAP revenue of $253M, missing the consensus $277M estimate, down 4.5% year-over-year.
Revenue Guidance
Due to the volatile nature of unbundled revenue recognition, forecasting guidance is a challenge, and management issued a wider range of revenue guidance for FY26.

Verint Systems (VRNT) vs. SPDR S&P 500 ETF (SPY)

Verint Systems Business Overview & Revenue Model

Company DescriptionVerint Systems Inc. is a global leader in Actionable Intelligence solutions, with a focus on providing advanced customer engagement and cyber intelligence solutions. The company operates in sectors such as customer experience, workforce optimization, and security intelligence. Verint's core products and services include cloud-based and on-premises software that help organizations enhance customer engagement, optimize workforce operations, and improve security and surveillance measures.
How the Company Makes MoneyVerint Systems makes money primarily through the sale of its software solutions, which are offered both as perpetual licenses and subscription-based models. The company generates revenue through software licenses, cloud services, and maintenance and support services. Additionally, Verint benefits from professional services that assist clients in implementing and optimizing their software solutions. Key revenue streams include customer engagement solutions, which help businesses improve customer service and operational efficiency, and cyber intelligence solutions, which provide security and surveillance capabilities. Verint collaborates with a network of partners and resellers to expand its market reach and enhance its solution offerings, contributing to its earnings.

Verint Systems Key Performance Indicators (KPIs)

Any
Any
Recurring Revenue by Segment
Recurring Revenue by Segment
Analyzes steady income from ongoing contracts across different business areas, reflecting stability and predictability in financial performance.
Chart InsightsVerint Systems' SaaS revenue shows a strong upward trend, reflecting a strategic shift towards AI-driven solutions, as highlighted by a 24% increase in AI ARR. Despite a decline in Support and Optional Managed Services, the company's focus on SaaS and AI is driving growth, with a 30% increase in the SaaS pipeline. However, revenue volatility and customer caution in AI investments pose risks. The company remains optimistic, targeting a 12% increase in free cash flow and maintaining its revenue guidance, supported by large deals and a robust SaaS pipeline.
Data provided by:Main Street Data

Verint Systems Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q1-2026)
|
% Change Since: 16.90%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in ARR and AI ARR, with significant large deals and pipeline growth. However, it also noted revenue volatility and customer caution in the macro environment. Overall, the positive aspects, especially the strong growth metrics and financial performance, outweigh the challenges.
Q1-2026 Updates
Positive Updates
Accelerated ARR Growth
ARR growth accelerated to 6% year-over-year, with expectations to exit the year at 8% growth.
AI ARR Growth
AI ARR increased 24% year-over-year, reaching $354 million, representing close to 50% of subscription ARR.
Large Deals Secured
Secured two large deals: a $13 million TCV order from an insurance company and a $14 million TCV order from a healthcare company.
Strong Financial Position
Revenue of $208 million and non-GAAP diluted EPS of $0.29, both exceeding guidance.
Growing SaaS Pipeline
Rolling four-quarter SaaS pipeline increased more than 30% year-over-year, reflecting strong demand for AI.
Negative Updates
Revenue Volatility
Revenue overachievement was due to the timing of two large unbundled SaaS deals, impacting revenue and EPS outlook for the year.
Macro Environment Caution
Customers are cautious about AI investments due to past poor experiences, requiring proven AI outcomes and value demonstration.
Company Guidance
During the Verint Systems Inc. Q1 2026 earnings call, key guidance metrics highlighted include an ARR growth acceleration to 6% in Q1, with expectations to exit the fiscal year with an 8% year-over-year growth. The company reported revenue of $208 million and a non-GAAP diluted EPS of $0.29, both surpassing guidance. Verint anticipates an ARR increase to approximately $720 million in Q2 and aims for an ARR of around $768 million by year-end. AI ARR saw a 24% year-over-year increase, reaching $354 million, and now represents nearly 50% of Verint's subscription ARR. For the full fiscal year, Verint targets a 12% increase in free cash flow to $145 million, supported by a 30% year-over-year increase in their SaaS pipeline. The company maintains its annual guidance for $960 million in revenue, plus or minus 3%, and a non-GAAP diluted EPS of $2.93 at the midpoint.

Verint Systems Financial Statement Overview

Summary
Verint Systems presents a stable financial position with strengths in profitability and cash flow generation. While the company is profitable and efficiently managing its operations, the decline in revenue growth and modest returns on equity suggest areas for enhancement. The balance sheet remains robust with controlled leverage, supporting long-term stability.
Income Statement
75
Positive
Verint Systems shows a stable revenue base and improving profitability with a gross profit margin of 69.9% and a net profit margin of 7.7% in TTM (Trailing-Twelve-Months). However, revenue has declined from the previous year, indicating a need for growth strategies. The EBIT and EBITDA margins demonstrate operational efficiency improvements.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.33, indicating a balanced financial leverage. The equity ratio stands at 58.9%, showing a solid equity base. ROE has improved to 5.2%, reflecting better returns on shareholders' equity, albeit still modest for the industry.
Cash Flow
68
Positive
Verint's operating cash flow to net income ratio shows strong cash generation capabilities at 1.79. Although free cash flow has decreased recently, it remains positive, supporting the company's flexibility. However, the free cash flow to net income ratio indicates room for improvement at 1.39.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue896.01M909.19M910.39M902.25M874.51M1.27B
Gross Profit626.41M648.05M633.27M607.18M575.94M858.11M
EBITDA138.32M155.61M143.09M130.60M124.26M79.15M
Net Income68.65M82.27M38.61M14.90M14.41M-107.00K
Balance Sheet
Total Assets2.26B2.29B2.23B2.31B2.36B3.26B
Cash, Cash Equivalents and Short-Term Investments181.32M217.05M242.09M282.80M359.57M714.86M
Total Debt442.08M448.43M449.64M457.62M459.96M869.38M
Total Liabilities925.70M964.45M957.44M1.02B970.21M1.77B
Stockholders Equity1.33B1.32B1.27B1.29B1.39B1.47B
Cash Flow
Free Cash Flow95.59M142.11M124.91M104.27M101.08M213.52M
Operating Cash Flow123.05M157.45M150.64M139.82M125.60M253.85M
Investing Cash Flow-75.33M-84.04M-37.38M-56.58M-35.90M-37.24M
Financing Cash Flow-107.83M-99.68M-153.35M-157.91M-430.12M71.93M

Verint Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.44
Price Trends
50DMA
17.96
Positive
100DMA
19.45
Positive
200DMA
22.32
Negative
Market Momentum
MACD
0.46
Negative
RSI
66.37
Neutral
STOCH
69.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRNT, the sentiment is Positive. The current price of 21.44 is above the 20-day moving average (MA) of 18.38, above the 50-day MA of 17.96, and below the 200-day MA of 22.32, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 69.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRNT.

Verint Systems Risk Analysis

Verint Systems disclosed 39 risk factors in its most recent earnings report. Verint Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verint Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BOBOX
78
Outperform
$4.88B25.45152.34%4.88%80.94%
78
Outperform
$5.25B29.4240.23%9.58%12.41%
74
Outperform
$1.12B27.605.32%-2.09%76.96%
72
Outperform
$5.27B65.4510.13%19.46%16.20%
64
Neutral
$5.60B-22.21%13.34%13.71%
SS
64
Neutral
$6.04B-26.98%32.25%20.56%
63
Neutral
$33.24B5.92-11.55%1.90%5.54%-20.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRNT
Verint Systems
21.44
-9.88
-31.55%
SPSC
SPS Commerce
139.94
-50.50
-26.52%
QLYS
Qualys
143.98
-1.30
-0.89%
VRNS
Varonis Systems
50.05
1.72
3.56%
BOX
Box
32.82
6.69
25.60%
S
SentinelOne
18.13
-2.22
-10.91%

Verint Systems Corporate Events

Executive/Board ChangesShareholder Meetings
Verint Systems Approves Amendment to Stock Incentive Plan
Neutral
Jun 20, 2025

On June 19, 2025, Verint Systems Inc. held its Annual Meeting of Stockholders, where several key decisions were made, including the approval of Amendment No. 1 to the 2023 Long-Term Stock Incentive Plan. This amendment allows the company to offer equity-based compensation to employees, directors, and consultants, extending the plan’s term to 2035 and adjusting share counting rules. Additionally, the stockholders elected directors, ratified Deloitte & Touche LLP as the independent registered public accounting firm, and approved executive compensation.

The most recent analyst rating on (VRNT) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Verint Systems stock, see the VRNT Stock Forecast page.

Financial Disclosures
Verint Systems Schedules Q1 2025 Earnings Call
Neutral
May 19, 2025

On May 19, 2025, Verint Systems announced that it will hold a conference call on June 4, 2025, to discuss its financial results for the first quarter ended April 30, 2025, and its future outlook. The conference call will be accessible via a real-time webcast, and an earnings press release will be issued after market close on the same day.

The most recent analyst rating on (VRNT) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Verint Systems stock, see the VRNT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025