Verint Systems (VRNT) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.83
• Revenue Growth: -2.09%
• EPS Growth: 76.96%
• Country: US
• Employees: 3,800
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): 0.29
• Shares Outstanding: 60,160,404
• 10 Day Avg. Volume: 3,215,729
• 30 Day Avg. Volume: 1,727,072
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 13.00
• 1Y Price Target: $21.33
• Price Target Upside: 4.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $22.50 ▲(10.62% Upside)

Verint Systems' overall stock score is driven by strong earnings call results, highlighting growth in ARR and AI adoption. The stable financial performance supports the score, despite challenges in revenue growth and valuation concerns. Technical indicators suggest a neutral trend, while the acquisition by Calabrio, Inc. provides a positive outlook for the company's strategic positioning.

Positive Factors

AI and Automation

Customer adoption of AI ARR is expected to drive overall ARR, pipeline expansion, and visibility, reflecting fast AI outcomes enabled by VRNT's hybrid cloud platform.

Market Position

The opportunity to combine Verint's operations with Calabrio to be the market leader in WFE with close to 40% market share will further the cross-sell opportunity between the two companies.

Strategic Acquisition

VRNT announced that it has agreed to be acquired by Thoma Bravo in a deal reflecting an enterprise value of $2B.

Negative Factors

Earnings Performance

Verint Systems reported non-GAAP revenue of $253M, missing the consensus $277M estimate, down 4.5% year-over-year.

Operational Adjustments

VRNT has suspended quarterly earnings calls and suspended its repurchase program.

Revenue Forecast Challenges

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 Business Overview & Revenue Model

Company Description

Verint Systems (VRNT) is a global leader in Actionable Intelligence solutions, providing software and hardware products that help organizations capture and analyze customer engagement data. The company operates primarily in two sectors: Customer Engagement and Cyber Intelligence. Core products include customer experience management software, workforce optimization tools, and security intelligence solutions that enable businesses to enhance operational efficiency and improve customer satisfaction.

How the Company Makes Money

Verint generates revenue through a combination of software licenses, subscription services, and professional services. The company offers a range of cloud-based and on-premises solutions, which allow for recurring subscription-based revenue. Key revenue streams include software sales, maintenance and support services, and consulting services. Additionally, Verint partners with various technology and service providers to enhance its product offerings and expand its market reach, contributing to its overall earnings. The growing demand for customer engagement solutions and the increasing focus on security intelligence also play a significant role in driving Verint's revenue growth.

Verint Systems Financial Statement Overview

Summary

Verint Systems shows stable financials with strong profitability and cash flow generation. The company maintains a solid balance sheet with controlled leverage. However, revenue decline and modest ROE indicate areas for improvement.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	909.19M	910.39M	902.25M	874.51M	1.27B
Gross Profit	648.05M	633.27M	607.18M	575.94M	858.11M
EBITDA	155.61M	143.09M	130.60M	124.26M	79.15M
Net Income	82.27M	38.61M	14.90M	14.41M	-107.00K
Balance Sheet
Total Assets	2.29B	2.23B	2.31B	2.36B	3.26B
Cash, Cash Equivalents and Short-Term Investments	217.05M	242.09M	282.80M	359.57M	714.86M
Total Debt	448.43M	449.64M	457.62M	459.96M	869.38M
Total Liabilities	964.45M	957.44M	1.02B	970.21M	1.77B
Stockholders Equity	1.32B	1.27B	1.29B	1.39B	1.47B
Cash Flow
Free Cash Flow	142.11M	124.91M	104.27M	101.08M	213.52M
Operating Cash Flow	157.45M	150.64M	139.82M	125.60M	253.85M
Investing Cash Flow	-84.04M	-37.38M	-56.58M	-35.90M	-37.24M
Financing Cash Flow	-99.68M	-153.35M	-157.91M	-430.12M	71.93M

Verint Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 20.34 is above the 20-day moving average (MA) of 20.29, above the 50-day MA of 20.17, and below the 200-day MA of 21.77, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRNT.

Verint Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	74 Outperform	$4.51B	24.17	152.34%	―	6.29%	62.03%
VRNS	72 Outperform	$6.43B	―	-25.73%	―	14.29%	-14.42%
VRNT	71 Outperform	$1.22B	26.19	5.32%	―	-2.09%	76.96%
QLYS	69 Neutral	$4.75B	26.19	39.53%	―	9.69%	9.50%
SPSC	67 Neutral	$4.25B	51.54	10.03%	―	20.51%	12.84%
S	64 Neutral	$5.51B	―	-26.98%	―	28.19%	-31.34%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%

Verint Systems Corporate Events

Verint Systems Announces Acquisition by Calabrio

On August 24, 2025, Verint Systems Inc. announced it would be acquired by Calabrio, Inc., a Thoma Bravo portfolio company, in a $2 billion all-cash transaction. This merger, unanimously approved by Verint’s board, will see Verint become a wholly owned subsidiary of Calabrio. The deal, offering Verint shareholders $20.50 per share, represents an 18% premium over the company’s unaffected share price. The merger is expected to close before the end of Verint’s fiscal year, pending customary conditions and shareholder approval. Upon completion, Verint will no longer be publicly traded, and its operations will be integrated with Calabrio’s, enhancing its position in the CX Automation market.

Verint Systems Approves Amendment to Stock Incentive Plan

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.