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On Friday, Needham reaffirmed its Buy rating and $30.00 price target for Verint Systems (NASDAQ:VRNT), maintaining the company on its Needham Conviction List. With the stock currently trading at $17.96, InvestingPro analysis suggests the company is undervalued, with analyst targets ranging from $23 to $33. The endorsement follows a fireside chat with Verint’s CEO, Dan Bodner, where discussions centered around the company’s unique product offerings, business performance indicators, the effects of a secular decrease in contact center seats, and strategies for capital allocation.
Needham analysts highlighted Verint’s ability to stand out with its artificial intelligence (AI) solutions, emphasizing the company’s dedicated focus on application development as opposed to competitors who divide their research and development (R&D) investments between infrastructure and applications. The firm anticipates that as Verint continues to demonstrate the effectiveness of its strategy, particularly the growth of AI bot technology compensating for the decline in workforce management (WFM) revenue tied to contact center seats, the company’s market valuation multiples could expand from their current levels.
The discussion with Bodner also touched on the importance of annual recurring revenue (ARR), a metric that Needham expects to see accelerate through the fiscal year 2026. The firm’s conviction in Verint’s stock is rooted in the belief that investors should pay close attention to ARR growth, which is projected to pick up pace in the coming years. Despite recent market challenges, with the stock down about 40% over the past year, analysts project EPS to reach $3.41 in FY2026. Get access to 10+ additional exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.
Verint Systems, with its focus on AI-driven customer engagement solutions, continues to execute a strategy that Needham believes will lead to a significant growth trajectory. The reaffirmation of the Buy rating and the maintenance of the $30.00 price target reflect Needham’s confidence in Verint’s potential for increased market valuation and sustained growth in the evolving contact center industry.
In other recent news, Verint Systems reported its fourth-quarter earnings for 2025, which revealed a shortfall in both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.99 and revenue of $254 million, missing the anticipated figures of $1.27 and $277 million, respectively. Despite these setbacks, Verint raised its fiscal 2026 Annual Recurring Revenue (ARR) outlook to $768 million, reflecting an 8% growth. Analyst firms have adjusted their price targets for Verint, with TD Cowen reducing its target to $33 while maintaining a Buy rating, and RBC Capital Markets lowering its target to $29 but retaining an Outperform rating. Needham also cut its price target to $30, continuing to recommend a Buy, whereas Evercore ISI reduced its target to $23, maintaining an In Line rating. The missed earnings were primarily attributed to delays in several large unbundled deals, though analysts remain optimistic about Verint’s future AI opportunities. Verint’s management has expressed confidence in securing the delayed contracts and continues to focus on AI-driven solutions to drive growth.
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