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In a challenging market environment, Verint Systems Inc. (NASDAQ:VRNT) stock has touched a 52-week low, dipping to $19.56. The company, with a market capitalization of $1.35 billion and impressive gross margins of 71.5%, appears undervalued according to InvestingPro analysis. This latest price level reflects a significant downturn for the company, which has seen its stock value decrease by 34.78% over the past year. Despite the decline, management has shown confidence by aggressively buying back shares, and the company maintains healthy revenue growth of 4.45%. Investors are closely monitoring the company’s performance, as the current figures starkly contrast with the more robust trading periods Verint Systems has experienced in the past. The decline to this year’s low point underscores the broader market trends and specific hurdles the company faces, as stakeholders look for signs of a potential rebound or further indicators of market pressures that could influence the stock’s trajectory in the coming months. For deeper insights into Verint’s valuation and growth prospects, including 7 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Verint Systems reported its fourth-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.99, which was below the anticipated $1.27, and revenue came in at $254 million, falling short of the expected $276.99 million. Despite these shortfalls, Verint raised its fiscal 2026 Annual Recurring Revenue (ARR) outlook to $768 million, representing an 8% growth. This increase in ARR is partly attributed to a 5% growth in the fourth quarter, surpassing the forecasted 4%.
Analysts from Needham and Evercore ISI have adjusted their price targets for Verint, with Needham lowering it to $30 while maintaining a Buy rating, and Evercore ISI reducing it to $23, maintaining an In Line rating. The earnings miss was largely due to delays in several unbundled expansion deals, which are now expected to close in fiscal year 2026. Verint’s management has acknowledged the challenges in predicting unbundled revenue recognition and has provided a broader revenue guidance range for FY26.
The company’s unbundled SaaS offerings, where customers host the software on their own data centers, allow Verint to recognize about two-thirds of that revenue upfront, leading to variability in reported numbers. Despite these challenges, Verint’s bundled SaaS revenue saw a 17% increase for the full year, and the company continues to focus on AI-powered solutions for customer experience automation. Over 90 Fortune 500 companies are currently utilizing Verint’s AI-powered bots, indicating strong market adoption.
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