Caesars Entertainment misses Q2 earnings expectations, shares edge lower
NEW YORK - Shares of Verint Systems Inc. (NASDAQ:VRNT) fell sharply in after-hours trading Wednesday after the customer engagement software company reported fourth-quarter results that missed Wall Street expectations.
Verint posted adjusted earnings of $0.99 per share for the quarter ended January 31, well below the analyst consensus estimate of $1.27 per share. Revenue came in at $254 million, also falling short of expectations for $276.99 million.
The company said its fourth quarter revenue and earnings were impacted by lower-than-expected unbundled SaaS revenue, though bundled SaaS revenue exceeded guidance. Verint’s CEO Dan Bodner noted the company saw "strong AI momentum" in the quarter, with record SaaS bookings from new deals up 30% year-over-year.
For the full fiscal year 2025, Verint reported revenue of $909.2 million, essentially flat compared to $910.4 million in fiscal 2024. Adjusted earnings per share for the year were $2.62, down from $2.73 in the prior year.
Looking ahead, the company raised its fiscal 2026 outlook for subscription annual recurring revenue (ARR) to $768 million, up from its previous guidance of $760 million. However, Verint widened its revenue guidance range to $960 million plus or minus 3%, citing the impact of accounting standards.
The stock was down 6.6% in after-hours trading following the earnings release. Investors appeared disappointed by the quarterly miss and cautious outlook, despite the company’s optimism around AI-driven growth.
"Behind our momentum is the strong ROI we deliver to our customers with AI business outcomes that are faster and stronger than any other vendor in our market," Bodner said in a statement.
Verint ended the fourth quarter with $215.7 million in cash and cash equivalents. The company generated free cash flow of $129.9 million for the full fiscal year.
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