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NEW YORK - Verint Systems Inc. (NASDAQ:VRNT) shares jumped 9% in after-hours trading Wednesday after the customer experience automation company reported better-than-expected first quarter revenue and highlighted strong momentum in its artificial intelligence business.
The company posted Q1 revenue of $208.1 million, surpassing analyst estimates of $195.03 million. However, adjusted earnings per share came in at $0.29, missing the $0.34 consensus forecast.
Verint’s AI-related annual recurring revenue (ARR) grew 24.1% YoY to $354 million in Q1, now representing nearly 50% of total ARR. Overall subscription ARR increased 6.3% to $710 million.
"Behind our strong AI momentum are two key differentiators. First, our ability to transform the latest AI technology into strong, tangible AI business outcomes, delivering customer value better than any other CX vendor. And second, our ability to deploy AI in a hybrid cloud model," said CEO Dan Bodner.
For fiscal 2026, Verint expects revenue of $960 million, plus or minus 3%, and adjusted EPS of $2.93 at the midpoint of guidance.
The company maintained its outlook for 8% ARR growth and 12% free cash flow growth for the full year, citing a strong Q1 performance and growing pipeline for AI-powered solutions.
Verint repurchased approximately 2.5 million shares during the quarter as part of its ongoing buyback program.
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