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1. Company Snapshot

1.a. Company Description

Verint Systems Inc.provides customer engagement solutions worldwide.It offers various applications for use in Forecasting and Scheduling, which understands the work needed to meet and exceed customer expectations; Quality and Compliance that uses automation and analytics for customer interactions for attended and self-service channels; Interaction Insights, which extracts insights from structured and unstructured customer interactions and activities; Real-Time Work that supports in-the-moment workforce activities; Engagement Channels, an application for messaging, social, chat, email, and interactive voice response; Conversational AI, an intelligent virtual assistant application to enable human-like conversations across every channel; Engagement Orchestration, an application that improves employee efficiency, time to resolution, compliance, and customer satisfaction with workflows; Knowledge Management, which help agents to deliver stellar service with tools.


The company also provides Experience Management application which collect and analyze customer experience data, as well as customer engagement cloud platform services.Verint Systems Inc.was incorporated in 1994 and is headquartered in Melville, New York.

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1.b. Last Insights on VRNT

Verint Systems' recent performance was driven by strong Q1 results, with adjusted earnings per share of $0.29 on revenue of $208 million, beating Wall Street estimates. AI-related annual recurring revenue grew 24% in Q1, representing approximately half of the company's total ARR. The company reaffirmed its full-year guidance, citing a strong start to the year and a growing pipeline for AI-powered solutions. Verint's AI leadership and customer adoption milestones, including the Verint Genie Bot, have delivered significant business value.

1.c. Company Highlights

2. Verint Systems Inc. Delivers Strong Q1 2026 Results with Accelerating AI-Driven Growth

Verint Systems Inc. reported robust financial performance in its Q1 2026 earnings, exceeding expectations across key metrics. Revenue for the quarter came in at $208 million, surpassing guidance, while non-GAAP diluted EPS was $0.29, slightly below the consensus estimate of $0.30. The company's annual recurring revenue (ARR) growth accelerated to 6% year-over-year, driven by strong momentum in AI-powered solutions. As Grant Highlander noted, "AI ARR reached $354 million, up 24% year-over-year, representing nearly 50% of subscription ARR." This highlights the company's successful integration of AI into its offerings, which is resonating with customers seeking tangible business outcomes.

Publication Date: Jun -05

📋 Highlights
  • Accelerating ARR Growth: ARR growth accelerated to 6% year-over-year, driven by AI momentum.
  • Revenue and EPS Beat: Revenue reached $208 million, and non-GAAP diluted EPS was $0.29, both exceeding guidance.
  • Large AI-Driven Deals: Secured a $13 million TCV order from an insurance company and a $14 million TCV order from a healthcare company.
  • AI Leadership: AI ARR reached $354 million, up 24% year-over-year, representing nearly 50% of subscription ARR.
  • Full-Year Guidance and Cash Flow: Expects to exit the year with 8% ARR growth and double-digit free cash flow growth.

AI Momentum and Hybrid Cloud Model Drive Growth

The company's AI-driven solutions were a key growth driver, with large enterprises adopting Verint's platform to automate customer experience (CX) workflows. Notably, a $13 million TCV order from an insurance company and a $14 million TCV order from a healthcare company underscored the demand for Verint's hybrid cloud model. This approach allows customers to deploy AI without disrupting existing systems, a critical differentiator in a competitive market. The healthcare company's ARR nearly doubled to $15.6 million, demonstrating the scalability of Verint's solutions.

Financial Outlook and Valuation

Verint maintained its full-year guidance, targeting $960 million in revenue and $2.93 in non-GAAP diluted EPS. The company also increased its revolver to $500 million and repurchased 2.5 million shares during the quarter, signaling confidence in its financial position. From a valuation perspective, Verint trades at a P/E ratio of 14.21, slightly above industry peers, but its free cash flow yield of 11.48% highlights its strong cash generation capabilities. The company's focus on delivering measurable ROI through AI solutions positions it well in the current macroeconomic environment, where businesses are prioritizing efficiency and cost savings.

Leadership in AI-Driven CX Automation

Verint's leadership in AI-driven voice bots was a recurring theme during the earnings call. These bots, which are increasingly replacing traditional IVR systems, achieved interaction containment rates of 60-80%, demonstrating their effectiveness. With four million seats under management, Verint is well-positioned to capitalize on the shift toward AI-driven automation. Dan Bodner emphasized the company's differentiation through proven AI outcomes and a platformmatic approach to CX, which orchestrates bots and humans seamlessly. This strategy has resonated with large enterprises, driving broader market acceptance.

3. NewsRoom

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Boston Partners Buys 281,132 Shares of Verint Systems Inc. $VRNT

Nov -29

Source: defenseworld.net

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Touchstone Small Company Fund Q3 2025 Performance Review

Nov -27

Source: seekingalpha.com

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Verint Customers Win CX Automation Awards at 2025 EMEA Inspire Event

Nov -24

Source: businesswire.com

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Connor Clark & Lunn Investment Management Ltd. Buys Shares of 23,807 Verint Systems Inc. $VRNT

Nov -21

Source: defenseworld.net

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Verint Certified a Great Place To Work® for Third Consecutive Year

Nov -20

Source: businesswire.com

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AlphaQuest LLC Trims Stock Position in Verint Systems Inc. $VRNT

Nov -03

Source: defenseworld.net

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VRNT Alert: Monsey Firm of Wohl & Fruchter Renews Investigation Into the Proposed Sale of Verint Systems to Thoma Bravo

Oct -28

Source: globenewswire.com

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DekaBank Deutsche Girozentrale Grows Holdings in Verint Systems Inc. $VRNT

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.01%)

6. Segments

Unbundled Software as a Service

Expected Growth: 8%

Verint Systems Inc.'s Unbundled Software as a Service growth is driven by increasing demand for cloud-based solutions, expansion into new industries, and strategic acquisitions. Additionally, the company's focus on customer experience, workforce engagement, and cloud-based analytics has contributed to its growth. Furthermore, the shift towards digital transformation and the need for organizations to improve operational efficiency have also fueled the segment's growth.

Bundled Software as a Service

Expected Growth: 6%

Verint Systems Inc.'s Bundled Software as a Service growth is driven by increasing demand for cloud-based customer engagement solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on AI-powered analytics and automation, as well as its strong partner ecosystem, contribute to its growth momentum.

Support

Expected Growth: 5%

Verint Systems Inc.'s 5% growth is driven by increasing demand for cloud-based customer engagement solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on artificial intelligence, machine learning, and analytics is enhancing its product offerings, leading to higher sales and revenue growth.

Professional Services and Other

Expected Growth: 4%

Verint Systems Inc.'s Professional Services and Other segment growth is driven by increasing demand for cybersecurity and cloud-based solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and customer experience management also contributes to the growth.

Perpetual

Expected Growth: 3%

Verint Systems Inc.'s Perpetual segment growth is driven by increasing demand for cloud-based customer engagement solutions, expansion into new markets, and strategic acquisitions. The company's focus on innovation, particularly in AI-powered analytics, has also contributed to its growth. Additionally, the rising need for organizations to enhance customer experience and improve operational efficiency has fueled demand for Verint's solutions.

Optional Managed Services

Expected Growth: 9%

Verint Systems Inc.'s Optional Managed Services growth is driven by increasing demand for cloud-based security and customer engagement solutions, expansion into new markets, strategic partnerships, and a growing need for organizations to outsource IT operations. Additionally, the company's investments in AI and automation, as well as its strong brand reputation, contribute to its high growth rate of 9.

7. Detailed Products

Verint Workforce Optimization

A suite of solutions that help organizations capture, analyze, and act on customer interactions and feedback to improve customer experience and operational efficiency.

Verint Customer Engagement

A platform that enables organizations to manage customer interactions across multiple channels, including voice, email, chat, and social media.

Verint Fraud and Risk Management

A solution that helps organizations detect, prevent, and investigate fraudulent activities in real-time.

Verint Identity Authentication and Fraud

A solution that uses AI-powered analytics to detect and prevent identity fraud and authentication attacks.

Verint Situational Awareness

A platform that provides real-time situational awareness and incident management capabilities to help organizations respond to security threats and operational disruptions.

Verint Cyber Intelligence

A solution that provides advanced threat detection, incident response, and cyber intelligence capabilities to help organizations protect against cyber threats.

8. Verint Systems Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Verint Systems Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the customer engagement industry.

Bargaining Power Of Customers

Verint Systems Inc. has a diverse customer base, but some large customers have significant bargaining power, which can impact pricing and contract terms.

Bargaining Power Of Suppliers

Verint Systems Inc. has a diversified supply chain, and suppliers have limited bargaining power due to the company's significant scale and negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the customer engagement industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The customer engagement industry is highly competitive, but Verint Systems Inc. has a strong market position and differentiated products, which helps to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.75%
Debt Cost 3.95%
Equity Weight 75.25%
Equity Cost 9.73%
WACC 8.30%
Leverage 32.89%

11. Quality Control: Verint Systems Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Remitly Global

A-Score: 4.7/10

Value: 2.6

Growth: 6.0

Quality: 6.2

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Marqeta

A-Score: 4.2/10

Value: 5.4

Growth: 7.4

Quality: 3.4

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Verint Systems

A-Score: 4.0/10

Value: 5.9

Growth: 4.7

Quality: 5.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Teradata

A-Score: 3.8/10

Value: 5.5

Growth: 4.1

Quality: 6.8

Yield: 0.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Five9

A-Score: 3.4/10

Value: 3.1

Growth: 7.6

Quality: 3.4

Yield: 0.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Confluent

A-Score: 3.3/10

Value: 4.4

Growth: 6.6

Quality: 3.8

Yield: 0.0

Momentum: 3.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.51$

Current Price

20.51$

Potential

-0.00%

Expected Cash-Flows