Verint Systems (NASDAQ: VRNT) saw its stock price surge 21.03% in pre-market trading on Thursday, following the release of its better-than-expected first-quarter earnings report for fiscal year 2026. The customer engagement software provider's performance significantly outpaced analyst estimates, driving investor enthusiasm.
The company reported non-GAAP earnings of $0.29 per diluted share for the quarter ended April 30, surpassing the FactSet analyst consensus estimate of $0.13. Revenue for the quarter came in at $208.1 million, exceeding analyst expectations of $194.6 million. CEO Dan Bodner expressed satisfaction with the strong start to the fiscal year, highlighting that the company's Annual Recurring Revenue (ARR) growth accelerated to 6% year-over-year in Q1.
Verint's impressive performance was largely attributed to its AI-driven growth strategy. The company reported that its AI ARR grew 24% year-over-year in Q1, reaching $354 million and now comprising close to 50% of subscription ARR. This acceleration in AI adoption, coupled with the company's focus on delivering tangible AI business outcomes and its hybrid cloud model, appears to have bolstered investor confidence in Verint's growth trajectory. The company maintained its fiscal 2026 guidance, projecting revenue of $960 million and non-GAAP EPS of $2.93 at the midpoint, further reinforcing market optimism.
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