Verint Stock Plunges After-Hours On Q4 Miss: Retail Fears More Weakness

Verint Systems, Inc. (VRNT) fell sharply in the after-hours session after the customer experience automation company announced below-consensus quarterly results. 

The Melville, New York-based company reported non-GAAP earnings per share (EPS) of $0.99 and revenue of $254 million for the fourth quarter of the fiscal year 2025, missing the Finchat-compiled consensus of $1.27 and $276.82 million, respectively.

Verint noted that the top and bottom-line results were impacted by the ASC 606, which is a set of accounting rules that govern how a company recognizes revenue from contracts with customers. The EPS was also adjusted for the divestiture that closed on Jan. 31, 2024.

Among the operational metrics, the subscription annual recurring revenue (ARR) was at $712 million compared to the guidance of $704 million, up 5.2% year over year (YoY). Bundled software-as-a-service (SAAS) jumped 16.5% to a better-than-expected $328 million, and SaaS annual contract value (ACV) from new deals was a record $32 million, marking over 30% growth.

CEO Dan Bodner said, “During FYE 2025, some of the largest brands in the world began to deploy Verint's [artificial intelligence] AI powered bots and we expect them to expand their usage over time.”

He noted that, as of this date, more than 90 of the Fortune 500 companies were using Verint's AI-powered bots to automate workflows.

Grant Highlander, Verint’s CFO, said the company exceeded its cash generation guidance by $8 million and cash contribution guidance by $16 million. 

“Our outlook for Q1 is for another quarter of acceleration, with approximately 6% ARR growth year-over-year,” he added.

Verint guided fiscal year 2026 revenue to $960 million, +/- 3% and non-GAAP EPS to $2.93 at the midpoint of the revenue guidance. Analysts, on average, expect the numbers at $3.11 and $974.26 million, respectively.

 

Subscription ARR as of the end of the fourth quarter of the fiscal year is expected at $768 million, +/- 1% from $760 million estimated previously. The company expects cash generation of $960 million, +/- 1% and cash contribution of $246 million at the midpoint of cash generation.

On Stocktwits, retail sentiment toward the Verint stock flipped to ‘bearish’ (29/100) late Wednesday, from the ‘extremely bullish’ mood that prevailed a day ago. The message volume spiked to ‘extremely high’ levels.

VRNT sentiment and message volume March 26, as of 9:32 pm ET | Source: Stocktwits

A bearish watcher shrugged off the upward adjustment to the ARR guidance and fretted about the subpar results.

Another user predicted more weakness on potential analyst downgrades.

Verint fell 10.08% in Wednesday’s after-hours session after slipping 0.83% to $21.62 in the regular trading. The stock is down over 21% year-to-date.

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