Verint Systems Inc. vrnt The stock trades higher on Wednesday after the company posted better quarter results than expected and reaffirmed its full-year guidance beyond analysts’ expectations.
What I Know: The company reported earnings of 29 cents per share, breaking the consensus estimate of 22 cents by nearly 32%. Revenue arrived at $208.1 million ahead of the $194.6 million estimate. Both revenue and revenue fell year-on-year, down 51% and 6% respectively, but investors are actively responding to results that exceed guidance and the company’s reaffirmed outlook.
Verint maintained its year-round adjusted EPS guidance at $2.93, slightly surpassing the $2.92 consensus. It also reaffirmed its revenue outlook from $931 million to $989 million. This coincides with previous range and bracket analysts’ forecast of $959 million.
The key focus of the report was Verint’s AI-driven business. AI annual recurring revenue (ARR) has increased 24% year-on-year to $354 million, accounting for almost half of the company’s $710 million ARR. The company expects AI ARR to grow by more than 20% year-round, and is aiming for a total ARR growth of 8%, supported by the ongoing demand for CX automation tools.
Management also highlighted the generation of strong free cash flows, with a 12% increase forecast for the year. Verint repurchased about 2.5 million shares in the first quarter, saying the acquisition remains a major use of capital.
Investors are responding to stronger quarters than expected, fostering AI momentum and management’s confidence in achieving year-round goals.
vrnt Price Action: Shares in Verint Systems rose 2.95% at $18.34 at publication Wednesday. Stocks rose 16.33% to $21.33 outside business hours, according to Benzinga Pro.
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