Verint Systems Inc. (Nasdaq: VRNT), a leading provider of customer experience (CX) automation solutions, has reported strong financial results for the first quarter of its fiscal year 2026 (ended April 30, 2025). The company, known as The CX Automation Company™, saw its subscription annual recurring revenue (ARR) grow by 6.3% year-over-year (YoY) to $710 million and its AI ARR increase by 24.1% YoY to $354 million. Total revenue for the quarter was $208 million, slightly below the previous year’s $221 million, but still ahead of guidance. The net loss per share (GAAP) was $(0.04), while the non-GAAP diluted earnings per share (EPS) came in at $0.29. CEO and Chairman Dan Bodner expressed satisfaction with the Q1 results, noting that the ARR growth and revenue performance give the company confidence in achieving its annual targets, including an 8% ARR growth by the end of FYE 2026. Bodner highlighted two key differentiators driving Verint’s success: the company’s ability to translate the latest AI technology into tangible business outcomes, surpassing those of other CX vendors, and its capability to integrate AI-powered bots into existing customer environments, allowing for quick and scalable deployments. CFO Grant Highlander provided further insight, emphasizing the robust growth in AI ARR, which now comprises almost 50% of Verint’s total ARR. The company expects this trend to continue, with AI ARR projected to grow by over 20% for the year. Verint also expects to achieve an 8% ARR growth and a 12% increase in free cash flow thanks to improving cash contribution margins. In Q1, the company used its free cash flow to repurchase approximately 2.5 million common shares, indicating a strategic focus on shareholder value. The company's outlook for FYE 2026 includes an anticipated Subscription ARR of $768 million, reflecting 8% growth, and cash generation of $960 million. Revenue is forecasted to be $960 million, within a 3% range to account for the impact of ASC 606, and non-GAAP diluted EPS is estimated at $2.93. Verint’s financial performance is underpinned by its strategic use of non-GAAP measures, which exclude amortization of acquired technology, stock-based compensation expenses, acquisition and divestiture costs, and restructuring expenses. These measures are designed to provide clearer insights into the company’s operational and financial performance, focusing on core business activities and mitigating the impact of one-time events. Industry insiders have praised Verint's Q1 results and the company's strategic focus on AI. Analysts note that the 24.1% growth in AI ARR is particularly impressive and positions Verint well in the rapidly evolving AI market. Verint's ability to deploy AI solutions in a hybrid cloud model, combined with a growing pipeline of AI-powered offerings, is seen as a significant strength. This approach not only accelerates the adoption of AI technologies but also ensures that customers can start small and scale up as needed, without the need for extensive upfront investments. Company Profile: Verint Systems Inc. is a pioneer in CX automation, serving more than 80 of the Fortune 100 companies. The company’s open platform and AI-powered bots are designed to deliver high-value business outcomes. Verint is committed to continuous innovation and maintaining its leadership in AI-powered solutions. It is also certified by Great Place To Work®, reflecting its commitment to creating a positive work environment. Cautions About Forward-Looking Statements: While the Q1 results are promising, the forward-looking statements in this press release are subject to various risks. These include macroeconomic uncertainties, potential delays in customer orders, and competitive pressures. Verint remains vigilant in managing these risks and is focused on driving sustainable growth through strategic initiatives, technological advancements, and market adaptability. Financial Metrics: - Subscription ARR: $710 million (6.3% YoY growth) - AI ARR: $354 million (24.1% YoY growth) - Total Revenue: $208 million - GAAP Net Loss Per Share: $(0.04) - Non-GAAP Diluted EPS: $0.29 - Free Cash Flow: $20.3 million These metrics demonstrate Verint’s solid financial foundation and its strategic focus on AI and customer value, positioning the company for continued growth in the coming year.