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Verint Systems Inc (VRNT)
NASDAQ:VRNT
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Verint Systems
(NASDAQ:VRNT)
72Outperform
Positive Factors
AI and technology
Verint Systems' hybrid cloud model is accelerating customer adoption, with AI deployment expected to power growth.
Financial performance
AI momentum drove a year-over-year Bundled SaaS revenue increase of 23% to $81M, which came ahead of guidance.
Strategic positioning
Verint is expected to continue differentiating their AI solution through their sole focus on applications.
Negative Factors
Earnings guidance
Verint reported Q4 earnings that missed estimates and guidance due to a few large unbundled deals slipping into FY26.
Revenue forecasting
Due to the volatile nature of unbundled revenue recognition, forecasting guidance is a challenge, and management issued a wider range of revenue guidance for FY26.
Revenue performance
Verint Systems reported non-GAAP revenue of $253M, missing the consensus $277M estimate, down 4.5% year-over-year.
Verint Systems (VRNT) vs. S&P 500 (SPY)
Market Cap
$1.08B
Dividend YieldN/A
Average Volume (3M)821.52K
Price to Earnings (P/E)18.4
Beta (1Y)1.69
Revenue Growth-0.13%
EPS Growth263.78%
CountryUS
Employees3,800
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.99
Shares Outstanding60,247,700
10 Day Avg. Volume545,739
30 Day Avg. Volume821,521
Financial Highlights & Ratios
PEG Ratio1.43
Price to Book (P/B)0.84
Price to Sales (P/S)0.00
P/FCF Ratio8.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside61.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Verint Systems Business Overview & Revenue Model
Company DescriptionVerint Systems Inc. is a global leader in providing Actionable Intelligence solutions through its software and services. The company operates primarily in the sectors of customer engagement optimization, security intelligence, and fraud, risk, and compliance. Verint's core products and services encompass advanced analytics, artificial intelligence (AI), and cloud-based systems designed to help organizations enhance customer experience, improve security, and manage risk effectively.
How the Company Makes MoneyVerint Systems makes money primarily through the sale of its software products and associated services. The company's revenue model is centered around software licenses, cloud-based subscription services, and professional services, including consulting, implementation, and training. Key revenue streams include customer engagement software solutions that assist businesses in optimizing customer interactions, and security and intelligence solutions that provide organizations with actionable insights to improve operational efficiency and security. Verint's earnings are also supported by strategic partnerships with technology and service providers, which help expand its market reach and deliver integrated solutions to clients across various industries.
Verint Systems Key Performance Indicators (KPIs)
Any
Recurring Revenue by Segment
Analyzes steady income from ongoing contracts across different business areas, reflecting stability and predictability in financial performance.
Analyzes steady income from ongoing contracts across different business areas, reflecting stability and predictability in financial performance.
Data provided by:
Main Street Data
Main Street DataVerint Systems Financial Statement Overview
Summary
Verint Systems demonstrates strong profitability with solid margins and effective cash flow management. Despite a slight revenue decline, the company's balanced debt structure and healthy returns on equity indicate a robust financial position.Income Statement
Verint Systems has shown steady profitability with a gross profit margin of 71.3% and a net profit margin of 9.0% for FY2025. The EBIT and EBITDA margins are also strong at 11.7%. However, the revenue growth rate is negative, indicating a slight decline in revenue over the past year.75
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of approximately 1.03, indicating balanced leverage. The return on equity is healthy at 18.9%, suggesting effective use of equity. However, the equity ratio is relatively low at 19.1%, reflecting a higher reliance on debt.68
Positive
Cash Flow
Verint Systems exhibits strong cash flow management with a solid operating cash flow to net income ratio of 1.91 and a free cash flow to net income ratio of 1.73. The free cash flow growth rate is positive, contributing to financial flexibility.80
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 909.19M | 910.39M | 902.25M | 874.51M | 1.27B | Gross Profit |
| 648.05M | 633.27M | 607.18M | 575.94M | 858.11M | EBIT |
| 106.39M | 72.24M | 57.36M | 46.84M | 56.20M | EBITDA |
| 155.61M | 143.09M | 130.60M | 124.26M | 79.15M | Net Income Common Stockholders |
| 82.27M | 38.61M | 14.90M | 14.41M | -107.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 217.05M | 242.09M | 282.80M | 359.57M | 714.86M | Total Assets |
| 2.29B | 2.23B | 2.31B | 2.36B | 3.26B | Total Debt |
| 448.43M | 449.64M | 457.62M | 459.96M | 869.38M | Net Debt |
| 232.72M | 208.24M | 175.52M | 101.16M | 205.54M | Total Liabilities |
| 964.45M | 957.44M | 1.02B | 970.21M | 1.77B | Stockholders Equity |
| 1.32B | 1.27B | 1.29B | 1.39B | 1.47B |
| Cash Flow | Free Cash Flow | |||
| 142.11M | 124.91M | 104.27M | 101.08M | 213.52M | Operating Cash Flow |
| 157.45M | 150.64M | 139.82M | 125.60M | 253.85M | Investing Cash Flow |
| -84.04M | -37.38M | -56.58M | -35.90M | -37.24M | Financing Cash Flow |
| -99.68M | -153.35M | -157.91M | -430.12M | 71.93M |
Verint Systems Technical Analysis
Negative
17.93
Price Trends
18.38
Negative
21.82
Negative
24.28
Negative
Market Momentum
0.05
Negative
49.28
Neutral
42.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRNT, the sentiment is Negative. The current price of 17.93 is above the 20-day moving average (MA) of 17.87, below the 50-day MA of 18.38, and below the 200-day MA of 24.28, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRNT.
Verint Systems Risk Analysis
Verint Systems disclosed 39 risk factors in its most recent earnings report. Verint Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verint Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.97B | 27.97 | 40.23% | ― | 9.58% | 12.41% | |
75 Outperform | $4.67B | 24.03 | 189.40% | ― | 5.05% | 103.11% | |
73 Outperform | $5.67B | 69.82 | 10.13% | ― | 19.46% | 16.20% | |
72 Outperform | $1.08B | 18.39 | 6.35% | ― | -0.13% | 263.78% | |
66 Neutral | $5.19B | ― | -22.21% | ― | 13.34% | 13.71% | |
64 Neutral | $6.66B | ― | -17.68% | ― | 32.25% | 20.56% | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% |
* Technology Sector Average
Performance Comparison
VRNT
Verint Systems
17.93
-14.36
-44.47%
SPSC
SPS Commerce
149.28
-50.14
-25.14%
QLYS
Qualys
136.90
-9.49
-6.48%
VRNS
Varonis Systems
46.33
2.18
4.94%
BOX
Box
31.98
5.00
18.53%
S
SentinelOne
19.99
-2.68
-11.82%
Verint Systems Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q4-2025)
| % Change Since: -17.07%|
Next Earnings Date:Jun 04, 2025
Earnings Call Sentiment Positive
Verint Systems Inc. exhibited strong performance with ARR and record SaaS ACV bookings growth. The company's AI solutions are delivering significant business outcomes, and they are raising their ARR outlook. However, there were challenges in meeting revenue expectations due to unbundled SaaS revenue shortfalls caused by slipped deals. Despite these challenges, the positive aspects significantly outweigh the negatives.Q4-2025 Updates
Positive Updates
ARR Growth Exceeds Expectations
Annual Recurring Revenue (ARR) growth for Q4 was 5%, exceeding the guidance of 4%. The company has raised its ARR outlook for Q4 2026 from $760 million to $768 million, reflecting an 8% growth.
Record SaaS ACV Bookings
The company achieved record SaaS ACV bookings for new deals, with a 30% year-over-year growth. This follows strong year-over-year bookings growth throughout the year, indicating a robust demand for Verint's AI solutions.
AI Momentum and Customer Success
Verint's AI solutions are delivering strong business outcomes, with examples including a healthcare insurer reducing average call time by 30 seconds, equating to $70 million in agent capacity savings, and a telecom company achieving a 5% increase in agent productivity, equating to $45 million in agent capacity.
Strong Cash Generation and Contribution
Cash generation and cash contribution exceeded guidance, with fiscal 2025 cash generation coming in $8 million ahead and cash contribution $16 million ahead of guidance.
Negative Updates
Unbundled SaaS Revenue Shortfall
Revenue came in at $254 million versus a guidance of $277 million, attributed to a shortfall in unbundled SaaS revenue due to a few new deals not materializing in the quarter.
Slipped Deals Affect Revenue
A couple of large unbundled deals from existing customers did not close as expected, impacting revenue for the quarter.
Company Guidance
In the Verint Systems Inc. fourth quarter 2025 earnings call, significant guidance was provided, emphasizing strong AI momentum and ARR growth trends. Verint reported a 5% ARR growth, surpassing their guidance of 4%, with expectations for continued acceleration into fiscal 2026, revising the ARR outlook from $760 million to $768 million, reflecting an 8% growth. The call highlighted their success in AI deployments, with notable customer-reported outcomes like a healthcare insurer achieving a 30-second reduction in average call time and a telecom company experiencing a 5% increase in agent productivity. Additionally, Verint noted a record in SaaS ACV bookings with a 30% year-over-year growth, driven by strong AI outcomes and customer success stories. For fiscal 2026, Verint is targeting $960 million in revenue, a gross margin around 73%, and a non-GAAP diluted EPS of $2.93, with expectations of continued ARR growth due to their differentiated AI solutions and hybrid cloud approach.Verint Systems Corporate Events
Financial Disclosures
Verint Systems Schedules Q1 2025 Earnings Call
Neutral
May 19, 2025
On May 19, 2025, Verint Systems announced that it will hold a conference call on June 4, 2025, to discuss its financial results for the first quarter ended April 30, 2025, and its future outlook. The conference call will be accessible via a real-time webcast, and an earnings press release will be issued after market close on the same day.
The most recent analyst rating on (VRNT) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Verint Systems stock, see the VRNT Stock Forecast page.
Spark’s Take on VRNT Stock
According to Spark, TipRanks’ AI Analyst, VRNT is a Outperform.
Verint Systems demonstrates robust financial performance, particularly in profitability and cash flow management. The stock is reasonably valued given its growth prospects in AI and cloud solutions despite recent revenue challenges. Technical indicators are neutral, reflecting a potential for future growth if current initiatives succeed.
To see Spark’s full report on VRNT stock, click here.
Business Operations and StrategyFinancial Disclosures
Verint Systems Schedules Q4 and Full-Year Earnings Call
Neutral
Mar 11, 2025
On March 11, 2025, Verint Systems announced a conference call scheduled for March 26, 2025, to discuss its fourth quarter and full-year financial results for the period ended January 31, 2025, along with its future outlook. The announcement highlights Verint’s commitment to transparency with stakeholders and its strategic positioning in the customer experience automation industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.