Verint Takes Off with AI — Strong Growth, Solid Performance, and a Market Signaling Forward Momentum

Starting Fiscal Year 2026 with Clear Tailwinds

Verint kicked off fiscal year 2026 on a strong note, delivering an exceptional first quarter marked by significant growth in recurring revenues (ARR), which rose by 6% year-over-year. The company exceeded gross margin expectations, reaching 73%, demonstrating efficient cost management and operational optimization. Against the backdrop of a global trend toward digitization, self-service, and operational cost reduction, Verint has successfully transformed AI from a mere technology buzzword into a powerful business growth engine.

This shift toward self-service reflects a fundamental market change where customers increasingly demand fast, intelligent, and accessible solutions that allow immediate and personalized responses without human intervention at every stage. Verint leverages this trend by creating a comprehensive platform that enables smarter operations, enhanced customer experience, and significant cost savings.

Market Dynamics: Strong AI Sales Growth vs. Decline in Traditional Products

According to the financial report, recurring revenues (ARR) increased by 6%, up from the previous quarters’ range of 3% to 5%. More importantly, AI-based ARR surged by 24%, while Non-AI ARR, representing traditional products and services, declined by 7%.

This strategic pivot from legacy solutions to AI technology represents not just a technological change but a fundamental business transformation, showing how Verint turns a global trend into a profitable and sustainable reality. These figures result from focused investments in technology development tailored to evolving customer needs, particularly in highly regulated and demanding sectors such as healthcare, insurance, and communications.

Large Deals and Strategic Partnerships in Complex Markets

Verint closed significant deals valued at $13 million and $14 million with leading organizations in the healthcare and insurance sectors — industries characterized by complex regulatory environments. These transactions reflect high customer trust and Verint’s ability to tailor AI solutions to stringent regulatory and business requirements.

The company’s platform includes specialized components such as Knowledge Bot, Coaching Bot, and Time Flex Bot. Each addresses distinct business challenges: Knowledge Bot enhances organizational knowledge management, Coaching Bot provides real-time guidance to agents during calls, and Time Flex Bot enables flexible workforce scheduling based on dynamic needs. Together, these components empower companies to transform their service processes into intelligent, dynamic, and highly efficient operations.

Real-World Impact: Cost Savings and Revenue Uplift for Customers

The implementation results are impressive and demonstrate AI’s tangible impact on operational expenses and revenue generation. One bank saved a remarkable $9 million by reducing average call handling time by 20 seconds, showcasing system efficiency gains.

A major telecommunications company with over 3,000 agents increased monthly revenue per agent by $770, contributing to an annual revenue boost of approximately $30 million. An insurance company reduced customer churn by 30% through real-time flexible scheduling, highlighting AI’s role in customer retention and improved service. Additionally, a mortgage company improved its Net Promoter Score (NPS) from +3 to +39—a dramatic leap driven by Coaching Bot’s live training capabilities that enhanced service quality and customer satisfaction.

SaaS Model as a Stable and Growing Business Engine

Verint reported over 30% growth in its SaaS order backlog compared to the previous year, indicating stable and increasing demand from enterprise customers for cloud-based subscription services. Quarterly revenue reached $208 million, with diluted non-GAAP earnings per share at $0.29, and an annual revenue guidance of approximately $960 million.

Free cash flow grew by 12%, enabling continued technological investment while maintaining financial stability. The SaaS model’s recurring revenues, high margins, and moderate but steady organic growth strike a balance between rapid expansion and operational resilience—critical in today’s volatile and uncertain business environment.

Significant Competitive Advantage — AI as a Core Business Infrastructure, Not a Gimmick

Verint’s core advantage lies in AI being a fundamental infrastructure rather than a mere add-on or marketing gimmick. The platform leverages real-time processing, live conversation analytics, and adaptive automation tailored to user needs and desired outcomes.

For instance, Coaching Bot actively guides agents during calls according to the conversation context—a capability that previously required managerial or analyst intervention and post-call reviews. This leads to dramatic improvements in customer satisfaction metrics, operational efficiency, and resource savings, all in real-time rather than retroactively.

This approach establishes Verint not only as a technology leader but as a driver of tangible business results, continuously improving customer experience and operational efficiency.

Conservative Financial Management Emphasizing Stability and Sustainable Growth

Alongside its strong business performance, Verint demonstrates clear financial responsibility. During the quarter, the company repurchased approximately 2.5 million shares, maintained low leverage, and generated free cash flow of $20.3 million. The free cash flow forecast for the fiscal year stands at approximately $145 million, ensuring ongoing innovation and financial resilience.

Verint employs a dual approach to performance management—traditional profit and loss analysis combined with cash flow and operational return metrics. This allows investors to gain a comprehensive and precise view of company performance and better value the business.

Looking Ahead: Real Challenges Amid Intensifying Competition

While Verint has proven its ability to translate technology into business success, the competitive landscape is intensifying. Tech giants such as Google, Amazon, and Microsoft are entering the smart service AI market.

To maintain its edge, Verint must accelerate development cycles, deepen industry specialization, and expand its ecosystem of strategic partners and customers. Market leadership requires not just being first to launch but also sustaining a long-term business conversation around AI’s real value in service and sales centers.

Conclusion — Verint Setting the Next Global Standard for Customer Experience

The latest report clearly illustrates how AI has evolved from a strategic option to an essential foundation driving fundamental change in business services. Verint uniquely combines cutting-edge technology innovation, smart business models, and measurable outcomes that benefit both customers and investors.

If Verint continues on this path, it is poised not only to maintain its leadership position but to define the next standard in global customer experience and revolutionize the rules of engagement in smart service and sales centers.