Verint Systems Jumps 20% on Q1 AI-Driven Beat
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Annual recurring revenue (ARR) growth accelerated to 6% YoY as customers increasingly adopt Verint's AI-powered customer experience suite, underscoring a shift from legacy offerings to cloud-based services. These results highlight sustained AI momentum even as broader software spending faces headwinds.
CEO Dan Bodner said Verint's hybrid cloud model accelerates AI deployment, allowing enterprises to rapidly implement new automation and analytics capabilities across customer interactions.
We kicked off the year strong, expect our AI momentum to continue and are targeting exiting the year with 8% ARR growth and double-digit free cash flow growth, Bodner said. CFO Grant Highlander added that the revenue upside primarily reflected the timing of two large, unbundled SaaS deals and affirmed that full-year guidance remains unchanged despite the deal timing lift.
With peers like NICE (NICE) and Genesys (GENESYS) also investing heavily in AI, Verint's Q1 performance stands out for sustaining both growth and operating margin discipline. Investors should care because the earnings beat and accelerating ARR growth demonstrate Verint's ability to leverage AI to drive sustainable revenue, insulating it against broader macro pressures. As ARR climbs and cost control sharpens operating margins, Verint appears well-positioned to gain market share as enterprises modernize contact center and customer engagement operations in an increasingly digital-first landscape.
This article first appeared on GuruFocus.
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