Verint Systems 2026 Q2 Earnings Significant Net Income Decline

Verint Systems(VRNT) reported its fiscal 2026 Q2 earnings on Sep 02nd, 2025. The company’s results fell short of expectations, with revenue declining by 1.0% to $208.01 million from $210.17 million in the prior year period. Even more concerning was the dramatic turnaround in profitability, as the company swung to a loss of $0.09 per share compared to a profit of $0.02 per share in the year-ago quarter. The net loss of $-1.38 million reflected a 124.1% deterioration from the net income of $5.72 million in the same period of 2025.

Revenue
Verint Systems reported total revenue of $208.01 million for the second quarter of 2026, representing a 1.0% decrease from the $210.17 million recorded in the same period of 2025. This decline indicates a slowdown in the company’s top-line growth.

Earnings/Net Income
Verint Systems reported a significant loss in the second quarter of 2026, swinging to a loss of $0.09 per share, a 550.0% negative change compared to a profit of $0.02 per share in the same period of the previous year. In addition, the company recorded a net loss of $-1.38 million, a 124.1% deterioration from the net income of $5.72 million in 2025 Q2. This sharp decline in profitability highlights the company’s current financial challenges.

Price Action
The stock price of Verint Systems has experienced mixed performance in recent trading periods, edging up 0.10% during the latest trading day and 0.79% during the most recent full trading week. However, the stock has dropped 4.32% month-to-date, indicating investor concerns following the earnings report.

Post-Earnings Price Action Review
Despite the disappointing financial results, CEO Dan Bodner expressed optimism about the company’s AI business, citing a 21% year-over-year increase in AI ARR. He attributed this growth to Verint’s leadership in the CX Automation category and the early adoption of AI in the customer experience market. Bodner also highlighted the pending $2 billion acquisition by Thoma Bravo as validation of the company’s strategic direction and potential for continued momentum in AI. The CEO emphasized the partnership’s ability to extend Verint’s category leadership and AI adoption. However, the company has suspended its financial guidance and will not host an earnings call due to the pending acquisition. Forward-looking statements remain subject to risks, including regulatory and shareholder approvals for the transaction.

Additional News
Among the top non-earnings-related news developments within the three weeks prior to the earnings report was the recent $2 billion acquisition by Thoma Bravo, which Verint has identified as a key strategic move. Other notable news included the company’s decision to discontinue providing financial guidance and to forego hosting an earnings call, citing the pending transaction as the reason. Additionally, Verint’s CEO expressed confidence in the company’s AI capabilities and the long-term potential for growth in the customer experience automation market.