Verint Systems VRNT 2026Q1 Earnings Preview Upside Ahead on Subscription Revenue Growth

Forward-Looking Analysis
Verint Systems is projected to experience steady growth in its upcoming 2026Q1 earnings report. Analysts forecast a revenue increase of 5.6% annually, driven by the company's strategic shift towards subscription-based services, which now account for 80% of its revenue. Wall Street's consensus estimates for Q1 2026 predict earnings per share (EPS) of $0.64 and revenues of $231 million. Despite recent mixed revisions in earnings estimates, Verint remains a solid performer in the Computer - Software sector, currently holding a Zacks Rank #3 (Hold). Analysts expect Verint's earnings for fiscal year 2026 to reach $130.8 million, reflecting a significant increase from prior periods. The company's focus on subscription models is anticipated to enhance profitability and provide a competitive edge in the software industry.

Historical Performance Review
In Q4 2025, Verint Systems reported revenues of $253.55 million, a net income of $32.98 million, and an EPS of $0.46. The company achieved a gross profit of $186.48 million. These results, however, fell short of analysts' expectations, contributing to a 9.81% drop in stock value in aftermarket trading. Despite the revenue miss, Verint demonstrated strong growth in operating income, underscoring its transition towards a subscription-based revenue model.

Additional News
Recently, Verint Systems announced a significant pivot towards subscription services, now constituting 80% of its total revenue. This strategic move aligns with industry trends favoring recurring revenue streams, potentially enhancing financial stability. Despite missing Q4 2025 earnings expectations, Verint's operating income surged by 56%, highlighting the success of its subscription model. The company continues to focus on SaaS Annual Contract Value (ACV) from new deals, positioning itself for future growth. Verint's stock has experienced volatility, declining approximately 20.6% since the year's start, reflecting broader market trends and investor sentiment.

Summary & Outlook
Verint Systems showcases a mixed financial health profile, with strong subscription revenue growth offsetting recent earnings misses. The transition to subscription-based models serves as a key growth catalyst, promising enhanced profitability and competitive advantage. Despite short-term stock volatility, the company's strategic focus on SaaS solutions suggests a bullish long-term outlook. Investors should monitor earnings revisions closely, given the current consensus EPS and revenue estimates for fiscal 2026. Overall, Verint is poised for growth, albeit amidst industry challenges, as it capitalizes on subscription revenue potential.