eGain 2026 Q1 Earnings 332.5% Surge in Net Income

eGain (EGAN) reported Q1 2026 earnings on Nov 12, 2025, surpassing expectations with a 400% year-over-year EPS increase and 332.5% net income growth. The company provided in-line guidance for Q2 2026, with revenue and profit estimates aligning with its strategic priorities.

Revenue

eGain’s total revenue rose 7.8% year-over-year to $23.51 million, driven by robust performance across its segments. SaaS revenue reached $21.90 million, while professional services contributed $1.61 million, totaling $23.51 million in total revenue. The 10% growth in SaaS underscores the company’s focus on recurring revenue streams.

Earnings/Net Income

The company’s EPS surged 400% to $0.10 in Q1 2026 from $0.02 in Q1 2025, reflecting significant earnings improvement. Net income jumped 332.5% to $2.82 million, a clear indicator of strengthening profitability. The substantial EPS increase underscores strong earnings performance.

Price Action

eGain’s stock edged down 0.46% in the latest trading day but gained 7.86% month-to-date. The post-earnings price action review highlights a historically favorable strategy of buying shares after a revenue drop quarter-over-quarter, with a 30-day average return of 12.5%. This strategy capitalized on the stock’s rebound, likely driven by positive market sentiment and guidance.

Post-Earnings Price Action Review

The strategy of buying eGain shares after its Q1 2026 revenue drop quarter-over-quarter and holding for 30 days demonstrated favorable performance over three years. Backtested results showed an average return of 12.5%, with maximum and minimum returns of 21.7% and 6.3%, respectively. This rebound likely reflected positive market reactions to the company’s performance and guidance, including its AI-driven growth initiatives and leadership hires.

CEO Commentary

CEO Ashutosh Roy highlighted 8% total revenue growth, 10% SaaS growth, and 23% ARR growth in the AI knowledge business. New wins, including a New York health insurer and a multinational energy company, underscored the value of eGain’s AI solutions. Roy emphasized product innovation, including the eGain AI Knowledge Method and AI Agent 2.0, as key drivers of expansion.

Guidance

CFO Eric Smit outlined Q2 2026 revenue guidance of $22.3M–$22.8M and full-year revenue of $90.5M–$92M. Non-GAAP net income is projected at $8.3M–$9.8M for 2026. The company also plans to explore tuck-in acquisitions while prioritizing organic growth, supported by a $70M cash balance and $1.5M in Q1 share repurchases.

Additional News

eGain recently launched three major AI products: eGain Composer (a modular AI knowledge platform), AI Agent 2.0 (enhanced agentic capabilities), and the AI Knowledge Method (automated knowledge management). Leadership hires include John Copeland (VP of Marketing), Vikas Paliwal (VP of Product Marketing), and Gautam Garg (VP of Finance), signaling strategic growth ambitions. Additionally, the company repurchased $1.5M in shares during Q1, reflecting confidence in its stock’s value.