eGain 2026 Q1 Earnings Surpasses Estimates with 332.5% Net Income Surge

eGain (EGAN) reported Q1 2026 earnings on November 12, 2025, with revenue rising 7.8% to $23.51 million and net income surging 332.5% year-over-year. The company’s EPS jumped 400% to $0.10, outpacing expectations, while CFO Eric Smit outlined $90.5–92 million full-year revenue guidance.

Revenue

Total revenue for eGain’s Q1 2026 reached $23.51 million, reflecting a 7.8% year-over-year increase driven by robust SaaS growth. SaaS revenue led the charge at $21.90 million, accounting for 93% of total revenue, while professional services contributed $1.61 million. This performance underscores the company’s strong market position in AI-driven customer experience solutions.

Earnings/Net Income

eGain’s net income soared to $2.82 million in Q1 2026, a 332.5% leap from $652,000 in the prior-year period. Earnings per share (EPS) surged 400% to $0.10, highlighting the company’s improved profitability and operational efficiency. This significant EPS growth underscores eGain’s ability to capitalize on its AI knowledge platform and scale recurring revenue streams.

Post-Earnings Price Action Review

The strategy of purchasing eGain shares following quarterly revenue declines and holding for 30 days showed mixed historical results. While rebounds were observed in Q3 2023 and Q1 2024—such as a Q3 2023 recovery post-revenue miss and a Q1 2024 rebound after initial declines—Q2 2025 saw a negative return as the stock failed to recover. These outcomes highlight the inherent risks of timing market reactions to earnings, particularly when revenue drops signal broader operational challenges.

CEO Commentary

Ashutosh Roy, CEO, emphasized eGain’s 8% total revenue growth and 10% SaaS expansion, driven by a 23% annualized growth in AI Knowledge’s ARR. New client wins, including a New York health insurer and a multinational energy company, underscored the demand for AI-powered knowledge systems. Roy outlined strategic priorities: enhancing AI agent capabilities, accelerating product innovation (e.g., AI Knowledge Method, AI Agent 2.0, eGain Composer), and strengthening leadership in marketing, product, and finance.

Guidance

Eric Smit provided Q2 2026 revenue guidance of $22.3–22.8 million, factoring in a messaging platform sunsetting and government delays. Full-year 2026 revenue is projected to reach $90.5–92 million, with non-GAAP net income estimated at $8.3–9.8 million. Smit expressed confidence in operational efficiency and AI-driven retention, aligning with eGain’s product-led growth strategy.

Additional News

eGain launched eGain Composer, a modular AI knowledge platform enabling developers to integrate AI solutions into customer experience applications, enhancing security and compliance. The company also announced key leadership hires: John Copeland (VP of Marketing, ex-ServiceNow), Vikas Paliwal (VP of Product Marketing, ex-AWS), and Gautam Garg. However, insider selling activity, including 20,000 shares sold recently, raised concerns about executive sentiment.

Guidance

Eric Smit provided Q2 2026 revenue guidance of $22.3–22.8 million, factoring in a messaging platform sunsetting and government delays. Full-year 2026 revenue is projected to reach $90.5–92 million, with non-GAAP net income estimated at $8.3–9.8 million. Smit expressed confidence in operational efficiency and AI-driven retention, aligning with eGain’s product-led growth strategy.