Verint Systems Reports Q2 Earnings and Revenue Decline

Verint Systems reported a decline in fiscal Q2 adjusted earnings and revenue. The company's AI-powered Open Platform helps brands increase customer experience automation, but its Q2 performance fell short of expectations. The platform is designed to automate customer engagement across all touchpoints, including the contact center, back office, and mobile apps.

Verint Systems reported mixed results for fiscal Q2, with revenue exceeding analyst expectations but adjusted earnings per share (EPS) falling short. The company's AI-powered Open Platform, designed to automate customer engagement across various touchpoints, saw significant growth in annual recurring revenue (ARR), increasing by 21% year-over-year. However, subscription ARR grew at a slower pace of 6.4% year-over-year, driven by strong CX Automation leadership. The company's Q2 revenue beat estimates by $8 million, reaching $208 million, while adjusted EPS missed consensus estimates by $0.35, falling to -$0.09 [1].

Verint's stock has been the subject of recent acquisition talks, with Thoma Bravo announcing plans to acquire the company for $2 billion. The acquisition would merge Verint with Calabrio, another company owned by Thoma Bravo, creating an "AI-driven customer experience powerhouse." Verint's shares will be purchased at $20.50 per share, representing a premium of up to 18% compared to recent stock prices. The acquisition is expected to close early next year, pending shareholder and regulatory approval [2].

Despite the acquisition news, Verint suspended financial guidance due to the pending deal. The company's Q2 net income was -$1.38 million, with gross profit at $140.55 million and operating expenses at $137.20 million. Wall Street's median 12-month price target for Verint Systems Inc is $20.50, about 0.5% above its August 29 closing price of $20.39 [1].

The current average analyst rating on Verint's shares is "hold," with 1 "strong buy" or "buy" recommendation and 7 "hold" recommendations. The average consensus recommendation for the IT services & consulting peer group is "buy," indicating a generally positive outlook for the sector despite Verint's mixed Q2 performance.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX237D47:0-customer-engagement-platform-verint-systems-q2-revenue-beats-estimates/
[2] https://news.outsourceaccelerator.com/verint-calabrio-merger/