Verint Systems (NASDAQ: VRNT) saw its stock price plummet 7.09% in after-hours trading on Wednesday, following the release of its fourth-quarter earnings report that fell short of analysts' expectations and provided weaker-than-anticipated guidance for the upcoming fiscal year.
The customer engagement software company reported adjusted earnings per share of $0.45 for the fourth quarter, significantly missing the IBES estimate of $1.27. Revenue for the quarter came in at $254 million, also falling short of the expected $277 million. This represents a 4.40% decrease in sales compared to the same period last year, highlighting challenges in the company's growth trajectory.
Adding to investor concerns, Verint's outlook for fiscal year 2026 failed to impress. The company forecasts revenue of $960 million, plus or minus 3%, which is below the consensus estimate of $974.26 million. Additionally, Verint projects non-GAAP diluted EPS of $2.93 at the midpoint of its revenue guidance, lower than the $3.11 analysts were expecting. While the company mentioned raising its ARR (Annual Recurring Revenue) guidance for FYE 2026, the overall financial outlook appears to have disappointed investors, contributing to the sharp decline in stock price.
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