NASDAQ$VRNT

Verint Systems Inc. · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Revenue and diluted EPS exceeded Q3 guidance, driven by early renewal revenue and strong AI momentum, resulting in accelerated bundled SaaS revenue growth.

Verint announced strong Q3 FYE 2025 results, with revenue up 3% year-over-year (5% adjusted for divestiture) to $224 million and diluted EPS at $0.39 on a GAAP basis and $0.54 on a non-GAAP basis. The overachievement was driven by early SaaS renewal revenue and strong demand for AI business outcomes, with bundled SaaS revenue growth accelerating to 19% year-over-year. The company maintains its FYE25 guidance.

  • Revenue up 3% year-over-year as reported and up ~5% year-over-year adjusted for divestiture
  • Gross Margin up ~70bps year-over-year
  • Bundled SaaS Revenue up 19% year-over-year
  • SaaS ARR up 11% year-over-year

Headline financials

Total Revenue

$224M

Previous: $219M+2.5%
EPS (adj)

$0.54

Previous: $0.65-16.9%
Capital Expenditures

-$7.66M

Previous: -$7.01M-9.2%
Net Income

$29M

Previous: $12.9M+125.5%
Operating Income

$21.7M

Previous: $26.7M-18.6%
Gross Profit

$159M

Previous: $153M+3.7%
R&D Expense

$37.7M

Previous: $32.1M+17.5%
Stock-Based Comp

$18.1M

Previous: $16.1M+12.1%

Revenue & EPS history

Verint · Revenue · Quarterly

$224M

Q3 2025+2.5%vs Q3 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Verint · $161M total across 1 segment · Q3 2024

  • Recurring Revenue
    $161M-7.5%

Forward guidance

Verint maintains its full year guidance for revenue and non-GAAP diluted EPS.

Tailwinds

  • Revenue: $933 million +/- 2%, reflecting 5% year-over-year growth (adjusted for the divestiture discussed above).
  • Diluted EPS: $2.90 at the midpoint of our revenue guidance, reflecting 6% year-over-year growth.
  • Maintaining FYE25 Guidance
  • Expect to Finish the Year Strong
  • Investor Day to Be Held January 14, 2025

Headwinds

  • Amortization of intangible assets of approximately $20 million for the year ending January 31, 2025.
  • Stock-based compensation expenses are expected to be between approximately $76 million and $78 million, for the year ending January 31, 2025, assuming market prices for our common stock approximately consistent with current levels.
  • Our non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof
  • We are unable, without unreasonable efforts, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items.
  • For these same reasons, we are unable to assess the probable significance of these excluded items.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

+1.2%

Avg return

Earnings day

-4.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+31.6%

Q3 2025

Best reaction

-20.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.3%-0.1%-0.4%
Q1 2026+2.5%+4.8%+17.1%
Q4 2025-13.4%-17.5%-15.6%
Q3 2025+31.6%
Q2 2025-12.1%
Q1 2025+21.8%
Q4 2024+7.1%
Q3 2024+17.9%
Q2 2024-20.0%
Q1 2024+0.3%
Q4 2023-3.0%
Q3 2023+0.6%
Q2 2023-7.5%
Q1 2023-4.5%
Q4 2022+1.3%
Q3 2022+2.5%
Q2 2022-2.9%
Q1 2022-2.2%
Q4 2021+1.4%
Q3 2021+5.2%
Q2 2021+7.6%
Q1 2021-11.8%
Q4 2020-14.6%
Q3 2020+7.4%
Q2 2020-12.3%
Q1 2020-1.1%
Q4 2019+13.9%
Q3 2019+3.9%
Q2 2019+7.4%
Q1 2019+0.2%
Q4 2018+13.1%
Q3 2018-6.6%
Q2 2018+2.4%
Q1 2018+1.9%
Q4 2017+8.8%
Q3 2017-9.8%
Q2 2017+8.4%
Q1 2017+7.4%
Q4 2016-3.9%
Q3 2016-14.7%
Q2 2016-6.3%
Q1 2016-2.1%
Q4 2015+5.0%
Q3 2015-1.7%
Q2 2015+7.5%
Q1 2015+10.4%
Q4 2014+8.1%
Q3 2014+0.6%
Q2 2014+8.9%
Q1 2014+2.1%
Q4 2013+4.3%
Q3 2013-1.0%
Q2 2013+2.7%
Q1 2012+1.7%
Q1 2013+1.7%
Q4 2010-3.3%
Q1 2011-3.3%
Q4 2012-3.3%
Q3 2011+3.5%
Q3 2012+3.5%
Q2 2012-0.0%
Q2 2011-0.0%
Q4 2011-0.0%

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