Verint Systems Inc.

Q1 revenue was $208 million, and non-GAAP diluted EPS was $0.29. ARR growth accelerated to 6% year over year, while AI ARR increased 24% year over year to $354 million. Management said the Q1 revenue beat was mainly due to timing of two large unbundled SaaS deals and does not change the full-year outlook. For the year, Verint maintained guidance for $960 million of revenue at the midpoint, non-GAAP diluted EPS of $2.93, approximately $768 million of ARR exiting the year (plus or minus 1%), and $145 million of free cash flow, implying about 12% free cash flow growth. For Q2, management expects about $720 million of ARR and around $200 million of revenue, with non-GAAP diluted EPS of $0.26.

Dan Bodner framed the quarter as evidence that Verint’s AI strategy is working, saying customers want tangible ROI rather than hype and that the company differentiates by delivering proven outcomes in production and by letting customers deploy AI in a hybrid-cloud model without ripping out existing systems. He described the market as early in adoption but clearly accelerating, with customers increasingly willing to spend real money once value is proven. His tone was confident and upbeat, while still emphasizing that adoption is gradual and value-based.

Grant Highlander highlighted the core numbers: $208 million of revenue, $0.29 of non-GAAP diluted EPS, 6% ARR growth, and $354 million of AI ARR. He said the company is maintaining annual guidance of $960 million revenue, $2.93 EPS at the midpoint, about $768 million of ARR exiting the year, and $145 million of free cash flow. He also noted a strong balance sheet, with net debt at one times last-twelve-month EBITDA, a larger revolver increased to $500 million and extended to 2030, and approximately 2.5 million shares repurchased in the quarter; he said buybacks are expected to be the largest use of free cash flow.

Analysts pressed on how Verint is differentiated amid broad AI competition, whether the company is at an AI adoption inflection point, and whether faster voice-bot adoption could pressure workforce-management seat renewals. Management answered that differentiation comes from proven customer outcomes, hybrid cloud deployment, a platform approach that orchestrates bots and humans, and an open architecture that can support multiple AI models. On renewals and seat counts, Dan Bodner said some customers are reducing agents while others are expanding, but total seats under management are still about four million and AI is increasingly the growth engine. Grant Highlander also clarified that AI ARR includes both fixed commitments and usage overages, and that the company’s ARR and pipeline trends support the full-year outlook.