Verint Systems Inc. (Nasdaq: VRNT) is a leader in customer experience (CX) automation, serving over 80 of the Fortune 100 companies. Its offerings focus on utilizing AI to help organizations automate customer interactions, thereby improving efficiency and returning value.

Verint’s financial position shows a rise in growth. For the first quarter of the fiscal year ending January 31, 2026, the company reported a 6% year-over-year increase in Annual Recurring Revenue (ARR), totaling $710 million. Additionally, AI ARR grew 24% year-over-year, reaching $354 million, which now accounts for nearly 50% of total subscription ARR. Revenue for the quarter was $208 million, with non-GAAP diluted earnings per share at $0.29. The results were ahead of the company’s guidance, primarily due to the timing of two significant unbundled SaaS deals.

For guidance, Verint anticipates an increase in ARR to approximately $720 million for the second quarter, and an estimated total of around $768 million by the end of the fiscal year, which represents an 8% year-over-year growth. Expected free cash flow is projected to reach $145 million for the year, reflecting a 12% increase.

Verint’s success can be credited to its ability to leverage AI technology effectively, as evidenced by its capabilities to drive adoption through a hybrid cloud model, allowing clients to implement AI-powered solutions swiftly without overhauling existing systems.

The company also maintained a strong cash position, with net debt at 1x last 12-month EBITDA. During the quarter, Verint bought back approximately 2.5 million shares. Its cash generation model showed robust demand, supported by a 30% year-over-year increase in its SaaS pipeline.

Looking into future quarters, Verint expects to maintain its momentum with sequential increases in ARR. The company’s guidance emphasizes a strong focus on cash generation, with a traditional P&L model reflecting its financial outlook. As the ARR shows stability and growth, Verint remains positioned to utilize its AI solutions to further enhance its financial performance.