On Wednesday, Needham reaffirmed its positive stance on Verint Systems (NASDAQ:VRNT) shares, maintaining a Buy rating and a $40.00 price target for the company's shares. The endorsement follows the analyst's attendance at Verint's customer conference, Verint Engage 24, which took place earlier in the week in Orlando, Florida.
The conference left the analyst with a reinforced belief in Verint's product strategy and its standout features in the market. Verint's approach to data, particularly its open data strategy that integrates a wide range of large language models (LLMs) with unique customer data, was highlighted as a key factor in the company's competitive positioning in the artificial intelligence (AI) application market for contact centers.
The analyst noted that, based on discussions with customers and partners at the event, there is a clear preference for AI application investment over the shift from on-premise to Cloud telephony systems at this time. This trend aligns with Verint's offerings, which focus on a variety of AI bots.
Verint's sales cycles for these AI applications typically range from six to twelve months. The analyst predicts that Verint will see an uptick in bookings as it exits the fiscal year 2025, supported by the strong customer interest in AI solutions observed during the conference.
In summary, the analyst's report suggests a promising outlook for Verint Systems, with expected growth in bookings and a robust product strategy that leverages AI applications to meet customer demands in the evolving contact center industry.
In other recent news, Verint Systems has been making notable strides in the realm of artificial intelligence (AI) and Software as a Service (SaaS). The company reported a significant 40% year-over-year increase in new AI bookings, and a 15% rise in AI-driven bundled SaaS revenue in the second quarter of 2025. Despite the earnings shortfall in the same quarter, TD Cowen, after adjusting its price target for Verint, maintains a Buy rating, displaying confidence in the company's market position and potential for growth.
In addition to these developments, Verint Systems has reaffirmed its financial guidance for fiscal year 2025, setting ambitious targets for fiscal year 2027, aiming for a 'rule-of-40' performance. This implies a combined revenue growth and EBITDA margin that equals 40%. The company's focus on AI in customer engagement has not only attracted new clientele but also solidified its industry position.
Verint Systems also recently completed a $200 million share buyback, announcing a new buyback program of the same value, indicating a robust financial strategy. The company's recent developments underscore its commitment to AI innovation and financial growth. Analysts from TD Cowen remain optimistic about Verint's future, particularly with the adoption of AI technology.
InvestingPro Insights
As Verint Systems (NASDAQ:VRNT) continues to make waves in the AI application market for contact centers, recent data and insights from InvestingPro provide a financial perspective on the company's performance and market position. The company's market capitalization stands at approximately $1.55 billion, reflecting its stature in the industry. A noteworthy InvestingPro Tip highlights that Verint has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency.
Moreover, the company's aggressive share buyback strategy, as indicated by another InvestingPro Tip, signals management's confidence in the company's value proposition. This is further supported by the expectation of net income growth this year. While the stock has seen a significant price decline over the last three months, the robust gross profit margin of 71.36% over the last twelve months as of Q2 2025, combined with an EBITDA growth of 26.32% during the same period, underscores the company's profitability potential.
For investors seeking a deeper dive into Verint's financial health and future prospects, InvestingPro offers additional insights and tips, which can be found at https://www.investing.com/pro/VRNT. These metrics and analyses could be vital for making informed investment decisions in a company poised for growth in the AI-driven contact center space.
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