Verint Systems posted a solid start to fiscal 2026 with Q1 2026 revenue of $208.1 million and an operating margin of 2.44%, reflecting ongoing investments in AI-enabled CX automation and the company’s hybrid cloud strategy. Management framed ARR as the principal growth metric, reporting ARR of approximately $720 million in Q2 and an expected exit-year ARR of roughly $768 million, representing ~8% year-over-year growth. AI-driven ARR momentum remained the key driver, with AI ARR surging 24% year over year to $354 million and now comprising about 50% of subscription ARR. The company also highlighted two notable long-duration deals (TCV of $13 million in insurance and $14 million in healthcare) and a pipeline that has grown more than 30% year over year for SaaS. Free cash flow guidance was lifted to a double-digit percentage increase for the year, aided by a cash-contribution margin expansion. On the profitability front, GAAP revenue and non-GAAP EPS exceeded guidance in Q1, but trailing twelve-month results show transitionary dynamics as Verint shifts toward AI-centric growth. Management emphasized a hedged approach to unbundled SaaS revenue volatility via a cash-generation model and a P&L model, signaling discipline in guiding both top-line expansion and cash flow to shareholders.