Verint Systems delivered a solid QQ3 2025 performance, underscored by AI-driven momentum across bundled and unbundled SaaS revenues and a continued mix shift toward higher-margin recurring revenue. Revenue reached $224.2 million, up approximately 5% year-over-year (adjusted for divestitures), aided by a significant acceleration in bundled SaaS revenue (up 19% YoY) and favorable renewal dynamics in unbundled SaaS. Management maintained full-year guidance, signaling confidence in continued AI-led adoption and monetization through a hybrid cloud model.
Key drivers include a robust pipeline of AI-enabled deployments, notably large multi-Bot deals and ongoing customer outcomes that Verint asserts translate into tangible labor savings and improved customer experience. ARR grew 11% YoY, new SaaS ACV bookings rose 37% YoY in Q3, and management expects Q4 to be the seasonally largest quarter for unbundled SaaS renewals (~$100m). The company is enhancing its platform through tuck-in AI acquisitions (notably a $150 million technology tuck-in integrated into new CX/EX scoring bots) and expanding partner integrations (e.g., CCaaS and RingCentral cloud-to-cloud collaboration).
The near-term investment thesis centers on Verint’s open hybrid-cloud CX automation platform, which purportedly accelerates AI adoption within existing customer ecosystems and offers real-time, measurable outcomes. While the business executes well against AI-driven cycles, it faces typical software/AI-market risks, including competitive dynamics from niche bot vendors and internal IT pilots, as well as execution risk around the integration of acquisitions and the monetization of a growing bot catalog. Overall, the QQ3 results reinforce Verint’s strategic positioning and provide a constructive runway for 2025–2026 growth as AI-driven CX automation migrates from early pilots to broader deployments.