Verint Systems Inc. (VRNT) stock is set to open sharply lower, plummeting 11.24% in pre-market trading on Thursday, following a disappointing fourth-quarter earnings report and weak guidance for the upcoming fiscal year.

The customer engagement software company reported quarterly adjusted earnings of $0.99 per share, significantly missing the Zacks Consensus Estimate of $1.27 per share. This represents a 22.05% negative earnings surprise and a decline from $1.07 per share in the same quarter last year. Revenue for the quarter ended January 2025 fell 4.4% year-over-year to $253.55 million, also falling short of analyst expectations of $276.87 million.

Adding to investor concerns, Verint provided lower-than-expected guidance for the fiscal year ending January 31, 2026. The company forecasts revenue of $960 million, plus or minus 3%, and adjusted earnings per share of $2.93 at the midpoint of the revenue guidance. These projections fall short of analyst expectations of $970.3 million in revenue and $3.11 in adjusted EPS. In response to the weak results and outlook, RBC Capital Markets cut its price target for Verint from $36 to $29, further pressuring the stock.