Verint Systems posted a solid QQ4 2025 with meaningful progress on AI-led ARR growth and a disciplined approach to revenue recognition under its hybrid cloud model. Total ARR rose 5% year over year to $712 million, and management raised the look-forward ARR target to $768 million for Q4 2026, signaling an acceleration in AI adoption and bot-driven usage across large enterprise customers. Management highlighted three growth engines: (1) differentiated AI outcomes that translate into tangible ROI, (2) faster deployment of AI without disruption via hybrid cloud, and (3) seeded AI deployments that should materialize into higher consumption in fiscal 2026. Revenue in the quarter surprised to the downside at $254 million versus guidance of $277 million, driven entirely by unbundled SaaS bookings that did not materialize in Q4; bundled SaaS grew robustly (23% for the year, 30% QoQ in Q4), underscoring the importance of AI-enabled bundles. The company delivered record SaaS ACV bookings of $32 million in Q4 (up 30% YoY), and continued to emphasize ARR as the ratable metric for underlying growth, given the revenue timing challenges from unbundled SaaS. The balance sheet remains healthy, with cash and equivalents of about $216 million and net debt comfortably under 1x LTM EBITDA. The 2026 guidance implies continued double-digit ARR growth beyond 2025’s momentum, supported by notable large deals and an expanding top customer cohort. Investors should monitor: (a) the pacing and mix of unbundled vs bundled SaaS bookings, (b) sustainability of ARR acceleration, (c) execution of buyback and liquidity management, and (d) the ongoing channel contributions and AI deployment velocity across the Fortune 500 base.