eGain (NASDAQ:EGAN) Posts Earnings Results

eGain (NASDAQ:EGAN) issued its earnings results on Tuesday. The technology company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.08 by $0.03, FiscalAI reports. eGain had a net margin of 38.19% and a return on equity of 10.05%. The company had revenue of $22.98 million for the quarter, compared to the consensus estimate of $22.42 million. eGain updated its Q3 2026 guidance to 0.060-0.080 EPS and its FY 2026 guidance to 0.310-0.360 EPS.

Here are the key takeaways from eGain’s conference call:

• eGain beat guidance and consensus with Q2 revenue of $23.0M (up 3% YoY, 5% ex-sunsetting messaging), delivered strong margins (total gross margin 74%, SaaS gross margin 80%), non-GAAP net income of $3.0M, and generated $10.1M in operating cash flow with $83.1M cash and no debt.
• AI Knowledge Hub momentum accelerated: AI knowledge ARR rose 27% YoY and now represents 64% of SaaS ARR, top-of-funnel AI leads grew >50% YoY, and the company closed multiple large enterprise wins (including a global software provider, Achmea, and continued rollout at JPMorgan).
• Customer monetization and retention improved materially for AI customers (LTM dollar-based net retention 116% and net expansion 119%), with total SaaS ARR up 7% YoY (11% ex-sunsetting products) and total RPO up 15% YoY.
• Partner and product-led initiatives are scaling: partner-sourced new logos doubled year-over-year (25% of new logos in H1), partner-sourced leads rose 80% H1 YoY, and the developer-focused eGain Composer plus industry recognition (Gartner Magic Quadrant leader, KMWorld award) are supporting go-to-market expansion.
• The company is sunsetting non-core messaging products, which reduced revenue by roughly $600K/quarter (50% impact taken in Q2 with the remainder phased out in Q1 FY2027), and professional services revenue/margin was pressured by timing and a government shutdown—though the PS team was right-sized and management expects margins to normalize.

eGain Stock Performance

eGain stock traded up $0.30 during trading hours on Wednesday, reaching $9.86. 33,905 shares of the company’s stock traded hands, compared to its average volume of 183,280. The firm has a market capitalization of $266.71 million, a price-to-earnings ratio of 8.09 and a beta of 0.80. eGain has a fifty-two week low of $4.34 and a fifty-two week high of $15.95. The firm’s 50 day moving average is $10.39 and its 200-day moving average is $9.88.

Hedge Funds Weigh In On eGain

Hedge funds and other institutional investors have recently bought and sold shares of the business. Millennium Management LLC acquired a new stake in eGain during the 3rd quarter worth $328,000. Jane Street Group LLC boosted its position in shares of eGain by 53.7% in the 1st quarter. Jane Street Group LLC now owns 47,726 shares of the technology company’s stock worth $231,000 after purchasing an additional 16,678 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of eGain by 3.4% during the second quarter. Geode Capital Management LLC now owns 449,899 shares of the technology company’s stock worth $2,812,000 after purchasing an additional 14,978 shares during the period. Citadel Advisors LLC acquired a new stake in shares of eGain during the third quarter worth $130,000. Finally, NewEdge Advisors LLC bought a new stake in eGain in the third quarter valued at about $106,000. 53.94% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have weighed in on EGAN. Zacks Research cut shares of eGain from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 4th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of eGain in a report on Friday, January 9th. B. Riley initiated coverage on eGain in a research note on Friday, January 23rd. They issued a “neutral” rating and a $10.50 price objective on the stock. Roth Mkm restated a “buy” rating and set a $20.00 target price (up previously from $10.00) on shares of eGain in a report on Thursday, November 13th. Finally, Wall Street Zen raised shares of eGain from a “hold” rating to a “buy” rating in a report on Sunday, November 16th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $15.25.

eGain News Roundup

Here are the key news stories impacting eGain this week:

• Positive Sentiment: Q2 results beat expectations — eGain reported $0.11 EPS (vs. ~$0.08 consensus) and revenue of $22.98M (above estimates), showing improved net income and confirming demand resilience. eGain Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Company raised guidance — eGain set FY2026 EPS guidance of $0.310–$0.360 (above the ~ $0.260 consensus) and Q3 EPS guidance of $0.060–$0.080 (well above consensus), which supports upside to analyst estimates. eGain Q2 2026 Earnings Call Transcript
• Positive Sentiment: Stronger cash and profitability signals — cash from operations increased materially and reported net income rose sharply year-over-year, supporting financial flexibility and potential shareholder returns. eGain Stock Rises on Q2 2026 Earnings
• Neutral Sentiment: Company materials & transcript available — investors can review the press release, slide deck and call transcript for detail on revenue mix, margin drivers and guidance assumptions. MarketBeat Earnings Summary & Links
• Negative Sentiment: Margins and operating profit weakened — gross profit fell ~5.4% YoY and operating profit declined ~24.3% YoY, signaling margin pressure despite top-line growth. eGain Stock Rises on Q2 2026 Earnings
• Negative Sentiment: Insider selling noted — multiple recent open-market sales by executives were reported, which can be viewed negatively by investors monitoring insider confidence. eGain Stock Rises on Q2 2026 Earnings

eGain Company Profile

eGain Incorporated (NASDAQ: EGAN) is a software company specializing in cloud-based customer engagement solutions. Its platform integrates knowledge management, analytics, and artificial intelligence to help organizations streamline customer service across digital channels. By centralizing information and automating routine interactions, eGain aims to improve agent productivity, reduce response times, and deliver consistent customer experiences.

The company’s product suite includes tools for knowledge authoring and delivery, AI-powered chatbots, case management, and predictive analytics.