Canada's Coveo Q4 revenue misses expectations

Coveo Solutions

27/05/2026 21:16

Overview
Canada AI search platform's fiscal Q4 revenue rose 9% yr/yr, slightly missing analyst expectations
Net loss for fiscal Q4 narrowed yr/yr but missed analyst estimates
Company repurchased 1.88 mln shares during the quarter

Outlook
Coveo expects Q1 FY27 SaaS Subscription Revenue of $37.1–$37.6 mln
Company sees FY27 SaaS Subscription Revenue at $154.0–$158.0 mln
Coveo expects FY27 operating cash flows of more than $10 mln

Result Drivers
NEW BUSINESS MOMENTUM - Record Q4 new business bookings, with strong contributions from both new and existing customers, and the largest new customer win in company history
COMMERCE SEGMENT GROWTH - Commerce remained the fastest growing use case, driving nearly 60% of new business bookings, with notable strength in complex B2B offerings
GENERATIVE AI ADOPTION - Accelerating enterprise adoption of Generative AI solutions, with customer count nearly doubling year-over-year

Company press release: ID:nPn8LSYp7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$37.40 mln
$37.41 mln (7 Analysts)
Q4 Net Income
Miss
-$2.30 mln
$613,330 (3 Analysts)
Q4 Adjusted EBITDA
 
$800,000
 
Q4 Gross Margin
 
78.00%
 
Q4 Basic EPS
 
-$0.02
 
Q4 Operating Income
 
-$3.63 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Coveo Solutions Inc is C$9.50, about 95.5% above its May 26 closing price of C$4.86
The stock recently traded at 147 times the next 12-month earnings vs. a P/E of 366 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)