Canada's Coveo Solutions Q2 revenue rises on generative AI momentum

Coveo Solutions

29/10/2026 20:10

Overview
Canada AI search platform's Q2 revenue rose 8% yr/yr, slightly beating analyst expectations
Net loss for Q2 missed analyst expectations
Company announced separately acquisition of Anglera, an AI product data enrichment firm

Outlook
Coveo expects Q3 SaaS subscription revenue of $39.7 mln to $40.2 mln
Company sees Q3 total revenue between $40.6 mln and $41.1 mln
Coveo projects FY27 total revenue of $160 mln to $162 mln

Result Drivers
LARGE DEALS - Co said two seven-figure transactions drove record new business bookings in Q2
GENERATIVE AI MOMENTUM - Co said generative AI solutions accounted for over 50% of new business bookings in Q2
PLATFORM TRANSITION - Deprecation of legacy Qubit platform led to SaaS revenue growth from Coveo core platform

Company press release: ID:nCNWFrsY2a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$40.40 mln
$40.01 mln (8 Analysts)
Q2 Net Income
 
-$3.10 mln
 
Q2 Adjusted EBITDA
 
$2 mln
 
Q2 Gross Margin
 
80.00%
 
Q2 Loss Per Basic Share
 
$0.03
 
Q2 Operating Income
 
-$3.01 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", 3 "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$5.75, about 19.3% above its October 28 closing price of C$4.82
The stock recently traded at 62 times the next 12-month earnings vs. a P/E of 92 three months ago

Reuters Recommended Reads
Oct 27 - BigBear.ai Q3 gross margin rises on Generative AI platform, lifts 2026 revenue outlook
Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth
Oct 28 - SAP swaps costly AI models for cheaper alternatives, targets over €2 bln in gains

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.)