eGain Corporation reported fiscal fourth quarter 2026 results that exceeded analyst expectations for both revenue and earnings. While total revenue declined 4.5% year-over-year to $22.2 million, the company demonstrated progress in its strategic pivot toward AI-powered knowledge management, with AI customer revenue growing 11% during the quarter and 20% for the full fiscal year.
Key Highlights
- AI customer annual recurring revenue (ARR) grew 13% year-over-year, accounting for 72% of total SaaS ARR as of June 30, 2026.
- Non-GAAP gross margin for the full fiscal year improved to 74%, up from 71% in the prior year, driven by the higher-margin AI Knowledge segment.
- The company maintained a strong balance sheet with $73.3 million in cash and equivalents and no debt, after repurchasing $11.5 million in stock during the year.
- Guidance for fiscal year 2027 projects a total revenue range of $84.5 million to $86.0 million, implying a continued managed decline in legacy business lines.