eGain (NASDAQ:EGAN) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

eGain (NASDAQ:EGAN) issued its quarterly earnings data on Tuesday. The technology company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $22.98 million during the quarter, compared to analysts’ expectations 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

Shares of EGAN traded up $0.30 during trading hours on Wednesday, reaching $9.86. 33,905 shares of the company traded hands, compared to its average volume of 183,280. The stock’s fifty day moving average is $10.39 and its 200 day moving average is $9.88. eGain has a 1-year low of $4.34 and a 1-year high of $15.95. The stock has a market cap of $266.71 million, a P/E ratio of 8.09 and a beta of 0.80.

Key Headlines Impacting eGain

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

Hedge Funds Weigh In On eGain

Several large investors have recently added to or reduced their stakes in EGAN. NewEdge Advisors LLC bought a new stake in shares of eGain in the 3rd quarter worth approximately $106,000. Millennium Management LLC bought a new position in shares of eGain during the 3rd quarter worth about $328,000. Citadel Advisors LLC acquired a new stake in shares of eGain during the 3rd quarter valued at about $130,000. BNP Paribas Financial Markets raised its position in eGain by 29.3% in the third quarter. BNP Paribas Financial Markets now owns 6,317 shares of the technology company’s stock worth $55,000 after purchasing an additional 1,432 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in eGain by 3.4% during the second quarter. Geode Capital Management LLC now owns 449,899 shares of the technology company’s stock valued at $2,812,000 after purchasing an additional 14,978 shares in the last quarter. Institutional investors and hedge funds own 53.94% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on EGAN shares. Wall Street Zen raised eGain from a “hold” rating to a “buy” rating in a report on Sunday, November 16th. Zacks Research downgraded eGain from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 4th. B. Riley began coverage on shares of eGain in a research note on Friday, January 23rd. They issued a “neutral” rating and a $10.50 price objective for the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of eGain in a research note on Friday, January 9th. Finally, Roth Mkm reiterated a “buy” rating and issued a $20.00 target price (up previously from $10.00) on shares of eGain in a report on Thursday, November 13th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $15.25.

About eGain

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.