eGain says AI customer revenue grew 20% in FY26

eGain (NASDAQ: EGAN ) held its fourth-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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The full earnings call is available at Summary eGain's total revenue for fiscal 2026 grew 3% to $91.1 million, with AI customer revenue increasing by 20%, highlighting a strategic shift towards AI-driven solutions.

The company was recognized as a Leader in Gartner's inaugural Magic Quadrant for customer service knowledge management systems, emphasizing its focus on AI Knowledge Ops. eGain's new business momentum included several new logo wins and a shift towards paid pilots, signaling a move from free trials to more committed customer engagements. eGain reported a non-GAAP net income of $13 million for fiscal 2026, up from $5.7 million in the previous year, and a record cash flow from operations of $21.2 million.

For fiscal 2027, eGain forecasts AI customer revenue growth of 8% to 10%, with an expected 40% decline in revenue from legacy customers as the company transitions to a higher-growth AI-led business.

Full Transcript OPERATOR Good day and welcome to the eGain fiscal 2026 fourth quarter and full year financial results call.

All participants will be in listen-only mode.

Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions.

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Please note this event is being recorded.

I would now like to turn the conference over to Jim Byers, Investor Relations.

Please go ahead.

Jim Byers, Investor Relations Thank you, Operator, and good afternoon, everyone.

Welcome to eGain's fiscal 2026 fourth quarter and full year financial results conference call.

On the call today are eGain's Chief Executive Officer Ashu Roy and Chief Financial Officer Eric Smit.

Before we begin, I would like to remind everyone that during this conference call, management will make certain forward-looking statements which convey management's expectations, beliefs, policies, plans, and objectives regarding future financial and operational performance.

Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate, or similar expressions.

Forward-looking statements are protected by safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects.

Information on various factors that could affect eGain's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, September 3, 2026, and assumes no obligation to publicly update or revise any of the forward-looking information.

In this conference call, in addition to GAAP results, we will also discuss certain non-GAAP financial measures such as non-GAAP operating income.

The tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. eGain's earnings press release can be found by clicking the press releases link on the investor relations page of eGain's website at egain.com, and along with the earnings release, we will post an updated investor presentation to the investor relations page.

And lastly, a phone replay of this conference call will be available for one week.

And now, with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy.

Ashu Roy, CEO Thank you, Jim.

Good afternoon, everyone.

Right at the end of fiscal 2026, the category we've been building toward for years got a name.

In July this year, Gartner published its first ever Magic Quadrant for customer service knowledge management systems and named eGain a Leader, positioned highest for ability to execute and furthest for completeness of vision.

This inaugural Magic Quadrant matters more than just our position in it.

This is the first time a top analyst firm has drawn a sharp boundary around this market and explicitly called out knowledge management for customer service as its own category of enterprise infrastructure.

Now, they base it on the volume and kind of client inquiries they get in this area, and therefore they have chosen to invest Magic Quadrant—level resources and attention to it.

It's a very important signal for the market and the category that's building around it.