eGain Shares Drop 22.5% After Fiscal 2027 Outlook Points to Lower Revenue

eGain Corporation (NASDAQ:EGAN) shares fell 22.5% in pre-market trading to $5.51 after the company reported fiscal fourth-quarter and full-year 2026 results and issued guidance indicating lower revenue and adjusted EBITDA for fiscal 2027.

The results, released after the market close on September 3, showed fourth-quarter revenue of $22.2 million, down 4% from the same period a year earlier.

For the full fiscal year, revenue from eGain’s AI customers increased 20% to $55.1 million. Total fiscal 2026 revenue was $91.1 million.

eGain Forecasts Revenue Decline in Fiscal 2027

For fiscal 2027, eGain expects total revenue of between $84.5 million and $86.0 million, representing a decline of approximately 7% from fiscal 2026 at the midpoint of the guidance range.

The company expects revenue from legacy customers to decrease by approximately 40%, while legacy annual recurring revenue is projected to fall by around 60%.

Adjusted EBITDA for fiscal 2027 is forecast at between $0.7 million and $1.4 million.

eGain also expects a GAAP net loss of between $2.0 million and $3.0 million for the year.

AI Customer Revenue Increased 20% in Fiscal 2026

The company continues to shift its business towards AI-related products, with AI customer revenue reaching $55.1 million during fiscal 2026.

CEO Ashu Roy described fiscal 2026 as “a pivotal year for eGain,” while noting the company’s recognition as a Leader in Gartner’s inaugural Customer Service Knowledge Management Magic Quadrant.

The fiscal 2027 guidance nevertheless indicates that expected declines in eGain’s legacy business will continue to affect its overall revenue and profitability during the coming year.

EGAN Shares Fall Toward 52-Week Low

Broader U.S. equity markets showed limited movement alongside eGain’s pre-market decline. The S&P 500 was approximately unchanged, the Dow Jones traded marginally lower and the Nasdaq recorded a modest gain.

According to the supplied report, no significant analyst rating changes or competitor developments were identified alongside the share-price movement.

The 22.5% pre-market decline took eGain shares to $5.51, below the cited 52-week low of $5.94.

eGain Corporation stock price