eGain Shares Plummet on Bleak 2027 Outlook

eGain Corporation (NASDAQ:EGAN) saw its shares plunge 22.5% in pre-market trading on September 5, 2026, after announcing its fiscal fourth-quarter and full-year 2026 financial results. The company also provided guidance that indicated a revenue decrease for fiscal year 2027.

For the fiscal fourth quarter, eGain reported revenue of $22.2 million, marking a 4% reduction compared to the same period in the prior year. However, the company highlighted a 20% rise in revenue from its AI customers, which reached $55.1 million for the full fiscal year 2026. Total revenue for fiscal year 2026 stood at $91.1 million.

Looking ahead to fiscal year 2027, eGain projects total revenue to be between $84.5 million and $86.0 million, a decrease of approximately 7% from fiscal year 2026. This decline is expected to be driven by a significant reduction in revenue from legacy customers, which is anticipated to fall by around 40%, with legacy annual recurring revenue projected to drop by approximately 60%.

Adjusted EBITDA for fiscal 2027 is forecasted to be between $0.7 million and $1.4 million, and eGain also anticipates a GAAP net loss ranging from $2.0 million to $3.0 million for the year. CEO Ashu Roy acknowledged fiscal year 2026 as a "pivotal year" and noted the company's recognition as a Leader in Gartner's Customer Service Knowledge Management Magic Quadrant. Despite these achievements, the fiscal 2027 guidance suggests that the ongoing challenges in the legacy business will continue to impact the company's overall financial performance.