#None #Generative AI #Coveo #SaaS Revenue

Coveo Reports Strong Financial Performance in Q2 FY 2026

Coveo Solutions Inc., a leader in AI-driven data platform technology, has revealed its financial outcomes for the second quarter of fiscal 2026, ending on September 30, 2025. The company reported a remarkable SaaS subscription revenue reaching $35.9 million, surpassing its anticipated guidance with a 15% growth compared to the same period last year.

Key Financial Highlights

In reviewing the financial performance, Coveo's core SaaS subscription revenue for its primary platform achieved a noteworthy 17% increase, amounting to $35 million. Overall, total revenue for the quarter hit $37.3 million, representing a 14% rise from $32.7 million in Q2 FY 2025. The firm maintained a steady gross margin of 79%, reflecting its robust operational efficiency and product performance during the reporting period.

Despite a net loss of $4.4 million, which is an improvement from the previous year's $5.4 million loss, Coveo’s focus on operational leverage remains strong as they aim for enhanced profitability moving forward.

Growth in Generative AI Solutions

Coveo's generative AI solutions have turned out to be a significant driver of growth, contributing to over 35% of total new business bookings. The number of customers adopting these solutions has surged approximately 2.5 times year-over-year. New notable clients that joined the fold include Halliburton, Deckers Outdoor Corp., and major expansions from existing clients like Nvidia and General Electric.

Dealer Relationships and Partnerships

One of Coveo's fast-growing applications remains within e-commerce, fueled in part by the expansion of its partnership with SAP. This quarter witnessed e-commerce bookings represent about 50% of total new business transactions. The promising results from new client acquisitions such as Elite Supplements and Hornbach have underscored the positive directions of the partnership with SAP, culminating in Coveo receiving the SAP Global Customer Experience Award for Partner Excellence 2025. This recognition cements the strategic alignment and measurable value both companies provide to their joint customers.

Leadership Updates

In a notable leadership update, Pranshu Tewari has been appointed as the new Chief Marketing Officer, poised to lead Coveo's marketing vision come November 10, 2025. Tewari brings with him over 25 years of global marketing experience, significantly enhancing the executive team’s capabilities.

Financial Outlook

Moving forward, Coveo observes strong market demand for its suite of AI-powered solutions and is updating its revenue guidance to reflect continued upward projections. Expectations for Q3 FY 2026 SaaS subscription revenue are forecasted to land between $35.7 million and $36.2 million, while total revenue is anticipated in the range of $37.1 million to $37.6 million.

Conclusion

Overall, Coveo's second-quarter results signify a promising trajectory for the company, driven by its robust generative AI offerings and successful partnership strategies. As digital transformation accelerates globally, Coveo's ability to leverage AI technologies positions it well for continued growth and innovation in business outcomes. The upcoming conference call, scheduled for today at 5 PM ET, will provide further insights and discussion around these results, emphasizing the path Coveo is charting within the AI landscape.