Roth Capital cuts target for eGain stock to USD 7

Published on 10/06/2026 at 04:32 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

eGain's fiscal 2026 revenue rose 3% to USD 91.1 million, while AI revenue grew 20%. eGain stock had a USD 163.9 million market value on October 5, 2026.

EGAN, US28225C8064, Illustration mit AI erstellt.

eGain Corporation (ISIN US28225C8064) faces a sharply lower analyst benchmark after Roth Capital cut its price target from USD 21.00 to USD 7.00 on September 8, 2026, according to Yahoo Finance. The same report said B. Riley reduced its target from USD 10.50 to USD 6.00 while retaining a Neutral rating. On October 5, 2026, the Nasdaq quote was last at USD 5.97 at 4:00 p.m. ET, versus a prior close of USD 5.87.

Fiscal 2027 brings a lower bar

The target cuts followed eGain's fiscal 2026 results and its outlook for the next fiscal year. Revenue reached USD 91.1 million in fiscal 2026, up 3.00 percent from fiscal 2025, while adjusted EBITDA rose to USD 13.6 million and the margin reached 15.00 percent, according to Yahoo Finance.

Fiscal 2027 total revenue guidance stands at USD 84.5 million to USD 86.0 million, below the USD 91.1 million fiscal 2026 result. Adjusted EBITDA margin guidance of 1.00 percent to 2.00 percent also sits well below the 15.00 percent margin reported for fiscal 2026.

AI growth meets legacy attrition

The operating picture is divided between a growing AI business and a shrinking legacy base. AI customer revenue grew 20.00 percent in fiscal 2026, while eGain's trailing twelve-month net retention for AI customers fell to 104.00 percent from 120.00 percent a year earlier, Yahoo Finance reported.

Cash increased to USD 73.3 million at the end of fiscal 2026 from USD 62.9 million a year earlier, while operating cash flow reached USD 21.2 million. That cash position gives the company room to fund the transition, but the fiscal 2027 revenue range implies a decline of USD 5.1 million to USD 6.6 million from fiscal 2026.

Target still exceeds the Nasdaq quote

Roth Capital's USD 7.00 target lies 17.59 percent above the USD 5.97 Nasdaq quote, while B. Riley's USD 6.00 target lies 0.50 percent above it. The two targets therefore point to limited upside at B. Riley and a wider valuation gap at Roth, but both ratings remain cautious.

Nasdaq quote and market value

eGain was last at USD 5.97 on Nasdaq on October 5, 2026 at 4:00 p.m. ET, with a USD 163.9 million market capitalization. Its 52-week range was USD 5.02 to USD 15.95 on the same quote snapshot.