Yext Shares Drop 18% to $3.45 After Q1 Revenue Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2026
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Yext down 18% at $3.45 after Q1 revenue miss
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Analyst Views on YEXT
Wall Street analysts forecast YEXT stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 3.970
Low
10.00
Averages
10.00
High
10.00
Current: 3.970
Low
10.00
Averages
10.00
High
10.00
About YEXT
Yext, Inc. provides a digital presence platform for multi-location brands. The Company's artificial intelligence (AI) and machine learning technology powers the knowledge behind every customer engagement, automates workflows at scale, and delivers actionable cross-channel insights that enable data-driven decisions. Its digital presence platform (Answers Platform) lets businesses structure and organize information about their brands in its knowledge graph, Yext Content (Knowledge Graph), which is then delivered across first-and third-party websites and applications through its network of over 200 service and application providers (Publisher Network). These publishers include, among others, Amazon Alexa, Apple, Bing, Facebook, Google Business Profile, and Yelp. The Company's platform powers all of its key products, including listings, reviews, pages and search, each with robust analytics capabilities for businesses to easily track performance across customer experiences.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Platform Functionality Expansion: Yext has announced that its enterprise agentic marketing platform is now fully open, supporting enterprise AI workflows, which allows access to brand-verified data, competitive intelligence, and agentic execution capabilities through various interfaces, significantly enhancing the competitive edge of enterprise marketing teams.
- Market Insight Capability: The new platform analyzes over 10 billion signals across 12 million business locations in 186 countries, providing 150 visibility metrics and tracking 20 local competitors, helping brands quickly identify market opportunities and competitive weaknesses.
- Intelligent Execution Layer: Yext's Action Center feature has enabled 88 brands in beta to complete over one million actions, saving more than 9,000 hours, indicating the platform's potential in enhancing operational efficiency and market responsiveness.
- Innovative Q&A Functionality: The newly launched Ask Scout feature allows marketing teams to ask questions in natural language and quickly receive direct answers grounded in local competitive intelligence, further simplifying the decision-making process and enhancing market responsiveness.
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- Bakkt Executive Purchase: Bakkt's Director Michael Alfred purchased 280,000 shares of BKKT at $7.75 each for a total investment of $2.17 million, achieving a 21.2% gain at the day's high, reflecting confidence in the company's future prospects.
- Stock Performance: BKKT rose approximately 3.6% on Friday, reaching a high of $9.40 per share, indicating positive market sentiment that may attract further investor interest in Bakkt.
- Yext Executive's First Purchase: Yext's Director Seth H. Waugh bought 133,000 shares of YEXT at $3.75 each, totaling $498,218, marking his first purchase in the past twelve months, which suggests optimism about the company's outlook.
- Yext Stock Increase: YEXT increased by about 6.2% on Friday, hitting a high of $4.11 per share, demonstrating enhanced market confidence in Yext, potentially stimulating future investment activities.
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- Significant Stock Decline: Yext's stock fell by 11.3% on Wednesday, trading at $3.73 as of 2:15 PM, reflecting market disappointment over the company's latest earnings report amidst broader market sell-offs due to rising oil prices and bond yields.
- Disappointing Earnings Report: In Q1 of fiscal 2027, Yext reported non-GAAP earnings per share of $0.14, exceeding analyst expectations by $0.01; however, sales of $107.9 million declined 1.4% year-over-year, missing estimates by $4.2 million, indicating significant sales pressure.
- Recurring Revenue Decline: Yext's annual recurring revenue stood at $440.8 million at the end of Q1, down 1% year-over-year, suggesting challenges in revenue growth that could impact future profitability.
- Stock Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, bringing the total authorization to approximately $115 million, yet ongoing sales declines and falling gross margins may limit the company's long-term growth potential.
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- Earnings Beat: Yext reported non-GAAP earnings per share of $0.14 for Q1 of fiscal 2027, exceeding analyst expectations by $0.01, indicating a short-term improvement in profitability despite other challenges.
- Sales Decline: The company’s revenue of $107.9 million represented a 1.4% year-over-year decline, missing analyst estimates by $4.2 million, which highlights a weakening market demand that could impact future growth.
- Increased Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, raising the total buyback authorization to approximately $115 million, aimed at enhancing shareholder value, although it may not offset the negative impact of declining sales.
- Gross Profit Drop: The gross profit for Q1 fell to about $78.7 million from $82.4 million year-over-year, and while operating income surged 399% to $5.6 million due to expense cuts, the declining sales and margins suggest limited long-term earnings growth potential.
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- Revenue Decline: Yext's Q1 revenue of $107.9 million fell short of estimates by $4.2 million, indicating competitive pressures that could undermine investor confidence moving forward.
- Annual Recurring Revenue: The annual recurring revenue (ARR) at quarter-end was $440.8 million, down 1% year-over-year, reflecting challenges in customer retention that may impact long-term growth potential.
- Share Repurchase Program: The board authorized an additional $100 million share repurchase program, supplementing the remaining $15 million under the existing authorization, aimed at boosting earnings per share and restoring shareholder trust.
- Surge in Operating Income: Operating income surged nearly 399% year-over-year to $5.6 million, driven by a 10% decline in total operating expenses to $73.1 million, demonstrating effective cost control measures within the company.
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- Earnings Growth: Yext reported a net income of $2.62 million for Q1, translating to $0.02 per share, which marks a significant increase from last year's $0.77 million and $0.01 per share, indicating positive progress in cost control and operational efficiency.
- Adjusted Earnings Performance: Excluding non-recurring items, Yext's adjusted earnings reached $16.57 million, or $0.14 per share, demonstrating enhanced profitability in its core business despite a decline in overall revenue.
- Slight Revenue Decline: The company's revenue for the quarter was $107.92 million, down 1.4% from $109.48 million last year, a trend that may reflect increased market competition or shifts in customer demand, necessitating future strategic adjustments.
- Market Outlook: Despite the revenue decline, Yext's earnings growth and adjusted earnings performance highlight its resilience in the digital marketing sector, suggesting potential for market share enhancement through product and service optimization.
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