Yext (YEXT) Stock Forecast & Price Target

Yext Inc. demonstrated strong financial performance, with total revenue increasing by 11.9% year-over-year, driven by a resilient selling environment and a commitment to customer success and product innovation. The company's Annual Recurring Revenue (ARR) grew 14.3% year-over-year to $442.7 million, supported by a notable increase in both direct and third-party customer segments, as well as improved net revenue retention rates that rose from 91% to 93% in the fourth quarter. Furthermore, adjusted EBITDA increased to $24.6 million, reflecting a solid margin of 21.7%, which underscores the company's effective cost management and growth strategies.

Yext Inc. reported a non-GAAP EPS for 1QF26 that fell short of expectations, leading management to lower revenue and EBITDA assumptions for the first half of FY26 due to foreign exchange (FX) headwinds. The forecast for adjusted EBITDA was also revised down to between $21.5 million and $22.0 million, which is below the consensus estimate of $23.8 million, and reflects a margin of only 20.2% at the midpoint. The presence of a challenging economic environment, executive turnover, and intensified competition from major tech companies further contribute to an unfavorable outlook, suggesting that Yext's shares may warrant a discount relative to peers in the SaaS sector.