Yext

YEXT

Market cap $535M

Yext is repositioning as an enterprise AI-driven marketing platform, aiming to capitalize on the rise of conversational AI in search. I rate YEXT a buy with a 13% FY 2027 upside target, contingent on accelerating high-value enterprise ARR growth and successful Scout dataset monetization. Recent financials show mixed fundamentals: sequential revenue declines offset by improved operating income and disciplined cost management; liquidity remains stable despite aggressive share buybacks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

NEW YORK--(BUSINESS WIRE)--Yext, Inc. (NYSE: YEXT), the enterprise agentic marketing platform, today announced that it has appointed Cynthia Paul to serve as an independent director on its Board of Directors, effective immediately. Ms. Paul is the Chief Investment Officer and Chief Executive Officer of Lynrock Lake LP, an investment management firm. “We are happy to welcome Cynthia to our Board of Directors and believe her insights will be a significant asset to the team as we continue to deliv.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

NEW YORK--(BUSINESS WIRE)--Yext, Inc. (NYSE: YEXT), the enterprise agentic marketing platform, today announced that its full platform is now open for enterprise AI workflows – making verified brand data, Scout competitive intelligence, and agentic marketing execution capabilities accessible from virtually any AI tool, workflow, or interface they already use. Enterprise marketing teams can now surface competitive insights, close gaps faster, and measure whether they are winning or losing against.

Yext (YEXT) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Yext faces declining revenues and gross margin compression amid ongoing strategic pivots, yet continues to expand net profit. Management targets higher-quality, >$50k ARR customers for greater retention, but revenue contraction and margin pressure challenge the growth narrative. Gross margin fell from 75% to 73% due to AI-related infrastructure costs; management expects margins to normalize but lacks concrete expansion plans.

Yext posted better-than-expected earnings in fiscal Q1, but sales missed Wall Street's target. The company was able to boost operating profits by cutting expenses, but its gross profit slumped.

Yext remains a value trap, with no visible catalysts for a rebound and worsening business fundamentals. I reiterate my sell rating on YEXT, citing declining customer retention and eroding economics despite sector rebounds elsewhere. The failed CEO-led buyout and subsequent stock decline highlight YEXT's lack of strategic direction and investor confidence.