Coveo Solutions: EPS Surges in Q3 2025, Driven by AI Momentum

Coveo Solutions Inc (CVOSF) reported a strong third quarter of fiscal 2025, with earnings per share (EPS) beating market expectations. The company's robust performance was driven by its leadership in AI-Relevance, accelerating contribution from Commerce, and continued Generative AI momentum. Coveo's SaaS Subscription Revenue surged to $32.3 million, reaching the top end of guidance, while total revenue increased by 7% year-over-year to $34.0 million.



Coveo's core platform contributed significantly to the revenue growth, with SaaS Subscription Revenue increasing by 12% to $31.1 million. The company's strong performance can be attributed to several factors, including:

1. Increasing adoption of AI solutions: Enterprises are increasingly recognizing the critical role of Search and AI-Relevance in unlocking business outcomes in their AI projects, driving demand for Coveo's AI solutions.
2. Growth in Commerce: Coveo's Commerce solution has seen a record number of new clients, with 50% of these customers acquired through the partnership with SAP. This growth is driven by the adoption of AI in commerce, which is accelerating.
3. Partnerships: Coveo's partnerships, particularly with SAP and Shopify, have contributed significantly to new client acquisitions and expansion opportunities. These partnerships provide pricing and conversion strength, enabling Coveo to deliver AI capabilities across various CX channels.
4. Innovation in Generative AI and Commerce: Coveo's leadership in bringing AI-Relevance to large enterprise customers has enabled the company to innovate quickly in generative AI and commerce. Customers consistently report that the Coveo AI-Relevance platform is a critical component in powering their generative AI ambitions.



Coveo's continued Generative AI momentum, with a 36% growth in customers since September 30, 2024, has significantly impacted the company's long-term growth prospects and market position. This rapid customer growth demonstrates the increasing demand for Generative AI solutions and Coveo's ability to meet that demand. The company's Generative AI solution has become a critical component for customers seeking to power their generative AI ambitions, further strengthening Coveo's market leadership and differentiation.

Louis Têtu, Chairman and CEO of Coveo, stated, "Our third quarter performance underscores growing momentum across our business. Enterprises are increasingly recognizing that Search and AI-Relevance is critical to unlocking the business outcomes they are seeking in their AI projects in digital and generative experiences. We believed this year would see an inflection where enterprises moved from experimentation to adoption, and our third quarter is validation that we are tracking well on accelerating our revenue growth in the coming quarters."

Coveo's strong Q3 2025 earnings reflect the company's overall financial health and market demand for its AI solutions. The company's ability to capitalize on the growing demand for AI solutions, expand its partnerships, and innovate in Generative AI and Commerce has positioned it well for continued success in the future. As Coveo continues to execute on its strategic initiatives, investors can expect the company to maintain its strong financial performance and market leadership.