Cognyte Software (CGNT) has announced robust financial results for the fourth quarter and fiscal year 2025, showcasing significant achievements, including a 12.9% year-over-year increase in quarterly revenue to $94.5 million and a commendable 140% rise in adjusted EBITDA for Q4. Despite the general tariff-induced market downturn, the company’s stock has risen by roughly 25% over the past few days. Furthermore, management has provided optimistic guidance for fiscal year 2026, projecting a 12% increase in revenue to $392 million and a substantial 45% growth in adjusted EBITDA to $43 million. These impressive results have led to an upward revision in analyst estimates.
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Enhanced Analytics for Secure Environments
Cognyte is a software technology company specializing in data processing and investigative analytics. Its solutions are utilized by law enforcement, national security, and military intelligence agencies, as well as various organizations, to extract actionable intelligence from data, aiming to create a safer environment. Its offerings incorporate advanced technologies, such as Artificial Intelligence, big data analytics, and machine learning, to facilitate efficient and informed decision-making. These capabilities enable customers to generate critical insights, foresee potential threats, and enhance their investigative processes.
For the fourth quarter of fiscal year 2025, the company reported a strong performance, exceeding expectations in both revenue and earnings per share. Revenue of $94.51 million represented a 12.9% increase over the previous year and exceeded analyst estimates by $1.36 million. Significant year-over-year improvements were also observed in adjusted EBITDA, which increased by 140%, and non-GAAP operating income, which rose by over 500%. The company’s non-GAAP gross margin improved by 150 basis points to 71.5%. Non-GAAP earnings per share for the quarter were $0.03, which was $0.02 higher than anticipated.
Cognyte closed the quarter with a solid financial position, reporting $113.3 million in cash and no debt. Looking forward, the company projects fiscal year 2026 revenue of approximately $392 million, with expectations of a 45% increase in adjusted EBITDA to around $43 million.
Analysts Revise Price Targets
The analysts’ response to the recent Q4 results has been positive. Evercore ISI analyst Kirk Materne has increased the price target for Cognyte from $7.50 to $10.00 while maintaining an In-Line rating, noting the upward revision of earnings estimates. This adjustment comes on the heels of Cognyte’s impressive positive price momentum, with the stock rising over 44% in the last six months.
Cognyte Software is rated a Hold overall, based on recent analyst recommendations. The average price target for CGNT stock is $10.00, which represents a potential upside of 3.95% from current levels.
