Cognyte Software (CGNT) AI Stock Analysis

• Market Cap: $615.23M
• Dividend Yield: N/A
• Average Volume (3M): 283.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,623
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.08
• Shares Outstanding: 71,956,190
• 10 Day Avg. Volume: 328,917
• 30 Day Avg. Volume: 283,171
• PEG Ratio: 2.44
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 19.90
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 37.66
• 1Y Price Target: $12.00
• Price Target Upside: 42.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $9.00 ▲(6.76% Upside)

Cognyte Software's overall stock score reflects a mix of moderate financial performance and positive technical indicators. The strong earnings call sentiment and strategic growth initiatives are significant positives, but are offset by valuation concerns and operational challenges. The company's future growth prospects and improved cash flow management provide a cautiously optimistic outlook.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates successful market expansion and product adoption, supporting long-term financial health.

Strategic Partnerships

The partnership with LexisNexis enhances market penetration and credibility, potentially leading to increased long-term revenue streams.

Cash Flow Improvement

Improved cash flow management strengthens financial stability and provides resources for strategic investments and growth initiatives.

Negative Factors

Declining Revenue Trend

The overall decline in revenue over recent years suggests challenges in maintaining market share and competitiveness, impacting long-term growth.

Net Losses

Persistent net losses indicate ongoing operational challenges, which could hinder future profitability and financial sustainability.

Diminishing Equity

The reduction in equity reflects potential erosion of shareholder value, raising concerns about the company's long-term financial health.

Cognyte Software Business Overview & Revenue Model

Company Description

Cognyte Software (CGNT) is a global leader in intelligence-driven analytics, specializing in providing software solutions for security and intelligence agencies, law enforcement, and businesses worldwide. The company focuses on transforming data into actionable insights through its advanced analytics platform, which assists clients in threat detection, investigation, and operational efficiency. Cognyte's core offerings include data analytics, visualization tools, and specialized applications designed to address various security challenges across different sectors.

How the Company Makes Money

Cognyte Software generates revenue primarily through the sale of its software licenses, subscription services, and maintenance agreements. The company operates a SaaS model that allows clients to access its analytics platform on a subscription basis, providing a steady stream of recurring revenue. Additionally, Cognyte earns income from professional services, including training, implementation, and support, which are essential for helping clients effectively utilize their software solutions. Strategic partnerships with government agencies and private sector organizations also play a crucial role in driving revenue, as they often result in long-term contracts and collaborative projects that enhance the company's market presence and credibility.

Cognyte Software Financial Statement Overview

Summary

Cognyte Software faces challenges with declining revenues and persistent net losses, despite improved gross profit margins and positive cash flow trends. The balance sheet shows stable debt but diminishing equity, indicating a need for revenue growth and profitability improvements.

Income Statement

Cognyte Software's revenue has shown a declining trend from $457M in 2020 to $350M in 2025, indicating a contraction in sales. The gross profit margin improved to 70.4% in 2025 from 62.2% in 2020, suggesting better cost management. However, the company has consistently incurred net losses, with a net profit margin of -3.4% in 2025. The EBIT margin has also been negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio remains low at 0.18 in 2025, indicating manageable debt levels. Stockholders' equity has decreased from $444M in 2020 to $198M in 2025, reflecting potential erosion of shareholder value. The equity ratio stands at 39.8% in 2025, highlighting a moderate level of financial stability.

Cash Flow

Operating cash flow improved significantly to $47M in 2025 from negative $36M in 2023, showcasing better cash management. Free cash flow has turned positive, reaching $33M in 2025. The operating cash flow to net income ratio is favorable, indicating strong cash flow generation relative to net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	376.57M	350.63M	313.40M	312.06M	474.04M	443.46M
Gross Profit	266.82M	246.92M	215.40M	192.13M	341.64M	310.79M
EBITDA	17.39M	9.38M	573.00K	-77.35M	29.73M	47.43M
Net Income	-4.51M	-12.05M	-15.57M	-114.13M	-14.89M	14.20M
Balance Sheet
Total Assets	487.95M	497.82M	472.08M	443.08M	664.61M	628.82M
Cash, Cash Equivalents and Short-Term Investments	84.48M	112.72M	74.48M	52.09M	163.02M	83.28M
Total Debt	31.05M	35.53M	33.36M	16.97M	124.59M	69.99M
Total Liabilities	262.88M	280.72M	257.35M	233.30M	365.52M	358.45M
Stockholders Equity	203.02M	198.19M	197.88M	194.13M	285.14M	257.50M
Cash Flow
Free Cash Flow	11.21M	33.59M	25.49M	-48.67M	-15.16M	51.98M
Operating Cash Flow	26.38M	46.78M	34.56M	-36.99M	2.63M	71.31M
Investing Cash Flow	-18.27M	-5.69M	9.36M	20.13M	-17.85M	16.42M
Financing Cash Flow	-22.80M	-7.95M	-2.45M	-102.93M	58.74M	-205.62M

Cognyte Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGNT, the sentiment is Negative. The current price of 8.43 is above the 20-day moving average (MA) of 8.32, below the 50-day MA of 8.43, and below the 200-day MA of 9.14, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGNT.

Cognyte Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	70 Neutral	$2.14B	27.08	28.84%	1.61%	3.30%	31.18%
RDWR	65 Neutral	$1.02B	62.74	5.09%	―	10.40%	―
VRNT	62 Neutral	$1.23B	30.78	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$3.27B	―	-8.95%	―	11.05%	45.23%
CGNT	56 Neutral	$615.23M	―	-2.26%	―	―	―
RPD	48 Neutral	$922.63M	41.61	37.09%	―	3.08%	-54.07%

Cognyte Software Corporate Events

Cognyte Software Achieves Strong Q2 Growth and Raises Fiscal Outlook

Cognyte Software Ltd. reported significant financial growth for the second quarter of fiscal year 2026, with a 15.5% increase in revenue compared to the previous year, reaching $97.5 million. The company also achieved a GAAP net income of $2.7 million, reversing a net loss from the same period last year. Cognyte’s strong performance is attributed to global customer wins and its differentiated technology, prompting an increase in its fiscal year outlook. The company completed a $20 million share repurchase program and announced a new buyback plan, reflecting its robust capital allocation strategy. Cognyte’s results underscore its leadership in AI-driven investigative analytics, with a focus on expanding profitability and delivering long-term shareholder value.

Cognyte Software Holds Successful Annual Shareholder Meeting

On September 4, 2025, Cognyte Software Ltd. held its annual general meeting of shareholders for the fiscal year ending January 31, 2026. During the meeting, shareholders approved four proposals, including the re-election of Ron Shvili and Nurit Benjamini as Class I directors and amendments to the compensation policy for executive officers and directors. The approval of these proposals reflects shareholder support for the company’s strategic direction and governance practices.

Cognyte Software to Review Q2 Fiscal 2026 Results on September 9, 2025

On August 28, 2025, Cognyte Software Ltd. announced it will hold a conference call on September 9, 2025, to discuss its second quarter fiscal 2026 financial results for the period ending July 31, 2025. This announcement highlights Cognyte’s commitment to transparency and engagement with stakeholders, as it continues to leverage its advanced technological solutions to maintain a strong position in the investigative analytics industry.