Cognyte Software (CGNT)
NASDAQ:CGNT
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Cognyte Software
(NASDAQ:CGNT)
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Rating:71Outperform
Price Target:
$10.50
▲(8.58% Upside)
Action:ReiteratedDate:04/15/26
The score is driven by improving fundamentals and strong cash flow, reinforced by upbeat guidance and backlog visibility from the earnings call. Technicals also support the trend, while the main offset is a demanding valuation (high P/E) that leaves less room for execution misses.
Positive Factors
Cash generation
Sustained positive operating and free cash flow across 2024–2026 indicates durable internal funding for R&D, international expansion, and buybacks without relying on new debt. Strong cash conversion reduces financial risk and supports execution of multi-year margin and growth targets.
Negative Factors
Profitability still marginal
While operating profit and EBITDA expanded, GAAP earnings remain only marginally positive/near breakeven historically, leaving limited margin of safety. Sustaining consistent, recurring GAAP profitability is required to prove the turnaround and to compound equity value over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive operating and free cash flow across 2024–2026 indicates durable internal funding for R&D, international expansion, and buybacks without relying on new debt. Strong cash conversion reduces financial risk and supports execution of multi-year margin and growth targets.
Read all positive factors
Cognyte Software (CGNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$706.67M
Dividend YieldN/A
Average Volume (3M)478.74K
Price to Earnings (P/E)44.1
Beta (1Y)0.33
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,623
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding73,078,380
10 Day Avg. Volume532,788
30 Day Avg. Volume478,740
Financial Highlights & Ratios
PEG Ratio10.88
Price to Book (P/B)3.19
Price to Sales (P/S)1.65
P/FCF Ratio21.99
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda27.25
Forecast
1Y Price Target
$13.50Price Target Upside39.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.46
Revenue Forecast (FY)$445.38M
Cognyte Software Business Overview & Revenue Model
Company Description
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the ef...
How the Company Makes Money
Cognyte primarily makes money by selling and supporting its security analytics and investigative intelligence software to customers (typically government agencies and, to a lesser extent, enterprises). Revenue is generally generated through (1) so...
Cognyte Software Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 17, 2026
Earnings Call Sentiment Positive
The earnings call presents a strongly positive operational and financial picture: double-digit revenue growth, record-high non-GAAP gross margins, significant EBITDA expansion, positive GAAP net income, a healthy RPO/backlog and a strong balance sheet with active share repurchases. Management provided constructive FY'27 guidance and reiterated FY'28 targets, while acknowledging near-term cash collection timing, FX headwinds, some uncertainty from a gradual shift to subscription models and seasonality. On balance the call emphasizes durable demand, margin leverage and profitable scaling with manageable execution risks.Positive Updates
Revenue Growth (Quarter & Full Year)
Q4 FY'26 revenue was $106.2M, up $11.7M or 12.4% year-over-year. Full-year FY'26 revenue was $400M, up 14.1% year-over-year.
Negative Updates
Operating Cash Flow Shortfall vs. Expectation
Full-year operating cash flow was $40.3M, below the $45M expectation due to delays in collecting certain receivables (management noted those receivables were collected early in Q1). Free cash flow was reported at ~$30M.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth (Quarter & Full Year)
Q4 FY'26 revenue was $106.2M, up $11.7M or 12.4% year-over-year. Full-year FY'26 revenue was $400M, up 14.1% year-over-year.
Read all positive updates
Company Guidance
Cognyte guided fiscal 2027 revenue of about $448 million ±3% (≈12% year‑over‑year at the midpoint), with Q1 modestly below Q4 and sequential growth each quarter; management expects non‑GAAP gross margin ≈73.5% (up ~50 bps), non‑GAAP operating expenses ≈$273 million (≈7% growth), non‑GAAP operating income ≈$56 million (>50% YoY), and adjusted EBITDA ≈$68 million (≈40% YoY). They also forecast non‑GAAP taxes ~27% (~$15M), noncontrolling interest ≈$5M, non‑GAAP EPS ~$0.47 on ~75M diluted shares, operating cash flow ~$45M, CapEx ≈$11M, and cited strong visibility from short‑term RPO of $369.5M (total RPO $557.2M); management reiterated FY‑28 targets of ≈$500M revenue and >20% adjusted EBITDA margin.Cognyte Software Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
76
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 400.04M | 350.63M | 313.40M | 312.06M | 474.04M |
| Gross Profit | 289.30M | 246.92M | 215.40M | 192.13M | 341.64M |
| EBITDA | 26.64M | 9.38M | 573.00K | -77.35M | 29.73M |
| Net Income | -638.00K | -12.05M | -15.57M | -114.13M | -14.89M |
Balance Sheet | |||||
| Total Assets | 521.07M | 497.82M | 472.08M | 443.08M | 664.61M |
| Cash, Cash Equivalents and Short-Term Investments | 116.88M | 112.72M | 74.48M | 52.09M | 163.02M |
| Total Debt | 36.54M | 35.53M | 33.36M | 16.97M | 124.59M |
| Total Liabilities | 292.20M | 280.72M | 257.35M | 233.30M | 365.52M |
| Stockholders Equity | 206.54M | 198.19M | 197.88M | 194.13M | 285.14M |
Cash Flow | |||||
| Free Cash Flow | 29.93M | 33.59M | 25.49M | -48.67M | -15.16M |
| Operating Cash Flow | 40.33M | 46.78M | 34.56M | -36.99M | 2.63M |
| Investing Cash Flow | -14.09M | -5.69M | 9.36M | 20.13M | -17.85M |
| Financing Cash Flow | -24.85M | -7.95M | -2.45M | -102.93M | 58.74M |
Cognyte Software Technical Analysis
Positive
9.67
Price Trends
7.94
Positive
8.52
Positive
8.60
Positive
Market Momentum
0.29
Negative
66.90
Neutral
81.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGNT, the sentiment is Positive. The current price of 9.67 is above the 20-day moving average (MA) of 8.42, above the 50-day MA of 7.94, and above the 200-day MA of 8.60, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 81.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGNT.
Cognyte Software Risk Analysis
Cognyte Software disclosed 60 risk factors in its most recent earnings report. Cognyte Software reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our continued implementation and use of artificial intelligence may have an adverse effect on our business. Q4, 2023
Cognyte Software Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $706.67M | 44.08 | -0.32% | ― | ― | ― | |
70 Outperform | $2.29B | 38.01 | 19.49% | 1.66% | 3.30% | 31.18% | |
69 Neutral | $1.07B | 50.99 | 5.95% | ― | 10.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.17B | -78.26 | -10.29% | ― | 11.05% | 45.23% | |
49 Neutral | $379.54M | 79.72 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
CGNT
Cognyte Software
9.67
0.16
1.74%
CSGS
CSG Systems International
80.33
20.98
35.36%
RDWR
Radware
24.91
3.63
17.06%
RPD
Rapid7
5.76
-16.80
-74.47%
TENB
Tenable Holdings
18.93
-12.51
-39.79%
Cognyte Software Corporate Events
Cognyte Delivers Strong Fiscal 2026 Results and Lifts Outlook for 2027
Mar 25, 2026
On March 25, 2026, Cognyte Software reported strong results for its fourth quarter and fiscal year ended January 31, 2026, highlighted by double-digit revenue growth and sharply improved profitability. Quarterly revenue rose 12.4% to $106.2 millio...
Cognyte Sets March 25 Call to Present Q4 and Full-Year Fiscal 2026 Results
Mar 12, 2026
Cognyte Software Ltd., a Nasdaq-listed provider of AI-driven investigative analytics software for law enforcement, national security and intelligence agencies, develops data processing platforms that help customers generate actionable intelligence...
Cognyte Boosts Share Buyback Authorization to $40 Million
Mar 3, 2026
On March 3, 2026, Cognyte Software said its board approved a further $20 million increase to its share repurchase program, bringing total authorized buybacks to $40 million since the initiative launched in November 2024. The move underscores manag...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.