Cognyte Software (CGNT) AI Stock Analysis

• Market Cap: $606.59M
• Dividend Yield: N/A
• Average Volume (3M): 271.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• 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: 264,225
• 30 Day Avg. Volume: 270,996
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 2.69
• Enterprise Value/Ebitda: 69.80
• 1Y Price Target: $10.00
• Price Target Upside: 19.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $8.50 ▲(1.43% Upside)

Cognyte Software's overall stock score reflects significant challenges in financial performance and valuation, with declining revenues and a negative P/E ratio. However, the positive outlook from the earnings call, including strong revenue and EBITDA growth, provides some optimism. Technical indicators suggest a bearish trend, further weighing on the score.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Partnerships

The partnership with LexisNexis enhances market penetration and credibility, potentially leading to more contracts and sustained revenue growth.

Cash Flow Improvement

Improved cash flow management enhances financial stability and provides resources for reinvestment and strategic initiatives, supporting long-term growth.

Negative Factors

Declining Revenue Trend

The overall decline in revenue over recent years suggests challenges in sustaining market share, which could impact long-term growth prospects.

Persistent Net Losses

Ongoing net losses indicate operational inefficiencies and financial strain, which could hinder investment in growth and innovation.

Diminishing Equity

The reduction in equity reflects potential erosion of shareholder value and financial health, possibly limiting future capital-raising capabilities.

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 effectiveness of investigations. The company also offers network intelligence analytics, open source and threat intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies; and enterprise customers consist of commercial and physical security customers. The company was incorporated in 2020 and is headquartered in Herzliya, Israel.

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 is grappling with declining revenues and persistent net losses, despite improvements in gross profit margin and cash flow. The balance sheet shows stable debt levels but diminishing equity, indicating financial challenges, although cash flows are improving.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	350.63M	313.40M	312.06M	474.04M	443.46M
Gross Profit	246.92M	215.40M	192.13M	341.64M	310.79M
EBITDA	9.38M	573.00K	-77.35M	29.73M	47.43M
Net Income	-12.05M	-15.57M	-114.13M	-14.89M	14.20M
Balance Sheet
Total Assets	497.82M	472.08M	443.08M	664.61M	628.82M
Cash, Cash Equivalents and Short-Term Investments	112.72M	74.48M	52.09M	163.02M	83.28M
Total Debt	35.53M	33.36M	16.97M	117.18M	24.14M
Total Liabilities	280.72M	257.35M	233.30M	365.52M	358.45M
Stockholders Equity	198.19M	197.88M	194.13M	285.14M	257.50M
Cash Flow
Free Cash Flow	33.59M	25.49M	-48.67M	-15.16M	51.98M
Operating Cash Flow	46.78M	34.56M	-36.99M	2.63M	71.31M
Investing Cash Flow	-5.69M	9.36M	20.13M	-17.85M	16.42M
Financing Cash Flow	-7.95M	-2.45M	-102.93M	58.74M	-205.62M

Cognyte Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 8.38 is below the 20-day moving average (MA) of 8.59, below the 50-day MA of 8.81, and below the 200-day MA of 9.23, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 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
QLYS	74 Outperform	4.91B	26.97	36.41%	―	9.69%	9.50%
MDB	73 Outperform	25.65B	-318.70	-2.67%	―	21.90%	67.81%
VRNS	72 Outperform	6.51B	-63.97	-30.14%	―	14.29%	-14.42%
RDWR	66 Neutral	1.16B	82.20	4.18%	―	11.51%	―
VRNT	62 Neutral	1.22B	30.75	4.61%	―	-2.32%	7.70%
CGNT	51 Neutral	$606.59M	―	-2.26%	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

Cognyte Software Announces Shareholder Meeting Amidst Strong Fiscal Growth

On July 30, 2025, Cognyte Software Ltd. announced its upcoming Annual General Meeting of Shareholders scheduled for September 4, 2025. During fiscal 2025, Cognyte experienced significant growth, achieving double-digit revenue increases and improved profitability. The company expanded its customer base, particularly in the U.S., and strengthened its board with new directors. Despite global uncertainties, Cognyte remains confident in its strategic direction and financial strength, as evidenced by its share repurchase program and robust cash flow.

Cognyte Software Announces New $20 Million Share Repurchase Program

On July 14, 2025, Cognyte Software Ltd. announced the authorization of a new $20 million share repurchase program, following the completion of a previous program. This initiative underscores the board’s commitment to shareholder value and reflects confidence in the company’s growth prospects and cash generation capabilities. The repurchase program is part of Cognyte’s capital allocation strategy and will be executed in compliance with U.S. securities laws, with repurchases potentially beginning after a 30-day creditor objection period.

Cognyte Software Reports Strong Q1 Fiscal 2026 Results

On June 11, 2025, Cognyte Software Ltd. reported its financial results for the first quarter of fiscal year 2026, showing significant growth and profitability. The company achieved a 15.5% increase in revenue to $95.5 million and improved its GAAP operating income to $2.2 million from a loss in the previous year. Cognyte’s strategic focus on innovation and AI-driven analytics has led to securing major global deals, enhancing its market position and financial flexibility. The recent acquisition of GroupSense is expected to further strengthen its U.S. presence and support long-term growth.