Cognyte Software (CGNT) AI Stock Analysis

• Market Cap: $517.84M
• Dividend Yield: N/A
• Average Volume (3M): 426.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,623
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 73,038,090
• 10 Day Avg. Volume: 572,438
• 30 Day Avg. Volume: 426,341
• 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: 0.87
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 23.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.33
• Revenue Forecast (FY): $443.47M

• Rating: 63 Neutral
• Price Target: $7.00 ▼(-28.06% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is supported by improving fundamentals and strong cash generation with low leverage, reinforced by a positive earnings update that included margin expansion and raised full-year guidance. Offsetting these positives, technicals are very weak with the stock trading well below key moving averages and negative momentum, while valuation is constrained by negative earnings (negative P/E).

Positive Factors

Cash generation

Sustained positive operating and free cash flow signals durable internal funding for R&D, sales and integration of AI analytics. Improved cash conversion since FY2023 reduces reliance on external financing and supports multi-quarter reinvestment and margin improvement initiatives.

Conservative leverage / liquidity

A low debt-to-equity ratio provides financial flexibility to pursue strategic deals, absorb cyclical delays, and invest in product development. Coupled with available committed credit lines, this reduces refinancing risk and supports steady operations over the next several quarters.

Margin expansion and software mix

Material gross margin improvement reflects higher share of software (recurring, higher-margin) revenue and operating leverage. Combined with strong software growth noted in the call, this structural mix shift supports sustainable EBITDA expansion and higher cash conversion going forward.

Negative Factors

Modest topline growth

Low organic revenue growth limits the company’s ability to scale fixed-cost leverage and requires sustained margin gains to improve earnings. Modest top-line momentum increases sensitivity to contract timing and makes multi-quarter margin improvements harder to entrench.

Profitability not fully normalized

Persistent slight net losses and negative ROE indicate the company has not yet converted operating improvements into consistent GAAP profitability. This constrains capital return options and leaves results exposed to FX, tax, or one-off headwinds in coming quarters.

Customer/market concentration & services volatility

Reliance on government and large institutional customers plus a decline in professional services makes revenue lumpy and timing-sensitive. Exposure to federal funding cycles and contract timing can produce recurring quarter volatility that pressures durable growth and planning.

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 through a combination of software licensing, subscription services, and professional services. The company primarily earns money from selling its software products to government agencies, law enforcement, and private sector clients, often through multi-year contracts. Additionally, recurring revenue from subscriptions for cloud-based services and ongoing software maintenance contributes significantly to its earnings. Key revenue streams include initial software sales, renewals, and consulting services aimed at deploying and optimizing its solutions. Strategic partnerships with technology providers and government contracts further enhance its revenue potential, allowing Cognyte to leverage its expertise in data analytics and security to meet the evolving needs of its clients.

Cognyte Software Financial Statement Overview

Summary

Cash flow is a clear strength (TTM operating cash flow ~$39.1M and free cash flow ~$26.4M), leverage is low (debt-to-equity ~0.18), and operating profitability has improved (TTM EBIT margin ~1.9%). Offsetting this, revenue growth is modest (~3.1% TTM) and profitability/returns are not fully normalized (TTM net margin ~-1.4%, ROE ~-2.8%).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up ~3.1% and gross margin remains strong (~71.6%), supporting solid underlying unit economics. Profitability has improved meaningfully versus prior years (EBIT margin ~1.9% in TTM vs. negative in FY2024/FY2025 annual), but net results are still slightly loss-making (net margin ~-1.4% TTM). Overall, the income statement shows a credible turnaround in operating performance, tempered by only modest growth and not yet-consistent bottom-line profitability.

Balance Sheet

Leverage appears conservative with low debt relative to equity (debt-to-equity ~0.18 in TTM, stable vs. recent annual periods), which provides financial flexibility. However, returns on equity remain negative in recent periods (TTM ROE ~-2.8%), reflecting that profitability has not fully normalized. Net-net: balance sheet risk looks contained, but shareholder returns are still under pressure until earnings improve.

Cash Flow

Cash generation is a key positive: TTM operating cash flow (~$39.1M) and free cash flow (~$26.4M) are firmly positive and represent a sharp improvement versus FY2023 (when both were negative). Free cash flow is also up strongly year-over-year in TTM, signaling better operating efficiency and/or working-capital dynamics. The main watch-out is that cash flow strength is not yet fully mirrored by net income (still slightly negative in TTM), so sustainability of conversion should be monitored.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	388.30M	350.63M	313.40M	312.06M	474.04M	443.46M
Gross Profit	277.99M	246.92M	215.40M	192.13M	341.64M	310.79M
EBITDA	19.49M	9.38M	573.00K	-77.35M	29.73M	47.43M
Net Income	-5.63M	-12.05M	-15.57M	-114.13M	-14.89M	14.20M
Balance Sheet
Total Assets	514.90M	497.82M	472.08M	443.08M	664.61M	628.82M
Cash, Cash Equivalents and Short-Term Investments	106.59M	112.72M	74.48M	52.09M	163.02M	83.28M
Total Debt	37.22M	35.53M	33.36M	16.97M	124.59M	69.99M
Total Liabilities	287.38M	280.72M	257.35M	233.30M	365.52M	358.45M
Stockholders Equity	204.00M	198.19M	197.88M	194.13M	285.14M	257.50M
Cash Flow
Free Cash Flow	26.38M	33.59M	25.49M	-48.67M	-15.16M	51.98M
Operating Cash Flow	39.05M	46.78M	34.56M	-36.99M	2.63M	71.31M
Investing Cash Flow	-15.05M	-5.69M	9.36M	20.13M	-17.85M	16.42M
Financing Cash Flow	-24.15M	-7.95M	-2.45M	-102.93M	58.74M	-205.62M

Cognyte Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.73
• 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 9.73 is above the 20-day moving average (MA) of 7.34, above the 50-day MA of 8.52, and above the 200-day MA of 8.88, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.46 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 Outperform	$2.28B	40.35	28.84%	1.66%	3.30%	31.18%
RDWR	69 Neutral	$1.01B	51.14	6.09%	―	10.40%	―
CGNT	63 Neutral	$517.84M	-91.37	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	60 Neutral	$2.29B	-64.06	-9.95%	―	11.05%	45.23%
RPD	49 Neutral	$409.86M	17.30	27.12%	―	3.08%	-54.07%

Cognyte Software Corporate Events

Cognyte Extends $65 Million Credit Facilities with Israeli Banks Through 2028

On December 30, 2025, Cognyte Software Ltd. entered into amended and extended credit facility agreements with Bank Hapoalim and Bank Leumi, pushing back the scheduled expiration of its prior facilities from January 31, 2026 to January 31, 2028 and securing an aggregate credit line of $65 million. As of the filing date, Cognyte had no outstanding borrowings under either facility, and the updated arrangements, which include customary covenants and a specified non‑utilization fee structure, effectively lock in two additional years of committed bank financing, bolstering the company’s liquidity profile and financial flexibility without immediately increasing its leverage.

The most recent analyst rating on (CGNT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Cognyte Software stock, see the CGNT Stock Forecast page.

Cognyte Software Reports Strong Q3 2026 Financial Results and Raises Fiscal Year Outlook

On December 9, 2025, Cognyte Software Ltd. announced its financial results for the third quarter of fiscal year 2026, ending October 31, 2025. The company reported a 13.2% increase in revenue to $100.7 million compared to the previous year, and a significant improvement in operating income. Despite a GAAP net loss of $3.4 million due to increased tax expenses and foreign exchange impacts, the company achieved strong growth in adjusted EBITDA and improved cash flow. Cognyte’s strong performance and market momentum have led to an increased outlook for the fiscal year ending January 31, 2026, with expected revenue growth of approximately 14% and adjusted EBITDA growth of 60%.

The most recent analyst rating on (CGNT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Cognyte Software stock, see the CGNT Stock Forecast page.

Cognyte Software to Review Q3 Fiscal 2026 Results on December 9, 2025

On November 25, 2025, Cognyte Software announced it will hold a conference call on December 9, 2025, to discuss its third quarter fiscal 2026 financial results for the period ending October 31, 2025. The announcement highlights Cognyte’s commitment to transparency and its efforts to keep stakeholders informed about its financial performance, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (CGNT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Cognyte Software stock, see the CGNT Stock Forecast page.