Cognyte Software (CGNT)
NASDAQ:CGNT
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Cognyte Software
(NASDAQ:CGNT)
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Rating:70Outperform
Price Target:
$9.50
▲(17.72% Upside)
Action:ReiteratedDate:03/26/26
CGNT scores well primarily on improving financial performance (revenue recovery and strong cash flow) and a very constructive earnings call with upbeat growth and margin guidance supported by RPO visibility. Offsetting factors are weaker valuation signals due to negative P/E and only mixed longer-term technicals (still below 100/200-day moving averages).
Positive Factors
Strong cash generation
Sustained positive operating and free cash flow across 2024–2026 provides durable internal funding for R&D, product investment and M&A, supports the buyback program, and reduces reliance on external financing. This cash conversion improves resilience against cyclical procurement timing.
Negative Factors
Subscription transition risk
A durable shift from perpetual licenses to subscription contracts changes cash collection and recognition patterns. For a company selling chiefly to governments, longer or cancellable subscription terms can create lumpy cash receipts and margin timing differences until contract economics and collections normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating and free cash flow across 2024–2026 provides durable internal funding for R&D, product investment and M&A, supports the buyback program, and reduces reliance on external financing. This cash conversion improves resilience against cyclical procurement timing.
Read all positive factors
Cognyte Software (CGNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$589.42M
Dividend YieldN/A
Average Volume (3M)488.61K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,623
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding73,038,090
10 Day Avg. Volume472,606
30 Day Avg. Volume488,608
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 Cap0.86
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda22.05
Forecast
1Y Price Target
$13.00Price Target Upside61.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.36
Revenue Forecast (FY)$442.60M
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
Negative
8.07
Price Trends
8.08
Negative
8.51
Negative
8.65
Negative
Market Momentum
0.08
Positive
49.44
Neutral
32.44
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 8.07 is below the 20-day moving average (MA) of 8.23, below the 50-day MA of 8.08, and below the 200-day MA of 8.65, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Cognyte Software Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $589.42M | -1,031.94 | -0.32% | ― | ― | ― | |
70 Outperform | $2.28B | 38.01 | 28.84% | 1.66% | 3.30% | 31.18% | |
69 Neutral | $1.17B | 50.99 | 5.95% | ― | 10.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.10B | -78.26 | -10.29% | ― | 11.05% | 45.23% | |
49 Neutral | $375.59M | 42.08 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
CGNT
Cognyte Software
8.07
-0.03
-0.37%
CSGS
CSG Systems International
80.10
20.35
34.06%
RDWR
Radware
27.04
4.51
20.02%
RPD
Rapid7
5.70
-23.01
-80.15%
TENB
Tenable Holdings
18.29
-17.67
-49.14%
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...
Cognyte Extends $65 Million Credit Facilities with Israeli Banks Through 2028
Dec 31, 2025
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...
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.