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Cognyte Software Ltd. (CGNT)
:CGNT
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Cognyte Software
(NASDAQ:CGNT)
Rating:51Neutral
Price Target:
$9.50
▲(4.51%Upside)
Positive Factors
Earnings
Cognyte reported a clean beat in 1QFY26, with results exceeding consensus expectations.
Growth Initiatives
The acquisition of GroupSense is expected to accelerate Cognyte's growth in the U.S. market.
Negative Factors
Revenue Forecast
The announcements were expected to result in a more meaningful lift to the FY26 Revenue outlook compared to the $3 Million raise received.
Share Price Performance
The decline in the share price reflects elevated expectations where the stock was up 27% year-to-date into the print.
Cognyte Software (CGNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$679.27M
Dividend YieldN/A
Average Volume (3M)387.59K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,623
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding71,956,190
10 Day Avg. Volume333,224
30 Day Avg. Volume387,589
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)4.12
Price to Sales (P/S)0.00
P/FCF Ratio39.95
Enterprise Value/Market Cap2.46
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit6.86
Enterprise Value/Ebitda97.47
Forecast
1Y Price Target
$10.00Price Target Upside10.01% Upside
Rating ConsensusHold
Number of Analyst Covering2
Cognyte Software Business Overview & Revenue Model
Company DescriptionCognyte 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 MoneyCognyte Software makes money by selling its security analytics software solutions to government agencies and enterprise clients worldwide. The company generates revenue through software licensing, maintenance, and support services. Key revenue streams include licensing fees for their proprietary analytics platforms, subscription-based services for ongoing software updates and support, and consulting services to customize and integrate their solutions into clients' existing systems. Additionally, partnerships with technology providers and system integrators contribute to enhancing the company's market reach and revenue potential.
Cognyte Software Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q1-2026)
| % Change Since: -17.44%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
Cognyte's earnings call reflects a positive outlook with significant revenue growth and major customer acquisitions, despite some concerns over cash flow and deferred revenue. The acquisition of GroupSense and strong market engagement further bolster the positive sentiment.Q1-2026 Updates
Positive Updates
Significant Revenue Growth
Cognyte reported a 16% year-over-year revenue increase for Q1 of fiscal 2026, reaching $95.5 million.
Strong EBITDA Performance
Adjusted EBITDA for the quarter was approximately $10 million, more than double compared to the same quarter last year.
Major Customer Wins
Cognyte signed a multi-year support agreement with a national security customer valued at over $20 million per year, and a new 3-year subscription agreement worth over $10 million per year.
Acquisition of GroupSense
Cognyte acquired GroupSense, enhancing its cyber threat intelligence capabilities and expanding its U.S. customer base by approximately 50 customers.
Positive Market Engagement
The company received positive feedback and strong customer engagement at global events, showcasing its AI-powered solutions.
Negative Updates
Cash Flow and Free Cash Flow Concerns
Cash flow from operations was $1.7 million, with a negative free cash flow of $2.5 million due to timing of collections.
Deferred Revenue Decline
Deferred revenue decreased slightly to $113 million, influenced by billing timing.
RPO Challenges
Only the first year of a major $10 million subscription deal is included in RPO due to deal terms, affecting future revenue visibility.
Company Guidance
During the Cognyte First Quarter Fiscal Year 2026 Earnings Conference Call, the company provided updated guidance reflecting a positive start to the fiscal year. Cognyte reported a 16% year-over-year increase in revenue to $95.5 million and a significant growth in adjusted EBITDA, which more than doubled to approximately $10 million compared to Q1 of the previous year. Non-GAAP gross margin expanded to 71.9%. For fiscal year 2026, Cognyte expects revenue of approximately $395 million, representing a 13% year-over-year growth at the midpoint, with an adjusted EBITDA of about $44 million, indicating a 50% increase. The guidance update primarily accounts for the acquisition of GroupSense, which is expected to add $3 million in subscription-based revenue. The company maintains a strong cash position at $102.9 million with no debt and continues to anticipate cash flow from operations of $45 million for the year.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.45
Neutral
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.50
Neutral
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.60
Neutral
| 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
Negative
9.09
Price Trends
9.96
Negative
9.51
Negative
8.70
Positive
Market Momentum
-0.29
Positive
40.78
Neutral
72.80
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 9.09 is below the 20-day moving average (MA) of 9.71, below the 50-day MA of 9.96, and above the 200-day MA of 8.70, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 72.80 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
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.25B | 29.42 | 40.23% | ― | 9.58% | 12.41% | |
77 Outperform | $16.84B | ― | -4.00% | ― | 19.24% | 59.66% | |
74 Outperform | $1.12B | 27.60 | 5.32% | ― | -2.09% | 76.96% | |
68 Neutral | $1.26B | 111.96 | 3.78% | ― | 9.54% | ― | |
64 Neutral | $5.60B | ― | -22.21% | ― | 13.34% | 13.71% | |
51 Neutral | $679.27M | ― | -4.06% | ― | ― | ― | |
49 Neutral | C$2.92B | 2.03 | -80.91% | 2.68% | 12.55% | -24.32% |
* Technology Sector Average
Performance Comparison
CGNT
Cognyte Software
9.09
1.43
18.67%
RDWR
Radware
29.68
10.55
55.15%
VRNT
Verint Systems
21.44
-9.88
-31.55%
QLYS
Qualys
143.98
-1.30
-0.89%
VRNS
Varonis Systems
50.05
1.72
3.56%
MDB
MongoDB
204.43
-62.31
-23.36%
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.