Cognyte Software Ltd. (CGNT)
NASDAQ:CGNT
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Cognyte Software
(NASDAQ:CGNT)
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Rating:66Neutral
Price Target:
$10.00
▲(0.20% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by improving financial performance (revenue/margins and stronger cash generation vs. 2023) and a positive earnings outlook with reaffirmed guidance and strong bookings/RPO. These positives are tempered by weak near-term technicals versus the 20/50-day averages and valuation risk reflected in a deeply negative P/E and no dividend support.
Positive Factors
High and expanding gross margins
Sustained ~73% gross margins reflect strong product economics for AI-driven security software. High margins provide durable operating leverage as recurring revenue grows, allowing incremental sales to flow to operating profit and supporting long-term margin sustainability even as investment continues.
Negative Factors
Near-breakeven net results and negative ROE
Despite operating improvements, GAAP profitability remains fragile and ROE is negative, indicating the equity base isn't yet generating sustainable returns. Continued sensitivity to costs or one-off items could delay durable earnings conversion and pressure investor returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding gross margins
Sustained ~73% gross margins reflect strong product economics for AI-driven security software. High margins provide durable operating leverage as recurring revenue grows, allowing incremental sales to flow to operating profit and supporting long-term margin sustainability even as investment continues.
Read all positive factors
Cognyte Software (CGNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$647.47M
Dividend YieldN/A
Average Volume (3M)824.93K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,623
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.04
Shares Outstanding73,078,380
10 Day Avg. Volume1,154,975
30 Day Avg. Volume824,935
Financial Highlights & Ratios
PEG Ratio10.88
Price to Book (P/B)3.19
Price to Sales (P/S)1.65
P/FCF Ratio22.17
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda24.25
Forecast
1Y Price Target
$12.33Price Target Upside23.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.45
Revenue Forecast (FY)$446.02M
Cognyte Software Business Overview & Revenue Model
Company Description
Cognyte Software Ltd., established in Herzliya, Israel, in 2020, delivers sophisticated investigative analytics software to a global array of governmental organizations and commercial businesses. Its flagship offering, branded "Actionable Intellig...
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:Jun 03, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: double-digit revenue growth, strong software and recurring-revenue expansion, margin and profitability improvements, healthy billings and RPO, large contract wins (including multi‑million dollar subscription and expansion deals), and a clean balance sheet with active share repurchases. Offsetting these positives are near-term cash generation headwinds driven by subscription timing, FX weakness and hardware/inventory dynamics, a quarter of negative operating/free cash flow, a decline in professional services revenue due to timing, and Q1 EPS pressure from tax and FX timing. On balance the outlook and execution signals (recurring revenue acceleration, margin leverage and sizable RPO) outweigh the short-term cash and FX challenges.Positive Updates
Double-Digit Revenue Growth
Q1 FY'27 revenue was $105.5 million, up $9.9 million or 10.4% year-over-year, reflecting sustained demand and execution.
Negative Updates
Negative Operating and Free Cash Flow in Q1
Q1 experienced negative cash flow from operations of $4.7 million and negative free cash flow of $6.1 million, driven by subscription timing dynamics, FX effects and a $3 million inventory increase to support anticipated demand.
Read all updates
Q1-2027 Updates
Positive
Negative
Double-Digit Revenue Growth
Q1 FY'27 revenue was $105.5 million, up $9.9 million or 10.4% year-over-year, reflecting sustained demand and execution.
Read all positive updates
Company Guidance
Cognyte reaffirmed FY‑27 revenue guidance of about $448 million ±3% (≈12% YoY at the midpoint) while saying recurring revenue will grow faster than total revenue and become a larger contributor; it expects non‑GAAP gross margin of ~73.5% (up ≈50 bps YoY), non‑GAAP operating income of ≈$56 million (>50% YoY growth), adjusted EBITDA of ≈$68 million (~40% YoY growth) and non‑GAAP EPS of $0.47. Management also expects cash flow from operations of about $45 million for the year, sequential quarterly revenue growth, and reiterated a FY‑28 revenue target of ≈$500 million with an updated FY‑28 adjusted‑EBITDA target of ~20% (constant‑currency). Supporting visibility are Q1 metrics—Q1 revenue $105.5M, recurring revenue $51.9M (49.2% of total), Q1 billings $102.7M, total RPO $528.8M (short‑term RPO $363.4M)—and they expect roughly $20M of U.S. deals this year; balance sheet highlights include $109.2M cash, no debt, and ≈$35M of share repurchases to date (of $60M authorized).Cognyte Software Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 409.99M | 400.04M | 350.63M | 313.40M | 312.06M | 474.04M |
| Gross Profit | 297.63M | 289.30M | 246.92M | 215.40M | 192.13M | 341.64M |
| EBITDA | 23.41M | 14.09M | 9.38M | 573.00K | -77.35M | 29.73M |
| Net Income | -2.70M | -638.00K | -12.05M | -15.57M | -114.13M | -14.89M |
Balance Sheet | ||||||
| Total Assets | 523.71M | 521.07M | 497.82M | 472.08M | 443.08M | 664.61M |
| Cash, Cash Equivalents and Short-Term Investments | 109.19M | 116.88M | 112.72M | 74.48M | 52.09M | 163.02M |
| Total Debt | 36.32M | 36.54M | 35.53M | 33.36M | 16.97M | 124.59M |
| Total Liabilities | 304.69M | 292.20M | 280.72M | 257.35M | 233.30M | 365.52M |
| Stockholders Equity | 195.72M | 206.54M | 198.19M | 197.88M | 194.13M | 285.14M |
Cash Flow | ||||||
| Free Cash Flow | 26.98M | 29.69M | 33.59M | 25.49M | -48.67M | -15.16M |
| Operating Cash Flow | 35.68M | 40.33M | 46.78M | 34.56M | -36.99M | 2.63M |
| Investing Cash Flow | -5.11M | -14.09M | -5.69M | 9.36M | 20.13M | -17.85M |
| Financing Cash Flow | -25.09M | -24.85M | -7.95M | -2.45M | -102.93M | 58.74M |
Cognyte Software Technical Analysis
Negative
9.98
Price Trends
9.77
Negative
8.87
Negative
8.80
Positive
Market Momentum
-0.30
Positive
40.14
Neutral
17.96
Positive
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 9.98 is above the 20-day moving average (MA) of 9.87, above the 50-day MA of 9.77, and above the 200-day MA of 8.80, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 17.96 is Positive, 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 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.22B | 62.66 | 5.71% | ― | 9.83% | 65.00% | |
70 Outperform | $2.96B | -272.98 | -3.71% | ― | 10.74% | 74.22% | |
66 Neutral | $647.47M | -239.84 | -0.32% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $477.17M | 21.18 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
CGNT
Cognyte Software
8.85
-0.31
-3.38%
RDWR
Radware
28.49
0.85
3.08%
RPD
Rapid7
7.17
-16.17
-69.27%
TENB
Tenable Holdings
27.72
-5.11
-15.57%
Cognyte Software Corporate Events
Cognyte Posts Double-Digit Q1 FYE27 Growth and Maintains 2027 Outlook as Software and Subscriptions Surge
Jun 3, 2026
Cognyte Software Ltd., a Herzliya-based provider of AI-powered investigative analytics software for law enforcement, national security and intelligence agencies, reported financial results for the three months ended April 30, 2026. The companyR...
Cognyte Sets June 3 Call to Discuss First-Quarter FYE27 Results
May 26, 2026
Cognyte Software announced on May 26, 2026, that it will hold a conference call on June 3, 2026, at 8:30 a.m. ET to discuss its first quarter financial results for the fiscal year ending April 30, 2026. The company will release its earnings statem...
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...
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.