Cognyte Software (CGNT) AI Stock Analysis

• Market Cap: $659.53M
• Dividend Yield: N/A
• Average Volume (3M): 210.87K
• 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: 211,020
• 30 Day Avg. Volume: 210,873
• 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: 0.89
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 30.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $10.50 ▲(7.91% Upside)

The score is driven primarily by improving financial quality (strong cash generation, healthy margins, low leverage) and a positive earnings-call outlook with raised guidance and accelerating software revenue growth. Technicals are supportive with constructive momentum. The main constraint is valuation/earnings quality, as the company remains slightly loss-making on a GAAP basis (negative P/E) and has no dividend yield provided.

Positive Factors

Strong cash generation

Sustained positive operating and free cash flow improves financial flexibility, funds R&D and sales investments internally, and reduces reliance on external financing. Over 2-6 months this supports product development and deal pursuit while absorbing cyclical contract timing variability.

High and expanding gross margins

Very high gross margins reflect scalable software economics and pricing power, enabling durable operating leverage as revenue grows. Margin expansion increases room for sales/engineering reinvestment and makes profitability recovery easier even with modest top-line expansion.

Software/recurring revenue acceleration

Rapid software revenue growth and an 88% software mix signal a shift toward higher-margin, recurring streams. This increases revenue predictability, improves lifetime customer value, and supports long-term scaling benefits from subscription and maintenance models.

Negative Factors

Still GAAP loss & negative ROE

Persisting GAAP losses and negative ROE indicate shareholder capital is not yet generating positive returns. Until GAAP profitability and ROE normalize, the company faces constraints on capital allocation, investor confidence, and the ability to sustainably fund growth without dilutive or costly financing.

Modest overall revenue growth

While software shows strong gains, aggregate top-line growth remains modest, limiting scale benefits. Slower total revenue expansion can constrain operating leverage, delay margin normalization, and suggest reliance on a few large contracts rather than broad, repeatable market penetration.

Concentration on government/federal demand

High exposure to government and federal contracts makes revenue lumpy and tied to procurement cycles and political risk. Procurement delays or shutdowns can pause multi-year deals, and declining services revenue highlights vulnerability in cross-sell and deployment channels.

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

Strong free cash flow and operating cash flow (TTM) alongside healthy gross margins and improving operating profitability support a solid score. The main offsets are modest TTM revenue growth and still slightly negative net margin/ROE, indicating profitability is not yet fully normalized.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	124.59M	69.99M
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: 9.73
• 50DMA: Negative
• 100DMA: Positive
• 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 9.73 is above the 20-day moving average (MA) of 9.23, above the 50-day MA of 9.06, and above the 200-day MA of 9.11, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 48.08 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	74 Outperform	$2.27B	27.02	28.84%	1.66%	3.30%	31.18%
CGNT	68 Neutral	$659.53M	-116.37	―	―	―	―
RDWR	65 Neutral	$1.05B	64.42	5.09%	―	10.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.63B	-79.10	-8.95%	―	11.05%	45.23%
RPD	56 Neutral	$780.53M	34.44	37.09%	―	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.