Cognyte Software (CGNT) AI Stock Analysis

• Market Cap: $680.71M
• Dividend Yield: N/A
• Average Volume (3M): 249.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• 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: 71,956,190
• 10 Day Avg. Volume: 349,622
• 30 Day Avg. Volume: 249,706
• 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: 0.75
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 26.33
• 1Y Price Target: $14.00
• Price Target Upside: 47.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $10.00 ▲(5.71% Upside)

Cognyte Software's overall stock score is driven by strong earnings call results and positive technical indicators, offset by financial performance challenges and a difficult valuation scenario. The company's improved cash flow and raised guidance are positive, but declining revenues and persistent losses weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Improvement

Improved cash flow management enhances liquidity and financial flexibility, supporting sustainable business operations and growth.

Software Revenue Growth

Strong software revenue growth underscores product strength and competitive positioning, driving long-term profitability.

Negative Factors

Declining Revenue Trend

A declining revenue trend suggests challenges in market penetration and competitiveness, potentially impacting future growth.

Persistent Net Losses

Ongoing net losses highlight operational inefficiencies and financial strain, which could hinder long-term sustainability.

Decreasing Equity

Diminishing equity indicates potential erosion of shareholder value, raising concerns about financial health and investor confidence.

Cognyte Software Business Overview & Revenue Model

Company Description

Cognyte Software (CGNT) is a leading provider of security analytics software that specializes in helping governments and enterprises analyze vast amounts of data to uncover actionable insights. The company operates primarily in the cybersecurity and intelligence sectors, offering a suite of products designed for intelligence agencies, law enforcement, and corporate security teams. Cognyte's core offerings include advanced analytics platforms, visual intelligence tools, and integrated software solutions that enhance decision-making and situational awareness in complex environments.

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

Cognyte Software faces challenges with declining revenues and persistent net losses. Despite an improved gross profit margin and positive cash flow trends, operational inefficiencies are evident in negative EBIT margins. The balance sheet reflects a stable debt position but diminishing equity, indicating a need for revenue growth and profitability enhancement.

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.

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.

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.

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: Positive
• Last Price: 9.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 9.46 is above the 20-day moving average (MA) of 8.94, above the 50-day MA of 8.58, and above the 200-day MA of 9.02, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 56.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGNT.

Cognyte Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	73 Outperform	$2.20B	26.13	28.84%	1.64%	3.30%	31.18%
RDWR	65 Neutral	$1.04B	63.91	5.09%	―	10.40%	―
VRNT	64 Neutral	―	―	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.96B	―	-8.95%	―	11.05%	45.23%
CGNT	57 Neutral	$680.71M	-121.91	-2.79%	―	―	―
RPD	56 Neutral	$1.01B	44.76	37.09%	―	3.08%	-54.07%

Cognyte Software Corporate Events

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%.

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.