Cognyte Software (NASDAQ:CGNT) Announces Earnings Results

Cognyte Software (NASDAQ:CGNT) posted its quarterly earnings data on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.07), FiscalAI reports. The firm had revenue of $105.49 million for the quarter, compared to analysts’ expectations of $105.04 million. Cognyte Software had a positive return on equity of 0.74% and a negative net margin of 0.16%. Cognyte Software updated its FY 2027 guidance to 0.470-0.470 EPS.

Here are the key takeaways from Cognyte Software’s conference call:

• Q1 revenue rose 10.4% year over year to $105.5 million, with gross margin expanding to 72.9% and non-GAAP operating income and adjusted EBITDA growing faster than sales, showing strong operating leverage.
• Recurring revenue increased 10% to $51.9 million and now represents 49.2% of total revenue, driven by stronger-than-expected subscription adoption and improved long-term visibility.
• Management highlighted robust customer demand across new logos, expansions, and upgrades, including a new three-year subscription deal worth over $20 million and a large expansion deal worth more than $10 million.
• The company reaffirmed full-year FY2027 revenue guidance of about $448 million while raising recurring revenue expectations, saying timing of deployments, RPO, and cash conversion keeps the top-line outlook unchanged for now.
• Cash flow was weaker in Q1, with negative operating cash flow of $4.7 million and free cash flow of $6.1 million, reflecting subscription timing, FX pressure, and higher inventory, though management still expects $45 million of full-year operating cash flow.

Cognyte Software Stock Performance

Shares of Cognyte Software stock opened at $9.23 on Thursday. Cognyte Software has a 52-week low of $6.29 and a 52-week high of $12.31. The stock’s 50-day simple moving average is $9.60 and its 200 day simple moving average is $8.91. The stock has a market capitalization of $674.53 million, a P/E ratio of -923.00 and a beta of 1.64.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on CGNT shares. Wall Street Zen downgraded shares of Cognyte Software from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 9th. Lake Street Capital started coverage on shares of Cognyte Software in a report on Monday, March 2nd. They issued a “buy” rating and a $13.00 price target on the stock. Finally, Zacks Research downgraded shares of Cognyte Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 26th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $13.50.

Institutional Investors Weigh In On Cognyte Software

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. raised its stake in Cognyte Software by 79.4% in the 2nd quarter. Osaic Holdings Inc. now owns 3,634 shares of the company’s stock valued at $34,000 after acquiring an additional 1,608 shares during the period. Quarry LP bought a new stake in Cognyte Software in the 3rd quarter valued at about $33,000. LPL Financial LLC bought a new stake in Cognyte Software in the 4th quarter valued at about $113,000. Aigen Investment Management LP bought a new stake in Cognyte Software in the 4th quarter valued at about $141,000. Finally, Brooklyn Investment Group bought a new stake in Cognyte Software in the 4th quarter valued at about $156,000. 72.92% of the stock is currently owned by institutional investors.

About Cognyte Software

Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes.

The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds.