Want to see CGNT full AI Analyst Report?
Top Page
Cognyte Software
(NASDAQ:CGNT)
Select Model
Select Model
Rating:67Neutral
Price Target:
$11.00
▲(31.42% Upside)
Action:Reiterated
Date:09/12/26
CGNT’s score is supported primarily by improving fundamentals (strong and growing free cash flow, positive operating profitability, and low leverage) and a notably upbeat earnings call with double-digit growth guidance and expanding margins. Offsetting this, the technical picture is bearish (price below key moving averages with negative MACD), and valuation is less supportive due to a negative P/E and no dividend yield provided.
Positive Factors
Software and recurring growth
Rapid growth in software and recurring revenue is improving Cognyte’s mix toward more repeatable, scalable business. This can strengthen customer retention, increase revenue visibility, and support steadier growth as subscriptions and software services become a larger share of sales.
Negative Factors
Fewer new customers
The sharp reduction in new-logo additions raises questions about the pace of customer acquisition, an important driver of future expansion. Continued weakness could increase reliance on existing-account growth and make longer-term revenue targets more dependent on renewals and upselling.
Read all positive and negative factors
Positive Factors
Negative Factors
Software and recurring growth
Rapid growth in software and recurring revenue is improving Cognyte’s mix toward more repeatable, scalable business. This can strengthen customer retention, increase revenue visibility, and support steadier growth as subscriptions and software services become a larger share of sales.
Read all positive factors
Cognyte Software (CGNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$736.24M
Dividend YieldN/A
Average Volume (3M)538.39K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,710
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding73,845,240
10 Day Avg. Volume524,730
30 Day Avg. Volume538,389
Financial Highlights & Ratios
PEG Ratio10.94
Price to Book (P/B)3.19
Price to Sales (P/S)1.65
P/FCF Ratio22.17
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda24.95
Forecast
1Y Price Target
$13.00Price Target Upside55.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.45
Revenue Forecast (FY)$446.89M
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 makes money by selling security analytics software and related services to customers, with revenue generally derived from software licensing/subscriptions and associated maintenance/support as well as professional services tied to implemen...
Cognyte Software Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call was strongly positive, supported by double-digit revenue growth, faster growth in software and recurring revenue, expanding margins and profitability, healthy customer demand, strong revenue visibility, a reaffirmed outlook, and confidence in the fiscal 2028 target. The main challenges were lower new-logo additions, lower professional services revenue, foreign exchange pressure, declining reported RPO, subscription-related revenue timing, and inventory investment that affects cash-flow timing and quantification.Positive Updates
Strong Q2 Revenue Growth
Q2 revenue was $109 million, up 12% year over year. Total software revenue grew 20.9% to $100.8 million and represented more than 92% of total revenue.
Negative Updates
Decline in New-Logo Additions
The company added 14 new customers in H1 compared with 31 in the same period last year.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 Revenue Growth
Q2 revenue was $109 million, up 12% year over year. Total software revenue grew 20.9% to $100.8 million and represented more than 92% of total revenue.
Read all positive updates
Company Guidance
Management narrowed its full year revenue range to approximately $448 million plus or minus 2%, representing approximately 12% year over year growth at the midpoint, expects Q3 revenue to be slightly higher than Q2 followed by sequential growth in Q4, and remains on track for its FY 2028 revenue target of $500 million. It expects non GAAP gross margin of approximately 73.5% for the year, an improvement of 50 basis points from last year, non GAAP operating income to be about $56 million, growth of more than 50% year over year, adjusted EBITDA of approximately $68 million, growth of about 40%, and annual non GAAP EPS of $0.47 at the midpoint of the range. Management continues to expect significant positive operating cash flow for the full year but is not quantifying cash flow from operations because of incremental inventory investment, said approximately 85% of the revenue required to support the plan over the next 12 months is covered, with the remaining approximately 15% expected to come primarily from normal book and ship activity, and remains on track to achieve $20 million of signed deals in The US this year.Cognyte Software Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 421.71M | 400.04M | 350.63M | 313.40M | 312.06M | 474.04M |
| Gross Profit | 307.70M | 289.70M | 246.92M | 215.40M | 192.13M | 341.64M |
| EBITDA | 25.03M | 23.51M | 9.38M | 573.00K | -77.35M | 29.73M |
| Net Income | -59.00K | -638.00K | -12.05M | -15.57M | -114.13M | -14.89M |
Balance Sheet | ||||||
| Total Assets | 505.85M | 521.07M | 497.82M | 472.08M | 443.08M | 664.61M |
| Cash, Cash Equivalents and Short-Term Investments | 102.17M | 116.88M | 112.72M | 74.48M | 52.09M | 163.02M |
| Total Debt | 35.19M | 43.04M | 35.53M | 33.36M | 16.97M | 124.59M |
| Total Liabilities | 286.36M | 292.20M | 280.72M | 257.35M | 233.30M | 365.52M |
| Stockholders Equity | 195.34M | 206.54M | 198.19M | 197.88M | 194.13M | 285.14M |
Cash Flow | ||||||
| Free Cash Flow | 34.38M | 29.69M | 33.59M | 25.49M | -48.67M | -15.16M |
| Operating Cash Flow | 43.10M | 40.33M | 46.78M | 34.56M | -36.99M | 2.63M |
| Investing Cash Flow | -1.31M | -14.09M | -5.69M | 9.36M | 20.13M | -17.85M |
| Financing Cash Flow | -24.55M | -24.85M | -7.95M | -2.45M | -102.93M | 58.74M |
Cognyte Software Technical Analysis
Positive
8.37
Price Trends
8.68
Positive
8.75
Positive
8.83
Positive
Market Momentum
0.24
Negative
72.77
Negative
87.49
Negative
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 8.37 is below the 20-day moving average (MA) of 8.88, below the 50-day MA of 8.68, and below the 200-day MA of 8.83, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 87.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $477.82B | 157.81 | 37.47% | ― | 78.92% | 285.33% | |
67 Neutral | $736.24M | -2,373.81 | -0.03% | ― | ― | ― | |
67 Neutral | $3.07B | 51.95 | 11.87% | ― | 17.76% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $74.39M | 2.67 | -1.21% | ― | 32.24% | ― | |
47 Neutral | $69.00M | -0.45 | -249.64% | ― | -1.81% | 46.29% | |
47 Neutral | $233.04M | -4.49 | -26.83% | ― | ― | ― |
* Technology Sector Average
CGNT
Cognyte Software
9.97
1.47
17.29%
VERI
Veritone
0.57
-6.10
-91.50%
PLTR
Palantir Technologies
198.84
9.24
4.87%
CLBT
Cellebrite DI
12.23
-6.26
-33.86%
AISP
Airship AI Holdings
2.16
-2.70
-55.56%
GRRR
Gorilla Technology Group Inc.
8.45
-7.26
-46.21%
Cognyte Software Corporate Events
Cognyte Posts Double-Digit Software Growth and Reaffirms Fiscal 2027 Outlook
Sep 9, 2026
On September 9, 2026, Cognyte reported strong results for its second quarter and first half of fiscal year ending January 31, 2027, highlighting accelerating software growth and expanding profitability. For Q2 FYE27, revenue rose 12% year over yea...
Cognyte Shareholders Back Board Slate and Auditor at September 3 Annual Meeting
Sep 8, 2026
Cognyte Software held its annual general meeting of shareholders for the fiscal year ending January 31, 2027 on September 3, 2026 in Herzliya, Israel, with a quorum of 63.24% of outstanding ordinary shares represented. Shareholders approved all it...
Cognyte Sets September 9 Call to Discuss Q2 FYE27 Results
Sep 1, 2026
Cognyte Software said on September 1, 2026, that it will release and review its financial results for the second quarter of its fiscal year ending 2027, covering the period to July 31, 2026, via a conference call scheduled for September 9, 2026. T...
Cognyte Calls September Shareholder Meeting as Strong Fiscal 2026 Results Bolster Market Position
Jul 29, 2026
On July 29, 2026, Cognyte Software announced it will hold its Annual General Meeting of shareholders on September 3, 2026, at its Herzliya headquarters in Israel. The company has circulated a notice, proxy statement and proxy card to enable shareh...
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.