Cognyte Software (NASDAQ:CGNT) Issues Quarterly Earnings Results

by · The Markets Daily

Cognyte Software (NASDAQ:CGNT – Get Free Report) released its earnings results on Wednesday. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.06, FiscalAI reports. Cognyte Software had a negative net margin of 0.01% and a positive return on equity of 1.30%. The business had revenue of $109.24 million during the quarter, compared to analysts’ expectations of $108.51 million. Cognyte Software updated its FY 2027 guidance to 0.470-0.470 EPS.

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

  • Q2 revenue and profitability strengthened: Revenue rose 12% year over year to approximately $109 million, while non-GAAP operating income increased 52.5% and non-GAAP EPS nearly doubled to $0.15.
  • Higher-quality revenue mix continued to expand. Software revenue grew 20.9% to $100.8 million and recurring revenue increased 18.4% to $56.2 million, while professional services declined to less than 8% of revenue.
  • Management maintained its FY2027 outlook, narrowing the revenue range around an unchanged midpoint of approximately $448 million, and remains confident in FY2028 revenue of $500 million. The company cited visibility into roughly 85% of the next 12 months’ revenue and expects Q3 and Q4 sequential growth.
  • Reported RPO declined to $470.2 million, partly due to consumption of large multiyear contracts and subscription arrangements that are not fully included in RPO. Management argued that expected renewals, recent bookings, and customer activity provide a more complete view of demand visibility.
  • The company is increasing inventory to address strong demand and extended supply-chain lead times, but said it could not quantify the impact on operating cash flow. As a result, management softened its cash-flow commentary from a specific $45 million target to expecting “significantly positive” full-year operating cash flow.

Cognyte Software Trading Down 0.9%

Cognyte Software stock opened at $8.08 on Friday. The firm has a market capitalization of $597.11 million, a P/E ratio of -202.00 and a beta of 1.67. The stock’s fifty day simple moving average is $8.81 and its 200-day simple moving average is $8.93. Cognyte Software has a twelve month low of $6.29 and a twelve month high of $12.31.

Analyst Ratings Changes

Several equities analysts have recently weighed in on CGNT shares. Zacks Research raised shares of Cognyte Software from a “strong sell” rating to a “hold” rating in a research note on Monday, August 3rd. Wall Street Zen downgraded shares of Cognyte Software from a “buy” rating to a “hold” rating in a research note on Saturday, June 6th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Cognyte Software presently has a consensus rating of “Hold” and an average price target of $13.50.

Get Our Latest Stock Report on CGNT

Hedge Funds Weigh In On Cognyte Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Capital Management Inc. grew its holdings in shares of Cognyte Software by 0.6% during the third quarter. American Capital Management Inc. now owns 6,751,962 shares of the company’s stock worth $56,716,000 after buying an additional 39,721 shares during the last quarter. Westerly Capital Management LLC grew its stake in shares of Cognyte Software by 5.0% during the 4th quarter. Westerly Capital Management LLC now owns 1,155,000 shares of the company’s stock valued at $10,857,000 after buying an additional 55,000 shares during the period. Millennium Management LLC raised its holdings in shares of Cognyte Software by 101.9% in the 1st quarter. Millennium Management LLC now owns 921,853 shares of the company’s stock worth $7,190,000 after purchasing an additional 465,307 shares during the period. Scalar Gauge Management LLC grew its holdings in shares of Cognyte Software by 14.6% during the 4th quarter. Scalar Gauge Management LLC now owns 904,099 shares of the company’s stock worth $8,499,000 after purchasing an additional 115,000 shares during the period. Finally, Samjo Management LLC boosted its position in Cognyte Software by 64.4% during the 4th quarter. Samjo Management LLC now owns 896,325 shares of the company’s stock worth $8,425,000 after purchasing an additional 351,150 shares during the period. 72.92% of the stock is owned by institutional investors and hedge funds.

Cognyte Software Company Profile

(Get Free Report)

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.

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