Cognyte Software (NASDAQ:CGNT) Announces Earnings Results, Misses Estimates By $0.07 EPS

Cognyte Software (NASDAQ:CGNT) announced its earnings results on Wednesday. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.07), FiscalAI reports. Cognyte Software had a negative return on equity of 0.45% and a negative net margin of 0.66%.The company had revenue of $105.49 million during the quarter, compared to the consensus estimate of $105.04 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:

• 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 Up 0.2%

Shares of Cognyte Software stock opened at $9.25 on Friday. The firm has a market cap of $675.99 million, a price-to-earnings ratio of -231.25 and a beta of 1.64. The business has a 50-day moving average price of $9.63 and a 200-day moving average price of $8.91. Cognyte Software has a twelve month low of $6.29 and a twelve month high of $12.31.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. American Capital Management Inc. grew its position 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 valued at $56,716,000 after purchasing an additional 39,721 shares in the last quarter. Westerly Capital Management LLC grew its position in shares of Cognyte Software by 5.0% during the fourth quarter. Westerly Capital Management LLC now owns 1,155,000 shares of the company’s stock valued at $10,857,000 after purchasing an additional 55,000 shares in the last quarter. Millennium Management LLC grew its position in shares of Cognyte Software by 101.9% during the first quarter. Millennium Management LLC now owns 921,853 shares of the company’s stock valued at $7,190,000 after purchasing an additional 465,307 shares in the last quarter. Scalar Gauge Management LLC grew its position in shares of Cognyte Software by 14.6% during the fourth quarter. Scalar Gauge Management LLC now owns 904,099 shares of the company’s stock valued at $8,499,000 after purchasing an additional 115,000 shares in the last quarter. Finally, Samjo Management LLC grew its position in shares of Cognyte Software by 64.4% during the fourth quarter. Samjo Management LLC now owns 896,325 shares of the company’s stock valued at $8,425,000 after purchasing an additional 351,150 shares in the last quarter. Hedge funds and other institutional investors own 72.92% of the company’s stock.

More Cognyte Software News

Here are the key news stories impacting Cognyte Software this week:

• Positive Sentiment: Cognyte posted fiscal Q1 2027 revenue of $105.5 million, up 10% year over year and just ahead of estimates, suggesting continued demand for its investigative analytics and related security solutions. Cognyte Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: The company raised FY 2027 guidance, with EPS guidance of $0.47 versus the Street at $0.41 and revenue guidance of $434.6 million to $461.4 million above consensus, which supports the case for improving execution ahead. Cognyte Reports First Quarter Fiscal Year 2027 Financial Results
• Neutral Sentiment: Management and recent commentary suggest financial investigations could become a new growth engine, especially as Cognyte expands into financial crime and investigative analytics use cases. Can Financial Investigations Become Cognyte’s Next Major Growth Engine?
• Neutral Sentiment: Several earnings-call transcript and presentation articles may give investors more detail on the quarter, but they do not appear to change the main takeaway from the results. Cognyte Software Ltd. (CGNT) Q1 2027 Earnings Call Transcript
• Negative Sentiment: Cognyte earned just $0.03 per share versus expectations for $0.10, and that profit shortfall is the main reason the stock is being sold off despite the revenue beat. Cognyte Software Ltd. (CGNT) Misses Q1 Earnings Estimates
• Negative Sentiment: Some analysts are questioning whether the company’s cash-flow story is fully proven yet, which could keep a lid on the shares until results show more consistency. Cognyte Software: The Cash Flow Story Still Needs Proof

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.