Cognyte Software (NASDAQ:CGNT) Shares Gap Up After Earnings Beat

Cognyte Software Ltd. (NASDAQ:CGNT) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.88, but opened at $8.81. Cognyte Software shares last traded at $9.0950, with a volume of 528,873 shares.

The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.09. The company had revenue of $106.24 million for the quarter, compared to the consensus estimate of $106.20 million. Cognyte Software had a negative return on equity of 2.24% and a negative net margin of 1.45%.

Key Stories Impacting Cognyte Software

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

• Positive Sentiment: Q4 results beat expectations — Cognyte reported $0.10 EPS versus a $0.01 consensus and revenue of $106.24M (in line with estimates); management highlighted double?digit growth and operating leverage driving faster profitability. Read articleCognyte Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Wins a ~ $5M contract with a top U.S. state law?enforcement agency — the deal is recurring/mission?critical work that should support near?term revenue visibility and credibility in the U.S. public?sector market. Read articleCognyte Wins ~$5M Contract with Tier-1 US Law Enforcement Agency
• Neutral Sentiment: Pre?announcement coverage and previews circulated ahead of the release; those items likely moved expectations into place but the market reaction reflects the actual beat and guidance. Read articleCognyte Software set to report Q4 2026 earnings preview
• Neutral Sentiment: Short?interest reports in recent feeds show inconsistent/zero values (0 shares, NaN changes and 0.0 days?to?cover) — the data appears erroneous and is unlikely to be a meaningful driver until corrected, so treat these reports cautiously.
• Negative Sentiment: Profitability still shows weakness on a per?metric basis — the company reported a negative net margin (~?1.45%) and negative ROE (~?2.24%), and some analysts still model a negative full?year EPS (~?0.2). These factors limit valuation upside unless operating leverage continues to convert into consistently positive margins. Read articleMarketBeat company summary

Analysts Set New Price Targets

CGNT has been the topic of several research analyst reports. Wall Street Zen raised shares of Cognyte Software from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Weiss Ratings restated a “sell (d-)” rating on shares of Cognyte Software in a research report on Wednesday, January 21st. Finally, 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 target price for the company. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $13.50.

Hedge Funds Weigh In On Cognyte Software

Hedge funds and other institutional investors have recently modified their holdings of the stock. Topline Capital Management LLC lifted its stake in shares of Cognyte Software by 2.4% during the third quarter. Topline Capital Management LLC now owns 7,195,619 shares of the company’s stock worth $60,443,000 after buying an additional 168,329 shares during the period. American Capital Management Inc. lifted its stake in Cognyte Software by 0.6% during the 3rd quarter. American Capital Management Inc. now owns 6,751,962 shares of the company’s stock valued at $56,716,000 after acquiring an additional 39,721 shares during the period. Westerly Capital Management LLC boosted its holdings in shares of Cognyte Software by 5.0% in the 4th quarter. Westerly Capital Management LLC now owns 1,155,000 shares of the company’s stock valued at $10,857,000 after acquiring an additional 55,000 shares during the last quarter. Millennium Management LLC raised its holdings 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 worth $7,190,000 after purchasing an additional 465,307 shares during the last quarter. Finally, Scalar Gauge Management LLC lifted its position in 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 during the period. 72.92% of the stock is owned by hedge funds and other institutional investors.

Cognyte Software Stock Up 12.3%

The stock has a market cap of $646.00 million, a PE ratio of -112.63 and a beta of 1.64. The business has a 50 day moving average price of $8.08 and a 200 day moving average price of $8.48.

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.