Israel's Cognyte misses Q4 operating income expectations

COGNYTE SOFTWARE

25/03/2026 11:15

Overview

Israeli investigative analytics software firm's Q4 revenue grew 12.4% yr/yr

Q4 operating income missed analyst expectations despite improvement from prior year

Company expanded share repurchase program and ended quarter with no debt

Outlook

Cognyte expects fiscal 2027 revenue of $448 mln, +/- 3%

Company sees fiscal 2027 adjusted EBITDA of about $68 mln at midpoint of revenue range

Cognyte forecasts fiscal 2027 non-GAAP diluted EPS of $0.47 at midpoint of revenue range

Result Drivers

SOFTWARE DEMAND - Company said increased demand for software solutions drove revenue growth in Q4

OPERATIONAL EFFICIENCIES - Margin improvement attributed to scale and operational efficiencies, per company

STRONG COLLECTIONS - Company said higher profitability and strong collections boosted operating cash flow

Company press release: ID:nBwbzW6CWa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$106.24 mln
Q4 Net Income
$5.12 mln
Q4 Operating Income
Miss
$5.16 mln
$9.98 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Cognyte Software Ltd is $13.00, about 65% above its March 24 closing price of $7.88

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)