Israel's Cognyte Q2 revenue rises on software demand

COGNYTE SOFTWARE

09/09/2026 12:40

Overview
Israel AI analytics provider's fiscal Q2 revenue grew 12% yr/yr, operating income missed estimates
Non-GAAP diluted EPS for Q2 nearly doubled yr/yr
Company repurchased 1.5 mln shares during H1 FYE27 under buyback program

Outlook
Cognyte sees FYE27 revenue at $448 mln, with a range of +/- 2%
Company expects FYE27 adjusted EBITDA of about $68 mln at midpoint of revenue range
Cognyte forecasts FYE27 non-GAAP diluted EPS of $0.47 at midpoint of revenue range

Result Drivers
SOFTWARE DEMAND - Co said Q2 revenue growth was driven by consistent demand for its software solutions
RECURRING REVENUE - Growth in recurring revenue was primarily driven by adoption of subscription offerings
REVENUE MIX SHIFT - Higher software content and reduced professional services supported margin improvement

Company press release: ID:nBw93F1GCa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$109.24 mln
 
Q2 Net Income
 
$4.11 mln
 
Q2 Operating Income
Miss
$4.66 mln
$12.16 mln (4 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 58% above its September 8 closing price of $8.23
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 21 three months ago

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(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.)