Israel's Cognyte Software Q1 revenue rises 10.4% on software demand

COGNYTE SOFTWARE

03/06/2026 12:11

Overview
Israel investigative analytics provider's fiscal Q1 revenue rose 10.4% yr/yr, driven by healthy demand
Adjusted EBITDA for fiscal Q1 grew 31.5% yr/yr, outpacing revenue growth
Company repurchased about 1 mln shares for $8.2 mln during the quarter

Outlook
Cognyte maintains fiscal 2027 revenue outlook at $448 mln, +/- 3%
Company expects fiscal 2027 adjusted EBITDA of about $68 mln at revenue midpoint
Cognyte forecasts fiscal 2027 non-GAAP diluted EPS of $0.47 at revenue midpoint

Result Drivers
SOFTWARE DEMAND - Co said revenue growth was mainly driven by healthy demand for its software solutions
SUBSCRIPTION ADOPTION - Recurring revenue growth was driven by better-than-expected adoption of subscription offerings
OPERATIONAL EFFICIENCIES - Improved gross profit and margin were primarily driven by scale, operational efficiencies and the value the Company’s solutions deliver to customers

Company press release: ID:nBw4QdJrra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$105.49 mln
 
Q1 Net Income attributable to company
 
-$3.039 mln
 
Q1 Operating Income
 
$4.41 mln
 

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 $13.50, about 16.2% above its June 2 closing price of $11.62
The stock recently traded at 22 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.)