Cognyte Software (NASDAQ:CGNT) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Cognyte Software (NASDAQ:CGNT) posted its earnings results on Wednesday. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.06, FiscalAI reports. The business had revenue of $109.24 million for the quarter, compared to analyst estimates of $108.51 million. Cognyte Software had a negative net margin of 0.01% and a positive return on equity of 1.30%. Cognyte Software updated its FY 2027 guidance to 0.470-0.470 EPS.

Here are the key takeaways from Cognyte Software’s conference call:

• Q2 revenue and profitability strengthened: Revenue rose 12% year over year to approximately $109 million, while non-GAAP operating income increased 52.5% and non-GAAP EPS nearly doubled to $0.15.
• Higher-quality revenue mix continued to expand. Software revenue grew 20.9% to $100.8 million and recurring revenue increased 18.4% to $56.2 million, while professional services declined to less than 8% of revenue.
• Management maintained its FY2027 outlook, narrowing the revenue range around an unchanged midpoint of approximately $448 million, and remains confident in FY2028 revenue of $500 million. The company cited visibility into roughly 85% of the next 12 months’ revenue and expects Q3 and Q4 sequential growth.
• Reported RPO declined to $470.2 million, partly due to consumption of large multiyear contracts and subscription arrangements that are not fully included in RPO. Management argued that expected renewals, recent bookings, and customer activity provide a more complete view of demand visibility.
• The company is increasing inventory to address strong demand and extended supply-chain lead times, but said it could not quantify the impact on operating cash flow. As a result, management softened its cash-flow commentary from a specific $45 million target to expecting “significantly positive” full-year operating cash flow.

Cognyte Software Stock Performance

Shares of CGNT stock opened at $8.08 on Friday. Cognyte Software has a 52-week low of $6.29 and a 52-week high of $12.31. The stock has a fifty day simple moving average of $8.81 and a two-hundred day simple moving average of $8.93. The firm has a market capitalization of $597.11 million, a PE ratio of -202.00 and a beta of 1.67.

Institutional Trading of Cognyte Software

Several hedge funds have recently made changes to their positions in CGNT. PharVision Advisers LLC purchased a new stake in Cognyte Software in the third quarter worth $208,000. Virtus Advisers LLC increased its holdings in shares of Cognyte Software by 428.3% during the third quarter. Virtus Advisers LLC now owns 21,587 shares of the company’s stock valued at $181,000 after acquiring an additional 17,501 shares in the last quarter. Magnetar Financial LLC grew its stake in Cognyte Software by 66.2% during the 3rd quarter. Magnetar Financial LLC now owns 62,112 shares of the company’s stock valued at $522,000 after purchasing an additional 24,737 shares during the last quarter. State of Tennessee Department of Treasury grew its position in Cognyte Software by 73.5% during the 2nd quarter. State of Tennessee Department of Treasury now owns 61,249 shares of the company’s stock worth $566,000 after purchasing an additional 25,953 shares during the period. Finally, Tidal Investments LLC lifted its stake in shares of Cognyte Software by 22.1% in the 2nd quarter. Tidal Investments LLC now owns 49,403 shares of the company’s stock valued at $456,000 after purchasing an additional 8,927 shares during the period. 72.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

CGNT has been the subject of several research reports. Zacks Research upgraded shares of Cognyte Software from a “strong sell” rating to a “hold” rating in a research report on Monday, August 3rd. Wall Street Zen downgraded shares of Cognyte Software from a “buy” rating to a “hold” rating in a research note on Saturday, June 6th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $13.50.

Cognyte Software Company Profile

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.