Cognyte Software Ltd. (NASDAQ:CGNT) posted second-quarter revenue that surpassed analyst expectations and raised its full-year guidance, driven by strong demand for its AI-powered investigative analytics solutions. Shares in the Israel-based software company rose 0.84% following the announcement.
For the quarter ending July 31, 2025, Cognyte reported revenue of $97.5 million, beating the consensus estimate of $95.8 million and marking a 15.5% increase from the same period last year. Adjusted earnings per share came in at $0.02, slightly below the analyst forecast of $0.03.
Profitability showed notable gains, with non-GAAP operating income nearly doubling to $8 million from $4.4 million a year earlier. Adjusted EBITDA increased to $11 million, up from $8.3 million in the prior-year quarter.
“Our second quarter results reflect the recognition of Cognyte as a leader in AI-driven investigative analytics,” said Elad Sharon, Cognyte’s chief executive officer. “As global threats become more complex, customers increasingly rely on our mission-critical solutions in their investigative efforts.”
The company raised its full-year fiscal 2026 outlook, now projecting revenue of roughly $397 million (±2%), which represents 13% year-over-year growth and exceeds the analyst consensus of $395.1 million. Cognyte also boosted its non-GAAP EPS guidance to $0.23 for the full year, above the $0.18 consensus.
Software revenue was particularly strong, rising 35.9% year-over-year to $36.6 million, largely due to higher sales of perpetual software licenses. Recurring revenue increased 1.8% to $47.4 million, making up 48.7% of total revenue.
During the quarter, Cognyte completed a $20 million share repurchase program previously authorized and announced a new $20 million buyback initiative extending through January 2027.
“We continue to benefit from healthy global demand and strong visibility into our business,” said David Abadi, Cognyte’s chief financial officer. “Our strong balance sheet, sustained revenue growth and expanding profitability reinforce our confidence in reaching our financial targets.”
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