Cognyte Software Ltd. (NASDAQ:CGNT) saw its shares climb 4.2% in early trading after the company delivered third-quarter results that outperformed expectations and raised its full-year fiscal 2026 forecast.
For the quarter ending October 31, Cognyte reported adjusted earnings of $0.03 per share, topping analysts’ projections of $0.01. Revenue increased 13.2% year over year to $100.7 million, ahead of the $99.58 million consensus and marking a meaningful acceleration from the prior year’s performance.
The company also boosted its FY26 outlook, now anticipating revenue of roughly $400 million (±1%) and adjusted earnings of $0.24 per share. Both figures come in above Wall Street’s expectations of $396 million and $0.20 per share.
CEO Elad Sharon highlighted the company’s momentum, stating, “Our strong performance reflects our leadership in AI-driven investigative analytics. Our relentless innovation is rooted in the real operational needs of today and tomorrow.”
Operational improvements were also evident in profitability metrics. Non-GAAP operating income surged to $9.0 million, nearly tripling last year’s $3.4 million, while adjusted EBITDA jumped to $11.9 million from $6.6 million.
Software revenue was a standout category, rising 39.6% year over year to $41.9 million, fueled by strengthening demand for Cognyte’s software solutions. Recurring revenue contributed 47.1% of total revenue, reaching $47.5 million.
CFO David Abadi reiterated management’s confidence, noting, “We continued executing well, delivering another quarter of strong results, and are pleased to raise our full-year outlook. We have a track record of consistently delivering revenue growth, margin expansion and strong cash generation.”
The company closed the quarter with $106.6 million in cash and remained debt-free. In addition, Cognyte repurchased roughly 152,000 shares for about $1.3 million under its buyback program launched in July 2025.