NASDAQ$CGNT

Cognyte Software Ltd · Q3 2026 earnings

Q3 2026 earnings · · Investor relations

Briefing

Cognyte Q3 FY2026: revenue up 13% to $100.7M, raises full-year outlook on margin expansion

Cognyte Software (CGNT) reported Q3 fiscal 2026 revenue of $100.7 million, up 13.2% year over year, driven by 39.6% growth in software revenue and strong demand for AI-driven investigative analytics. GAAP operating income swung to $3.2 million from a $2.2 million loss, while non-GAAP operating income rose to $9.0 million from $3.4 million. Adjusted EBITDA grew to $11.9 million from $6.6 million, expanding faster than revenue. GAAP net loss attributable to Cognyte widened to $4.9 million ($0.07 per share) due to higher tax expense and FX impacts, though non-GAAP net income was $2.0 million ($0.03 per diluted share). Non-GAAP gross margin improved 297 bps to 73.1%. Cash rose to $106.6 million with no debt; operating cash flow was $25.0 million versus $12.3 million prior year. Management raised FY2026 outlook to $400M revenue (+/- 1%), ~$47M adjusted EBITDA, and $0.24 non-GAAP diluted EPS at the midpoint.

  • Q3 revenue of $100.7M (+13.2% YoY) with software revenue up 39.6% to $41.9M on strong analytics demand
  • Adjusted EBITDA of $11.9M (+81% YoY) and non-GAAP operating income of $9.0M; gross margin expanded to 73.1%
  • GAAP net loss attributable of $4.9M ($0.07/share) vs non-GAAP net income of $2.0M ($0.03/share)
  • Cash position strengthened to $106.6M with no debt; Q3 operating cash flow of $25.0M doubled prior year
  • Raised FY2026 outlook: $400M revenue (+14% YoY at midpoint), ~$47M adjusted EBITDA (+60% YoY), $0.24 non-GAAP EPS

Headline financials

Total Revenue

$101M

Previous: $89M+13.2%
EPS (adj)

$0.03

Previous: $0.02+50.0%
Adjusted EBITDA

$11.9M

No prior period
Recurring Revenue

$47.5M

No prior period
Non-GAAP Gross Margin

73.1%

No prior period
Total Backlog

$459M

No prior period
Net Income

-$4.89M

No prior period
Operating Income

$3.2M

No prior period
Cash & Equivalents

$107M

No prior period

Revenue & EPS history

Cognyte · Revenue · Quarterly

$97.5M

Q2 2026+15.5%vs Q2 2025
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Cognyte · $101M total across 3 segments · Q3 2026

  • Software Services
    $46.9M—
  • Software
    $41.9M—
  • Professional Services and Other
    $12M—

Forward guidance

For fiscal year ending January 31, 2026, Cognyte expects revenue of $400 million (+/- 1%, ~14% YoY growth at midpoint), adjusted EBITDA of approximately $47 million (~60% YoY growth), and non-GAAP diluted EPS of $0.24 at the revenue midpoint.

Tailwinds

  • Strong market demand for AI-driven investigative analytics
  • Recurring revenue and backlog provide visibility with $358.9M short-term RPO

Headwinds

  • GAAP net loss persists due to stock-based compensation and tax/FX headwinds
  • Geopolitical and Israel-related operational risks noted in forward-looking statements

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2026

Historical avgQ3 2026

-4.1%

Avg return

Earnings day

-5.7%

Avg return

5 days after

-4.8%

Avg return

30 days after

33%

7 / 21 earnings

Positive

+25.8%

Q4 2023

Best reaction

-35.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2028-20.7%-22.1%—
Q4 2027+0.7%+0.6%+21.7%
Q2 2026-10.9%-10.6%-12.0%
Q3 2025+4.1%+10.2%+1.2%
Q2 2025-15.3%-6.7%-12.4%
Q1 2025-7.2%-6.4%-7.1%
Q4 2024-17.1%-20.0%-9.2%
Q3 2024+9.7%+15.7%-0.8%
Q2 2024+18.6%+13.6%+5.8%
Q1 2024+4.3%+3.4%-0.2%
Q4 2023+25.8%+24.9%+24.0%
Q3 2023+22.6%+17.0%+51.9%
Q2 2023-3.4%-9.8%-40.0%
Q1 2023-29.0%-35.2%-28.2%
Q4 2022-35.8%-37.0%-40.0%
Q3 2022-11.8%-12.2%-29.5%
Q2 2022-16.1%-24.0%-22.6%
Q1 2022-3.7%-1.0%+4.6%
Q4 2021+0.0%-7.0%-1.5%
Q4 2019+0.0%-7.0%-1.5%
Q4 2020+0.0%-7.0%-1.5%
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