Cognyte Software (CGNT) Q4 2026 earnings summary

Executive summary

• Delivered strong Q4 and FY 2026 results with double-digit revenue growth, significant profitability improvement, and robust cash flow generation, driven by repeat business, new customer wins, and US expansion.

• AI integration and operationalization are key differentiators, supporting durable customer relationships and high switching costs.

• Market demand remains strong due to increasing complexity of threats and data, with agencies accelerating modernization and intelligence initiatives.

• Achieved significant operating leverage and improved customer outcomes through advanced technology, especially AI-driven analytics.

Financial highlights

• FY 2026 revenue was $400M, up 14.1% year-over-year; Q4 revenue was $106.2M, up 12.4% year-over-year.

• Q4 non-GAAP gross margin reached 74.7%, up 320 bps year-over-year; FY 2026 non-GAAP gross margin was 73%.

• Q4 adjusted EBITDA was $15M, up 62.5% year-over-year; FY 2026 adjusted EBITDA was $48.2M, up 65.7%.

• Q4 GAAP net income was $5.1M, reversing a prior year loss; FY 2026 GAAP net income was $4.6M, compared to a $7.2M loss prior year.

• Q4 non-GAAP operating income was $12.1M, double year-over-year; FY 2026 non-GAAP operating income was $36.7M, more than double year-over-year.

Outlook and guidance

• FY 2027 revenue guidance is $448M ±3%, representing ~12% year-over-year growth; non-GAAP gross margin expected at 73.5%.

• Adjusted EBITDA projected at $68M (40% growth); non-GAAP EPS expected at $0.47.

• FY 2027 operating cash flow expected at $45M; CapEx at $11M.

• On track for FY 2028 targets: $500M revenue and adjusted EBITDA margin over 20%.