Cognyte Software (CGNT) Q1 2026 earnings summary

Executive summary

• Q1 FYE26 revenue grew 16% year over year to $95.5 million, reflecting strong execution, technology leadership, and healthy demand for solutions.

• Adjusted EBITDA more than doubled to $10.3 million, with non-GAAP operating income rising to $7.6 million, over four times higher than last year.

• Major customer wins included multi-year agreements with national security agencies and several $5 million+ deals.

• Acquisition of GroupSense expanded U.S. presence, added 50 subscription-based customers, and strengthened domain expertise.

• Cash flow from operations was $1.7 million; 952,000 shares repurchased for ~$9 million.

Financial highlights

• Q1 software revenue was $37.4 million, up 19% year over year; total software revenue was $82 million (86% of total revenue).

• Professional service revenue reached $13.5 million, up $6.6 million year over year.

• Recurring revenue was $47.2 million (49% of total revenue); billings were $78.3 million, flat year over year.

• Non-GAAP gross margin expanded to 71.9%, up 80 basis points year over year.

• GAAP operating income was $2.2 million, compared to a $(2.3) million loss last year; GAAP net income was $0.1 million versus $(3.6) million loss.

Outlook and guidance

• FY 2026 revenue guidance updated to $395 million ±2%, representing 13% year over year growth.

• Adjusted EBITDA expected at $44 million, up 50% year over year.

• Annual non-GAAP gross margin expected at 71.5%, up 50 basis points.

• Non-GAAP EPS projected at $0.19 for the year.

• Cash flow from operations expected to be $45 million for FY 2026.