Cognyte Software (CGNT) Q4 2026 earnings summary

Executive summary

• Delivered strong Q4 and FY 2026 results with double-digit revenue growth, significant margin expansion, and improved profitability, driven by repeat business, new customer wins, US market expansion, and advanced AI-driven solutions.

• Demonstrated consistent execution of growth strategy, expanding installed base and acquiring new customers, particularly in the USA.

• Secured major deals across geographies, including a $6M EMEA subscription conversion and a $5M US law enforcement win, reflecting growing adoption of subscription models.

• Market demand remains robust, fueled by increasing complexity of threats, data growth, modernization initiatives, and AI-driven demand for mission-critical technology.

• Advanced technology, especially in AI-driven analytics, contributed to improved customer outcomes and operational efficiency.

Financial highlights

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

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

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

• Q4 GAAP net income was $5.1M, reversing a prior year loss; full-year 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; full-year 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 to rise to 73.5%.

• Adjusted EBITDA projected at $68M (+40% YoY); 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%.