Cognyte Secures $5M Contract with National Security Agency
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 24 2026
0mins
Source: seekingalpha
- Significant Contract Value: Cognyte Software has secured an agreement worth approximately $5 million with a long-standing national security agency customer in the Asia-Pacific region, aimed at enhancing network intelligence capabilities and upgrading infrastructure to improve overall performance and scalability.
- Support for Technological Upgrades: This contract will enable the agency to prepare for future AI-powered analytics, ensuring it can effectively respond to evolving security demands and enhance its competitiveness in the national security sector.
- Financial Performance Impact: Despite Cognyte reporting a non-GAAP EPS of $0.03 for Q1 2027, missing expectations by $0.06, its revenue of $105.5 million exceeded forecasts, demonstrating the company's resilience in the market.
- Market Reaction: Cognyte Software's stock plunged amid mixed Q1 results, reflecting investor concerns over the company's future cash flow and profitability, although the new contract may provide a stable revenue source.
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Analyst Views on CGNT
About CGNT
Cognyte Software Ltd is an Israel-based company. The main activity is focused on providing security and analytics software. The Company designs software that empowers governments and enterprises with Actionable Intelligence for solutions accelerate security investigations to successfully identify, neutralize, and prevent threats.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cognyte Secures $5M Contract with National Security Agency
- Significant Contract Value: Cognyte Software has secured an agreement worth approximately $5 million with a long-standing national security agency customer in the Asia-Pacific region, aimed at enhancing network intelligence capabilities and upgrading infrastructure to improve overall performance and scalability.
- Support for Technological Upgrades: This contract will enable the agency to prepare for future AI-powered analytics, ensuring it can effectively respond to evolving security demands and enhance its competitiveness in the national security sector.
- Financial Performance Impact: Despite Cognyte reporting a non-GAAP EPS of $0.03 for Q1 2027, missing expectations by $0.06, its revenue of $105.5 million exceeded forecasts, demonstrating the company's resilience in the market.
- Market Reaction: Cognyte Software's stock plunged amid mixed Q1 results, reflecting investor concerns over the company's future cash flow and profitability, although the new contract may provide a stable revenue source.
See More
Cognyte Software Reports Strong Q1 Growth with Double-Digit Revenue Increase
- Revenue Growth: Cognyte Software reported Q1 revenue of $105.5 million, reflecting a 10.4% year-over-year increase, driven by strong customer activity and better-than-expected adoption of subscription offerings, thereby enhancing market competitiveness.
- Software Services Performance: Software revenue reached $47.3 million, up 26.5%, while software services revenue was $50.1 million, increasing by 12.1%, indicating the company's ongoing expansion in the software sector and improvement in profitability.
- Cash Flow Challenges: Despite reporting negative cash flow from operations of $4.7 million primarily due to FX dynamics and inventory buildup, the company anticipates improved cash flow in the second half of the year, targeting $45 million for full-year cash flow.
- Increased Subscription Agreements: Cognyte secured over $20 million in new subscription agreements in the US market and expects to generate $20 million in deals this year, demonstrating confidence and growth potential in strategic markets.
See More
Cognyte Beats Q1 Sales Expectations but Misses Earnings
- Sales Beat Expectations: Cognyte reported Q1 sales of $105.5 million for fiscal 2027, marking a 10.4% year-over-year increase and exceeding Wall Street's estimate by $460,000, indicating strong market performance.
- Earnings Miss Forecast: Despite the sales beat, the company's non-GAAP earnings per share came in at $0.03, falling short of the average analyst estimate by $0.06, raising concerns about profitability and potentially impacting investor confidence.
- Guidance Reiterated: Cognyte maintained its full-year sales guidance at $448 million, slightly above Wall Street's forecast of $446 million, reflecting confidence in future sales, although the weak earnings outlook may lead to negative market reactions.
- Significant Stock Decline: Following the earnings report, Cognyte's stock price dropped by 20.1%, exacerbating investor worries about the company's profitability outlook and potentially leading to further market volatility.
See More
Cognyte Software Stock Faces Major Pullback After Q1 Results
- Mixed Earnings Report: Cognyte Software's Q1 results for fiscal 2027 revealed sales of $105.5 million, a 10.4% year-over-year increase that exceeded Wall Street expectations, yet the adjusted earnings per share of $0.03 fell short by $0.06, leading to a 20.1% drop in stock price.
- Negative Market Reaction: Despite sales surpassing analyst estimates by $460,000, the significantly weaker profit margin has diminished investor confidence in the company's outlook, as reflected in the substantial stock pullback.
- Optimistic Future Guidance: The company reiterated its sales guidance of $448 million for the fiscal year, which is above Wall Street's forecast of $446 million, indicating confidence in future sales growth.
- Concerns Over Profit Forecast: While the earnings guidance aligns with Wall Street's expectations, the significant miss in profits raises investor concerns about the company's ability to meet its adjusted earnings forecast of $0.47, potentially impacting future stock performance.
See More
Cognyte Software Shares Plunge 26% After Mixed Q1 Results
- Earnings Report: Cognyte Software reported an adjusted earnings per share of $0.03 for Q1 ending April 30, with revenue rising 10.4% year-over-year to $105.5 million, falling short of analysts' expectations of $0.09 per share and $104.96 million in revenue, indicating significant pressure on performance.
- Subscription Growth: CFO David Abadi noted that due to better-than-expected adoption of subscription offerings, the company anticipates recurring revenue growth to outpace total revenue, reflecting the substantial value their differentiated solutions deliver to customers.
- Financial Outlook: Cognyte maintained its fiscal 2027 revenue outlook at $448 million, plus or minus 3%, aligning with market expectations of $446.04 million, while adjusted earnings are projected at $0.47 per share, consistent with analyst estimates.
- EBITDA Increase: The company expects adjusted EBITDA to reach $68 million, representing a roughly 40% year-over-year increase, indicating improvements in operational efficiency and profitability despite the significant drop in stock price.
See More
Cognyte Software Q1 Earnings Report Analysis
- Revenue Growth: Cognyte Software reported Q1 FYE27 revenue of $105.5 million, reflecting a 10.4% year-over-year increase, exceeding market expectations by $0.46 million, and projecting full-year revenue of $448 million, indicating approximately 12% growth compared to last year.
- Software Services Performance: Q1 software revenue rose to $9.9 million, a 26.5% increase driven by strong demand for software solutions, while software services revenue also increased to $5.4 million, up 12.1%, showcasing the company's competitive position in the market.
- Adjusted EBITDA: The company anticipates an adjusted EBITDA of approximately $68 million for Q1, representing a 40% year-over-year growth, indicating significant progress in operational efficiency and economies of scale, thereby enhancing profitability.
- Recurring Revenue Growth: Q1 recurring revenue reached $51.9 million, accounting for 49.2% of total revenue and reflecting a 10% year-over-year increase, demonstrating strong market acceptance of the company's subscription offerings and supporting future growth expectations.
See More
Cognyte Secures $5M Contract with National Security Agency
- Significant Contract Value: Cognyte Software has secured an agreement worth approximately $5 million with a long-standing national security agency customer in the Asia-Pacific region, aimed at enhancing network intelligence capabilities and upgrading infrastructure to improve overall performance and scalability.
- Support for Technological Upgrades: This contract will enable the agency to prepare for future AI-powered analytics, ensuring it can effectively respond to evolving security demands and enhance its competitiveness in the national security sector.
- Financial Performance Impact: Despite Cognyte reporting a non-GAAP EPS of $0.03 for Q1 2027, missing expectations by $0.06, its revenue of $105.5 million exceeded forecasts, demonstrating the company's resilience in the market.
- Market Reaction: Cognyte Software's stock plunged amid mixed Q1 results, reflecting investor concerns over the company's future cash flow and profitability, although the new contract may provide a stable revenue source.
See More
Cognyte Software Reports Strong Q1 Growth with Double-Digit Revenue Increase
- Revenue Growth: Cognyte Software reported Q1 revenue of $105.5 million, reflecting a 10.4% year-over-year increase, driven by strong customer activity and better-than-expected adoption of subscription offerings, thereby enhancing market competitiveness.
- Software Services Performance: Software revenue reached $47.3 million, up 26.5%, while software services revenue was $50.1 million, increasing by 12.1%, indicating the company's ongoing expansion in the software sector and improvement in profitability.
- Cash Flow Challenges: Despite reporting negative cash flow from operations of $4.7 million primarily due to FX dynamics and inventory buildup, the company anticipates improved cash flow in the second half of the year, targeting $45 million for full-year cash flow.
- Increased Subscription Agreements: Cognyte secured over $20 million in new subscription agreements in the US market and expects to generate $20 million in deals this year, demonstrating confidence and growth potential in strategic markets.
See More
Cognyte Beats Q1 Sales Expectations but Misses Earnings
- Sales Beat Expectations: Cognyte reported Q1 sales of $105.5 million for fiscal 2027, marking a 10.4% year-over-year increase and exceeding Wall Street's estimate by $460,000, indicating strong market performance.
- Earnings Miss Forecast: Despite the sales beat, the company's non-GAAP earnings per share came in at $0.03, falling short of the average analyst estimate by $0.06, raising concerns about profitability and potentially impacting investor confidence.
- Guidance Reiterated: Cognyte maintained its full-year sales guidance at $448 million, slightly above Wall Street's forecast of $446 million, reflecting confidence in future sales, although the weak earnings outlook may lead to negative market reactions.
- Significant Stock Decline: Following the earnings report, Cognyte's stock price dropped by 20.1%, exacerbating investor worries about the company's profitability outlook and potentially leading to further market volatility.
See More
Cognyte Software Stock Faces Major Pullback After Q1 Results
- Mixed Earnings Report: Cognyte Software's Q1 results for fiscal 2027 revealed sales of $105.5 million, a 10.4% year-over-year increase that exceeded Wall Street expectations, yet the adjusted earnings per share of $0.03 fell short by $0.06, leading to a 20.1% drop in stock price.
- Negative Market Reaction: Despite sales surpassing analyst estimates by $460,000, the significantly weaker profit margin has diminished investor confidence in the company's outlook, as reflected in the substantial stock pullback.
- Optimistic Future Guidance: The company reiterated its sales guidance of $448 million for the fiscal year, which is above Wall Street's forecast of $446 million, indicating confidence in future sales growth.
- Concerns Over Profit Forecast: While the earnings guidance aligns with Wall Street's expectations, the significant miss in profits raises investor concerns about the company's ability to meet its adjusted earnings forecast of $0.47, potentially impacting future stock performance.
See More
Cognyte Software Shares Plunge 26% After Mixed Q1 Results
- Earnings Report: Cognyte Software reported an adjusted earnings per share of $0.03 for Q1 ending April 30, with revenue rising 10.4% year-over-year to $105.5 million, falling short of analysts' expectations of $0.09 per share and $104.96 million in revenue, indicating significant pressure on performance.
- Subscription Growth: CFO David Abadi noted that due to better-than-expected adoption of subscription offerings, the company anticipates recurring revenue growth to outpace total revenue, reflecting the substantial value their differentiated solutions deliver to customers.
- Financial Outlook: Cognyte maintained its fiscal 2027 revenue outlook at $448 million, plus or minus 3%, aligning with market expectations of $446.04 million, while adjusted earnings are projected at $0.47 per share, consistent with analyst estimates.
- EBITDA Increase: The company expects adjusted EBITDA to reach $68 million, representing a roughly 40% year-over-year increase, indicating improvements in operational efficiency and profitability despite the significant drop in stock price.
See More
Cognyte Software Q1 Earnings Report Analysis
- Revenue Growth: Cognyte Software reported Q1 FYE27 revenue of $105.5 million, reflecting a 10.4% year-over-year increase, exceeding market expectations by $0.46 million, and projecting full-year revenue of $448 million, indicating approximately 12% growth compared to last year.
- Software Services Performance: Q1 software revenue rose to $9.9 million, a 26.5% increase driven by strong demand for software solutions, while software services revenue also increased to $5.4 million, up 12.1%, showcasing the company's competitive position in the market.
- Adjusted EBITDA: The company anticipates an adjusted EBITDA of approximately $68 million for Q1, representing a 40% year-over-year growth, indicating significant progress in operational efficiency and economies of scale, thereby enhancing profitability.
- Recurring Revenue Growth: Q1 recurring revenue reached $51.9 million, accounting for 49.2% of total revenue and reflecting a 10% year-over-year increase, demonstrating strong market acceptance of the company's subscription offerings and supporting future growth expectations.
See More
