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Apr 30

Cognyte Q1 2026 Earnings Report

Cognyte reported a return to profitability with strong revenue growth and improved margins in Q1 FY2026.

Key Takeaways

Cognyte delivered solid Q1 FY26 results, with revenue increasing to $95.5M and net income turning positive. The company posted gains across software and professional services, doubled its adjusted EBITDA, and strengthened its financial outlook with strategic acquisitions.

Revenue rose to $95.5M, reflecting strong software license sales and deployments.

Adjusted EBITDA more than doubled to $10.3M, indicating improved operating efficiency.

GAAP Net Income reached $0.1M, reversing a $3.6M loss in the same quarter last year.

Cognyte acquired GroupSense, enhancing its U.S. cyber threat intelligence capabilities.

Total Revenue
$95.5M
Previous year: $82.7M
+15.5%
EPS
$0.07
Previous year: -$0.04
-275.0%
Adjusted EBITDA
$10.3M
Previous year: $5.02M
+105.5%
Non-GAAP Gross Profit
$68.7M
Previous year: $58.8M
+16.8%
Recurring Revenue
$47.2M
Previous year: $45.7M
+3.2%
Gross Profit
$68.1M
Cash and Equivalents
$103M
Free Cash Flow
$1.71M
Total Assets
$491M

Cognyte

Cognyte

Cognyte Revenue by Segment

Forward Guidance

Cognyte raised its FY26 outlook, expecting $395M revenue and $44M adjusted EBITDA, driven by momentum from key acquisitions and growing demand.

Positive Outlook

  • Raised revenue guidance to $395M (+/-2%) for FY26.
  • Adjusted EBITDA expected to grow 50% YoY to $44M.
  • Non-GAAP EPS forecasted at $0.19.
  • GroupSense acquisition adds strategic value and U.S. market presence.
  • Improved profitability outlook supported by operational leverage.

Challenges Ahead

  • Net cash provided by operations dropped to $1.7M from $21.5M YoY.
  • Cash position declined due to $9M in share repurchases.
  • Outlook assumes no further acquisitions or macroeconomic disruptions.
  • Short-term cash generation affected by timing of collections.
  • Exposure to geopolitical and foreign exchange risks remains significant.

Revenue & Expenses

Visualization of income flow from segment revenue to net income