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HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ: CGNT), a company specializing in investigative analytics software, has solidified a three-year subscription agreement with a key national security customer in the EMEA region. The deal, exceeding $10 million annually, will provide the agency with access to Cognyte’s advanced AI-powered solutions and continuous updates to address security challenges. The announcement comes as Cognyte’s stock trades near its 52-week high of $11.12, having gained over 40% in the past six months, according to InvestingPro data.
The new subscription model is designed to facilitate rapid innovation adoption, enhance operational flexibility, and maintain the agency’s edge in combating evolving threats. The agreement entails an upgrade to the latest version of Cognyte’s investigative analytics platform, which is expected to bolster the agency’s capabilities in generating actionable intelligence from diverse data sources. The company maintains strong operational efficiency with a gross profit margin of 70.42% and has demonstrated solid revenue growth of 11.88% in the last twelve months.
Efi Nuri, Cognyte’s Chief Revenue Officer, expressed pride in the expanded partnership, emphasizing the agreement as a testament to the value of Cognyte’s AI-driven solutions and the company’s focus on generating recurring revenue through subscription-based relationships.
Cognyte’s technology serves law enforcement, national security, and intelligence agencies, among others, by providing tools for processing vast amounts of data and converting it into actionable insights. The company’s solutions, which incorporate AI, big data analytics, and machine learning, are designed to help customers make informed decisions swiftly and accurately.
While the press release contains forward-looking statements regarding Cognyte’s projected business growth and strategic implementation, such statements are subject to risks and uncertainties that could cause actual results to differ. These include factors such as the company’s ability to meet its financial and business objectives and drive shareholder value, as detailed in its latest annual report and other filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Cognyte Software Ltd.
In other recent news, Cognyte Software Ltd. reported a strong performance in its first-quarter 2025 earnings, surpassing Wall Street expectations with an EPS of $0.03, compared to the forecast of $0.01, and revenue of $94.5 million, exceeding the anticipated $93.15 million. The company also highlighted a full-year revenue increase of 12% year-over-year, reaching $350.6 million, driven largely by software sales. In addition to the earnings report, Cognyte announced a significant $5 million contract with a law enforcement agency in the Europe-Middle East-Africa region, aiming to enhance operational effectiveness through its advanced analytics solutions.
Evercore ISI analyst Kirk Materne raised the price target for Cognyte to $10.00 from $7.50 while maintaining an In Line rating, following the company’s better-than-expected fourth-quarter results and promising fiscal year 2026 outlook. The firm forecasts gross margins at 71.5% and operating margins at 7.5%, with a projected EBITDA of $43 million. Cognyte’s management expressed optimism about the demand environment, particularly in the U.S. market, which is seen as a key growth opportunity.
The company secured a $10 million deal and multiple seven-figure contracts, though its Remaining Performance Obligations (RPO) decreased by approximately 7% year-over-year, primarily due to the timing of renewals. However, a recently announced $60 million deal is expected to be included in the first quarter RPO. Cognyte’s strategic expansion into the U.S. market is showing promising results, and the upcoming Analyst Day is anticipated to provide further insights into the company’s three-year target model and product strategy.
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