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HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ: CGNT), specializing in investigative analytics software, has announced a $5 million contract with a law enforcement agency in the Europe-Middle East-Africa (EMEA) region. This initial agreement aims to enhance the agency’s operational effectiveness by providing a suite of Cognyte solutions to accelerate investigations and improve outcomes in critical cases. The company, which generates annual revenue of $350.63 million with an impressive gross profit margin of 70.42%, has shown strong momentum with revenue growth of 11.88% over the last twelve months. According to InvestingPro analysis, the stock has demonstrated significant volatility, with a 35.88% price return over the past six months.
The undisclosed agency selected Cognyte’s technology to address the challenges posed by complex criminal activities and tech-savvy adversaries. The goal is to transform large volumes of data into actionable insights rapidly, thereby expediting investigations and bolstering community and citizen protection.
Efi Nuri, Cognyte’s Chief Revenue Officer, commented on the deal, highlighting the agency’s need for proven technology that delivers clarity and drives real-world outcomes. He expressed confidence in the partnership and Cognyte’s ability to respond quickly and effectively to the agency’s needs.
Cognyte’s offerings incorporate advanced technologies such as Artificial Intelligence (AI), big data analytics, and machine learning. These tools are designed to assist law enforcement, national security, and intelligence agencies in making informed decisions swiftly, ensuring better risk prediction and mitigation.
The company, which serves hundreds of customers worldwide, emphasizes its commitment to creating a safer world through actionable intelligence. Cognyte’s solutions enable these organizations to analyze past events and anticipate future threats with greater accuracy.
While this press release contains forward-looking statements regarding Cognyte’s projected business growth and strategic implementation, it also cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
This news is based on a press release statement and reflects the current expectations and projections of Cognyte Software Ltd. about its financial performance and business strategy.
In other recent news, Cognyte Software Ltd. announced its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.03, compared to the forecast of $0.01. The company reported revenue of $94.5 million, exceeding the anticipated $93.15 million, marking a 12.9% year-over-year increase. Full-year revenue grew by 12% to $350.6 million, driven largely by software sales. Cognyte’s management expressed optimism about the demand environment, with a notable increase in net new customer additions for fiscal year 2025, doubling to 60 additional customers year-over-year.
Evercore ISI analyst Kirk Materne raised the price target for Cognyte to $10.00 from $7.50, maintaining an In Line rating, following stronger-than-anticipated fourth-quarter results. The company’s initial fiscal year 2026 outlook exceeded expectations, with revenue growth guidance at the midpoint of 12%, well ahead of the 7% consensus. Cognyte secured a $10 million deal and multiple seven-figure contracts, although the total Remaining Performance Obligations (RPO) of $545 million was down approximately 7% year-over-year. The first quarter RPO will include a recently announced deal worth around $60 million.
Management’s investment in expanding into the US market is showing promising results, with plans to further capitalize on this strategy in the next 12 to 24 months. The company’s gross margins are forecasted at 71.5%, with operating margins at 7.5%, and an expected EBITDA of $43 million. Cognyte’s upcoming Analyst Day on April 8th is expected to be significant, with management revealing a three-year target model for the first time.
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