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HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ:CGNT) reported second-quarter revenue that exceeded analyst expectations and raised its full-year guidance, citing strong demand for its AI-driven investigative analytics solutions.
The company’s shares rose 0.84% following the announcement.
The Israel-based software company posted revenue of $97.5 million for the second quarter ended July 31, 2025, beating the analyst consensus of $95.8 million and representing a 15.5% increase compared to the same period last year. However, adjusted earnings per share came in at $0.02, slightly below the analyst estimate of $0.03.
Cognyte’s profitability showed significant improvement, with non-GAAP operating income nearly doubling to $8 million from $4.4 million in the year-ago quarter. Adjusted EBITDA rose to $11 million from $8.3 million last year.
"Our second quarter results reflect the recognition of Cognyte as a leader in AI-driven investigative analytics," said Elad Sharon, Cognyte’s chief executive officer. "As global threats become more complex, customers increasingly rely on our mission-critical solutions in their investigative efforts."
The company raised its full-year fiscal 2026 outlook, now projecting revenue of approximately $397 million (±2%), representing 13% YoY growth, compared to the analyst consensus of $395.1 million. Cognyte also increased its non-GAAP earnings per share guidance to $0.23 for the full year, above the consensus estimate of $0.18.
Software revenue was particularly strong, increasing 35.9% YoY to $36.6 million, driven primarily by increased sales of software perpetual licenses. Recurring revenue grew 1.8% to $47.4 million, representing 48.7% of total revenue.
During the quarter, Cognyte completed a previously authorized $20 million share repurchase program and announced a new $20 million buyback program through January 2027.
"We continue to benefit from healthy global demand and strong visibility into our business," said David Abadi, Cognyte’s chief financial officer. "Our strong balance sheet, sustained revenue growth and expanding profitability reinforce our confidence in reaching our financial targets."
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