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1. Company Snapshot

1.a. Company Description

Cognyte Software Ltd.provides an investigative analytics software to governments and enterprises worldwide.Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations.


The company also offers network intelligence analytics, open source and threat intelligence analytics, and operational intelligence analytics solutions.Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams.In addition, the company provides customer support, professional, and integration services.


Its government customers include national, regional, and local government agencies; and enterprise customers consist of commercial and physical security customers.The company was incorporated in 2020 and is headquartered in Herzliya, Israel.

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1.b. Last Insights on CGNT

Negative drivers behind Cognyte Software Ltd.'s recent performance include a decline in revenue growth, partly attributed to increased competition in the national security and law enforcement sectors. The company's Q4 2025 earnings call transcript revealed a slowdown in sales, with CEO Elad Sharon citing a "challenging" market environment. Additionally, the recent $5 million investment by a national security agency in the EMEA region, while a positive development, may not be sufficient to offset the company's declining revenue growth. Furthermore, the Cognyte 2025 Threat Landscape Report highlights the increasing sophistication of cyberattacks, ransomware, and stolen credentials, which may pose a significant threat to the company's customers and, by extension, its business.

1.c. Company Highlights

2. Cognyte's Q2 FY2026 Earnings: Key Takeaways

The company reported revenue of $97.5 million, a 15.5% year-over-year increase, driven by software revenue growth. Non-GAAP gross margin was 72.1%, and adjusted EBITDA was $11 million. GAAP EPS was $0.02, and non-GAAP EPS was also positive. Cash flow from operations was -$6.3 million due to seasonal expenses, but the company maintained $84.7 million in cash with no debt.

Publication Date: Sep -23

📋 Highlights

Financial Highlights

Key financial metrics included $97.5 million in revenue, with software revenue accounting for 85.5% of the total. Adjusted EBITDA grew 33% to $11 million, and non-GAAP operating income was $8 million. The company's cash position remained strong at $84.7 million.

Strategic Wins and Partnerships

Cognyte secured two $10 million military intelligence contracts in Asia-Pacific and EMEA, highlighting demand for its AI-driven solutions. Strategic partnerships, such as with LexisNexis, aim to expand U.S. market penetration. The company is focused on leveraging its integrated AI platform to address rising global security challenges.

Guidance and Outlook

Cognyte raised its 2026 guidance to $397 million in revenue (±2%) and $45 million in adjusted EBITDA. Long-term targets include $500 million in revenue, 73% gross margins, and 20%+ EBITDA margins by 2028. The company is confident in its growth prospects, driven by existing customer expansions and new logos.

Valuation Metrics

Using the provided valuation metrics, Cognyte's P/E Ratio is -76.92, P/B Ratio is 3.07, and P/S Ratio is 1.68. The EV/EBITDA ratio is 36.16, indicating a relatively high valuation. The company's ROE is -4.02%, and ROIC is 0.59%. These metrics suggest that the market is pricing in significant growth expectations.

3. NewsRoom

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Cognyte to Announce Third Quarter FYE26 Financial Results on December 9, 2025

Nov -25

Source: businesswire.com

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Cognyte Secures ~$5M Deal with New Tier-1 Military Intelligence Agency in EMEA

Nov -19

Source: businesswire.com

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Cognyte Wins ~$5M Deal with New Tier-1 Law Enforcement Customer in EMEA

Nov -13

Source: businesswire.com

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Cognyte Recognized as a Sample Vendor in the 2025 Gartner® Emerging Tech Impact Radar: Preemptive Cybersecurity

Nov -11

Source: businesswire.com

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Cognyte to Feature Latest Homeland Security Innovations at Milipol Paris 2025

Nov -05

Source: businesswire.com

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APAC Military Intelligence Customer Expands Cognyte Investment with $5M+ Follow-on Agreement

Oct -22

Source: businesswire.com

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Cognyte Awarded $5M+ Follow-on Subscription Agreement with Tier-1 Military Organization in EMEA

Oct -08

Source: businesswire.com

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Cognyte Software: A Cheap, Earlier-Stage AI That Can Follow In Palantir's Footsteps

Oct -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.79%)

6. Segments

Software Service

Expected Growth: 5.5%

Cognyte Software Ltd.'s 5.5% growth in Software Services is driven by increasing demand for cybersecurity solutions, expansion into new markets, and strategic partnerships. The company's innovative products, such as threat intelligence and incident response, are in high demand. Additionally, the growing need for digital transformation and cloud migration is fueling growth in the software services segment.

Software

Expected Growth: 6.2%

Cognyte Software Ltd.'s 6.2% growth is driven by increasing demand for cybersecurity solutions, expansion into new markets, and strategic partnerships. The company's software provides advanced threat intelligence and analytics, appealing to enterprises seeking enhanced security measures. Additionally, the growing need for digital transformation and cloud migration fuels the adoption of Cognyte's software, contributing to its rapid growth.

Professional Service and Other

Expected Growth: 5.8%

Cognyte Software Ltd.'s 5.8% growth in Professional Service and Other is driven by increasing demand for cybersecurity services, expansion into new markets, and strategic partnerships. Additionally, the company's investments in digital transformation and cloud-based solutions have improved operational efficiency, leading to higher margins and revenue growth.

7. Detailed Products

Investigate

A comprehensive investigative analytics platform that helps organizations to identify, disrupt, and prevent threats in real-time.

Voyance

An AI-powered analytics platform that enables organizations to detect, prevent, and respond to cyber threats in real-time.

WebIntelli

A web intelligence platform that provides real-time insights and alerts on online threats, risks, and opportunities.

Horizon

A physical security information management (PSIM) platform that integrates and analyzes data from various security systems to provide real-time situational awareness.

8. Cognyte Software Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cognyte Software Ltd. is medium, as there are some alternative solutions available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Cognyte Software Ltd. is low, as the company has a strong brand presence and customers are loyal to its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Cognyte Software Ltd. is medium, as the company has a diverse supplier base and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants for Cognyte Software Ltd. is high, as the industry is rapidly evolving and new companies are entering the market with innovative solutions.

Intensity Of Rivalry

The intensity of rivalry for Cognyte Software Ltd. is high, as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.43%
Debt Cost 3.95%
Equity Weight 85.57%
Equity Cost 12.47%
WACC 11.24%
Leverage 16.86%

11. Quality Control: Cognyte Software Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
F-Secure

A-Score: 4.8/10

Value: 5.5

Growth: 4.2

Quality: 8.1

Yield: 3.1

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Spirent Communications

A-Score: 4.1/10

Value: 0.8

Growth: 1.7

Quality: 5.1

Yield: 3.1

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Radware

A-Score: 3.6/10

Value: 1.2

Growth: 3.6

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Cognyte Software

A-Score: 3.4/10

Value: 3.6

Growth: 4.7

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
XBP Europe Holdings

A-Score: 3.3/10

Value: 8.7

Growth: 1.6

Quality: 4.2

Yield: 0.0

Momentum: 5.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
HUB Cyber Security

A-Score: 3.3/10

Value: 9.8

Growth: 0.9

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.65$

Current Price

8.65$

Potential

-0.00%

Expected Cash-Flows