The strong quarter with accelerating software mix and margin expansion should drive positive sentiment near-term. Monitor billings trend in coming quarters as a leading indicator; the 18% Q/Q decline may raise questions on sustainability, but management attributes it to contract timing. Guidance reaffirmation suggests confidence. The stock may see an initial rally; consider entry on any pullback given the improving fundamentals and no debt.
Price Chart
Executive Summary
Cognyte reported strong Q2 FYE27 results with revenue up 12% to $109.2M, non-GAAP diluted EPS nearly doubling to $0.15, and adjusted EBITDA up 35.7% to $14.9M. The company reiterated its FYE27 outlook with revenue target of $448M midpoint (~12% YoY growth) and ~$68M adjusted EBITDA. However, Q2 billings declined to $76.3M from $93.0M a year ago, which bears watching for future revenue conversion. Overall, accelerating software mix (92% of revenue) and expanding margins signal improving business quality.
Key Facts
- Q2 FYE27 revenue $109.2M, up 12% YoY
- Non-GAAP diluted EPS $0.15 vs $0.08, nearly doubled
- Adjusted EBITDA $14.9M, up 35.7% from $11.0M
- Total software revenue grew 21% to $100.8M, 92% of total revenue
- Recurring revenue grew 18% to $56.2M, 51.4% of total revenue
- GAAP net income $4.1M vs $1.5M; GAAP diluted EPS $0.06 vs $0.02
- Cash $102.2M, no debt
- H1 FYE27 added 40 new customers vs 31 prior year
- Share repurchases of $13.5M in H1 (1.5M shares)
- FYE27 outlook: revenue $448M ±2%, adjusted EBITDA ~$68M, non-GAAP EPS $0.47
- Q2 billings declined to $76.3M from $93.0M (trailing 12-month billings ~95% of revenue)
Financial Impact
Revenue grew $11.7M YoY to $109.2M; non-GAAP operating income increased $4.2M to $12.2M; adjusted EBITDA up $3.9M to $14.9M; non-GAAP net income up $5.3M to $11.4M. Billings declined $16.7M YoY.
Risk Factors
- Billings declined significantly QoQ and YoY, potentially deferring revenue to future periods or signaling slower new business
- Geopolitical risk from Israeli operations and Middle East conflict
- Foreign exchange headwinds (~$7M net unfavorable impact on H1 operating profit)
- Restructuring and stock-based compensation remain elevated
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001824814-26-000040 |
| Document: a6-kearningspressreleasefo.htm | 0001824814-26-000040 |
| Document: 0001824814-26-000040-index-headers.html | 0001824814-26-000040 |
| Document: 0001824814-26-000040-index.html | 0001824814-26-000040 |
| Document: 0001824814-26-000040.txt | 0001824814-26-000040 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 6w ago | 6-K | $8.15 $8.72 | ▲ +6.99% | ▲ +5.05% | $10.13 (+24.29%) |
Sep 8, 2026 7w ago | 6-K | $8.23 $8.83 | ▲ +7.29% | ▲ +5.58% | $10.13 (+23.09%) |
Sep 1, 2026 8w ago | 6-K | $8.44 $8.69 | ▲ +2.96% | ▲ +2.64% | $10.13 (+20.02%) |
Jul 29, 2026 12w ago | 6-K | $8.78 $9.02 | ▲ +2.73% | ▼ −1.23% | $10.13 (+15.38%) |
May 26, 2026 22w ago | 6-K | $10.40 $8.07 | ▼ −22.40% | ▼ −20.46% | $10.13 (−2.60%) |
US Market Status
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