Cognyte Software (NASDAQ:CGNT) Shares Gap Up Following Earnings Beat

Cognyte Software Ltd. (NASDAQ:CGNT)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.88, but opened at $8.81. Cognyte Software shares last traded at $9.0950, with a volume of 528,873 shares trading hands.

The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.09. Cognyte Software had a negative net margin of 0.16% and a positive return on equity of 0.74%. The business had revenue of $106.24 million for the quarter, compared to the consensus estimate of $106.20 million.

More Cognyte Software News

Here are the key news stories impacting Cognyte Software this week:

• Positive Sentiment: Q4 earnings and revenue beat expectations — reported EPS $0.10 vs consensus ~ $0.01 and revenue of $106.2M (up ~12%). This is the primary catalyst behind recent upside momentum. Cognyte Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Company announced an approximate $5M contract with a tier‑1 U.S. law‑enforcement agency — a near‑term revenue and credibility boost for mission‑critical sales. Cognyte Wins ~$5M Contract with Tier-1 US Law Enforcement Agency
• Positive Sentiment: Management highlighted operating leverage and improving adjusted EBITDA, and analysts/commentary pointed to resilient recurring revenue and low dilution versus peers — all supportive for margin expansion and multiple re‑rating potential. Cognyte Software: Compelling EBITDA, Low Dilution
• Neutral Sentiment: Detailed earnings call transcript and slide deck are available for investors to review management’s commentary on backlog, billings and guidance. Useful for assessing sustainability of growth. Cognyte Q4 2026 Earnings Call Transcript
• Negative Sentiment: Despite the beat, the company still shows a negative net margin and negative ROE; some sell‑side forecasts still expect a small negative EPS for the fiscal year — factors that cap valuation upside until sustained margin improvement is proven. MarketBeat Earnings Summary & Materials
• Negative Sentiment: After an initial ~13% post‑earnings jump, shares have pulled back on higher volume — suggesting near‑term profit‑taking and market rotation despite the fundamental beats. Cognyte shares pop on strong quarterly results, upbeat guidance

Analyst Ratings Changes

Several equities research analysts recently issued reports on CGNT shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cognyte Software in a report on Wednesday, January 21st. Wall Street Zen raised Cognyte Software from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Finally, Lake Street Capital initiated coverage on Cognyte Software in a research report on Monday, March 2nd. They issued a “buy” rating and a $13.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cognyte Software currently has an average rating of “Hold” and an average target price of $13.50.

Institutional Investors Weigh In On Cognyte Software

A number of hedge funds have recently modified their holdings of CGNT. Millennium Management LLC lifted its stake in shares of Cognyte Software by 101.9% in the first quarter. Millennium Management LLC now owns 921,853 shares of the company’s stock worth $7,190,000 after buying an additional 465,307 shares in the last quarter. Samjo Management LLC boosted its position in Cognyte Software by 64.4% during the fourth quarter. Samjo Management LLC now owns 896,325 shares of the company’s stock worth $8,425,000 after acquiring an additional 351,150 shares during the last quarter. Marshall Wace LLP grew its stake in Cognyte Software by 77.5% during the 2nd quarter. Marshall Wace LLP now owns 756,876 shares of the company’s stock valued at $6,994,000 after acquiring an additional 330,569 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Cognyte Software by 49.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 840,735 shares of the company’s stock valued at $7,768,000 after acquiring an additional 277,730 shares during the last quarter. Finally, G2 Investment Partners Management LLC acquired a new stake in Cognyte Software in the 2nd quarter valued at about $2,460,000. 72.92% of the stock is currently owned by institutional investors and hedge funds.

Cognyte Software Stock Performance

The stock’s 50 day simple moving average is $8.04 and its two-hundred day simple moving average is $8.48. The firm has a market capitalization of $588.87 million, a PE ratio of -807.00 and a beta of 1.64.

Cognyte Software Company Profile

Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes.

The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds.