Highlights

  • Cognyte renewed a one-year EMEA national-security agreement worth more than US$20 million on 30 September.
  • Two other September announcements described an approximately US$20 million expansion and an approximately US$10 million contract.
  • Fiscal second-quarter revenue increased to US$109.2 million, with software revenue rising 20.9% year on year.
  • The company held US$102.2 million in cash and reported no debt at the fiscal quarter-end.

Three September national-security contract announcements have added a fresh dimension to Cognyte Software (NASDAQ:CGNT). The company reported a one-year renewal worth more than US$20 million on 30 September, after announcing two other customer agreements earlier that month. Its latest fiscal-quarter results also showed growth in software and recurring revenue.

What the Numbers Show

Results for the second quarter of fiscal 2027, ended 31 July 2026, came on 9 September. Revenue was $109.2 million, up about 12.0%, and first-half revenue was $214.7 million, up about 11.2%. Total software revenue rose 20.9% to $100.8 million, more than 92% of the total, and recurring revenue was $56.2 million, up 18.4%, or 51.4% of revenue.

Non-GAAP gross margin was 73.7%, up 154 basis points, and adjusted EBITDA, a non-GAAP measure, was $14.9 million, up 35.7%. GAAP net income attributable to Cognyte was $4.1 million against $1.5 million a year earlier, equal to $0.06 per diluted share. Non-GAAP diluted earnings per share were $0.15, against $0.08.

Compared with the first quarter, reported on 3 June at $105.5 million, second-quarter revenue was about 3.5% higher, and adjusted EBITDA rose from $13.6 million to $14.9 million. The profit improvement is therefore visible both year on year and sequentially, though the quarterly sums involved are small.

Capital Position and Outlook

Cognyte held $102.2 million of cash and no debt at quarter-end. Operating cash flow was $1.1 million, compared with an outflow of $6.3 million a year earlier. About 1.5 million shares were repurchased in the first half for roughly $13.5 million, and since November 2024 about $40.2 million has been used under a $60 million authorisation.

For fiscal 2027 the company narrowed its revenue range to $448 million plus or minus 2%, leaving the midpoint unchanged, and reaffirmed adjusted EBITDA of about $68 million and non-GAAP diluted earnings per share of $0.47. It said it remains on track for its fiscal 2028 targets. These are forecasts, not reported results.

Cash fell from $109.2 million at the end of April to $102.2 million at the end of July, a decline that sits alongside share repurchases and a still-modest operating cash inflow. Investors can consider both when assessing the balance sheet's direction.

Trading Context

The most recent close available from the source reviewed was $8.77 on Monday 5 October 2026, up 0.34%, in the supplied market data. That is more than a full week old and may not reflect trading since.

This article uses the Nasdaq Composite only as a comparison benchmark. Cognyte is incorporated in Israel and files on Form 6-K, and it is not presented as a member of any index, since no membership has been verified.

Contract news can influence sentiment, but the announcements give values for single deals rather than recognised revenue, and the timing of revenue depends on delivery.