Key Highlights

  • Second-quarter fiscal 2027 Revenue was $109.2 million, up about 12 per cent, with software revenue of $100.8 million, up 20.9 per cent.
  • Billings fell about 18 per cent to $76.3 million, which the company attributed to contract timing.
  • Cognyte ended the quarter with $102.2 million of cash and no debt, and reaffirmed fiscal 2027 revenue guidance of about $448 million at the midpoint.

Latest results

Cognyte Software (NASDAQ:CGNT), the Israeli provider of investigative analytics software, last reported on 9 September 2026 for its second quarter of fiscal year 2027, which ended on 31 July 2026. Revenue was $109.2 million, up about 12 per cent year on year. Total software revenue was $100.8 million, up 20.9 per cent, and accounted for more than 92 per cent of total revenue. Since software grew faster than the total, the remaining revenue, about $8.4 million, must have shrunk.

Recurring revenue was $56.2 million, up 18.4 per cent, or 51.4 per cent of revenue. Non-GAAP gross Margin was 73.7 per cent, up 154 basis points. Chief executive Elad Sharon said the strategy is working and linked execution to Demand for mission-critical intelligence in high-stakes settings.

Profit and cash flow

Non-GAAP Operating Income was $12.2 million, up 52.5 per cent, and adjusted EBITDA was $14.9 million, up 35.7 per cent. Non-GAAP Diluted Earnings per Share were $0.15, compared with $0.08. On a GAAP basis, operating income was $4.7 million, up 69.7 per cent, and diluted earnings per share were $0.06, compared with $0.02.

Operating Cash Flow was $1.1 million, an improvement on negative $6.3 million a year earlier but still small relative to reported profit.

The billings question

Billings were $76.3 million, down from $93.0 million a year before, a fall of about 18 per cent. The company attributed the decline to contract timing. On that explanation, the weaker billings figure is a timing matter, but it also means billings have not yet confirmed the revenue trend.

Revenue growth of 12 per cent and billings that fell 18 per cent point in different directions, so a recovery in billings in later quarters would be a useful marker.

Balance sheet and guidance

Cognyte ended the quarter with $102.2 million of cash and no debt. It repurchased about $13.5 million of shares in the first half of fiscal 2027 and about $40.2 million since November 2024, out of $60 million authorised.

The following is guidance, not a reported result. For fiscal year 2027, the company reaffirmed its outlook and narrowed the range. It expects revenue of about $448 million at the midpoint, plus or minus 2 per cent. It expects adjusted EBITDA of about $68 million at the midpoint, about 40 per cent growth, and non-GAAP diluted earnings per share of $0.47 at the midpoint. Guidance is a company estimate and actual results may differ.

What to watch

Several points can be tracked in future filings. The first is whether billings rebound as the company suggests. The second is whether Recurring Revenue keeps growing at close to 18 per cent. The third is whether Operating Cash Flow converts a higher share of profit, since the second quarter produced only $1.1 million. The fourth is the pace of repurchases against the remaining $19.8 million of the authorisation.