Cognyte Software (CGNT 4.25%) was a lively stock on the exchange on Wednesday, and for the right reasons. The Israel-based "investigative analytics" specialist published quarterly and annual results that investors obviously found impressive. As a result, the company's shares closed the day more than 6% higher.
A nearly four-fold bounce
Well before market open, Cognyte took the wraps off its fourth-quarter and full-year 2026 results. For the quarter, revenue was slightly over $106 million, up 12% year over year. The bottom-line improvement was far more dramatic, with net income not under generally accepted accounting principles (GAAP) almost quadrupling to $7.6 million ($0.10 per share).
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Both figures were comfortably above their respective average analyst estimates. The consensus for revenue was just under $104 million, and for per-share, non-GAAP (adjusted) net income, $0.07.
In its earnings release, Cognyte quoted CFO David Abadi as saying that the specialty tech company's performance in the quarter and fiscal year "demonstrates the durability of our financial model, the strength of our differentiated solutions and the financial discipline that drives our results."
NASDAQ: CGNT
Key Data Points
Twin beats on guidance, too
Cognyte also proffered guidance for the entirety of its current fiscal year. It's projecting revenue of approximately $435 million to $461 million, with adjusted net income of $0.47 at the midpoint of its range. The consensus analyst estimates are $442 million and $0.37, respectively.
Cognyte's business is well-suited to our times; its software helps governments and law enforcement agencies flag security risks, a demand that should continue to rise in our current age of conflict. I think Wednesday's bullish investor reaction was entirely justified, and this under-the-radar stock is well worth considering as a buy.
