Cognyte Software (CGNT) Q1 2027 earnings summary

Executive summary

• Achieved double-digit revenue growth of 10.4% year-over-year in Q1 FY/FYE27, with strong customer demand for AI-driven investigative analytics and integrated intelligence solutions.

• Profitability improved significantly, with non-GAAP operating income up 41.5% to $10.7 million and adjusted EBITDA up 31.5% to $13.6 million, outpacing revenue growth.

• Expanded customer relationships globally, including notable new subscription agreements and expansion deals, with strong momentum and $20 million in expected U.S. business for the year.

• AI-driven analytics and integrated intelligence capabilities are driving adoption and platform stickiness across agencies.

• GAAP net loss was $2.0 million to $3.0 million, mainly due to foreign exchange losses.

Financial highlights

• Q1 FY/FYE27 revenue was $105.5 million, up 10.4% year-over-year, with recurring revenue at $51.9 million, representing 49.2% of total revenue and growing 10% YoY.

• Software revenue grew 26.5% year-over-year to $47.3 million; software services revenue rose 12.1% to $50.1 million.

• Q1 non-GAAP gross margin was 72.9%–73%, up 100–101 basis points year-over-year.

• Adjusted EBITDA was $13.6 million, up 31.5% year-over-year.

• Ended Q1 with $109.2 million in cash and no debt.

Outlook and guidance

• Reaffirmed FY/FYE27 revenue guidance of ~$448 million (±3%), representing ~12% year-over-year growth.

• Adjusted EBITDA guidance at $68 million, up ~40% year-over-year; non-GAAP gross margin expected at 73.5%.

• Recurring revenue expected to grow faster than total revenue and become a larger contributor.

• Non-GAAP diluted EPS expected at $0.47 for the year.

• FY/FYE28 revenue target of ~$500 million reaffirmed.