Cognyte Software (CGNT) Q3 2026 earnings summary

Executive summary

• Q3 FYE26 revenue grew 13.2% year-over-year to $100.7 million, with strong demand for AI-powered solutions and major customer wins, including a $5 million follow-on subscription with a tier-one military intelligence organization in EMEA.

• Adjusted EBITDA for Q3 was $11.9 million, up 81.4% year-over-year, and GAAP operating income reached $3.2 million, reversing a prior-year loss.

• Cash flow from operations was $25.0 million for the quarter, with a strong cash position of $106.6 million and no debt.

• Continued execution of a share repurchase program, with 152,000 shares repurchased for $1.3 million in Q3.

• Expanded U.S. market presence through new partnerships and increased engagement with federal, state, and local agencies.

Financial highlights

• Q3 revenue was $100.7 million, up 13.2% year-over-year; software revenue grew 39.6% to $41.9 million.

• Non-GAAP gross margin expanded to 73.1%, with non-GAAP gross profit of $73.6 million; adjusted EBITDA margin for Q3 was 11.8%.

• Non-GAAP operating income nearly tripled to $9.0 million; GAAP net loss for Q3 was $3.4 million (EPS loss $0.07).

• Billings for Q3 were $104.7 million to $107.7 million, and recurring revenue was $47.5 million (47.1% of total revenue).

• For the first nine months, revenue was $293.8 million (up 14.7%), non-GAAP operating income $24.6 million, and adjusted EBITDA $33.2 million (up 67%).

Outlook and guidance

• Raised FY26 guidance: revenue of ~$400 million (14% growth), adjusted EBITDA of ~$47 million (60% growth), and non-GAAP EPS of $0.24.

• Expect annual non-GAAP gross margin of 72.3% (up 130 bps) and operating cash flow of $45 million.

• Long-term targets for FY28: revenue ~$500 million, gross margin ~73%, adjusted EBITDA margin >20%.