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 focused execution.

• Adjusted EBITDA for Q3 was $11.9 million, up 81.4% year-over-year.

• GAAP operating income reached $3.2 million, reversing a prior-year loss; non-GAAP operating income rose to $9.0 million, nearly tripling year-over-year.

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

• Major deals secured in military intelligence and expanded partnerships, including with LexisNexis Risk Solutions.

Financial highlights

• Q3 non-GAAP gross profit was $73.6 million (73.1% margin), up 18% and 297 bps year-over-year.

• Q3 software and software services revenue was $88.7 million, 88.1% of total revenue; professional services contributed $12 million.

• Q3 recurring revenue was $47.5 million, 47.1% of total revenue.

• Q3 GAAP net loss was $3.4 million (EPS loss $0.07), mainly due to higher tax and FX expenses.

• Q3 billings were $107.7 million, up 2.9% year-over-year.

Outlook and guidance

• FY26 revenue outlook raised to $400 million (~14% growth), Adjusted EBITDA at $47 million (~60% growth), and Non-GAAP EPS at $0.24.

• Annual Non-GAAP gross margin guided to 72.3%, up 130 basis points.

• FY28 targets reaffirmed: $500 million revenue, 73% gross margin, Adjusted EBITDA margin above 20%.