Cognyte Software (NASDAQ:CGNT) Shares Gap Up Following Better-Than-Expected Earnings

Cognyte Software Ltd. (NASDAQ:CGNT) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $7.88, but opened at $8.81. Cognyte Software shares last traded at $9.0950, with a volume of 528,873 shares.

The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.09. Cognyte Software had a negative return on equity of 2.24% and a negative net margin of 1.45%.The business had revenue of $106.24 million during the quarter, compared to the consensus estimate of $106.20 million.

Key Cognyte Software News

Here are the key news stories impacting Cognyte Software this week:

• Positive Sentiment: Q4 results beat expectations — Cognyte reported $0.10 EPS versus a $0.01 consensus and revenue of $106.24M (in line with estimates); management highlighted double‑digit growth and operating leverage driving faster profitability. Read articleCognyte Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Wins a ~ $5M contract with a top U.S. state law‑enforcement agency — the deal is recurring/mission‑critical work that should support near‑term revenue visibility and credibility in the U.S. public‑sector market. Read articleCognyte Wins ~$5M Contract with Tier-1 US Law Enforcement Agency
• Neutral Sentiment: Pre‑announcement coverage and previews circulated ahead of the release; those items likely moved expectations into place but the market reaction reflects the actual beat and guidance. Read articleCognyte Software set to report Q4 2026 earnings preview
• Neutral Sentiment: Short‑interest reports in recent feeds show inconsistent/zero values (0 shares, NaN changes and 0.0 days‑to‑cover) — the data appears erroneous and is unlikely to be a meaningful driver until corrected, so treat these reports cautiously.
• Negative Sentiment: Profitability still shows weakness on a per‑metric basis — the company reported a negative net margin (~‑1.45%) and negative ROE (~‑2.24%), and some analysts still model a negative full‑year EPS (~‑0.2). These factors limit valuation upside unless operating leverage continues to convert into consistently positive margins. Read articleMarketBeat company summary

Analyst Ratings Changes

A number of research analysts recently weighed in on CGNT shares. Wall Street Zen raised Cognyte Software from a “hold” rating to a “buy” rating in a research report on Saturday, December 13th. Lake Street Capital started coverage on Cognyte Software in a research note on Monday, March 2nd. They issued a “buy” rating and a $13.00 target price on the stock. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Cognyte Software in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Cognyte Software presently has a consensus rating of “Hold” and a consensus price target of $13.50.

Institutional Trading of Cognyte Software

A number of institutional investors and hedge funds have recently modified their holdings of CGNT. Millennium Management LLC raised its stake in shares of Cognyte Software by 101.9% in the first quarter. Millennium Management LLC now owns 921,853 shares of the company’s stock worth $7,190,000 after purchasing an additional 465,307 shares during the last quarter. Samjo Management LLC increased its holdings in Cognyte Software by 64.4% in the 4th quarter. Samjo Management LLC now owns 896,325 shares of the company’s stock worth $8,425,000 after buying an additional 351,150 shares in the last quarter. Marshall Wace LLP increased its holdings in Cognyte Software by 77.5% in the 2nd quarter. Marshall Wace LLP now owns 756,876 shares of the company’s stock worth $6,994,000 after buying an additional 330,569 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Cognyte Software by 49.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 840,735 shares of the company’s stock worth $7,768,000 after buying an additional 277,730 shares during the last quarter. Finally, G2 Investment Partners Management LLC bought a new position in Cognyte Software during the 2nd quarter valued at about $2,460,000. Institutional investors own 72.92% of the company’s stock.

Cognyte Software Stock Performance

The business’s fifty day moving average price is $8.08 and its 200-day moving average price is $8.48. The stock has a market cap of $646.00 million, a PE ratio of -112.63 and a beta of 1.64.

About Cognyte Software

Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes.

The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds.