Cognyte Software Posts Q2 Net Profit As Revenue Improves, Ups Annual Outlook; But Stock Down

(RTTNews) - Cognyte Software Ltd. (CGNT) on Tuesday reported a net profit for the second quarter, helped by increased revenue. In addition, citing strong demand, the company has revised up its annual outlook.

For the three-month period to July 31, Cognyte posted a net income of $1.469 million, or $0.02 per share, compared with a loss of $1.934 million, or $0.03 per share, in the same period last year. Income before provision for income taxes stood at $1.388 million as against the prior year's loss of $0.801 million.

Excluding items, earnings were $6.015 million, or $0.08 per share, higher than $3.855 million, or $0.05 per share, in 2024.

Operating income was $2.745 million, compared with a loss of $1.390 million last year. Revenue was $97.513 million, up from $84.413 million in the previous year.

David Abadi, CFO of Cognyte, said: "We continue to benefit from healthy global demand and strong visibility into our business. As a result, we are raising our outlook for this year. In addition, our strong balance sheet, sustained revenue growth, and expanding profitability reinforce our confidence in reaching our financial targets for the fiscal year ending January 31, 2028."

For the full year, the company now expects adjusted income per share of $0.23, compared with the prior outlook of $0.19 per share. Excluding items, EBITDA is now anticipated to be around $45 million against the prior outlook of $44 million. Cognyte now projects revenue of $397 million, higher than the $395 million previously.

CGTN was down by 13.48% at $8.24 on the Nasdaq.