Cognyte Software Ltd. announced a new $5 million contract with a Tier‑1 military intelligence agency in the Europe‑Middle‑East‑Africa region. The agreement will deploy Cognyte’s investigative analytics and tactical SIGINT solutions, creating a multi‑year recurring revenue stream for the company.
The deal adds a substantial new customer to Cognyte’s portfolio and represents a 5 % increase in the company’s annual revenue base, given its Q3 FY25 revenue of $89 million and Q2 FY26 revenue of $97.5 million. The recurring nature of the contract aligns with Cognyte’s land‑and‑expand strategy, positioning the company to deepen its relationship and pursue additional expansion opportunities within the agency.
Cognyte’s Q3 FY25 recurring revenue was $46.9 million, or 53 % of total revenue, while Q2 FY26 recurring revenue rose to $47.4 million, 48.7 % of total revenue. The new contract strengthens this recurring revenue trend and supports the company’s broader growth trajectory, which has seen year‑over‑year revenue increases of 12.1 % in Q3 FY25 and 15.5 % in Q2 FY26.
Chief Revenue Officer Efi Nuri said the win “highlights the strength of our tactical SIGINT solution and the operational flexibility that sets us apart from incumbents.” Chief Financial Officer David Abadi added that the contract “provides a significant cross‑sell and expansion opportunity as the agency’s needs grow.”
The agreement underscores Cognyte’s competitive advantage in the intelligence and security market, where it leverages AI, big‑data analytics, and machine learning to deliver actionable insights. Winning a Tier‑1 customer against an incumbent provider demonstrates the company’s ability to secure high‑profile contracts and reinforces its position as a preferred partner for government agencies.
The contract aligns with Cognyte’s recent financial guidance, which has been raised to $397 million for FY2026, and supports the company’s focus on expanding its recurring revenue base and deepening relationships with key defense and intelligence customers.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.