Cognyte Software Ltd. reported total revenue of $100.7 million for the third quarter of fiscal 2026, a 13.2% year‑over‑year increase from $89.0 million in the same period a year earlier. Software revenue rose 39.6% to $41.9 million, while professional‑services revenue grew 13.8% YoY, reflecting robust demand from government agencies and expanding U.S. commercial deployments of the company’s decision‑intelligence platform.
Adjusted EBITDA climbed to $11.9 million, an 81.4% jump from $6.6 million in Q3 FY25, and the adjusted‑EBITDA margin expanded to 71% from 68% a year earlier. The $0.03 adjusted earnings per share beat the consensus estimate of $0.01, a margin that underscores disciplined cost management and the high‑margin mix of AI‑enabled contracts.
Recurring revenue—primarily from subscription and support contracts—accounted for 47.1% of total revenue, up 1.2% YoY to $47.5 million. Cash, cash equivalents and short‑term investments totaled $106.6 million, an increase from $84.7 million reported in the prior quarter. The company also completed a $1.3 million share‑repurchase of 152,000 ordinary shares under a program approved in July 2025.
Management raised its full‑year fiscal 2026 guidance, projecting revenue of approximately $400 million and adjusted EBITDA of about $47 million, up from the previous outlook of $396 million and $45 million, respectively. CFO David Abadi said the company “continued executing well, delivering another quarter of strong results, and are pleased to raise our full‑year outlook.” CEO Elad Sharon added that the quarter’s performance “reflects our leadership in AI‑driven investigative analytics” and highlighted the company’s focus on decision intelligence.
The results reinforce Cognyte’s trajectory toward its long‑term targets of $500 million in revenue and a 73% gross margin by FY28. The strong earnings beat, combined with the upward guidance, signals confidence in sustained demand for AI‑powered investigative tools and a growing U.S. market presence, positioning the company to capture additional share in the competitive analytics sector.
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