Cognyte Software Ltd. (CGNT) surged 9.14% during intraday trading on Tuesday, driven by the company's better-than-expected third-quarter fiscal 2026 results and an upward revision of its full-year revenue forecast.
The company reported Q3 revenue of $100.738 million, surpassing estimates of $99.515 million, and adjusted EPS of $0.03, beating the $0.01 consensus. Cognyte also raised its FY26 revenue outlook to $400 million, reflecting a 14% year-over-year growth at the midpoint. The strong performance was attributed to robust demand for its software solutions, which saw a 39.6% increase in revenue.
Management highlighted expanding margins and improved profitability, with adjusted EBITDA for Q3 growing to $11.9 million from $6.6 million a year ago. Analysts maintain a "buy" rating on the stock, with a median price target of $12, indicating further upside potential.
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