Shares Plunge 20% After Cognyte Q1 EPS Miss Despite 10% Revenue Gain
CGNT•Cognyte shares plunged over 20% premarket after Q1 fiscal 2027 adjusted EPS of $0.03 missed the $0.08 consensus, even as revenue rose 10.4% to $105.5 million. The company reaffirmed full-year EPS guidance of $0.47 and revenue target near $448 million, noting 31.5% EBITDA growth and faster subscription sales.
1. Q1 Earnings and Revenue
Cognyte reported adjusted EPS of $0.03 for Q1 fiscal 2027, missing the $0.08 consensus and triggering a premarket share drop exceeding 20%. Revenue climbed 10.4% year-over-year to $105.5 million, led by software sales of $47.3 million and software services of $50.1 million.
2. Guidance and Outlook
Management reaffirmed full-year guidance for adjusted EPS of $0.47 and revenue of approximately $448 million, matching market expectations. The unchanged outlook underscores confidence in strategic initiatives despite the quarterly profit shortfall.
3. Recurring Revenue and Profitability
Adjusted EBITDA rose 31.5% to $13.6 million and adjusted operating income increased 41.5% to $10.7 million, reflecting enhanced operational efficiency. The CFO emphasized accelerating subscription revenue, projecting it to outpace overall revenue growth as recurring offerings gain traction.
