Cognyte reported strong second quarter fiscal 2027 results, beating analyst expectations for both revenue and earnings. The company's financial performance was characterized by an accelerating shift toward higher-margin software sales, which now represent over 92% of total revenue compared to 86% a year ago. Management reaffirmed its full-year fiscal 2027 outlook and highlighted visibility into approximately 85% of projected revenue over the next 12 months.
Key Highlights
- Total software revenue grew 20.9% year-over-year to $100.8 million, significantly outpacing total revenue growth.
- Recurring revenue increased 18.4% to $56.2 million, driven by the continued adoption of subscription offerings.
- Non-GAAP gross margin expanded by 154 basis points to 73.7%, reflecting a superior revenue mix and operational scale.
- Adjusted EBITDA rose 35.7% to $14.9 million, while the company ended the quarter with $102.2 million in cash and zero debt.