Shares of Cognyte Software Ltd. (NASDAQ: CGNT) surged 7.54% in pre-market trading on Wednesday following the release of its fourth quarter and full fiscal year 2025 financial results. The company reported strong revenue growth and a significant improvement in profitability, coupled with an optimistic outlook for fiscal year 2026.

For the fourth quarter ended January 31, 2025, Cognyte reported revenue of $94.5 million, up approximately 13% compared to the same period last year. The company's Q4 GAAP operating income reached $0.7 million, a substantial improvement from an operating loss of $2.9 million in the prior year period. Adjusted EBITDA for the quarter more than doubled to $9.3 million, demonstrating the company's strengthening financial position.

Looking ahead, Cognyte provided a positive outlook for fiscal year 2026, guiding for revenue of approximately $392 million at the midpoint, representing a 12% year-over-year growth. The company also expects a significant increase in profitability, with projected Adjusted EBITDA of around $43 million. Elad Sharon, Cognyte's CEO, expressed confidence in the company's long-term growth prospects, citing the value of their innovative solutions and strong customer relationships in the field of investigative analytics software.