Cognyte Software Ltd. (NASDAQ: CGNT) shares plummeted 11.26% in intraday trading on Wednesday, despite the company reporting better-than-expected first-quarter fiscal 2026 results. The sharp decline suggests that investors may be focusing on other aspects of the report or future guidance.
For the quarter ended April 30, 2025, Cognyte reported adjusted earnings of 7 cents per share, significantly beating the analyst consensus estimate of 1 cent per share. Revenue rose 15.5% year-over-year to $95.55 million, surpassing expectations of $93.96 million. The company's CEO, Elad Sharon, noted that the first-quarter performance reflects "solid progress against our strategic priorities."
However, the stock's negative reaction may be attributed to the company's full-year outlook. Cognyte projected revenue of $395 million at the midpoint for fiscal 2026, representing approximately 13% growth from the previous year. The company also forecast non-GAAP diluted earnings per share of $0.19 at the midpoint of its revenue outlook. These projections, while showing growth, may have fallen short of more optimistic market expectations, potentially explaining the stock's sharp decline despite the earnings beat.
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