Defense & Geopolitical Fragmentation▲
Cognyte Software Raises Revenue Guidance, Targets $500M by 2028
Cognyte Software Ltd. reported a 21% year-over-year increase in total software revenue for Q2 2027, driven by strong demand for its sovereign AI platform in government security markets. The company narrowed its full-year revenue guidance to approximately $448 million, citing high visibility into 85% of required revenue, and remains on track to achieve its fiscal 2028 target of $500 million. Management highlighted expanding operational leverage, with profitability growing more than four times faster than revenue, and noted that the U.S. segment is targeting $20 million in signed deals this fiscal year. The company is deliberately building inventory to mitigate supply chain risks, and operating expenses were impacted by approximately $7 million in foreign exchange headwinds from the weaker U.S. dollar against the Israeli shekel. A new Chief Revenue Officer, Adam Philpott, has been appointed to lead global commercial operations.