Cognyte Software Ltd. reported a solid start to fiscal 2027 with double-digit revenue growth and improved profitability, but cost pressures from foreign exchange volatility and higher hardware costs weighed on operating expenses and cash flow. Non-GAAP operating expenses rose to $66.2 million, largely due to the U.S. dollar's weakness against the Israeli shekel, while inventory increased by approximately $3 million to meet anticipated demand. These factors contributed to negative operating cash flow of $4.7 million and negative free cash flow of $6.1 million in the first quarter. Despite the headwinds, management reaffirmed its full-year guidance, expecting non-GAAP operating income of approximately $56 million and adjusted EBITDA of around $68 million, reflecting more than 50% and about 40% year-over-year growth respectively at the midpoint of its revenue guidance. The company also remains on track to achieve its fiscal 2028 adjusted EBITDA target on a constant currency basis, though the target was updated to approximately 20% to reflect exchange rate changes.
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Palantir Technologies Inc.Cognyte Software LtdCognyte reported double-digit revenue growth and reaffirmed fiscal 2027 guidance, but cost headwinds from FX and hardware weighed on cash flow.