Cognyte Software Ltd. (CGNT) reported a strong start to fiscal 2027, achieving double-digit revenue growth and improved profitability despite challenges from foreign exchange volatility and rising hardware costs. For Q1 of fiscal 2027, the company posted non-GAAP operating expenses of $66.2 million and a negative operating cash flow of $4.7 million.
Management anticipates non-GAAP operating income to be around $56 million, representing over 50% year-over-year growth. Adjusted EBITDA is expected to reach approximately $68 million, indicating a 40% year-over-year increase at the midpoint of its revenue guidance. Inventory levels also rose by roughly $3 million during the quarter as a response to anticipated customer demand.
Despite these cost pressures, Cognyte reaffirms its fiscal guidance for 2027, addressing challenges through proactive measures to mitigate the impact of foreign exchange dynamics and inventory investments. The company aims for adjusted EBITDA targets on a constant currency basis for fiscal 2028.
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