<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Cognyte beat Wall Street's sales target for fiscal Q1, but earnings came in below expectations. </li><li>The company reiterated its previously issued full-year guidance, but investors are worried about the profitability outlook. </li><li>10 stocks we like better than Cognyte Software ›</li></ul>Cognyte Software (NASDAQ: CGNT) stock is getting hit with a big pullback on the heels of the company's latest quarterly release. The artificial intelligence (AI) company's share price was down 20.1% as of 11:55 a.m. ET. Before today's market open, Cognyte published results for the first quarter of its 2027 fiscal year -- which ended April 30. While the company posted sales that topped Wall Street's expectations, earnings per share came in below the average forecast. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3Mjk2MS9nZXR0eWltYWdlcy0xNDA1NjEyNDYwLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3Mjk2MS9nZXR0eWltYWdlcy0xNDA1NjEyNDYwLmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>Cognyte stock slips on mixed Q1 print</h2>Cognyte recorded non-GAAP (adjusted) earnings per share of $0.03 on sales of $105.5 million in fiscal Q1. While the company's sales were up 10.4% year over year and beat the average Wall Street analyst estimate by $0.46 million, the company's adjusted profit came in $0.06 per share lower than what was called for by the average analyst estimate. With the company's profit margin coming in significantly weaker than expected and earnings missing Wall Street's forecast despite a sales beat in the period, investors are feeling less confident about the business's outlook. <h2>What's next for Cognyte?</h2>Along with its fiscal Q1 report, Cognyte reiterated guidance for sales of $448 million this year. The company's guidance actually topped Wall Street's forecast for sales of roughly $446 million in the period.Meanwhile, the company's reiterated guidance for adjusted earnings of $0.47 was in line with Wall Street's forecast prior to the latest quarterly release. With profits coming in significantly below expectations, investors are likely worried that it's become increasingly likely that the business will miss its profit forecast. <h2>Should you buy stock in Cognyte Software right now?</h2> Before you buy stock in Cognyte Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cognyte Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $449,393!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,366,006!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 3, 2026. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

CGNT

Cognyte Software (NASDAQ: CGNT) shares plummeted over 20% following its fiscal Q1 earnings report. Although the company beat Wall Street's sales estimates with $105.5 million in revenue, its adjusted earnings per share of $0.03 missed analyst forecasts. Investors are concerned about the weaker-than-expected profit margins and the outlook for profitability, despite the company reiterating full-year guidance that slightly topped sales expectations.

Why Cognyte Software Stock Is Plummeting Today