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CGNT vs. CLBT: Which Intelligence Software Stock Offers Better Upside?
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Key Takeaways
Cognyte posted 14.1% fiscal 2026 revenue growth and expects about $448M in fiscal 2027 sales.
Cellebrite Q1 2026 revenues rose 19% as ARR jumped 21% to $493M, boosting subscription visibility.
Cognyte ended fiscal 2026 with $116.9M cash, no debt and $557.2M RPO supporting visibility.
Cognyte Software Ltd. (CGNT - Free Report) and Cellebrite DI Ltd (CLBT - Free Report) are two Israel-based companies that operate in the intelligence software space. Both companies provide investigative analytics solutions primarily to governments and law enforcement agencies.
The players in this domain are benefiting from heightened demand for AI-enabled investigative and intelligence solutions as simmering geopolitical tensions give rise to complex and massive volumes of data.
Against this backdrop, investors are now evaluating which players offer the best combination of growth, profitability and long-term strategic positioning.
Let us dive into the fundamentals, valuations, growth outlook and risks for each company and ascertain which stock offers better upside.
The Case for CGNT
Cognyte operates in a domain shaped by rising geopolitical tensions, increasing cyber and hybrid threats, sophisticated and complex data, and the need for real-time intelligence, driving demand for its solutions.
Cognyte delivered double-digit revenue growth, with fiscal 2026 revenues rising 14.1% year over year. Demand from repeat customers, as well as increases in new customers, cushioned the top-line performance. Management noted that the installed base forms a significant portion of revenues, highlighting customer stickiness.
In the fourth quarter of fiscal 2026, recurring revenues were up 5.6% to $50 million, representing 47.1% of total revenues. It recently announced a roughly $5 million upgrade agreement with a “long-standing national security agency” client in the Asia-Pacific.
Apart from installed base expansion, focus on new customers and scaling of the U.S. market bodes well. 61 new customers were added in fiscal 2026. CGNT is also strengthening its sales team and recently added Carahsoft as a channel partner. Carahsoft will aid in providing access to federal, state and local procurement channels to boost adoption of CGNT’s solutions.
Cognyte Software Ltd. Price, Consensus and EPS Surprise
The integration of AI into investigative workflows is emerging as a key differentiator. Cognyte is embedding AI into its operational systems platform, which creates a competitive moat.
The company’s backlog and remaining performance obligations (“RPO”) strengthen revenue visibility. Total RPO stood at $557.2 million, with a backlog of $433.4 million at the end of fiscal 2026. Total RPO is the sum of contract liabilities and backlog. As a result, the company now expects fiscal 2027 revenues to be $448 million (+/-3%), up from $400 million in fiscal 2026.
On the last earnings call, management noted that Cognyte has already achieved its fiscal 2028 gross margin targets ahead of schedule, indicating strong execution.
Further, Cognyte ended fiscal 2026 with approximately $116.9 million in cash and no debt. A strong balance sheet provides flexibility for acquisitions, innovation and shareholder returns. The company is also actively returning capital through share buybacks, signaling confidence in its growth. For fiscal 2026, CGNT repurchased $21.4 million in stock.
However, macro uncertainty, competition, rising operating expenses and dependence on government spending cycles remain concerns.
The Case for CLBT
Cellebrite offers digital investigative solutions (software and services) for legally sanctioned investigations for the public and private sectors. The company recently reported its first-quarter 2026 results.
Cellebrite is demonstrating strong top-line expansion, driven by its subscription-heavy model. First quarter annual recurring revenues (“ARR”) grew 21% year over year to $493 million, with sequential ARR growth of $12 million. Subscription revenues increased 23% year over year to $117.9, signaling improved revenue visibility. Overall revenues were up 19% to $128.3 million. Recurring revenue dollar-based net retention rate was 115%.
Profitability numbers are improving as well. The company delivered adjusted EBITDA of $30.6 million, up 29% year over year. The margins expanded 190 basis points to 23.9%. At the same time, it maintained a trailing 12-month free cash flow margin of 32%. Cellebrite’s balance sheet remains strong, with $535 million in cash, cash equivalents, and investments.
The company’s push into AI-enabled solutions is expected to be a key future driver, with management estimating a $12.5 billion total addressable market for investigative AI over the next four years. The recently introduced Genesis platform represents a transformative opportunity. On the most recent earnings call, management noted that early traction has been strong, with more than 500 registered users across 15 countries adopting the product within eight weeks of launch.
Cellebrite DI Ltd. Price, Consensus and EPS Surprise
Genesis is a purpose-built agentic AI product offering an “intuitive, conversation-like experience” to examine call details, documents, mobile phone extractions, messages, images, video and more, and convert them into actionable input. This solution can be deployed independently, but can be paired with other Cellebrite solutions to boost investigations. The company also announced the general availability of its Guardian Investigate solution. This platform is an AI-driven solution with capabilities designed for daily workflow collaboration across various investigators, departments and agencies.
The company is also seeing a rebound in its U.S. federal business, with growth in this segment now expected to return to the 20% range, supported by a 35% year-over-year increase in pipeline. Cellebrite Government Cloud platform’s FedRAMP High Authorization positions it as a unique provider in a highly regulated federal market and opens up a multi-year growth opportunity as government agencies modernize their digital infrastructure.
However, the case is not without risks. Dependence on government spending cycles and increasing competition remain concerns. Additionally, the rapid rollout of multiple new products and the integration of an acquisition (SCG Canada Inc in March 2026) amplify execution risk. Any missteps could impact growth momentum. External factors such as foreign exchange headwinds also pose a challenge, with the company expecting a modest impact on the second-quarter performance.
Price Performances & Valuations of CGNT & CLBT
Year to date, CGNT is up 7.5%, while CLBT is down 26.9%.
Image Source: Zacks Investment Research
In terms of the price/book ratio, Cognyte is trading at 3.23X, lower than Cellebrite 6.44X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for CGNT & CLBT?
Analysts have revised earnings estimates upwards by 92% for CGNT for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been unchanged for CLBT’s bottom line.
Image Source: Zacks Investment Research
CGNT & CLBT: Which Is a Better Pick?
CGNT currently has a Zacks Rank #2 (Buy) and CLBT carries a Zacks Rank #3 (Hold).
In terms of the Zacks Rank, CGNT appears to be a better pick at the moment.
View the Zacks #1 Rank List
Image: Bigstock
CGNT vs. CLBT: Which Intelligence Software Stock Offers Better Upside?
Key Takeaways
Cognyte Software Ltd. (CGNT - Free Report) and Cellebrite DI Ltd (CLBT - Free Report) are two Israel-based companies that operate in the intelligence software space. Both companies provide investigative analytics solutions primarily to governments and law enforcement agencies.
The players in this domain are benefiting from heightened demand for AI-enabled investigative and intelligence solutions as simmering geopolitical tensions give rise to complex and massive volumes of data.
Against this backdrop, investors are now evaluating which players offer the best combination of growth, profitability and long-term strategic positioning.
Let us dive into the fundamentals, valuations, growth outlook and risks for each company and ascertain which stock offers better upside.
The Case for CGNT
Cognyte operates in a domain shaped by rising geopolitical tensions, increasing cyber and hybrid threats, sophisticated and complex data, and the need for real-time intelligence, driving demand for its solutions.
Cognyte delivered double-digit revenue growth, with fiscal 2026 revenues rising 14.1% year over year. Demand from repeat customers, as well as increases in new customers, cushioned the top-line performance. Management noted that the installed base forms a significant portion of revenues, highlighting customer stickiness.
In the fourth quarter of fiscal 2026, recurring revenues were up 5.6% to $50 million, representing 47.1% of total revenues. It recently announced a roughly $5 million upgrade agreement with a “long-standing national security agency” client in the Asia-Pacific.
Apart from installed base expansion, focus on new customers and scaling of the U.S. market bodes well. 61 new customers were added in fiscal 2026. CGNT is also strengthening its sales team and recently added Carahsoft as a channel partner. Carahsoft will aid in providing access to federal, state and local procurement channels to boost adoption of CGNT’s solutions.
Cognyte Software Ltd. Price, Consensus and EPS Surprise
Cognyte Software Ltd. price-consensus-eps-surprise-chart | Cognyte Software Ltd. Quote
The integration of AI into investigative workflows is emerging as a key differentiator. Cognyte is embedding AI into its operational systems platform, which creates a competitive moat.
The company’s backlog and remaining performance obligations (“RPO”) strengthen revenue visibility. Total RPO stood at $557.2 million, with a backlog of $433.4 million at the end of fiscal 2026. Total RPO is the sum of contract liabilities and backlog. As a result, the company now expects fiscal 2027 revenues to be $448 million (+/-3%), up from $400 million in fiscal 2026.
On the last earnings call, management noted that Cognyte has already achieved its fiscal 2028 gross margin targets ahead of schedule, indicating strong execution.
Further, Cognyte ended fiscal 2026 with approximately $116.9 million in cash and no debt. A strong balance sheet provides flexibility for acquisitions, innovation and shareholder returns. The company is also actively returning capital through share buybacks, signaling confidence in its growth. For fiscal 2026, CGNT repurchased $21.4 million in stock.
However, macro uncertainty, competition, rising operating expenses and dependence on government spending cycles remain concerns.
The Case for CLBT
Cellebrite offers digital investigative solutions (software and services) for legally sanctioned investigations for the public and private sectors. The company recently reported its first-quarter 2026 results.
Cellebrite is demonstrating strong top-line expansion, driven by its subscription-heavy model. First quarter annual recurring revenues (“ARR”) grew 21% year over year to $493 million, with sequential ARR growth of $12 million. Subscription revenues increased 23% year over year to $117.9, signaling improved revenue visibility. Overall revenues were up 19% to $128.3 million. Recurring revenue dollar-based net retention rate was 115%.
Profitability numbers are improving as well. The company delivered adjusted EBITDA of $30.6 million, up 29% year over year. The margins expanded 190 basis points to 23.9%. At the same time, it maintained a trailing 12-month free cash flow margin of 32%. Cellebrite’s balance sheet remains strong, with $535 million in cash, cash equivalents, and investments.
The company’s push into AI-enabled solutions is expected to be a key future driver, with management estimating a $12.5 billion total addressable market for investigative AI over the next four years. The recently introduced Genesis platform represents a transformative opportunity. On the most recent earnings call, management noted that early traction has been strong, with more than 500 registered users across 15 countries adopting the product within eight weeks of launch.
Cellebrite DI Ltd. Price, Consensus and EPS Surprise
Cellebrite DI Ltd. price-consensus-eps-surprise-chart | Cellebrite DI Ltd. Quote
Genesis is a purpose-built agentic AI product offering an “intuitive, conversation-like experience” to examine call details, documents, mobile phone extractions, messages, images, video and more, and convert them into actionable input. This solution can be deployed independently, but can be paired with other Cellebrite solutions to boost investigations. The company also announced the general availability of its Guardian Investigate solution. This platform is an AI-driven solution with capabilities designed for daily workflow collaboration across various investigators, departments and agencies.
The company is also seeing a rebound in its U.S. federal business, with growth in this segment now expected to return to the 20% range, supported by a 35% year-over-year increase in pipeline. Cellebrite Government Cloud platform’s FedRAMP High Authorization positions it as a unique provider in a highly regulated federal market and opens up a multi-year growth opportunity as government agencies modernize their digital infrastructure.
However, the case is not without risks. Dependence on government spending cycles and increasing competition remain concerns. Additionally, the rapid rollout of multiple new products and the integration of an acquisition (SCG Canada Inc in March 2026) amplify execution risk. Any missteps could impact growth momentum. External factors such as foreign exchange headwinds also pose a challenge, with the company expecting a modest impact on the second-quarter performance.
Price Performances & Valuations of CGNT & CLBT
Year to date, CGNT is up 7.5%, while CLBT is down 26.9%.
Image Source: Zacks Investment Research
In terms of the price/book ratio, Cognyte is trading at 3.23X, lower than Cellebrite 6.44X.
Image Source: Zacks Investment Research
How Does the Zacks Consensus Estimate Compare for CGNT & CLBT?
Analysts have revised earnings estimates upwards by 92% for CGNT for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been unchanged for CLBT’s bottom line.
Image Source: Zacks Investment Research
CGNT & CLBT: Which Is a Better Pick?
CGNT currently has a Zacks Rank #2 (Buy) and CLBT carries a Zacks Rank #3 (Hold).
In terms of the Zacks Rank, CGNT appears to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.