Cogstate reported a revenue miss for fiscal 2026 despite securing record contracts and increasing AI-related expenditures, according to slides reviewed by Reuters.
The company’s annual results presentation highlighted a 12% year-over-year decline in revenue to $125 million, falling below consensus estimates of $135 million. Cogstate attributed the shortfall to delayed project timelines in its core cognitive health division, though it noted a 25% increase in new contract signings compared with the prior year.
Management emphasized AI as a key growth driver, with investments rising to $18 million in FY26, up from $12 million in the previous period. The company stated that AI integration across its diagnostic platforms is expected to accelerate commercialization timelines and improve margin performance in fiscal 2027.
Cogstate also highlighted a record $450 million in contracted backlog, a 30% increase from FY25, signaling strong long-term demand. The backlog includes multi-year agreements with major healthcare providers and research institutions, though the company did not disclose specific client names.
Analysts noted that while the revenue miss may raise near-term concerns, the contract growth and AI focus could position the company for stronger performance in the coming years. Cogstate maintained its guidance for adjusted EBITDA margins to expand to 18% by FY27, citing operational efficiencies and AI-driven cost reductions.
The company’s shares were down 4% in after-hours trading following the release of the slides.
