Cognex Reports First Quarter 2026 Results
Rhea-AI Summary
Cognex (NASDAQ: CGNX) reported Q1 2026 revenue of $268 million, up 24% year-over-year (21% constant currency). Operating margin was 22.3% and adjusted EBITDA margin was 26.9%. Adjusted diluted EPS was $0.34. Cash and investments totaled $622 million with no debt. The company returned $113 million to shareholders and launched two AI vision platforms.
Positive
- Revenue +24% YoY to $268 million
- Adjusted EBITDA margin expanded to 26.9% (+1,010 bps YoY)
- Adjusted diluted EPS $0.34, +113% YoY
- Returned $113 million to shareholders in Q1 (repurchases + dividends)
- Cash and investments $622 million with no debt
Negative
- Operating expenses increased 11% year-over-year to $131 million
- Intangible assets, net decreased from $81.1M to $67.1M
Market Reaction – CGNX
Following this news, CGNX has gained 10.83%, reflecting a significant positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $69.00. This price movement has added approximately $1.02B to the company's valuation.
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Key Figures
Market Reality Check
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CGNX strength contrasts with mixed peers: in the sector set, some names like BMI were up while others such as VNT, ESE, and ITRI were down. Momentum scanner shows MKSI up 4.78% and COHR down 6.64%, supporting a stock-specific reaction to CGNX’s earnings rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q4 2025 earnings | Positive | +36.4% | Q4 and FY 2025 revenue growth with higher margins and strong cash position. |
| Oct 29 | Q3 2025 earnings | Positive | -12.9% | Q3 revenue up 18% Y/Y and margins improving but shares fell post-report. |
| Jul 30 | Q2 2025 earnings | Positive | +20.8% | Q2 revenue and margins improved with higher EPS and strong free cash flow. |
| Apr 30 | Q1 2025 earnings | Positive | +1.9% | Modest revenue growth and solid margins alongside announcement of CEO transition. |
| Feb 12 | Q4 2024 earnings | Positive | -13.6% | Strong Q4 growth and AI product launches but stock traded lower afterward. |
Recent earnings reports often showed strong margin and EPS improvement, with share reactions skewed positive but occasionally selling off despite good results.
Over the past year, Cognex’s earnings releases have highlighted accelerating growth and profitability. Q2–Q4 2025 reports showed revenue rising from $249M to $277M to $252M, with adjusted EBITDA margins improving into the low-to-mid 20s and adjusted EPS climbing toward $1.02 for 2025. Cash and investments consistently stayed around the $553M–$642M range with no debt, while dividends and buybacks were maintained or raised. Today’s Q1 2026 beat and margin expansion continue that trend of improving fundamentals and capital returns.
Historical Comparison
In the past five earnings releases, CGNX moved an average of 6.5% on results, with mostly positive reactions but two notable selloffs after strong reports.
Earnings updates show a steady progression of revenue from Q1 2025 through Q4 2025, with adjusted EBITDA margins rising from the mid-teens to the mid-20s and adjusted EPS trending higher alongside sustained cash balances and shareholder returns.
Market Pulse Summary
This announcement details a strong Q1 2026, with revenue rising 24% to $268M, operating margin improving to 22.3%, and adjusted EPS climbing to $0.34. Cash and investments totaled $622M with no debt, while Cognex returned $113M via buybacks and dividends and guided Q2 revenue to $280–$300M. Historically, earnings updates have featured steady margin gains and robust liquidity. Investors may watch execution on AI vision launches, cost discipline, and whether guidance is met or exceeded in coming quarters.
Key Terms
adjusted ebitda financial
basis points financial
free cash flow financial
non-gaap financial
form 10-k regulatory
form 10-q regulatory
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
First-Quarter Financial and Operating Highlights
- Revenue increased
24% year over year, or21% on a constant-currency basis, exceeding expectations due to broad-based strength across major end markets. - Operating margin was
22.3% ; Adjusted EBITDA margin reached26.9% , expanding 1,010 basis points year over year and marking the seventh consecutive quarter of margin improvement. - Net income per diluted share was
$0.31 $0.34 113% year over year, representing the seventh straight quarter of growth. - Returned
$113 million - Advancing AI vision innovation: introduced two breakthrough AI vision platforms – the In‑Sight® 6900 powered by NVIDIA and the In‑Sight® 3900 embedded AI vision system powered by Qualcomm.
- Successfully completed the divestiture of the Japan‑focused trading business as part of the announced portfolio optimization.
"Since the CEO transition was announced a year ago, we've moved with urgency to focus our strategy, strengthen execution, and position Cognex for sustainable, profitable growth," said Matt Moschner, President and CEO. "This was evident in Q1, highlighted by the launch of two breakthrough AI vision systems, the completion of the trading business divestiture and continued execution toward our announced cost reduction target. We believe that this progress is clearly reflected in our Q1 results, with an exceptional start to the year and broad‑based outperformance during the quarter."
Mr. Moschner continued, "Our latest AI vision products reinforce our technology leadership and objective of becoming the #1 provider of AI‑powered machine vision. By combining our industry-leading AI vision tools with high-performance embedded systems and the scalability of OneVision™, we're enabling customers to solve more complex inspection challenges at the edge – faster, easier, and without the cost and complexity of PC-based architectures."
Dennis Fehr, CFO, added, "Our strong Q1 performance reflects disciplined execution and continued progress against our profitable growth strategy. As we continue to transform our operating model, we expect to drive higher productivity, support sustainable margin expansion, and reinforce our commitment to creating long‑term shareholder value."
Financial Performance Highlights for the First Quarter
(Dollars in millions, except per share amounts)
Three-months ended | |||||
April 05, 2026 | March 30, 2025 | Y/Y Change | |||
Revenue | +24 % | ||||
Operating Income | +131 % | ||||
% of Revenue | 22.3 % | 12.1 % | +1,020 bps | ||
Adjusted EBITDA* | 100 % | ||||
% of Revenue | 26.9 % | 16.8 % | +1,010 bps | ||
Net Income per Diluted Share | +121 % | ||||
Adjusted EPS (Diluted)* | +113 % | ||||
*Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release. |
- Revenue was
$268 million $216 million 24% . Excluding the impact of foreign currency exchange (FX), revenue increased21% compared to the prior year. The year-over-year increase in revenue was driven by broad-based strength across major end markets. - Gross margin was
71.1% compared to66.8% in the first quarter of 2025. Adjusted gross margin of71.8% compared to67.6% in the first quarter of 2025, an increase of 420 basis points. The year-over-year increase was primarily driven by favorable mix and volume, slightly offset by tariffs. - Operating expenses were
$131 million $118 million 11% . Adjusted operating expenses were$125 million $115 million 9% . On a constant-currency basis, Adjusted operating expenses increased4% year over year, driven by higher incentive compensation, partially offset by disciplined cost management. - Operating income was
$60 million $26 million 131% . Operating margin was22.3% compared to12.1% in the first quarter of 2025, an increase of 1,020 basis points. Adjusted operating margin was25.2% compared to14.4% in the first quarter of 2025, an increase of 1,080 basis points. - Adjusted EBITDA was
$72 million $36 million 100% . Adjusted EBITDA margin was26.9% compared to16.8% in the first quarter of 2025, an increase of 1,010 basis points. The year-over-year expansion was driven by revenue growth and favorable mix. - Net income of
$52 million $24 million 117% . Adjusted net income of$57 million $27 million 111% . - Net income per diluted share was
$0.31 $0.14 121% . Adjusted diluted earnings per share were$0.34 $0.16 113% .
Balance Sheet and Cash Flow Highlights
- As of April 5, 2026, Cognex's financial position remained strong, with
$622 million - During the first quarter, Cognex generated
$45 million $41 million 10% . - During the first quarter, Cognex generated Free Cash Flow (FCF) of
$42 million $38 million 11% . First quarter FCF conversion rate was82% of net income and74% of Adjusted net income. Trailing twelve-month FCF conversion rate was169% of net income and119% of Adjusted net income. - Cognex repurchased
$99 million $14 million
Dividend
On May 6, 2026, Cognex's Board of Directors declared a quarterly cash dividend of
Guidance
Cognex issued second-quarter 2026 guidance; details are summarized in the table below.
(Dollars in millions, except per share amounts) | Q2 2026 | Q2 2025 | Y/Y | ||
Revenue | +16.5 % | ||||
Adjusted EBITDA Margin1 | 20.7 % | +880 bps | |||
Adjusted Earnings Per Share (diluted)1 | +68.0 % |
*At the midpoint of guidance. |
1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex's control. Additionally, these items are outside of Cognex's normal business operations and not used by management to assess Cognex's operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled "Reconciliation of Selected Items From GAAP to Non-GAAP". In Q2 2025 the GAAP operating margin was |
Analyst Conference Call and Simultaneous Webcast
- Cognex will host a conference call on May 7, 2026, at 8:30 a.m. Eastern Daylight Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside
the United States . - A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.
Forward-Looking Statements
Certain statements made in this release, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "projects," "intends," "plans," "aims," "will," "may," "shall," "could," "should," "opportunity," "goal," "objective," "target," "milestone" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the impacts of our strategic portfolio review, the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, acquisitions, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products and the inability to develop new products; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in
COGNEX CORPORATION | |||
April 5, 2026 | December 31, 2025 | ||
(unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 237,343 | $ 262,925 | |
Current investments | 59,413 | 74,037 | |
Accounts receivable, net of allowance for credit losses of | 170,721 | 146,713 | |
Unbilled revenue | 16,401 | 16,980 | |
Inventories | 135,549 | 137,889 | |
Prepaid expenses and other current assets | 70,922 | 58,702 | |
Total current assets | 690,349 | 697,246 | |
Non-current investments | 325,186 | 305,339 | |
Property, plant, and equipment, net | 84,291 | 86,015 | |
Operating lease assets | 69,709 | 72,310 | |
Goodwill | 382,818 | 386,279 | |
Intangible assets, net | 67,140 | 81,100 | |
Deferred income taxes | 381,100 | 383,272 | |
Other assets | 5,025 | 4,994 | |
Total assets | $ 2,005,618 | $ 2,016,555 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 59,551 | $ 50,203 | |
Accrued expenses | 77,399 | 91,397 | |
Accrued income taxes | 6,172 | 9,141 | |
Deferred revenue and customer deposits | 34,053 | 21,094 | |
Operating lease liabilities | 12,310 | 11,716 | |
Total current liabilities | 189,485 | 183,551 | |
Non-current operating lease liabilities | 61,707 | 64,870 | |
Deferred income taxes | 252,230 | 250,512 | |
Reserve for income taxes | 21,336 | 24,269 | |
Other liabilities | 1,891 | 1,452 | |
Total liabilities | 526,649 | 524,654 | |
Shareholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 333 | 334 | |
Additional paid-in capital | 1,194,927 | 1,138,708 | |
Retained earnings | 344,443 | 406,355 | |
Accumulated other comprehensive loss, net of tax | (60,734) | (53,496) | |
Total shareholders' equity | 1,478,969 | 1,491,901 | |
Total liabilities and shareholders' equity | $ 2,005,618 | $ 2,016,555 | |
COGNEX CORPORATION | |||
Three-months Ended | |||
April 5, 2026 | March 30, 2025 | ||
Revenue | $ 268,437 | $ 216,036 | |
Cost of revenue (1) | 77,498 | 71,713 | |
Gross profit | 190,939 | 144,323 | |
Percentage of revenue | 71.1 % | 66.8 % | |
Research, development, and engineering expenses (1) | 37,025 | 34,727 | |
Percentage of revenue | 13.8 % | 16.1 % | |
Selling, general, and administrative expenses (1) | 94,041 | 83,504 | |
Percentage of revenue | 35.0 % | 38.7 % | |
Operating income | 59,873 | 26,092 | |
Percentage of revenue | 22.3 % | 12.1 % | |
Foreign currency gain (loss) | (1,345) | (2,453) | |
Investment income | 4,836 | 3,990 | |
Other income (expense) | (1,607) | 169 | |
Income before income tax expense | 61,757 | 27,798 | |
Income tax expense | 10,053 | 4,195 | |
Net income | $ 51,704 | $ 23,603 | |
Percentage of revenue | 19.3 % | 10.9 % | |
Net income per weighted-average common and common-equivalent share: | |||
Basic | $ 0.31 | $ 0.14 | |
Diluted | $ 0.31 | $ 0.14 | |
Weighted-average common and common-equivalent shares outstanding: | |||
Basic | 166,514 | 169,265 | |
Diluted | 168,386 | 170,391 | |
Cash dividends per common share | $ 0.085 | $ 0.080 | |
(1) Amounts include stock-based compensation expense, as follows: | |||
Cost of revenue | $ 925 | $ 668 | |
Research, development, and engineering | 5,094 | 4,696 | |
Selling, general, and administrative | 5,914 | 4,575 | |
Total stock-based compensation expense | $ 11,933 | $ 9,939 | |
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow and free cash flow conversion rate. Cognex defines its non-GAAP metrics as follows:
- Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.
- Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.
- Adjusted operating income and margin: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.
- Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.
- Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, tax impact on reconciling items and one-time discrete events (such as loss on sale of business).
- Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.
- Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.
- Free cash flow: Cash provided by operating activities less cash for capital expenditures.
- Free cash flow conversion rate: Free cash flow divided by adjusted net income.
Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.
Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex's definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Please see the section "Reconciliation of Selected Items from GAAP to Non-GAAP" below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.
COGNEX CORPORATION | |||
Three-months Ended | |||
April 5, | March 30, | ||
Gross profit (GAAP) | $ 190,939 | $ 144,323 | |
Acquisition and integration costs | 216 | 242 | |
Amortization of acquisition-related intangible assets | 1,337 | 1,338 | |
Reorganization charges | 374 | 86 | |
Adjusted gross profit | $ 192,866 | $ 145,989 | |
GAAP gross margin | 71.1 % | 66.8 % | |
Adjusted gross margin | 71.8 % | 67.6 % | |
Operating expense (GAAP) | $ 131,066 | $ 118,231 | |
Acquisition and integration costs | (15) | (538) | |
Amortization of acquisition-related intangible assets | (1,195) | (1,290) | |
Reorganization charges | (4,755) | (1,622) | |
Adjusted operating expense | $ 125,101 | $ 114,781 | |
Operating income (GAAP) | $ 59,873 | $ 26,092 | |
Acquisition and integration costs | 231 | 780 | |
Amortization of acquisition-related intangible assets | 2,532 | 2,628 | |
Reorganization charges | 5,129 | 1,708 | |
Adjusted operating income | $ 67,765 | $ 31,208 | |
GAAP operating margin | 22.3 % | 12.1 % | |
Adjusted operating margin | 25.2 % | 14.4 % | |
Depreciation (adjusted for amounts included in Acquisition and integration costs) | 4,472 | 5,083 | |
Adjusted EBITDA | $ 72,237 | $ 36,291 | |
Adjusted EBITDA margin | 26.9 % | 16.8 % | |
Net income (GAAP) | $ 51,704 | $ 23,603 | |
Acquisition and integration costs | 231 | 780 | |
Amortization of acquisition-related intangible assets | 2,532 | 2,628 | |
Reorganization charges | 5,129 | 1,708 | |
Loss on sale of business | 1,539 | — | |
Discrete tax (benefit) expense | (1,179) | (307) | |
Tax impact of reconciling items | (2,638) | (1,365) | |
Adjusted net income | $ 57,318 | $ 27,047 | |
Earnings per share of common stock, diluted (GAAP) | $ 0.31 | $ 0.14 | |
Acquisition and integration costs | — | — | |
Amortization of acquisition-related intangible assets | 0.02 | 0.02 | |
Reorganization charges | 0.03 | 0.01 | |
Loss on sale of business | 0.01 | — | |
Discrete tax (benefit) expense | (0.01) | — | |
Tax impact of reconciling items | (0.02) | (0.01) | |
Adjusted earnings per share of common stock, diluted | $ 0.34 | $ 0.16 | |
Effective tax rate (GAAP) | 16.3 % | 15.1 % | |
Discrete tax benefit (expense) | 1.9 % | 1.1 % | |
Net impact of other reconciling items | 1.3 % | 1.6 % | |
Adjusted effective tax rate | 19.5 % | 17.8 % | |
Cash provided by operating activities (GAAP) | $ 45,093 | $ 40,502 | |
Capital expenditures | (2,757) | (2,501) | |
Free cash flow | $ 42,336 | $ 38,001 | |
Description of adjustments:
In addition to reporting financial results in accordance with
Depreciation:
- The company incurs expense related to its normal use of property, plant and equipment.
Acquisition and integration costs:
- The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the company acquired in the fourth quarter of 2023.
Amortization of acquisition-related intangible assets:
- The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.
Reorganization charges:
- The Company has incurred charges related to the reorganization of its employees. During the three-month period ended April 5, 2026, these costs consisted primarily of severance and consulting fees.
Loss on sale of business:
- The Company has recognized a pre-tax loss related to the divestiture of its
Japan -focused trading business, which includes direct costs associated with the divestiture incurred during the three-month period ended April 5, 2026.
Discrete tax (benefit) expense and tax impact of reconciling items:
- Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period's actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.
- We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.
About Cognex Corporation
For over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods.
Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near
Investor Relations Contact:
Greer Aviv – Head of Investor Relations
Cognex Corporation
Greer.Aviv@cognex.com
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SOURCE Cognex Corporation