Cognex Reports Third Quarter 2026 Results
Higher revenue and lower operating expenses lifted quarterly operating margin to 32.2%, compared with 20.9% a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Cognex (NASDAQ: CGNX) reported record third-quarter 2026 revenue of $313 million, up 13% year over year, and raised full-year guidance. Revenue grew 19% excluding the prior-year commercial partnership benefit. Operating margin rose to 32.2% from 20.9%, while diluted earnings reached $0.50 versus $0.10. Adjusted diluted earnings increased 61% to $0.53.
Cognex now expects 2026 revenue of $1,143–$1,163 million, adjusted EBITDA margin of 31%–32% and adjusted diluted earnings of $1.68–$1.72. Fourth-quarter revenue guidance is $270–$290 million. Quarterly operating cash flow increased 22% to $106 million; cash and investments totaled $846 million, with no debt. Cognex signed a definitive all-cash agreement to acquire RealSense, expected to close in the fourth quarter of 2026. The quarterly dividend increased approximately 6% to $0.09 per share, payable December 3, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance raised to $1,143–$1,163 million from $1,130–$1,150 million; midpoint growth is 16% year over year.
- Moderate pointThird-quarter revenue of $313 million increased 13% year over year, or 19% excluding the prior-year commercial partnership benefit.
- Moderate pointRealSense definitive acquisition agreement signed for an all-cash transaction expected to close during the fourth quarter of 2026.
- Moderate pointOperating income increased 74% to $101 million; operating margin reached 32.2% versus 20.9% a year earlier.
- Moderate pointNet income increased 372% to $85 million; diluted EPS rose to $0.50 from $0.10 a year earlier.
- Moderate pointAdjusted EBITDA increased 61% to $111 million; margin rose to 35.5% from 24.9% a year earlier.
- Moderate pointGross margin increased to 70.8% from 67.6% in the third quarter of 2025.
- Moderate pointOperating cash flow increased 22% to $106 million in the third quarter.
- Moderate pointFree cash flow increased 21% to $104 million, representing 122% of net income.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue guidance is $270–$290 million, representing 11% year-over-year growth at the midpoint.
10 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA margin guidance raised to 31%–32% from 29%–31%, versus 21.5% in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted diluted EPS guidance raised to $1.68–$1.72 from $1.64–$1.68, versus $1.02 in 2025.
- Minor pointAdjusted diluted EPS increased 61% to $0.53, or 89% excluding the prior-year commercial partnership benefit.
- Minor pointAdjusted EBITDA margin expanded 1,340 basis points excluding the commercial partnership, marking nine consecutive quarters of expansion.
- Minor pointOperating expenses decreased 7% to $121 million compared with the third quarter of 2025.
- Minor pointCash and investments totaled $846 million with no debt as of October 4, 2026.
- Minor pointQuarterly dividend increased approximately 6% to $0.09 per share, up $0.005 from the prior quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted EBITDA margin guidance is 29%–32%, versus 22.7% a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted diluted EPS guidance is $0.37–$0.41, versus $0.27 a year earlier.
- Minor pointNine-month revenue reached $873.087 million versus $742.021 million; diluted EPS reached $1.23 versus $0.48.
Negative
- Minor pointMemory cost headwinds affected the quarter, although favorable mix, higher volume and pricing benefits more than offset them.
- Minor pointThird-quarter investment income declined to $3.358 million from $4.197 million a year earlier.
- Minor pointThird-quarter foreign currency loss was $744,000, versus a gain of $840,000 a year earlier.
News Explained
At
Details
Market move: CGNX -5.79% vs previous close. 3Q26 earnings report
On Nov 4, the day this news came out, the latest delayed price for CGNX is 5.79% below the previous close. Argus tracked a peak move of +5.7% during the session. Our momentum scanner has recorded 71 alerts for this stock so far that day. The latest delayed price is $49.99. Relative volume is elevated at 2.8x what this stock usually trades by this time of day.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Q3 revenue
- $313 million; +13% year over year
- Third quarter 2026
- Adjusted EBITDA margin
- 35.5%; +1,060 basis points year over year
- Third quarter 2026
- Adjusted diluted EPS
- $0.53; +61% year over year
- Third quarter 2026
- 2026 revenue guidance
- $1,143–$1,163 million
- New full-year guidance; prior guidance was $1,130–$1,150 million
- 2026 adjusted diluted EPS guidance
- $1.68–$1.72
- New full-year guidance; prior guidance was $1.64–$1.68
- Q4 revenue guidance
- $270–$290 million
- Fourth quarter 2026
- Quarterly dividend
- $0.09 per share; increase of $0.005 per share
- Declared November 4, 2026
- Cash and investments
- $846 million; no debt
- As of October 4, 2026
Previous Earnings Reports
-
Record Q2 revenue and expanded adjusted EBITDA margin; issued Q3 and full-year guidance.
-
Reported revenue growth, expanded margins, and adjusted EPS growth; raised the quarterly dividend.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial
free cash flow financial
basis points financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third-Quarter Financial and Operating Highlights
- Achieved record quarterly revenue of
$313 million 13% year over year, driven by broad-based strength across most major end markets; excluding the Q3 2025 one-time benefit from the commercial partnership with a medical lab automation channel partner (the "Commercial Partnership" or "CP"), revenue grew19% year over year. - Operating margin was
32.2% ; delivered an Adjusted EBITDA margin of35.5% , up 1,060 basis points year over year. Excluding the CP, Adjusted EBITDA margin expanded 1,340 basis points year over year, marking the ninth consecutive quarter of margin expansion. - Net income per diluted share was
$0.50 $0.53 61% year over year, representing the ninth consecutive quarter of growth. Excluding the CP, Adjusted EPS (diluted) increased89% year over year. - Increased full-year 2026 guidance; continue to anticipate strong double-digit revenue growth and year-over-year expansion in profitability.
- Announced the entry into a definitive agreement to acquire RealSense, Inc., a leader in depth-sensing cameras and vision technology for robotic perception and physical artificial intelligence (AI). The all-cash transaction is expected to close during the fourth quarter of 2026.
- Announced the launch of the In-Sight® 1750, a next-generation wafer and panel identification system designed for the Semiconductor industry, one of the most demanding automation markets.
- Cognex to host 2027 Investor Day in June at its
Natick, MA headquarters.
"Our third-quarter results reflect strong execution across the business, with record revenue, broad-based growth across most of our major end markets, and continued progress against our strategic objectives," said Matt Moschner, President and CEO. "We believe we are strengthening our leadership in AI-powered machine vision through innovation, expanding our long-term growth opportunity through the announced acquisition of RealSense, and continuing to help position Cognex to benefit from what we see as powerful trends in automation, robotics, and artificial intelligence."
Dennis Fehr, CFO, added, "We believe Q3 was another strong proof point for our profitable growth strategy. Record revenue, significant margin expansion, and Adjusted EBITDA flow-through above
|
Financial Performance Highlights for the Third Quarter (Dollars in millions, except per share amounts) |
|||||||||
|
|
|||||||||
|
|
Three-months ended |
|
|
|
|
||||
|
|
October 04, 2026 |
|
September 28, 2025 as Reported |
|
September 28, 2025 ex CP |
|
Y/Y Change as Reported |
|
Y/Y Change ex CP |
|
Revenue |
|
|
|
|
|
|
+13 % |
|
+19 % |
|
Operating Income |
|
|
|
|
|
|
+74 % |
|
+115 % |
|
% of Revenue |
32.2 % |
|
20.9 % |
|
17.9 % |
|
+1,130 bps |
|
+1,430 bps |
|
Adjusted EBITDA1 |
|
|
|
|
|
|
61 % |
|
+91 % |
|
% of Revenue |
35.5 % |
|
24.9 % |
|
22.1 % |
|
+1,060 bps |
|
+1,340 bps |
|
Net Income per Diluted Share |
|
|
|
|
|
|
+400 % |
|
+733 % |
|
Adjusted EPS (Diluted)1 |
|
|
|
|
|
|
+61 % |
|
+89 % |
|
1Adjusted 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
$313 million $277 13% , driven by broad-based strength across most major end markets. Excluding the one-time benefit from the Commercial Partnership, revenue grew19% year over year. Foreign currency exchange did not have a meaningful impact on consolidated revenue in the quarter. - Gross margin was
70.8% compared to67.6% in the third quarter of 2025. Adjusted gross margin was71.3% compared to68.4% in the third quarter of 2025, an increase of 290 basis points. The year-over-year increase was primarily driven by favorable mix, higher volume, and faster-than-expected pricing execution. These benefits more than offset the expected memory cost headwinds in the quarter.
- Operating expenses were
$121 $130 7% . Adjusted operating expenses were$116 $125 7% , primarily reflecting continued cost management activities, somewhat offset by higher sales commissions.
- Operating income was
$101 $58 74% . Operating margin was32.2% compared to20.9% in the third quarter of 2025, an increase of 1,130 basis points. Adjusted operating margin was34.2% compared to23.2% in the third quarter of 2025, an increase of 1,100 basis points.
- Adjusted EBITDA was
$111 million $69 million 61% . Adjusted EBITDA margin was35.5% compared to24.9% in the third quarter of 2025, an increase of 1,060 basis points. Excluding the one-time benefit from the Commercial Partnership, Adjusted EBITDA margin increased 1,340 basis points year over year, driven by revenue growth, strong Adjusted Gross Margin and disciplined cost management.
- Net income of
$85 $18 372% . Adjusted net income of$90 $56 million 61% .
- Net income per diluted share was
$0 $0 400% . Adjusted diluted earnings per share were$0.53 $0.33 61% . Excluding the one-time benefit from the Commercial Partnership, Adjusted diluted earnings per share increased89% year over year.
Balance Sheet and Cash Flow Highlights
- As of October 4, 2026, Cognex's financial position remained strong, with
$846 million
- During the third quarter, Cognex generated
$106 million $87 million 22% .
- During the third quarter, Cognex generated Free Cash Flow (FCF) of
$104 million $86 million 21% . Third quarter FCF conversion rate was122% of net income and116% of Adjusted net income. Trailing twelve-month FCF conversion rate was118% of net income and106% of Adjusted net income.
- Cognex paid
$14 million
Dividend
On November 4, 2026, Cognex's Board of Directors declared a quarterly cash dividend of
Guidance
Cognex issued fourth-quarter guidance and increased full-year 2026 guidance; details are summarized in the tables below.
Table 1: Fourth-Quarter 2026 Guidance
|
(Dollars in millions, except per |
Q4 2026 Guidance |
|
Q4 2025 Results |
|
Y/Y Change* |
|
Revenue |
|
|
|
|
+11 % |
|
|
|
|
|
|
|
|
Adj. EBITDA Margin1 |
|
|
22.7 % |
|
+780 bps |
|
|
|
|
|
|
|
|
Adj. EPS (diluted)1 |
|
|
|
|
+44 % |
Table 2: Full-Year 2026 Guidance
|
(Dollars in millions, except per share amounts) |
New 2026 Guidance |
Prior 2026 Guidance |
|
2025 Results |
2025 Results |
|
Y/Y Change* |
Y/Y Change* |
|
Revenue |
|
|
|
|
|
|
+16 % |
+17 % |
|
|
|
|
|
|
|
|
|
|
|
Adj. EBITDA Margin1 |
|
|
|
21.5 % |
20.7 % |
|
+1,000 bps |
+1,080 bps |
|
|
|
|
|
|
|
|
|
|
|
Adj. EPS (diluted)1 |
|
|
|
|
|
|
+67 % |
+75 % |
|
* 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 Q4 2025, the GAAP operating margin was operating margin was |
Analyst Conference Call and Simultaneous Webcast
- Cognex will host a conference call on November 5, 2026, at 8:30 a.m. Eastern Standard 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 Cognex Corporation ("Cognex", "we", "us", "our", or 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 closing, timing, integration, and expected results from acquired businesses, including RealSense, Inc. ("RealSense"), 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, financial and operating models, 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, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (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 timely manufacturing and distribution of high-quality 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 CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) |
|||
|
|
October 4, 2026 |
|
December 31, 2025 |
|
|
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 694,695 |
|
$ 262,925 |
|
Current investments |
997 |
|
74,037 |
|
Accounts receivable, net of allowance for credit losses of 2025, respectively |
216,720 |
|
146,713 |
|
Unbilled revenue |
12,763 |
|
16,980 |
|
Inventories |
158,453 |
|
137,889 |
|
Prepaid expenses and other current assets |
68,206 |
|
58,702 |
|
Total current assets |
1,151,834 |
|
697,246 |
|
Non-current investments |
150,292 |
|
305,339 |
|
Property, plant, and equipment, net |
79,720 |
|
86,015 |
|
Operating lease assets |
66,153 |
|
72,310 |
|
Goodwill |
386,105 |
|
386,279 |
|
Intangible assets, net |
63,295 |
|
81,100 |
|
Deferred income taxes |
374,517 |
|
383,272 |
|
Other assets |
4,551 |
|
4,994 |
|
Total assets |
$ 2,276,467 |
|
$ 2,016,555 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 74,708 |
|
$ 50,203 |
|
Accrued expenses |
88,618 |
|
91,397 |
|
Accrued income taxes |
10,627 |
|
9,141 |
|
Deferred revenue and customer deposits |
42,450 |
|
21,094 |
|
Operating lease liabilities |
12,314 |
|
11,716 |
|
Total current liabilities |
228,717 |
|
183,551 |
|
Non-current operating lease liabilities |
58,048 |
|
64,870 |
|
Deferred income taxes |
243,132 |
|
250,512 |
|
Reserve for income taxes |
23,000 |
|
24,269 |
|
Other liabilities |
2,080 |
|
1,452 |
|
Total liabilities |
554,977 |
|
524,654 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Preferred stock, respectively; no shares issued and outstanding |
— |
|
— |
|
Common stock, respectively; issued and outstanding: 168,372 and 166,997 shares in 2026 and 2025, respectively |
337 |
|
334 |
|
Additional paid-in capital |
1,310,477 |
|
1,138,708 |
|
Retained earnings |
467,646 |
|
406,355 |
|
Accumulated other comprehensive loss, net of tax |
(56,970) |
|
(53,496) |
|
Total shareholders' equity |
1,721,490 |
|
1,491,901 |
|
Total liabilities and shareholders' equity |
$ 2,276,467 |
|
$ 2,016,555 |
|
COGNEX CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands, except per share amounts) |
|||||||
|
|
|||||||
|
|
Three-months Ended |
|
Nine-months Ended |
||||
|
|
October 4, 2026 |
|
September 28, 2025 |
|
October 4, 2026 |
|
September 28, 2025 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ 313,387 |
|
$ 276,892 |
|
$ 873,087 |
|
$ 742,021 |
|
Cost of revenue (1) |
91,644 |
|
89,602 |
|
254,632 |
|
242,532 |
|
Gross profit |
221,743 |
|
187,290 |
|
618,455 |
|
499,489 |
|
Percentage of revenue |
70.8 % |
|
67.6 % |
|
70.8 % |
|
67.3 % |
|
Research, development, and engineering expenses (1) |
33,897 |
|
35,081 |
|
103,313 |
|
102,910 |
|
Percentage of revenue |
10.8 % |
|
12.7 % |
|
11.8 % |
|
13.9 % |
|
Selling, general, and administrative expenses (1) |
87,024 |
|
94,444 |
|
268,930 |
|
269,289 |
|
Percentage of revenue |
27.8 % |
|
34.1 % |
|
30.8 % |
|
36.3 % |
|
Operating income |
100,822 |
|
57,765 |
|
246,212 |
|
127,290 |
|
Percentage of revenue |
32.2 % |
|
20.9 % |
|
28.2 % |
|
17.2 % |
|
Foreign currency gain (loss) |
(744) |
|
840 |
|
(2,951) |
|
(3,116) |
|
Investment income |
3,358 |
|
4,197 |
|
13,285 |
|
12,227 |
|
Other income (expense) |
(146) |
|
61 |
|
(2,199) |
|
2,322 |
|
Income before income tax expense |
103,290 |
|
62,863 |
|
254,347 |
|
138,723 |
|
Income tax expense |
18,470 |
|
45,199 |
|
45,067 |
|
56,945 |
|
Net income |
$ 84,820 |
|
$ 17,664 |
|
$ 209,280 |
|
$ 81,778 |
|
Percentage of revenue |
27.1 % |
|
6.4 % |
|
24.0 % |
|
11.0 % |
|
|
|
|
|
|
|
|
|
|
Net income per weighted-average common and common- equivalent share: |
|
|
|
|
|
|
|
|
Basic |
$ 0.50 |
|
$ 0.11 |
|
$ 1.25 |
|
$ 0.49 |
|
Diluted |
$ 0.50 |
|
$ 0.10 |
|
$ 1.23 |
|
$ 0.48 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common and common-equivalent shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
168,309 |
|
167,840 |
|
167,377 |
|
168,324 |
|
Diluted |
171,027 |
|
169,323 |
|
169,860 |
|
169,507 |
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share |
$ 0.085 |
|
$ 0.080 |
|
$ 0.255 |
|
$ 0.240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock-based compensation expense, as follows: |
|||||||
|
Cost of revenue |
$ 592 |
|
$ 489 |
|
$ 2,109 |
|
$ 1,694 |
|
Research, development, and engineering |
3,491 |
|
3,794 |
|
11,973 |
|
11,933 |
|
Selling, general, and administrative |
7,063 |
|
8,133 |
|
20,209 |
|
21,022 |
|
Total stock-based compensation expense |
$ 11,146 |
|
$ 12,416 |
|
$ 34,291 |
|
$ 34,649 |
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 net income or adjusted net income, as applicable.
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 RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP Dollars in thousands, except per share amounts (Unaudited) |
|||||||||
|
|
|||||||||
|
|
|
Three-months Ended |
|
Nine-months Ended |
|
||||
|
|
|
October 4, 2026 |
|
September 28, 2025 |
|
October 4, 2026 |
|
September 28, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (GAAP) |
|
$ 221,743 |
|
$ 187,290 |
|
$ 618,455 |
|
$ 499,489 |
|
|
Acquisition and integration costs |
|
219 |
|
213 |
|
653 |
|
666 |
|
|
Amortization of acquisition-related intangible assets |
|
1,317 |
|
1,379 |
|
3,977 |
|
4,099 |
|
|
Reorganization charges |
|
274 |
|
400 |
|
1,569 |
|
486 |
|
|
Adjusted gross profit |
|
$ 223,553 |
|
$ 189,282 |
|
$ 624,654 |
|
$ 504,740 |
|
|
GAAP gross margin |
|
70.8 % |
|
67.6 % |
|
70.8 % |
|
67.3 % |
|
|
Adjusted gross margin |
|
71.3 % |
|
68.4 % |
|
71.5 % |
|
68.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense (GAAP) |
|
$ 120,921 |
|
$ 129,525 |
|
$ 372,243 |
|
$ 372,199 |
|
|
Acquisition and integration costs |
|
(2,553) |
|
(180) |
|
(2,583) |
|
(977) |
|
|
Amortization of acquisition-related intangible assets |
|
(954) |
|
(1,260) |
|
(3,121) |
|
(3,846) |
|
|
Reorganization charges |
|
(951) |
|
(2,966) |
|
(6,041) |
|
(4,588) |
|
|
Adjusted operating expense |
|
$ 116,463 |
|
$ 125,119 |
|
$ 360,498 |
|
$ 362,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (GAAP) |
|
$ 100,822 |
|
$ 57,765 |
|
$ 246,212 |
|
$ 127,290 |
|
|
Acquisition and integration costs |
|
2,772 |
|
393 |
|
3,236 |
|
1,643 |
|
|
Amortization of acquisition-related intangible assets |
|
2,271 |
|
2,639 |
|
7,098 |
|
7,945 |
|
|
Reorganization charges |
|
1,225 |
|
3,366 |
|
7,610 |
|
5,074 |
|
|
Adjusted operating income |
|
$ 107,090 |
|
$ 64,163 |
|
$ 264,156 |
|
$ 141,952 |
|
|
GAAP operating margin |
|
32.2 % |
|
20.9 % |
|
28.2 % |
|
17.2 % |
|
|
Adjusted operating margin |
|
34.2 % |
|
23.2 % |
|
30.3 % |
|
19.1 % |
|
|
Depreciation (adjusted for amounts included in Acquisition and integration costs) |
|
4,309 |
|
4,666 |
|
13,139 |
|
14,844 |
|
|
Adjusted EBITDA |
|
$ 111,399 |
|
$ 68,829 |
|
$ 277,295 |
|
$ 156,796 |
|
|
Adjusted EBITDA margin |
|
35.5 % |
|
24.9 % |
|
31.8 % |
|
21.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ 84,820 |
|
$ 17,664 |
|
$ 209,280 |
|
$ 81,778 |
|
|
Acquisition and integration costs |
|
2,772 |
|
393 |
|
3,236 |
|
1,643 |
|
|
Amortization of acquisition-related intangible assets |
|
2,271 |
|
2,639 |
|
7,098 |
|
7,945 |
|
|
Reorganization charges |
|
1,225 |
|
3,366 |
|
7,610 |
|
5,074 |
|
|
Loss on sale of business |
|
— |
|
— |
|
1,539 |
|
— |
|
|
Losses on sale of investments to fund acquisition |
|
2,407 |
|
— |
|
2,407 |
|
— |
|
|
Discrete tax (benefit) expense |
|
(1,454) |
|
33,650 |
|
(2,183) |
|
33,132 |
|
|
Tax impact of reconciling items |
|
(2,242) |
|
(1,615) |
|
(5,982) |
|
(3,871) |
|
|
Adjusted net income |
|
$ 89,799 |
|
$ 56,097 |
|
$ 223,005 |
|
$ 125,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock, diluted (GAAP) |
|
$ 0.50 |
|
$ 0.10 |
|
$ 1.23 |
|
$ 0.48 |
|
|
Acquisition and integration costs |
|
0.02 |
|
0.00 |
|
0.02 |
|
0.01 |
|
|
Amortization of acquisition-related intangible assets |
|
0.01 |
|
0.02 |
|
0.04 |
|
0.05 |
|
|
Reorganization charges |
|
0.01 |
|
0.02 |
|
0.04 |
|
0.03 |
|
|
Loss on sale of business |
|
— |
|
— |
|
0.01 |
|
— |
|
|
Losses on sale of investments to fund acquisition |
|
0.01 |
|
— |
|
0.01 |
|
— |
|
|
Discrete tax (benefit) expense |
|
(0.01) |
|
0.20 |
|
(0.01) |
|
0.20 |
|
|
Tax impact of reconciling items |
|
(0.01) |
|
(0.01) |
|
(0.04) |
|
(0.02) |
|
|
Adjusted earnings per share of common stock, diluted |
|
$ 0.53 |
|
$ 0.33 |
|
$ 1.31 |
|
$ 0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (GAAP) |
|
17.9 % |
|
71.9 % |
|
17.7 % |
|
41.0 % |
|
|
Discrete tax benefit (expense) |
|
1.4 % |
|
(53.5) % |
|
0.9 % |
|
(23.9) % |
|
|
Net impact of other reconciling items |
|
0.5 % |
|
0.6 % |
|
0.7 % |
|
0.9 % |
|
|
Adjusted effective tax rate |
|
19.8 % |
|
19.0 % |
|
19.3 % |
|
18.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities (GAAP) |
|
$ 106,415 |
|
$ 87,485 |
|
$ 220,661 |
|
$ 170,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(2,639) |
|
(1,452) |
|
(6,928) |
|
(6,147) |
|
|
Free cash flow |
|
$ 103,776 |
|
$ 86,033 |
|
$ 213,733 |
|
$ 164,465 |
|
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 October 4, 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 nine-month period ended October 4, 2026.
Losses on sale of investments to fund acquisition:
- The Company has recognized a pre-tax loss related to the sale of investments, primarily corporate bonds, during the three-month period ended October 4, 2026. The proceeds from these sales, along with existing cash balances, are intended to fund the acquisition of RealSense that is expected to close in the fourth quarter of 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 across a diverse set of end markets, including logistics, consumer electronics, automotive, packaging, and semiconductor.
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/cognex-reports-third-quarter-2026-results-302929644.html
SOURCE Cognex Corporation
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Cognex's third-quarter 2026 revenue and earnings?
Cognex reported $313 million in revenue and diluted earnings of $0.50 per share for the quarter ended October 4, 2026. Revenue increased 13% year over year, while diluted earnings rose from $0.10 per share. Adjusted diluted earnings were $0.53, up 61%.
What is Cognex's updated full-year 2026 guidance?
Cognex expects $1,143–$1,163 million in revenue, a 31%–32% adjusted EBITDA margin and $1.68–$1.72 in adjusted diluted earnings per share. All three ranges increased from prior guidance. At their midpoints, revenue growth is 16% and adjusted diluted earnings growth is 67% versus 2025.
When is the record date for Cognex's increased quarterly dividend?
Shareholders must be holders of record at the close of business on November 19, 2026 for the increased quarterly dividend. The $0.09-per-share dividend is payable December 3, 2026.