[10-Q] Cognex Corp Quarterly Earnings Report

Rhea-AI Filing Summary

Cognex (CGNX) Q2 2025 10-Q highlights:

• Revenue rose 4% YoY to $249.1 m (6-mo +3% to $465.1 m). Growth came from logistics and general factory automation; automotive remained soft and China declined 17%.
• Profitability: Gross margin slid to 67% (-300 bp) on less-favourable mix. Tight cost control cut operating expenses 3%, lifting operating income 13% to $43.4 m (17% margin). Net income increased 12% to $40.5 m; diluted EPS $0.24 vs $0.21.
• Cash & liquidity: Operating cash flow doubled YoY to $83.1 m, aided by inventory draw-down (-$13 m) and higher deferred revenue. Cash & investments total $552.6 m; no long-term debt.
• Balance sheet movements: Inventory $144.6 m (-8% YTD); A/R up to $183.9 m; deferred revenue/customer deposits surged to $53.1 m. Goodwill rose $12.5 m on FX.
• Capital returns: 3.05 m shares repurchased for $102.2 m (program balance $164 m). Dividends paid $0.08/shr quarterly (-$27 m YTD).
• Upcoming catalysts: July partnership grants exclusive OEM rights in medical-lab automation, expected to add one-time $8–14 m revenue in Q3. Board declared another $0.08 dividend (payable Aug 28).
• Risks/outs: Gross-margin pressure, continued China weakness, OBBBA U.S. tax law will materially raise deferred tax liability and expense in Q3 (cash benefit $12–15 m FY-25).

Overall: Modest top-line growth with improved operating leverage and strong cash generation offset by margin compression and looming tax headwind.

Positive

• Operating income up 13% YoY despite only 4% sales growth, showing cost discipline and leverage.
• Operating cash flow +101% to $83 m, supporting dividends and $102 m share repurchase.
• Deferred revenue/customer deposits doubled to $53 m, indicating forward demand.
• Net cash & investments of $553 m with no debt preserves strategic flexibility.
• New medical-lab automation partnership expected to add $8–14 m one-time revenue in Q3.

Negative

• Gross margin fell 300 bp to 67% from adverse industry mix and tariffs.
• Greater China revenue down 17%, highlighting geographic concentration risk.
• Upcoming OBBBA tax law will materially increase deferred tax liabilities and GAAP tax expense.
• Continued automotive sector weakness dampens high-margin product demand.
• Foreign-currency losses of $4 m YTD signal exposure despite hedging.

Insights

Equity Research Analyst

TL;DR: Solid cash flow & buybacks offset margin slippage; outlook hinges on mix and new tax hit.

Cognex delivered low-single-digit revenue growth but converted it efficiently: opex discipline held growth in check and drove 120 bp operating-margin expansion despite a 300 bp gross-margin dip. Cash generation was notable—OFCF of $83 m covered dividends and half of this year’s $102 m repurchase spend. Inventory burn and 112% FCF conversion signal improving supply chain health.

Regional mix shifted favourably to Americas/Europe, but Greater China weakness (-17%) remains a drag and may persist given customer procurement shifts. The logistics vertical continues to prop up demand while automotive softness weighs on ASP-rich solutions.

Management flags a Q3 one-off licence revenue boost ($8–14 m) and warns that the newly enacted OBBBA tax rules will inflate deferred tax liabilities, raising future GAAP tax expense—an overhang for 2H25 EPS models. Net cash of >$550 m gives flexibility for further buybacks or M&A.

Industry Specialist – Factory Automation

TL;DR: Mix shift to logistics supports growth; automotive and China still cyclical headwinds.

End-market commentary mirrors broader automation trends: e-commerce fulfilment remains a growth engine, while EV/automotive capex freezes hurt vision sales. Cognex’s 67% GM, though down, still eclipses peers, reflecting IP strength. Deferred revenue jump suggests healthy backlog, but lower margins hint at greater contribution from lower-ASP logistics sensors versus high-margin OEM solutions.

The medical-lab automation partnership extends Cognex into a niche with structural growth and limited cyclicality—strategically positive. Yet persistent FX losses and rising tax burden could temper near-term earnings quality.

June 29, 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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549 

FORM 10-Q 

(Mark One)

☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 29, 2025 or

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________

Commission File Number 001-34218

COGNEX CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts						04-2713778
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Vision Drive

Natick, Massachusetts 01760-2059

(508) 650-3000

(Address, including zip code, and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $.002 per share			CGNX			The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Yes ☐ No ☒

As of June 29, 2025, there were 167,899,010 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

INDEX

PART I			FINANCIAL INFORMATION			3
Item 1.			Financial Statements (interim periods unaudited)			3
			Consolidated Statements of Operations for the three-month and six-month periods ended June 29, 2025 and June 30, 2024			3
			Consolidated Statements of Comprehensive Income (Loss) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024			4
			Consolidated Balance Sheets as of June 29, 2025 and December 31, 2024			5
			Consolidated Statements of Cash Flows for the six-month periods ended June 29, 2025 and June 30, 2024			6
			Consolidated Statements of Shareholders’ Equity for the three-month and six-month periods ended June 29, 2025 and June 30, 2024			7
			Notes to Consolidated Financial Statements			9
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			29
Item 4.			Controls and Procedures			29
PART II			OTHER INFORMATION			30
Item 1.			Legal Proceedings			30
Item 1A.			Risk Factors			30
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 3.			Defaults Upon Senior Securities			30
Item 4.			Mine Safety Disclosures			30
Item 5.			Other Information			30
Item 6.			Exhibits			31
			Signatures			32

2

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
			(unaudited)												(unaudited)
Revenue			$	249,093					$	239,292					$	465,129					$	450,089
Cost of revenue			81,217						72,693						152,930						141,553
Gross profit			167,876						166,599						312,199						308,536
Research, development, and engineering expenses			33,102						34,962						67,829						72,067
Selling, general, and administrative expenses			91,341						93,180						174,845						183,808
Operating income			43,433						38,457						69,525						52,661
Foreign currency gain (loss)			(1,503)						(181)						(3,956)						(135)
Investment income			4,040						3,116						8,030						6,236
Other income (expense)			2,092						176						2,261						372
Income before income tax expense			48,062						41,568						75,860						59,134
Income tax expense			7,551						5,356						11,746						10,900
Net income			$	40,511					$	36,212					$	64,114					$	48,234
Net income per weighted-average common and common-equivalent share:
Basic			$	0.24					$	0.21					$	0.38					$	0.28
Diluted			$	0.24					$	0.21					$	0.38					$	0.28
Weighted-average common and common-equivalent shares outstanding:
Basic			167,886						171,568						168,568						171,630
Diluted			168,563						172,733						169,553						172,699
Cash dividends per common share			$	0.080					$	0.075					$	0.160					$	0.150

The accompanying notes are an integral part of these consolidated financial statements.

3

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
			(unaudited)												(unaudited)
Net income			$	40,511					$	36,212					$	64,114					$	48,234
Other comprehensive income (loss), net of tax
Available-for-sale investments:
Net unrealized gain (loss), net of tax of $1,435 and $336 in the three-month periods, respectively, and net of tax of $2,310 and $453 in the six-month periods, respectively			1,742						1,020						4,453						1,379
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations			(27)						10						(54)						8
Net change related to available-for-sale investments			1,715						1,030						4,399						1,387
Foreign currency translation adjustments:
Foreign currency translation adjustments			19,154						(10,247)						30,601						(26,403)
Net change related to foreign currency translation adjustments			19,154						(10,247)						30,601						(26,403)
Other comprehensive income (loss), net of tax			20,869						(9,217)						35,000						(25,016)
Total comprehensive income (loss)			$	61,380					$	26,995					$	99,114					$	23,218

The accompanying notes are an integral part of these consolidated financial statements.

4

COGNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

			June 29, 2025						December 31, 2024
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	179,311					$	186,094
Current investments, allowance for credit losses of $0 in 2025 and 2024			48,892						59,956
Accounts receivable, allowance for credit losses of $620 and $827 in 2025 and 2024, respectively			183,946						143,359
Unbilled revenue			2,176						3,055
Inventories			144,577						157,527
Prepaid expenses and other current assets			66,823						63,376
Total current assets			625,725						613,367
Non-current investments, allowance for credit losses of $0 in 2025 and 2024			324,348						340,898
Property, plant, and equipment, net			93,428						98,445
Operating lease assets			77,990						67,326
Goodwill			397,389						384,937
Intangible assets, net			92,135						90,684
Deferred income taxes			387,232						392,166
Other assets			5,294						5,027
Total assets			2,003,541						1,992,850
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	42,273					$	38,046
Accrued expenses			78,344						71,760
Accrued income taxes			5,483						25,685
Deferred revenue and customer deposits			53,077						25,035
Operating lease liabilities			11,260						8,854
Total current liabilities			190,437						169,380
Non-current operating lease liabilities			71,925						61,363
Deferred income taxes			209,289						217,155
Reserve for income taxes			25,742						26,365
Other liabilities			91						1,082
Total liabilities			497,484						475,345
Commitments and contingencies (Note 8)
Shareholders’ equity:
Preferred stock, $.01 par value – Authorized: 400 shares in 2025 and 2024, respectively; no shares issued and outstanding			—						—
Common stock, $.002 par value – Authorized: 300,000 shares in 2025 and 2024, respectively; issued and outstanding: 167,899 and 170,434 shares in 2025 and 2024, respectively			336						341
Additional paid-in capital			1,110,458						1,090,638
Retained earnings			433,040						499,303
Accumulated other comprehensive loss, net of tax			(37,777)						(72,777)
Total shareholders’ equity			1,506,057						1,517,505
Total liabilities and shareholders' equity			$	2,003,541					$	1,992,850

The accompanying notes are an integral part of these consolidated financial statements.

5

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

			Six-months Ended
			June 29, 2025						June 30, 2024
			(unaudited)
Cash flows from operating activities:
Net income			$	64,114					$	48,234
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense			22,233						26,266
Depreciation of property, plant, and equipment			10,627						10,472
(Gain) loss on disposal of property, plant, and equipment			6						—
Amortization of intangible assets			5,306						5,540
Excess and obsolete inventory charges			710						1,343
Fair value adjustment on acquired inventories			—						1,224
Amortization of discounts or premiums on investments			(314)						562
Realized (gain) loss on sale of investments			(54)						8
Change in deferred income taxes			(6,193)						(7,538)
Change in operating assets and liabilities:
Accounts receivable			(38,132)						(47,784)
Unbilled revenue			901						527
Inventories			12,944						1,145
Prepaid expenses and other current assets			(2,364)						(6,590)
Accounts payable			3,575						2,786
Accrued expenses			2,340						6,234
Accrued income taxes			(20,602)						(14,305)
Deferred revenue and customer deposits			27,399						9,374
Other			631						3,908
Net cash provided by (used in) operating activities			83,127						41,406
Cash flows from investing activities:
Purchases of investments			(214,754)						(269,860)
Maturities and sales of investments			248,570						266,090
Purchases of property, plant, and equipment			(4,695)						(8,571)
Net payments related to business acquisitions			—						(1,444)
Net cash provided by (used in) investing activities			29,121						(13,785)
Cash flows from financing activities:
Net payments from issuance of common stock under stock plans			(2,412)						(1,871)
Repurchase of common stock			(102,233)						(19,879)
Payment of dividends			(26,981)						(25,756)
Net cash provided by (used in) financing activities			(131,626)						(47,506)
Effect of foreign exchange rate changes on cash and cash equivalents			12,595						(6,144)
Net change in cash and cash equivalents			(6,783)						(26,029)
Cash and cash equivalents at beginning of period			186,094						202,655
Cash and cash equivalents at end of period			$	179,311					$	176,626

The accompanying notes are an integral part of these consolidated financial statements.

6

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except unit and per unit data)

			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Shareholders’ Equity
			Shares						Par Value
Balance as of March 30, 2025			167,865						$	336					$	1,097,989					$	405,949					$	(58,646)					$	1,445,628
Net issuance of common stock under stock plans			34						—						175						—						—						175
Excise tax on repurchase of common stock			—						—						—						11						—						11
Stock-based compensation expense			—						—						12,294						—						—						12,294
Payment of dividends ($0.080 per common share)			—						—						—						(13,431)						—						(13,431)
Net income			—						—						—						40,511						—						40,511
Net unrealized gain (loss) on available-for-sale investments, net of tax of $1,435			—						—						—						—						1,742						1,742
Reclassification of net realized (gain) loss on the sale of available-for-sale investments																											(27)						(27)
Foreign currency translation adjustment			—						—						—						—						19,154						19,154
Balance as of June 29, 2025 (unaudited)			167,899						$	336					$	1,110,458					$	433,040					$	(37,777)					$	1,506,057

			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Shareholders’ Equity
			Shares						Par Value
Balance as of March 31, 2024			171,662						$	343					$	1,047,643					$	502,338					$	(61,135)					$	1,489,189
Net issuance of common stock under stock plans			81						—						990						—						—						990
Repurchase of common stock			(242)						—						—						(10,540)						—						(10,540)
Stock-based compensation expense			—						—						12,964						—						—						12,964
Payment of dividends ($0.075 per common share)			—						—						—						(12,868)						—						(12,868)
Net income			—						—						—						36,212						—						36,212
Net unrealized gain (loss) on available-for-sale investments, net of tax of $336			—						—						—						—						1,020						1,020
Reclassification of net realized (gain) loss on the sale of available-for-sale investments			—						—						—						—						10						10
Foreign currency translation adjustment			—						—						—						—						(10,247)						(10,247)
Balance as of June 30, 2024 (unaudited)			171,501						$	343					$	1,061,597					$	515,142					$	(70,352)					$	1,506,730

The accompanying notes are an integral part of these consolidated financial statements.

7

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of dollars, except unit and per unit data)

			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Shareholders’ Equity
			Shares						Par Value
Balance as of December 31, 2024			170,434						$	341					$	1,090,638					$	499,303					$	(72,777)					$	1,517,505
Net issuance of common stock under stock plans			512						1						(2,413)						—						—						(2,412)
Repurchase of common stock			(3,047)						(6)						—						(102,227)						—						(102,233)
Excise tax on repurchase of common stock			—						—						—						(1,169)						—						(1,169)
Stock-based compensation expense			—						—						22,233						—						—						22,233
Payment of dividends ($0.160 per common share)			—						—						—						(26,981)						—						(26,981)
Net income			—						—						—						64,114						—						64,114
Net unrealized gain (loss) on available-for-sale investments, net of tax of $2,310			—						—						—						—						4,453						4,453
Reclassification of net realized (gain) loss on the sale of available-for-sale investments			—						—						—						—						(54)						(54)
Foreign currency translation adjustment			—						—						—						—						30,601						30,601
Balance as of June 29, 2025 (unaudited)			167,899						$	336					$	1,110,458					$	433,040					$	(37,777)					$	1,506,057

			Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Shareholders’ Equity
			Shares						Par Value
Balance as of December 31, 2023			171,599						$	343					$	1,037,202					$	512,543					$	(45,336)					$	1,504,752
Net issuance of common stock under stock plans			375						—						(1,871)						—						—						(1,871)
Repurchase of common stock			(473)						—						—						(19,879)						—						(19,879)
Stock-based compensation expense			—						—						26,266						—						—						26,266
Payment of dividends ($0.150 per common share)			—						—						—						(25,756)						—						(25,756)
Net income			—						—						—						48,234						—						48,234
Net unrealized gain (loss) on available-for-sale investments, net of tax of $453			—						—						—						—						1,379						1,379
Reclassification of net realized (gain) loss on the sale of available-for-sale investments			—						—						—						—						8						8
Foreign currency translation adjustment			—						—						—						—						(26,403)						(26,403)
Balance as of June 30, 2024 (unaudited)			171,501						$	343					$	1,061,597					$	515,142					$	(70,352)					$	1,506,730

The accompanying notes are an integral part of these consolidated financial statements.

8

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1: Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by accounting principles generally accepted in the United States ("GAAP"). Reference should be made to the consolidated financial statements and related notes included in Cognex Corporation's ("Cognex" or the "Company") Annual Report on Form 10-K for the year ended December 31, 2024 for a full description of other significant accounting policies.

In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications necessary to present fairly the Company’s financial position as of June 29, 2025, and the results of its operations for the three-month and six-month periods ended June 29, 2025 and June 30, 2024, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month and six-month periods ended June 29, 2025 are not necessarily indicative of the results to be expected for the full year.

NOTE 2: New Pronouncements

Accounting Standards Update (ASU) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures"

The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, are equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments in this ASU should be applied on a prospective basis. Management does not expect ASU 2023-09 to have a material impact on the Company's financial statements and disclosures.

Accounting Standards Update (ASU) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)

This ASU aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. This ASU mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, this ASU is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The adoption will result in disclosure changes only.

9

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3: Financial Instruments

Cash, Cash Equivalents, and Investments

The following table summarizes the Company’s cash, cash equivalents, and investments as of June 29, 2025 (in thousands):

						Fair Value Level						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value						Cash and Cash Equivalents						Current Investments						Non-current Investments
Cash												$	151,362					$	—					$	—					$	151,362					$	151,362					$	—					$	—
Money market instruments						Level 1						656						—						—						656						656						—						—
Certificates of deposit						Level 2						25,293						—						—						25,293						25,293						—						—
Treasury bills						Level 2						2,000						—						—						2,000						2,000						—						—
Corporate bonds						Level 2						334,656						2,292						(1,023)						335,925						—						47,809						288,115
Treasury notes						Level 2						31,408						98						(23)						31,483						—						—						31,484
Asset-backed securities						Level 2						5,245						—						(409)						4,836						—						87						4,749
Sovereign bonds						Level 2						1,001						—						(5)						996						—						996						—
Total												$	551,621					$	2,390					$	(1,460)					$	552,551					$	179,311					$	48,892					$	324,348

The following table summarizes the Company’s cash, cash equivalents, and investments as of December 31, 2024 (in thousands):

						Fair Value Level						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value						Cash and Cash Equivalents						Current Investments						Non-current Investments
Cash												$	170,852					$	—					$	—					$	170,852					$	170,852					$	—					$	—
Money market instruments						Level 1						15,242						—						—						15,242						15,242						—						—
Corporate bonds						Level 2						344,804						411						(4,299)						340,916						—						55,742						285,174
Treasury notes						Level 2						46,071						2						(439)						45,634						—						2,487						43,147
Asset-backed securities						Level 2						13,870						—						(556)						13,314						—						737						12,577
Sovereign bonds						Level 2						1,013						—						(23)						990						—						990						—
Total												$	591,852					$	413					$	(5,317)					$	586,948					$	186,094					$	59,956					$	340,898

The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.

The Company’s debt securities are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial instruments, and in doing so, considers valuations provided by a large, third-party pricing service. This service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations.

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $3,926,000 and $4,144,000 as of June 29, 2025 and December 31, 2024, respectively.

10

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Realized Gains (Losses) on Debt Securities

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month and six-month periods ended June 29, 2025 and June 30, 2024 (in thousands):

						Three-months Ended												Six-months Ended
						June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Gross realized gains						$	30					$	6					$	57					$	8
Gross realized losses						(3)						(16)						(3)						(16)
Net realized gains (losses)						$	27					$	(10)					$	54					$	(8)

Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive income (loss).

Unrealized Losses on Debt Securities

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of June 29, 2025 (in thousands):

			Unrealized Loss Position For:
			Less than 12 Months												12 Months or Greater												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Corporate bonds			$	54,076					$	(282)					$	52,136					$	(741)					$	106,212					$	(1,023)
Treasury notes			9,708						(23)						—						—						9,708						(23)
Asset-backed securities			—						—						4,836						(409)						4,836						(409)
Sovereign bonds			—						—						996						(5)						996						(5)
			$	63,784					$	(305)					$	57,968					$	(1,155)					$	121,752					$	(1,460)

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2024 (in thousands):

			Unrealized Loss Position For:
			Less than 12 Months												12 Months or Greater												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Corporate bonds			$	172,049					$	(2,227)					$	87,815					$	(2,071)					$	259,864					$	(4,298)
Treasury notes			42,149						(425)						2,487						(14)						44,636						(439)
Asset-backed securities			11,024						(547)						2,290						(10)						13,314						(557)
Sovereign bonds			—						—						990						(23)						990						(23)
			$	225,222					$	(3,199)					$	93,582					$	(2,118)					$	318,804					$	(5,317)

Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of June 29, 2025 or December 31, 2024. Management currently intends to hold these securities to full value recovery at maturity.

11

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Debt Securities Maturities

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 29, 2025 (in thousands):

			<1 year						1-2 Years						2-3 Years						3-4 Years						4-5 Years						5-8 Years						Total
Corporate bonds			$	47,809					$	74,948					$	106,924					$	71,479					$	34,765					$	—					$	335,925
Treasury notes			—						15,163						16,320						—						—						—						31,483
Asset-backed securities			87						—						—						1,774						—						2,975						4,836
Sovereign bonds			996						—						—						—						—						—						996
			$	48,892					$	90,111					$	123,244					$	73,253					$	34,765					$	2,975					$	373,240

Derivative Instruments

The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed twelve months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):

			June 29, 2025												December 31, 2024
Currency			Notional Value						USD Equivalent						Notional Value						USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Singapore Dollar			38,000						$	29,317					40,000						$	29,457
Chinese Renminbi			70,000						9,780						95,000						12,990
Mexican Peso			150,000						7,939						220,000						10,701
Hungarian Forint			2,500,000						7,344						2,360,000						5,951
Indian Rupee			500,000						5,844						—						—
British Pound			4,000						5,486						3,200						4,008
Korean Won			7,000,000						5,155						—						—
Japanese Yen			300,000						2,080						2,000,000						12,789
Euro			—						—						25,000						26,029
Swiss Franc			—						—						2,200						2,432
Canadian Dollar			—						—						2,000						1,390

12

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

									Asset Derivatives																					Liability Derivatives
															Fair Value																					Fair Value
						Balance Sheet Location			Fair Value Level						June 29, 2025						December 31, 2024						Balance Sheet Location			Fair Value Level						June 29, 2025						December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts						Prepaid expenses and other current assets			Level 2						$	1,065					$	689					Accrued expenses			Level 2						$	766					$	757
Activity:
Gross amounts recognized															$	1,065					$	689														$	766					$	757
Gross amounts offset															—						—															—						—
Net amounts presented on the Consolidated Balance Sheets															$	1,065					$	689														$	766					$	757

The Company’s forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.

Information regarding the effect of derivative instruments on the Consolidated Statements of Operations was as follows (in thousands):

						Statement of Operations Location						Three-months Ended												Six-months Ended
												June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations						Foreign currency gain (loss)						$	(420)					$	876					$	(967)					$	631

Activities related to derivative instruments are reflected within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.

NOTE 4: Inventories

Inventories consisted of the following (in thousands):

			June 29, 2025						December 31, 2024
Raw materials			$	78,836					$	86,917
Work-in-process			6,441						5,544
Finished goods			59,300						65,066
			$	144,577					$	157,527

13

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 5: Leases

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of June 29, 2025, there were no options to terminate and twenty options to extend that were accounted for in the determination of the applicable lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of June 29, 2025. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of June 29, 2025.

The components of lease expense were as follows (in thousands):

						Three-months Ended												Six-months Ended
						June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Operating lease expense						$	3,521					$	3,474					$	6,992					$	7,037
Short-term lease expense (1)						211						$	57					420						$	139

(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability

Supplemental balance sheet information related to leases was as follows:

						June 29, 2025						December 31, 2024
Weighted average remaining lease term						9.3 years						9.9 years
Weighted average discount rate						6.3		%				5.9		%

Supplemental cash flow information related to leases was as follows (in thousands):

						Three-months Ended												Six-months Ended
						June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Cash paid for amounts included in the measurement of operating lease liabilities						$	3,412					$	3,406					$	6,834					$	6,614

Maturities of lease liabilities as of June 29, 2025 were as follows (in thousands):

						Amount
Remainder of fiscal 2025						$	8,317
2026						15,043
2027						13,361
2028						11,859
2029						9,858
2030						8,816
Thereafter						42,857
Total undiscounted lease payments						$	110,111
Less: imputed interest						26,926
Total operating lease liabilities						$	83,185

14

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that had a commencement date in June of 2023 and a second 27,000 square-foot premises that does not commence until the fourth quarter of 2025. Accordingly, the second component of the lease has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of June 29, 2025. This second lease component has an original term of eight years and the Company has the right and option to extend this term by an additional five years, commencing upon the expiration of the original term. Undiscounted lease payment obligations associated with this lease component total $14,084,000, $172,000 of which is payable in the remainder of 2025 and which reflects the estimated extension period of five years. Undiscounted lease payment obligations related to this lease component are not included in the lease liability maturity table above as the lease component has not yet commenced.

The Company has entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The lease had a commencement date in June of 2025, and therefore, was recorded on the Consolidated Balance Sheet as of June 29, 2025. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Undiscounted lease payment obligations associated with this lease are included in the lease liability maturity table above and total $9,742,000, $464,000 of which is payable in the remainder of 2025.

NOTE 6: Goodwill and Intangible Assets

The changes in the carrying value of goodwill were as follows (in thousands):

Balance as of December 31, 2024						$	384,937
Foreign exchange rate changes						12,452
Balance as of June 29, 2025						$	397,389

Amortized intangible assets as of June 29, 2025 consisted of the following (in thousands):

			Gross Carrying Value						Accumulated Amortization						Net Carrying Value
Customer relationships			$	72,881					$	(13,151)					$	59,730
Completed technologies			60,916						(28,904)						32,012
Trademarks			883						(515)						368
Non-compete agreements			340						(315)						25
Balance as of June 29, 2025			$	135,020					$	(42,885)					$	92,135

Amortized intangible assets as of December 31, 2024 consisted of the following (in thousands):

			Gross Carrying Value						Accumulated Amortization						Net Carrying Value
Customer relationships			$	67,781					$	(10,229)					$	57,552
Completed technologies			58,373						(25,766)						32,607
Trademarks			810						(337)						473
Non-compete agreements			340						(288)						52
Balance as of December 31, 2024			$	127,304					$	(36,620)					$	90,684

15

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Future amortization expense related to intangible assets as of June 29, 2025 is as follows (in thousands):

						Amount
Remainder of fiscal 2025						$	5,338
2026						10,415
2027						9,473
2028						8,743
2029						8,743
2030						8,200
Thereafter						41,223
						$	92,135

NOTE 7: Warranty Obligations

The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or changes in circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.

The changes in the warranty obligation were as follows (in thousands):

Balance as of December 31, 2024			$	5,140
Provisions for warranties issued during the period			2,401
Fulfillment of warranty obligations			(1,640)
Foreign exchange rate changes			17
Balance as of June 29, 2025			$	5,918

NOTE 8: Commitments and Contingencies

As of June 29, 2025, the Company had outstanding purchase orders totaling $50,682,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months.

A significant portion of the Company's outstanding inventory purchase orders as of June 29, 2025, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.

16

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 9: Stockholders' Equity

Stock Repurchase Program

In March 2022, the Company's Board of Directors (the "Board") authorized a program providing for the repurchase of $500,000,000 of the Company's common stock (the "Program"). Under the Program, in addition to repurchases made in other periods, the Company repurchased 473,000 shares at a total cost of $19,879,000 during the six-month period ended June 30, 2024 and 3,047,000 shares at a total cost of $102,233,000 during the six-month period ended June 29, 2025, leaving a remaining balance of $164,020,000 as of June 29, 2025. The Company may repurchase shares under the Program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

Stock-Based Compensation Expense

The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs").

The following table summarizes the number of stock-based awards granted by the Company and the weighted-average grant-date fair value per unit for the three-month and six-month periods ended June 29, 2025 and June 30, 2024:

						Three-months Ended																								Six-months Ended
						June 29, 2025												June 30, 2024												June 29, 2025												June 30, 2024
						Stock-Based Awards Granted (in  thousands)						Weighted- Average Grant-Date Fair Value						Stock-Based Awards Granted (in  thousands)						Weighted- Average Grant-Date Fair Value						Stock-Based Awards Granted (in  thousands)						Weighted- Average Grant-Date Fair Value						Stock-Based Awards Granted (in  thousands)						Weighted- Average Grant-Date Fair Value
Stock options						279						$	10.75					97						$	18.46					1,639						$	12.05					1,620						$	14.89
Restricted stock units						11						$	28.51					32						$	43.97					1,259						$	32.31					797						$	39.03
Performance restricted stock units						—						$	—					—						$	—					184						$	32.14					55						$	39.05
						290												129												3,082												2,472

During the first quarter of 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date. The number of shares earned could range between 0% and 120% based on achievement of the performance condition, which includes certain financial targets over the three-year measurement period. The fair value of these PRSUs is calculated based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes. During the three-month and six-month periods ended June 29, 2025, the Company recorded $344,000 and $496,000 in compensation expense based on the probable three-year financial target outcome for the PRSUs granted during the first quarter of 2025.

The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 11% to all stock-based awards for senior management and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. Credits of $4,789,000 and $1,832,000 were recorded in 2025 and 2024, respectively, to true up previously recorded compensation expense for this forfeiture rate revision.

As of June 29, 2025, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $69,681,000, which is expected to be recognized over a weighted-average period of 1.9 years.

17

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Cost of revenue			$	537					$	413					$	1,205					$	1,018
Research, development, and engineering			3,443						3,540						8,139						7,929
Selling, general, and administrative			8,314						9,011						12,889						17,319
Total stock-based compensation expense			$	12,294					$	12,964					$	22,233					$	26,266

No compensation expense was capitalized as of June 29, 2025 or December 31, 2024.

NOTE 10: Revenue Recognition

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):

						Three-months Ended												Six-months Ended
						June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Americas						$	92,137					$	85,162					$	191,867					$	168,297
Europe						66,623						57,151						115,833						109,505
Greater China						45,025						54,410						71,815						84,459
Other Asia						45,308						42,569						85,614						87,828
						$	249,093					$	239,292					$	465,129					$	450,089

The following table summarizes disaggregated revenue information by revenue type (in thousands):

						Three-months Ended												Six-months Ended
						June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Standard products and services						$	216,035					$	200,856					$	420,545					$	388,488
Application-specific customer solutions						33,058						38,436						44,584						61,601
						$	249,093					$	239,292					$	465,129					$	450,089

Costs to Fulfill a Contract

Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $14,133,000 and $10,705,000 as of June 29, 2025 and December 31, 2024, respectively.

Accounts Receivable, Contract Assets, and Contract Liabilities

Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.

18

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the allowance for credit losses activity for the six-month period ended June 29, 2025 (in thousands):

Balance as of December 31, 2024			$	827
Increases to the allowance for credit losses			80
Write-offs, net of recoveries			(267)
Foreign exchange rate changes			(20)
Balance as of June 29, 2025			$	620

The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 29, 2025 (in thousands):

Balance as of December 31, 2024			$	25,035
Deferral of revenue billed in the current period, net of recognition			40,837
Recognition of revenue deferred in prior period			(13,450)
Foreign exchange rate changes			655
Balance as of June 29, 2025			$	53,077

As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations for our contracts that have an original expected duration of less than one year. The remaining unsatisfied performance obligations for our contracts that have an original expected duration of more than one year, primarily related to extended warranties, are not material.

19

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 11: Income Taxes

The Company's effective tax rate was 16% and 15% for the three-month and six-month periods ended June 29, 2025, respectively, and 13% and 18% for the three-month and six-month periods ended June 30, 2024, respectively.

The Company has defined its major tax jurisdictions as the United States, Ireland, China, Japan, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, 34.7% in Japan, and 21% in Korea, compared to the U.S. federal statutory corporate tax rate of 21%. These foreign tax rate differences resulted in a favorable impact to the effective tax rate for both the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

The Company recorded a net discrete tax benefit totaling $211,000 and $518,000 for the three-month and six-month periods ended June 29, 2025, respectively, and a net discrete tax benefit totaling $463,000 and a net discrete tax expense totaling $2,622,000 for the three-month and six-month periods ended June 30, 2024, respectively.

Discrete tax items for the six-month period ended June 29, 2025 included (1) an increase in tax expense of $2,668,000 related to stock-based compensation; (2) an increase in tax expense of $884,000 for interest expense related to tax reserves; (3) an increase in tax expense of $669,000 related to taxability of payroll tax credit refunds received during the year; (4) a decrease in tax expense of $2,393,000 for release of tax reserves related to statute of limitation lapse; (5) a net decrease in tax expense of $2,013,000 related to an adjustment to the Company's deferred tax position; and (6) a net decrease in tax expense of $333,000 related to return-to-provision adjustments.

Discrete tax items for the six-month period ended June 30, 2024 included (1) an increase in tax expense of $1,371,000 related to stock-based compensation; (2) an increase in tax expense of $477,000 related to state tax matters; (3) an increase in tax expense of $922,000 for interest expense related to tax reserves; (4) a net decrease in tax expense of $1,278,000 related to return-to-provision adjustments; and (5) an increase in tax expense of $1,130,000 for other tax matters.

The Company’s reserve for income taxes, including gross interest and penalties, was $28,109,000 as of June 29, 2025, of which $25,742,000 was classified as a non-current liability and $2,367,000 was classified as an offset to deferred tax assets. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period.

Within the United States, the tax years 2021 through 2024 remain open to examination by the Internal Revenue Service, and 2020 through 2024 remain open to examination by various state tax authorities. The tax years 2013 through 2024 remain open to examination by various international taxing authorities in other jurisdictions in which the Company operates.

On July 4, 2025, tax legislation known as the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. OBBBA modifies certain international tax provisions such as the tax on Global Intangible Low Taxed Income ("GILTI") and renames GILTI as Net CFC Tested Income ("NCTI"). The Company records NCTI taxes on a deferred basis. The Company is in the early stages of evaluating the impact of U.S. tax law changes introduced by OBBBA on our consolidated financial statements and disclosures. As of the date of this filing, we expect OBBBA to materially increase our deferred tax liability and income tax expense in the third quarter of 2025, while also providing a cash tax benefit estimated between $12 million and $15 million for the full year. A full quantitative estimate of all specific financial impacts cannot be reasonably determined at this time due to the complexity of the changes in OBBBA and the need for further analysis.

20

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 12: Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the three-month and six-month periods ended June 29, 2025 and June 30, 2024 (in thousands, except per share amounts):

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Net income			40,511						36,212						$	64,114					$	48,234
Basic weighted-average common shares outstanding			167,886						171,568						168,568						171,630
Effect of dilutive stock-based awards			677						1,165						985						1,069
Diluted weighted-average common shares outstanding			168,563						172,733						169,553						172,699
Earnings per share
Basic			0.24						0.21						0.38						0.28
Diluted			0.24						0.21						0.38						0.28

The computation of diluted weighted-average common shares outstanding excludes the following weighted average anti-dilutive stock-based awards outstanding for the three-month and six-month periods ended June 29, 2025 and June 30, 2024 (in thousands):

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Stock options			10,418						8,325						10,095						8,415
Restricted stock units			15						1						—						9
Performance restricted stock units			184						—						—						—
Total weighted average anti-dilutive stock-based awards outstanding			10,617						8,326						10,095						8,424

NOTE 13: Segment Information

The Company operates in one segment, machine vision technology. The Company has a single, company-wide management team that administers operations as a whole rather than as discrete operating segments. The Company’s chief operating decision maker is the chief executive officer, who assesses performance and allocates resources at the corporate level, as compared to the geography, product line, or end market levels. The Company offers a variety of machine vision products that have similar economic characteristics and are distributed by the same sales channels to the same types of customers.

21

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The measure of segment profit or loss for the Company's single segment is net income. Segment expenses were disaggregated based on the information the chief operating decision maker uses to assess performance and allocate resources considering both quantitative and qualitative factors. The following table summarizes significant segment expenses, which represents the difference between segment revenue and segment net income (in thousands):

			Three-months Ended												Six-months Ended
			June 29, 2025						June 30, 2024						June 29, 2025						June 30, 2024
Revenue			$	249,093					$	239,292					$	465,129					$	450,089
Less:
Cost of revenue (1)			81,217						72,693						152,930						141,553
Gross profit			167,876						166,599						312,199						308,536
Less:
Research, development, and engineering expenses
Salaries and fringe benefits			19,557						20,337						37,831						40,054
Incentive compensation (2)			2,368						1,801						3,439						2,785
Stock-based compensation			3,443						3,540						8,139						7,929
Depreciation and amortization			737						795						1,492						1,618
Other segment expenses (3)			6,997						8,489						16,928						19,681
Total research, development, and engineering expenses			33,102						34,962						67,829						72,067
Selling, general, and administrative expenses
Salaries and fringe benefits			44,440						45,212						86,635						89,894
Incentive compensation (2)			13,858						12,006						24,740						23,066
Stock-based compensation			8,314						9,011						12,889						17,319
Depreciation and amortization			4,118						4,137						8,279						8,256
Other segment expenses (3)			20,611						22,814						42,302						45,273
Total selling, general, and administrative expenses			91,341						93,180						174,845						183,808
Operating income			43,433						38,457						69,525						52,661
Foreign currency gain (loss)			(1,503)						(181)						(3,956)						(135)
Investment income			4,040						3,116						8,030						6,236
Other income (expense)			2,092						176						2,261						372
Income before income tax expense			48,062						41,568						75,860						59,134
Income tax expense			7,551						5,356						11,746						10,900
Net income			$	40,511					$	36,212					$	64,114					$	48,234

(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $3,144,000 and $6,162,000 for the three-month and six-month periods ended June 29, 2025, respectively, and $2,988,000 and $6,138,000 for the three-month and six-month periods ended June 30, 2024, respectively.

(2) Incentive compensation includes company bonus and sales commissions.

(3) Other segment expenses include outside services, prototyping materials, sales demonstration equipment, travel and entertainment, marketing programs, and rent, among other less significant expenses.

Segment assets amounted to $2,003,541 and $1,992,850 as of June 29, 2025 and December 31, 2024, respectively.

22

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 14: Subsequent Events

On July 30, 2025, the Board declared a cash dividend of $0.08 per share. The dividend is payable on August 28, 2025 to all shareholders of record as of the close of business on August 14, 2025.

In July 2025, the Company entered into a commercial partnership with a strategic channel partner (the “Partner”) to better serve Original Equipment Manufacturer (OEM) customers in the specialized field of medical lab automation. Through 2030, the Partner has exclusive rights to sell machine vision hardware into these applications in combination with licensed Company software, in exchange for annual minimum license fees paid to the Company. The Company expects to recognize the minimum license fees as revenue in the third quarter of 2025, at the point in time when the Partner receives access to the software. Although the license revenue will be recognized upfront, payments are expected to be received over the duration of the partnership, resulting in unbilled revenue. Also in the third quarter of 2025, the Company will transfer related inventories at cost to the Partner. As a result of the upfront recognition of the license revenue and transfer of inventories, the Company expects a one-time benefit ranging from $8 million to $14 million of revenue in the third quarter of 2025.

23

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain statements made in this report, 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"). Readers can identify these forward-looking statements by our use of the words “expects,” “anticipates,” “estimates,” "potential," “believes,” “projects,” “intends,” “plans,” “will,” “may,” “shall,” “could,” “should,” "opportunity," "goal" 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 and financial targets, 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, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities, 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, effectively plan for succession including managing the change of our Chief Executive Officer, all 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 China, and the wars involving Ukraine and Israel; (6) the challenges in integrating and achieving expected results from acquired businesses; (7) uncertainty surrounding our future capital needs; (8) information security breaches and other cybersecurity threats; (9) the failure to comply with laws or regulations relating to data privacy or data protection; (10) the inability to protect our proprietary technology and intellectual property; (11) the failure to manufacture and deliver products in a timely manner; (12) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (13) the inability to design and manufacture high-quality products; (14) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive industries; (15) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (16) potential impairment charges with respect to our investments or acquired intangible assets; (17) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (18) fluctuations in foreign currency exchange rates and the use of derivative instruments; (19) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (20) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (21) stock price volatility; and (22) our involvement in time-consuming and costly litigation or activist shareholder activities. The foregoing list should not be construed as exhaustive and we encourage readers to refer to the detailed discussion of risk factors included in Part I - Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by Part II - Item 1A of this Quarterly Report on Form 10-Q. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to subsequently revise forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such statements are made.

Executive Overview

Cognex invents and commercializes technologies that address some of the most critical manufacturing and distribution challenges. We are a leading global provider of machine vision products and solutions that seek to improve efficiency and quality in a wide range of businesses across attractive industrial end markets. In addition to product revenue derived from the sale of machine vision products, the Company also generates revenue by providing maintenance and support, consulting, and training services to its customers; however, service revenue accounted for less than 10% of total revenue for all periods presented.

Machine vision is used in a variety of industries where technology is widely recognized as an important component of automated production, distribution, and quality assurance. Virtually every manufacturer or distributor can achieve better quality and efficiency by using machine vision. This results in a broad base of potential customers across a variety of industries, including logistics, automotive, consumer electronics, semiconductor, and packaging.

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Revenue for the second quarter of 2025 totaled $249,093,000, representing an increase of 4% over the second quarter of 2024 primarily due to strong growth in logistics and improved trends in broader factory automation markets, partially offset by continued weakness in the automotive industry. Gross margin as a percentage of revenue was 67% for the second quarter of 2025 as compared to 70% for the second quarter of 2024, primarily due to less favorable industry mix. Operating expenses for the second quarter of 2025 decreased 3% from the second quarter of 2024, principally due to disciplined cost management.

Operating income increased to 17% of revenue for the second quarter of 2025 as compared to 16% of revenue for the second quarter of 2024 due to revenue growth and lower operating expenses. Net income increased to 16% of revenue, or $0.24 per diluted share, for the second quarter of 2025, as compared to 15% of revenue, or $0.21 per diluted share, for the second quarter of 2024.

Results of Operations

As foreign currency exchange rates are a factor in understanding period-to-period comparisons, we believe the presentation of our results on a constant-currency basis in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. We also use results on a constant-currency basis as one measure to evaluate our performance. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. We generally refer to such amounts calculated on a constant-currency basis as excluding the impact of foreign currency exchange rate changes. Results on a constant-currency basis are not in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and should be considered in addition to, and not a substitute for, results prepared in accordance with U.S. GAAP.

Revenue

Revenue increased by $9,801,000, or 4%, for the three-month period and increased $15,040,000, or 3%, for the six-month period as compared to the same periods in 2024. Strong growth in logistics and improved trends in broader factory automation markets was partially offset by continued weakness in the automotive industry. Although not material to total revenue or any geographic trend, revenue from customers in the semiconductor industry declined modestly for the three-month period but still showed growth for the six-month period.

The following table sets forth our disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

						Three-months Ended																								Six-months Ended
						June 29, 2025						June 30, 2024						$ Change						% Change						June 29, 2025						June 30, 2024						$ Change						% Change
						(unaudited)																								(unaudited)
Americas						$	92,137					$	85,162					$	6,975					8		%				$	191,867					$	168,297					$	23,570					14		%
Percentage of total revenue						37		%				36		%																41		%				37		%
Europe						$	66,623					$	57,151					$	9,472					17		%				$	115,833					$	109,505					$	6,328					6		%
Percentage of total revenue						27		%				24		%																25		%				24		%
Greater China						$	45,025					$	54,410					$	(9,385)					(17)		%				$	71,815					$	84,459					$	(12,644)					(15)		%
Percentage of total revenue						18		%				23		%																15		%				19		%
Other Asia						$	45,308					$	42,569					$	2,739					6		%				$	85,614					$	87,828					$	(2,214)					(3)		%
Percentage of total revenue						18		%				18		%																18		%				20		%
Total revenue						$	249,093					$	239,292					$	9,801					4		%				$	465,129					$	450,089					$	15,040					3		%

Changes in revenue from a geographic perspective were as follows:

•Revenue from customers based in the Americas increased by 8% for the three-month period and increased by 14% for the six-month period as compared to the same periods in 2024. Strong growth in logistics and improved trends in the consumer electronics and packaging industries was partially offset by continued weakness in the automotive industry.

•Revenue from customers based in Europe increased by 17% for the three-month period and increased by 6% for the six-month period as compared to the same periods in 2024. The increase was due primarily to

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procurement changes made by consumer electronics customers to shift their purchases from entities based in China to Europe. Improved trends in the packaging industry also contributed to the increase in revenue. These increases were largely offset by weakness in the automotive industry for the six-month period.

•Revenue from customers based in Greater China decreased by 17% for the three-month period and decreased by 15% for the six-month period as compared to the same periods in 2024. The decrease was primarily due to the procurement change in Europe mentioned above, as well as shifts in business from consumer electronics customers from China to the Other Asia region. Outside of the procurement change, revenue from the Greater China region decreased slightly over the same periods in the prior year.

•Revenue from customers based in other countries in Asia increased by 6% for the three-month period and decreased by 3% for the six-month period as compared to the same periods in 2024. Other Asia regions benefited from the shift in consumer electronics business out of China noted above, offset by continued weakness in the automotive industry.

Gross Profit

The following table sets forth our gross profit (in thousands) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

						Three-months Ended																								Six-months Ended
						June 29, 2025						June 30, 2024						$ Change						% Change						June 29, 2025						June 30, 2024						$ Change						% Change
						(unaudited)																								(unaudited)
Gross profit						$	167,876					$	166,599					$	1,277					1		%				$	312,199					$	308,536					$	3,663					1		%
Percentage of total revenue						67		%				70		%																67		%				69		%

Gross margin was 67% for both the three-month and six-month periods in 2025 as compared to 70% and 69% for the same periods in 2024, respectively. The decrease was primarily due to less favorable industry mix, and, to a lesser extent, the impact from tariffs.

Operating Expenses

The following table sets forth our operating expenses (in thousands) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

						Three-months Ended																								Six-months Ended
						June 29, 2025						June 30, 2024						$ Change						% Change						June 29, 2025						June 30, 2024						$ Change						% Change
						(unaudited)																								(unaudited)
Research, development, and engineering expenses						$	33,102					$	34,962					$	(1,860)					(5)		%				$	67,829					$	72,067					$	(4,238)					(6)		%
Percentage of total revenue						13		%				15		%																15		%				16		%
Selling, general, and administrative expenses						$	91,341					$	93,180					$	(1,839)					(2)		%				$	174,845					$	183,808					$	(8,963)					(5)		%
Percentage of total revenue						37		%				39		%																38		%				41		%
Total operating expenses						$	124,443					$	128,142					$	(3,699)					(3)		%				$	242,674					$	255,875					$	(13,201)					(5)		%
Percentage of total revenue						50		%				54		%																52		%				57		%

Research, Development, and Engineering Expenses

Research, development, and engineering (RD&E) expenses decreased by $1,860,000, or 5%, for the three-month period and decreased by $4,238,000, or 6%, for the six-month period as compared to the same periods in 2024. The decrease was primarily due to disciplined cost management, including a reduction in RD&E headcount.

RD&E expenses as a percentage of revenue were 13% and 15% for the three-month and six-month periods in 2025, respectively, as compared to 15% and 16% for the same periods in 2024, respectively. We believe that a continued commitment to RD&E activities is essential to maintain or achieve product leadership with our existing products and to provide innovative new product offerings, as well as to provide engineering support for large customers. In addition, we consider our ability to accelerate the time to market for new products to be critical to our revenue growth and competitive position. These percentages are impacted by revenue levels and investment cycles.

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Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses decreased by $1,839,000, or 2%, and $8,963,000, or 5%, respectively, for the three-month and six-month periods in 2025 as compared to the same periods in 2024. The decrease was due to disciplined cost management, including a reduction in SG&A headcount. Lower stock-based compensation expense due to higher credits resulting from the annual true-up of forfeiture rate assumptions in the first quarter also contributed to the decrease in SG&A expenses for the six-month period. These decreases were partially offset by higher incentive compensation accruals.

Non-operating Income (Expense)

The following table sets forth our non-operating income (expense) (in thousands) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

						Three-months Ended																								Six-months Ended
						June 29, 2025						June 30, 2024						$ Change						% Change						June 29, 2025						June 30, 2024						$ Change						% Change
						(unaudited)																								(unaudited)
Foreign currency gain (loss)						$	(1,503)					$	(181)					$	(1,322)					730		%				$	(3,956)					$	(135)					$	(3,821)					2830		%
Investment income						$	4,040					$	3,116					$	924					30		%				$	8,030					$	6,236					$	1,794					29		%
Other income (expense)						$	2,092					$	176					$	1,916					1089		%				$	2,261					$	372					$	1,889					508		%
Total non-operating income (expense)						$	4,629					$	3,111					$	1,518					49		%				$	6,335					$	6,473					$	(138)					(2)		%

The Company recorded foreign currency losses of $1,503,000 and $3,956,000 for the three-month and six-month periods in 2025, respectively, and $181,000 and $135,000 for the same periods in 2024, respectively. Foreign currency gains and losses in each period resulted primarily from the revaluation and settlement of assets and liabilities that are denominated in currencies other than the functional currency of the Company, which is the U.S. Dollar, or its subsidiaries.

Investment income increased by $924,000, or 30%, for the three-month period and increased by $1,794,000, or 29%, for the six-month period as compared to the same periods in 2024 due primarily to higher yields on the Company's portfolio of debt securities.

Other income for the second quarter of 2025 included a one-time Employee Retention Credit from the U.S. Internal Revenue Service to refund payroll taxes paid during the COVID-19 pandemic.

Income Tax Expense

The following table sets forth income tax information (in thousands) for the three-month and six-month periods ended June 29, 2025 and June 30, 2024.

						Three-months Ended																								Six-months Ended
						June 29, 2025						June 30, 2024						$ Change						% Change						June 29, 2025						June 30, 2024						$ Change						% Change
						(unaudited)																								(unaudited)
Income before income tax expense						$	48,062					$	41,568					$	6,494					16		%				$	75,860					$	59,134					$	16,726					28		%
Income tax expense						$	7,551					$	5,356					$	2,195					41		%				$	11,746					$	10,900					$	846					8		%
Effective income tax rate						16		%				13		%																15		%				18		%

The Company’s effective tax rate was 16% and 15% for the three-month and six-month periods in 2025, respectively, and 13% and 18% for the same periods in 2024, respectively. The Company recorded net discrete tax benefits of $211,000 and $518,000 for the three-month and six-month periods in 2025, respectively, compared to a net discrete tax benefit of $463,000 for the three-month period in 2024 and a net discrete tax expense of $2,622,000 for the six-month period in 2024. Excluding the impact of discrete tax items, the Company's effective tax rate was 16% for both the three-month and six-month periods in 2025 compared to 14% for the same periods in 2024. The increase was due to more of the Company's profits taxed in relatively higher tax rate jurisdictions.

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On July 4, 2025, tax legislation known as the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. OBBBA modifies certain international tax provisions such as the tax on Global Intangible Low Taxed Income ("GILTI") and renames GILTI as Net CFC Tested Income ("NCTI"). The Company records NCTI taxes on a deferred basis. The Company is in the early stages of evaluating the impact of U.S. tax law changes introduced by OBBBA on our consolidated financial statements and disclosures. As of the date of this filing, we expect OBBBA to materially increase our deferred tax liability and income tax expense in the third quarter of 2025, while also providing a cash tax benefit estimated between $12 million and $15 million for the full year. A full quantitative estimate of all specific financial impacts cannot be reasonably determined at this time due to the complexity of the changes in OBBBA and the need for further analysis.

Liquidity and Capital Resources

The Company has historically been able to generate positive cash flow from operations, which has funded its operating activities and other cash requirements and resulted in an accumulated cash and investment balance of $552,551,000 as of June 29, 2025. The Company has established guidelines relative to credit ratings, diversification, and maturities of its investments to maintain liquidity and safety of its investment portfolio.

Operating Activities

Net cash provided by operating activities totaled $83,127,000 for the six-month period in 2025 as compared to $41,406,000 in the same period of 2024. Disciplined cost management and a reduction in inventories primarily drove the increase in operating cash flow from the prior year. In the second quarter of 2025, the Company made the final payment totaling $15,503,000 related to a one-time transition tax on unrepatriated foreign earnings arising from the Tax Cuts and Jobs Act of 2017.

Investing Activities

Net cash provided by investing activities totaled $29,121,000 for the six-month period in 2025. Investing activities included capital expenditures that totaled $4,695,000 and consisted primarily of continued investments in business systems, manufacturing equipment related to new product introductions, and building and leasehold improvements.

Financing Activities

Net cash used in financing activities totaled $131,626,000 for the six-month period in 2025.

In March 2022, the Company's Board of Directors (the "Board") authorized a program providing for the repurchase of $500,000,000 of the Company's common stock (the "Program"). Under the Program, in addition to repurchases made in other periods, the Company repurchased 3,047,000 shares at a total cost of $102,233,000 during the six-month period in 2025. As of June 29, 2025, the remaining balance of the Program was $164,020,000. The Company may repurchase shares under the Program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

The Board declared and paid cash dividends of $0.08 per share for the first and second quarters of 2025, totaling $26,981,000. Future dividends will be declared at the discretion of the Board and will depend on such factors as the Board deems relevant, including, among other things, the Company's ability to generate positive cash flow from operations.

Future Cash Requirements

As of June 29, 2025, the Company had inventory purchase commitments of $50,682,000, with the majority payable within twelve months, and lease payment obligations of $124,195,000, with $16,653,000 payable within twelve months.

We believe that the Company's existing cash and investment balances, together with cash flow from operations, will be sufficient to meet its operating, investing, and financing activities for the next twelve months. In addition, the Company has no long-term debt. We believe that our strong cash position has put us in a relatively good position with respect to anticipated longer-term liquidity needs.

New Pronouncements

Refer to Part I - Note 2 within this Form 10-Q, for a full description of recently issued accounting pronouncements including the expected dates of adoption and the expected impact on the financial position and results of operations of the Company.

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ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to the Company’s exposures to market risk since December 31, 2024.

ITEM 4: CONTROLS AND PROCEDURES

As required by Rules 13a-15 and 15d-15 of the Exchange Act, the Company has evaluated, with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, the effectiveness of its disclosure controls and procedures (as defined in such rules) as of the end of the period covered by this report. Based on such evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that such disclosure controls and procedures were effective as of that date.

There were no changes in the Company's internal control over financial reporting that occurred during the quarter ended June 29, 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. The Company continues to review its disclosure controls and procedures, including its internal control over financial reporting, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that the Company’s systems evolve with its business.

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PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.

ITEM 1A. RISK FACTORS

For a list of factors that could affect the Company’s business, results of operations, and financial condition, see the risk factors discussion provided in Part I—Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information with respect to purchases by the Company of shares of its common stock during the three-month period ended June 29, 2025:

			Total Number of Shares Purchased						Average Price Paid per Share						Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)						Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
March 31, 2025 - April 27, 2025			—						$	—					—						$	164,020,000
April 28, 2025 - May 25, 2025			—						—						—						164,020,000
May 26, 2025 - June 29, 2025			—						—						—						164,020,000
Total			—						$	—					—						$	164,020,000

(1) In March 2022, the Company's Board of Directors authorized a program providing for the repurchase of $500,000,000 of the Company's common stock (the "Program"). Purchases under the Program commenced in March 2022. The Company may repurchase shares under the Program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended June 29, 2025, the following executive officer and director adopted a Rule 10b5-1 trading arrangement, as defined in Item 408 of Regulation S-K, that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c):

•On May 6, 2025, Robert Willett, the then-Chief Executive Officer of the Company and a director of the Company, adopted a trading arrangement for the sale of shares of the Company’s common stock (a “Rule 10b5-1 Trading Plan”). Mr. Willett’s Rule 10b5-1 Trading Plan, which has a term ending on August 4, 2026, provides for the exercise of vested stock options to sell up to 1,161,076 shares of common stock pursuant to the terms of such Rule 10b5-1 Trading Plan.

During the quarter ended June 29, 2025, no 10b5-1 trading arrangements were modified or terminated, and no director or officer of the Company adopted or terminated a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K.

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 ITEM 6. EXHIBITS

Exhibit Number
10.1 +						Transition Agreement, effective as of April 30, 2025, by and between Cognex Corporation and Robert Willett*
31.1						Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934*
31.2						Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934*
32.1						Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2						Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101.SCH						Inline XBRL Taxonomy Extension Schema Document*
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document*
104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)
*						Filed herewith
**						Furnished herewith
+						Indicates management contract or compensatory plan or arrangement

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:

July 31, 2025

COGNEX CORPORATION

By:

/s/ Matthew Moschner

Matthew Moschner

President and Chief Executive Officer

(Principal Executive Officer)

By:

/s/ Dennis Fehr

Dennis Fehr

Senior Vice President of Finance and Chief Financial Officer

(Principal Financial Officer)

By:

/s/ Laura MacDonald

Laura MacDonald

Vice President of Finance and Principal Accounting Officer

(Principal Accounting Officer)

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FAQ

How did CGNX revenue perform in Q2 2025 versus Q2 2024?

Revenue grew 4% year-over-year to $249.1 million, driven by logistics and general factory automation demand.

What was Cognex’s Q2 2025 diluted EPS?

Diluted earnings per share were $0.24, up from $0.21 in the prior-year quarter.

Why did gross margin decline in the quarter?

Gross margin fell to 67% (from 70%) due to a less favourable industry mix and tariff impacts.

How much cash does CGNX have and does it carry debt?

As of June 29 2025, Cognex held $552.6 million in cash and investments and had no long-term debt.

What are the implications of the One Big Beautiful Bill Act (OBBBA) for Cognex?

Management expects OBBBA to increase deferred tax liability and income tax expense beginning Q3 2025, partly offset by a $12–15 million cash tax benefit for FY-25.

How many shares did Cognex repurchase in the first half of 2025?

The company bought back 3.05 million shares for $102.2 million; $164 million remains under the 2022 authorization.