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Cognex (NASDAQ: CGNX) posts record Q2 revenue and guides double-digit growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Cognex Corporation reported a strong second quarter for the period ended July 5, 2026. Revenue reached a record $291 million, up 17% year over year (16% in constant currency), with operating income of $86 million and an operating margin of 29.4%. Adjusted EBITDA was $94 million, for a margin of 32.2%, while net income was $73 million and diluted EPS was $0.43; adjusted diluted EPS was $0.45, up 80% year over year.

Gross margin improved to 70.6%, and operating expenses declined 3% versus the prior year quarter, supporting the eighth consecutive quarter of margin expansion. Cognex ended the quarter with $755 million in cash and investments and no debt, generated $69 million in operating cash flow and $68 million in free cash flow, and paid $14 million in dividends.

The company issued guidance for third-quarter 2026 revenue of $300–$320 million and full-year 2026 revenue of $1.13–$1.15 billion, with higher adjusted EBITDA margins and adjusted EPS versus 2025. Cognex also declared a quarterly dividend of $0.085 per share and highlighted the general availability of its OneVision™ AI-powered machine vision platform.

Positive

  • Record Q2 revenue of $291 million, up 17% year over year, with broad-based strength across major end markets and constant-currency growth of 16%.
  • Profitability improved sharply: operating income doubled to $86 million, GAAP operating margin rose to 29.4%, and adjusted EBITDA margin expanded to 32.2%, up 1,150 basis points year over year.
  • Strong earnings growth: net income increased to $73 million and adjusted diluted EPS rose to $0.45, up 80% year over year, marking the eighth consecutive quarter of EPS growth.
  • Robust balance sheet and cash generation, with $755 million in cash and investments, no debt, Q2 free cash flow of $68 million, and trailing twelve-month free cash flow conversion of 153% of net income.
  • Confident 2026 outlook, guiding revenue to $1.13–$1.15 billion with adjusted EBITDA margin of 29–31% and adjusted diluted EPS of $1.64–$1.68, implying strong double-digit revenue growth and margin expansion.

Negative

  • None.

Filing Explained

The reported common-share count is higher, while the dividend’s eligibility and payment dates are August 20 and September 3.

This August 5, 2026 Form 8-K reports Cognex’s second-quarter results and furnishes the earnings release under Item 2.02; the release is not treated as filed for Section 18 purposes.

The balance sheet reports 168,217 thousand common shares issued and outstanding on July 5, 2026, versus 166,997 thousand on December 31, 2025; under the supplied dilution definition, a higher issued share count reduces an existing holder’s percentage ownership absent offsetting changes.

The company declared a quarterly dividend of $0.085 per share, payable on September 3, 2026 to shareholders of record on August 20, 2026; these are scheduled eligibility and payment dates, not evidence that the payment has already been made.

Item 0.4 Item 0.4
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $291 million Second quarter 2026 revenue, up 17% year over year
Q2 2026 Operating Margin 29.4% GAAP operating margin for the second quarter of 2026
Q2 2026 Adjusted EBITDA Margin 32.2% Adjusted EBITDA margin, up 1,150 basis points year over year
Q2 2026 Net Income $73 million Net income for the second quarter of 2026 versus $41 million in 2025
Q2 2026 Adjusted EPS (Diluted) $0.45 Adjusted diluted earnings per share, up 80% year over year
Cash and Investments $755 million Cash and investments as of July 5, 2026, with no debt
Q3 2026 Revenue Guidance $300–$320 million Projected revenue range for the third quarter of 2026
2026 Revenue Guidance $1,130–$1,150 million Full-year 2026 revenue guidance compared with $994 million in 2025
Adjusted EBITDA financial
"delivered an Adjusted EBITDA margin of 32.2%, up 1,150 basis points year over year"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow conversion rate financial
"Trailing twelve-month FCF conversion rate was 153% of net income"
A free cash flow conversion rate is the percentage that shows how much of a company’s reported profit actually becomes free cash — the cash left after running the business and making necessary investments. It tells investors whether earnings are turning into real, spendable money for dividends, debt repayment or growth; high conversion is like keeping most of your paycheck after bills, while low conversion means reported profits aren’t producing much usable cash.
non-GAAP financial measures financial
"This press release includes certain non-GAAP financial measures, including adjusted gross profit"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
AI-enabled machine vision technical
"position Cognex to shape the future of AI-enabled machine vision"
reorganization charges financial
"The Company has incurred charges related to the reorganization of its employees"
Revenue $291 million +17% year over year; +16% in constant currency
Operating Income $86 million +100% year over year
Net Income $73 million +78% year over year
Diluted EPS $0.43 +79% year over year
Adjusted Diluted EPS $0.45 +80% year over year
Adjusted EBITDA Margin 32.2% +1,150 basis points year over year
Guidance

For Q3 2026, Cognex guides revenue to $300–$320 million, adjusted EBITDA margin to 32–35%, and adjusted diluted EPS to $0.50–$0.54. For full-year 2026, it guides revenue to $1.13–$1.15 billion, adjusted EBITDA margin to 29–31%, and adjusted diluted EPS to $1.64–$1.68.

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FAQ

How did Cognex (CGNX) perform financially in Q2 2026?
Cognex delivered record Q2 2026 revenue of $291 million, up 17% year over year, with operating income of $86 million and net income of $73 million. Diluted EPS was $0.43, and adjusted diluted EPS was $0.45, up 80% year over year.

What margins did Cognex (CGNX) report for Q2 2026?
Cognex reported a gross margin of 70.6% and an operating margin of 29.4% in Q2 2026. Adjusted operating margin was 30.7%, while adjusted EBITDA margin reached 32.2%, an expansion of 1,150 basis points compared with the prior-year quarter.

What 2026 guidance did Cognex (CGNX) provide for revenue and earnings?
For full-year 2026, Cognex guided revenue to $1.13–$1.15 billion, with adjusted EBITDA margin of 29–31% and adjusted diluted EPS of $1.64–$1.68. The company described this outlook as strong double-digit revenue growth with significant profitability expansion.

What is Cognex’s (CGNX) cash and debt position after Q2 2026?
As of July 5, 2026, Cognex held $755 million in cash and investments and reported no debt. During Q2 it generated $69 million of operating cash flow and $68 million of free cash flow, reflecting strong cash conversion from earnings.

What dividend did Cognex (CGNX) declare in August 2026?
Cognex’s Board declared a quarterly cash dividend of $0.085 per share on August 5, 2026. The dividend is payable on September 3, 2026, to shareholders of record at the close of business on August 20, 2026.

What guidance did Cognex (CGNX) give for Q3 2026?
For Q3 2026, Cognex expects revenue of $300–$320 million, an adjusted EBITDA margin of 32–35%, and adjusted diluted EPS of $0.50–$0.54. These targets compare with Q3 2025 revenue of $277 million and adjusted diluted EPS of $0.33.
0000851205FALSE00008512052026-08-052026-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

August 5, 2026
Date of Report (date of earliest event reported)
___________________________________
Cognex Corporation
(Exact name of registrant as specified in its charter)
___________________________________

Massachusetts
(State or other jurisdiction of
incorporation or organization)
001-34218
(Commission File Number)
04-2713778
(I.R.S. Employer Identification Number)
One Vision Drive
Natick, Massachusetts 01760
(Address of principal executive offices and zip code)
(508) 650-3000
(Registrant's telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐


Item 2.02 - Results of Operations and Financial Condition
On August 5, 2026, Cognex Corporation (the "Company") issued a news release to report its financial results for the quarter ended July 5, 2026. The release is furnished as Exhibit 99.1 hereto. The information in Item 2.02 of this Current Report on Form 8-K, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.

Item 8.01 - Other Events
On August 5, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on September 3, 2026, to all shareholders of record as of the close of business on August 20, 2026.

Item 9.01 - Financial Statements and Exhibits
(d) Exhibits

Exhibit No.
Description
99.1
News release, dated August 5, 2026, by Cognex Corporation with respect to financial results for the quarter ended April 5, 2026 (furnished herewith)
104
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 5th day of August, 2026.



COGNEX CORPORATION
By:
/s/ Dennis Fehr
Name:
Dennis Fehr
Title:
Senior Vice President of Finance and Chief Financial Officer

Exhibit 99.1
cognex_logoxyellowbg.jpg

Cognex Reports Second Quarter 2026 Results

August 5, 2026 — NATICK, MA — Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the second quarter ended July 5, 2026.

Second-Quarter Financial and Operating Highlights

•Achieved record quarterly revenue of $291 million, driven by broad-based strength across most major end markets; second-quarter revenue increased 17% year over year, or 16% on a constant-currency basis.
•Operating margin was 29.4%; delivered an Adjusted EBITDA margin of 32.2%, up 1,150 basis points year over year, marking the eighth consecutive quarter of margin expansion.
•Net income per diluted share was $0.43; generated Adjusted diluted earnings per share of $0.45, up 80% year over year, representing the eighth consecutive quarter of growth.
•Issued full-year 2026 guidance anticipating strong double-digit revenue growth and significant year-over-year expansion in profitability.
•Announced the general availability of OneVision™, with hundreds of customers using the platform to accelerate configuration and deployment of AI-powered vision applications.

“Q2 was another strong quarter for Cognex and further evidence that our strategy is driving results,” said Matt Moschner, President and CEO. “We delivered exceptional performance, highlighted by record revenue, strong margin expansion, and significant earnings growth, which we believe reflects both a more favorable demand environment and focused execution across the business. We continue to make meaningful progress against our strategic objectives to extend our leadership in AI-enabled machine vision, deliver the leading customer experience in the industry, and double our customer base."

Mr. Moschner continued, "We believe that diversification is central to the next chapter of Cognex’s growth. We are focused on broadening our reach across customers, channels, adjacencies and end markets, while prioritizing the automation challenges where we expect our technology can create the most value. We believe this strategy will position Cognex to shape the future of AI-enabled machine vision and deliver more sustainable and profitable growth over time."

Dennis Fehr, CFO, added, “We believe that our Q2 performance underscores the strength of our profitable growth strategy and the strong leverage in our financial model. We are continuing to transform our operating model to drive higher productivity, support sustainable margin expansion, and strengthen our ability to scale efficiently over time. We believe that this disciplined approach will enable us to support Cognex’s long-term growth objectives while reinforcing our commitment to creating shareholder value."

Financial Performance Highlights for the Second Quarter
(Dollars in millions, except per share amounts)
Three-months ended
July 05, 2026June 29, 2025Y/Y Change
Revenue$291$249+17%
Operating Income$86$43+100%
% of Revenue29.4%17.4%+1,200 bps
Adjusted EBITDA1
$94$5281%
% of Revenue32.2%20.7%+1,150 bps
Net Income per Diluted Share$0.43$0.24+79%
Adjusted EPS (Diluted)1
$0.45$0.25+80%
1Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.

1

•Revenue was $291 million, compared with $249 million in the second quarter of 2025, an increase of 17%. Excluding the impact of foreign currency exchange (FX), revenue increased 16% compared to the prior year, driven by broad-based strength across most major end markets.

•Gross margin was 70.6% compared to 67.4% in the second quarter of 2025. Adjusted gross margin was 71.5% compared to 68.0% in the second quarter of 2025, an increase of 350 basis points. The year-over-year increase was primarily driven by favorable mix and volume. Tariff refunds were not a material contributor to the strong gross margin performance.

•Operating expenses were $120 million compared to $124 million in the second quarter of 2025, a decrease of 3%. Adjusted operating expenses were $119 million compared to $123 million in the second quarter of 2025, a decrease of 3%. On a constant-currency basis, Adjusted operating expenses decreased 5% year over year, primarily driven by disciplined cost management.

•Operating income was $86 million compared to $43 million in the second quarter of 2025, an increase of 100%. Operating margin was 29.4% compared to 17.4% in the second quarter of 2025, an increase of 1,200 basis points. Adjusted operating margin was 30.7% compared to 18.7% in the second quarter of 2025, an increase of 1,200 basis points.

•Adjusted EBITDA was $94 million compared to $52 million in the second quarter of 2025, an increase of 81%. Adjusted EBITDA margin was 32.2% compared to 20.7% in the second quarter of 2025, an increase of 1,150 basis points. The year-over-year expansion was driven by revenue growth and favorable mix.

•Net income of $73 million compared to $41 million in the second quarter of 2025, an increase of 78%. Adjusted net income of $76 million compared to $43 million in the second quarter of 2025, an increase of 77%.

•Net income per diluted share was $0.43 compared to $0.24 in the second quarter of 2025, an increase of 79%. Adjusted diluted earnings per share were $0.45 compared to $0.25 in the second quarter of 2025, an increase of 80%.

Balance Sheet and Cash Flow Highlights

•As of July 5, 2026, Cognex’s financial position remained strong, with $755 million in cash and investments and no debt.

•During the second quarter, Cognex generated $69 million of cash from operating activities compared to $43 million in the second quarter of 2025, an increase of 60%.

•During the second quarter, Cognex generated Free Cash Flow (FCF) of $68 million compared to $40 million in the second quarter of 2025, an increase of 70%. Second quarter FCF conversion rate was 93% of net income and 89% of Adjusted net income. Trailing twelve-month FCF conversion rate was 153% of net income and 114% of Adjusted net income.

•Cognex paid $14 million in dividends to shareholders in the second quarter.

Dividend
On August 5, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on September 3, 2026, to all shareholders of record at the close of business on August 20, 2026.



2

Guidance

Cognex issued third-quarter and full-year 2026 guidance; details are summarized in the tables below.

Table 1: Third-Quarter 2026 Guidance
(Dollars in millions, except per share amounts)Q3 2026 GuidanceQ3 2025 ResultsQ3 2025 Results ex CP*Y/Y Change**Y/Y Change** ex CP*
Revenue$300 - $320$277$264+12%+17%
Adj. EBITDA Margin1
32% - 35%24.9%22.1%+860 bps+1,140 bps
Adj. EPS (diluted)1
$0.50 - $0.54$0.33$0.28+58%+86%

Table 2: Full-Year 2026 Guidance
(Dollars in millions, except per share amounts) 2026 Guidance 2025 Results2025 Results ex CP*Y/Y Change**Y/Y Change** ex CP*
Revenue$1,130 - $1,150$994$982+15%+16%
Adj. EBITDA Margin1
29% - 31%21.5%20.7%+850 bps+930 bps
Adj. EPS (diluted)1
$1.64 - $1.68$1.02$0.97+63%+71%

* Excluding the one-time benefit from the commercial partnership with a medical lab automation channel partner (the “CP”).
** At the midpoint of guidance.

1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex’s control. Additionally, these items are outside of Cognex’s normal business operations and not used by management to assess Cognex’s operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled “Reconciliation of Selected Items From GAAP to Non-GAAP”. In Q3 2025 the GAAP operating margin was 20.9% and GAAP earnings per share (diluted) were $0.10, and in full-year 2025, the GAAP operating margin was 16.3% and GAAP earnings per share (diluted) were $0.68.


Analyst Conference Call and Simultaneous Webcast

•Cognex will host a conference call on August 6, 2026, at 8:30 a.m. Eastern Daylight Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside the United States.

•A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.

3

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"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "projects," "intends," "plans," "aims," "will," "may," "shall," "could," "should," "opportunity," "goal," "objective," "target," "milestone" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the impacts of our strategic portfolio review, the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, financial and operating models, 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, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the 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 and conflicts involving Iran, Ukraine, and Israel and those that may arise in the future in the geographies where we conduct business; (6) the challenges in integrating and achieving expected results from acquired businesses; (7) uncertainty surrounding our future capital needs; (8) the inability to effectively scale our operations and salesforce to support a significantly expanded customer base in an increasing number of geographies; (9) information security breaches and other cybersecurity threats; (10) the failure to comply with laws or regulations relating to data privacy, data protection, artificial intelligence, or other automated technologies; (11) the inability to protect our proprietary technology and intellectual property; (12) the inability to manage direct and indirect disruptions to our supply chain, which could cause delays in obtaining components for our products at reasonable prices; (13) the failure to manufacture and deliver products in a timely manner; (14) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices, including memory chips; (15) the inability to design and manufacture high-quality products; (16) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive end markets; (17) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (18) potential impairment charges with respect to our investments or acquired intangible assets; (19) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (20) fluctuations in foreign currency exchange rates and the use of derivative instruments; (21) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (22) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (23) stock price volatility; (24) our involvement in time-consuming and costly litigation or activist shareholder activities; and (25) the failure to effectively transform our operating model, manage our expenses, and achieve expected cost reductions. 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, 2025 (the "Annual Report"), as updated by Part II - Item 1A of our Quarterly Reports on Form 10-Q as filed with the SEC. 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.
4

COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
July 5, 2026December 31, 2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$302,521 $262,925 
Current investments101,849 74,037 
Accounts receivable, net of allowance for credit losses of $726 and $728 in 2026 and 2025, respectively
216,232 146,713 
Unbilled revenue12,684 16,980 
Inventories142,839 137,889 
Prepaid expenses and other current assets73,755 58,702 
Total current assets849,880 697,246 
Non-current investments350,643 305,339 
Property, plant, and equipment, net81,452 86,015 
Operating lease assets68,543 72,310 
Goodwill381,385 386,279 
Intangible assets, net64,464 81,100 
Deferred income taxes377,830 383,272 
Other assets4,453 4,994 
Total assets$2,178,650 $2,016,555 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$65,060 $50,203 
Accrued expenses80,586 91,397 
Accrued income taxes9,126 9,141 
Deferred revenue and customer deposits48,978 21,094 
Operating lease liabilities12,281 11,716 
Total current liabilities216,031 183,551 
Non-current operating lease liabilities60,196 64,870 
Deferred income taxes248,888 250,512 
Reserve for income taxes21,963 24,269 
Other liabilities2,017 1,452 
Total liabilities549,095 524,654 
Shareholders’ equity:
Preferred stock, $.01 par value – Authorized: 400 shares in 2026 and 2025, respectively; no shares issued and outstanding— — 
Common stock, $.002 par value – Authorized: 300,000 shares in 2026 and 2025, respectively; issued and outstanding: 168,217 and 166,997 shares in 2026 and 2025, respectively336 334 
Additional paid-in capital1,294,544 1,138,708 
Retained earnings397,135 406,355 
Accumulated other comprehensive loss, net of tax(62,460)(53,496)
Total shareholders’ equity1,629,555 1,491,901 
Total liabilities and shareholders' equity$2,178,650 $2,016,555 

5

COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three-months EndedSix-months Ended
July 5, 2026June 29, 2025July 5, 2026June 29, 2025
Revenue$291,263 $249,093 $559,700 $465,129 
Cost of revenue (1)
85,490 81,217 162,988 152,930 
Gross profit205,773 167,876 396,712 312,199 
Percentage of revenue70.6 %67.4 %70.9 %67.1 %
Research, development, and engineering expenses (1)
32,391 33,102 69,416 67,829 
Percentage of revenue11.1 %13.3 %12.4 %14.6 %
Selling, general, and administrative expenses (1)
87,865 91,341 181,906 174,845 
Percentage of revenue30.2 %36.7 %32.5 %37.6 %
Operating income85,517 43,433 145,390 69,525 
Percentage of revenue29.4 %17.4 %26.0 %14.9 %
Foreign currency gain (loss)(862)(1,503)(2,207)(3,956)
Investment income5,091 4,040 9,927 8,030 
Other income (expense)(446)2,092 (2,053)2,261 
Income before income tax expense89,300 48,062 151,057 75,860 
Income tax expense16,544 7,551 26,597 11,746 
Net income$72,756 $40,511 $124,460 $64,114 
Percentage of revenue25.0 %16.3 %22.2 %13.8 %
Net income per weighted-average common and common-equivalent share:
Basic$0.43 $0.24 $0.75 $0.38 
Diluted$0.43 $0.24 $0.74 $0.38 
Weighted-average common and common-equivalent shares outstanding:
Basic167,346 167,886 166,921 168,568 
Diluted169,989 168,563 169,166 169,553 
Cash dividends per common share$0.085 $0.080 $0.170 $0.160 
    
(1) Amounts include stock-based compensation expense, as follows:
Cost of revenue$592 $537 $1,517 $1,205 
Research, development, and engineering3,388 3,443 8,482 8,139 
Selling, general, and administrative7,232 8,314 13,146 12,889 
Total stock-based compensation expense$11,212 $12,294 $23,145 $22,233 



6

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow and free cash flow conversion rate. Cognex defines its non-GAAP metrics as follows:

•Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.

•Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.

•Adjusted operating income and margin: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.

•Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.

•Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, tax impact on reconciling items and one-time discrete events (such as loss on sale of business).

•Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.

•Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.

•Free cash flow: Cash provided by operating activities less cash for capital expenditures.

•Free cash flow conversion rate: Free cash flow divided by net income or adjusted net income, as applicable.

Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.

Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Please see the section “Reconciliation of Selected Items from GAAP to Non-GAAP” below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.
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COGNEX CORPORATION
RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP
Dollars in thousands, except per share amounts
(Unaudited)
Three-months EndedSix-months Ended
July 5, 2026June 29, 2025July 5, 2026June 29, 2025
Gross profit (GAAP)$205,773 $167,876 $396,712 $312,199 
Acquisition and integration costs218 211 434 453 
Amortization of acquisition-related intangible assets1,323 1,382 2,660 2,720 
Reorganization charges921 — 1,295 86 
Adjusted gross profit$208,235 $169,469 $401,101 $315,458 
GAAP gross margin70.6 %67.4 %70.9 %67.1 %
Adjusted gross margin71.5 %68.0 %71.7 %67.8 %

Operating expense (GAAP)$120,256 $124,443 $251,322 $242,674 
Acquisition and integration costs(15)(259)(30)(797)
Amortization of acquisition-related intangible assets(972)(1,296)(2,167)(2,586)
Reorganization charges(335)— (5,090)(1,622)
Adjusted operating expense$118,934 $122,888 $244,035 $237,669 
Operating income (GAAP)$85,517 $43,433 $145,390 $69,525 
Acquisition and integration costs233 470 464 1,250 
Amortization of acquisition-related intangible assets2,295 2,678 4,827 5,306 
Reorganization charges1,256 — 6,385 1,708 
Adjusted operating income$89,301 $46,581 $157,066 $77,789 
GAAP operating margin29.4 %17.4 %26.0 %14.9 %
Adjusted operating margin30.7 %18.7 %28.1 %16.7 %
Depreciation (adjusted for amounts included in Acquisition and integration costs)4,358 5,095 8,830 10,178 
Adjusted EBITDA$93,659 $51,676 $165,896 $87,967 
Adjusted EBITDA margin32.2 %20.7 %29.6 %18.9 %
Net income (GAAP)$72,756 $40,511 $124,460 $64,114 
Acquisition and integration costs233 470 464 1,250 
Amortization of acquisition-related intangible assets2,295 2,678 4,827 5,306 
Reorganization charges1,256 — 6,385 1,708 
Loss on sale of business— — 1,539 — 
Discrete tax (benefit) expense450 (211)(729)(518)
Tax impact of reconciling items(1,102)(891)(3,740)(2,256)
Adjusted net income$75,888 $42,557 $133,206 $69,604 
Earnings per share of common stock, diluted (GAAP)$0.43 $0.24 $0.74 $0.38 
Acquisition and integration costs0.00 0.00 0.00 0.01 
Amortization of acquisition-related intangible assets0.01 0.02 0.03 0.03 
Reorganization charges0.01 — 0.04 0.01 
Loss on sale of business— — 0.01 — 
Discrete tax (benefit) expense0.00 0.00 0.00 0.00 
Tax impact of reconciling items(0.01)(0.01)(0.02)(0.01)
Adjusted earnings per share of common stock, diluted$0.45 $0.25 $0.80 $0.41 
Effective tax rate (GAAP)18.5 %15.7 %17.6 %15.5 %
Discrete tax benefit (expense)(0.5)%0.4 %0.5 %0.7 %
Net impact of other reconciling items0.4 %0.7 %0.8 %1.1 %
Adjusted effective tax rate18.5 %16.9 %18.9 %17.3 %
Cash provided by operating activities (GAAP)$69,153 $42,625 $114,246 $83,127 
Capital expenditures(1,532)(2,194)(4,289)(4,695)
Free cash flow$67,621 $40,431 $109,957 $78,432 
    
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Description of adjustments:
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:

Depreciation:
•The company incurs expense related to its normal use of property, plant and equipment.

Acquisition and integration costs:
•The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the company acquired in the fourth quarter of 2023.

Amortization of acquisition-related intangible assets:
•The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.

Reorganization charges:
•The Company has incurred charges related to the reorganization of its employees. During the three-month period ended July 5, 2026, these costs consisted primarily of severance and consulting fees.

Loss on sale of business:
•The Company has recognized a pre-tax loss related to the divestiture of its Japan-focused trading business, which includes direct costs associated with the divestiture incurred during the six-month period ended July 5, 2026.

Discrete tax (benefit) expense and tax impact of reconciling items:
•Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period’s actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.

•We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.

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About Cognex Corporation

For over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods.

Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at cognex.com.

Investor Relations Contact:
Greer Aviv – Head of Investor Relations
Cognex Corporation
Greer.Aviv@cognex.com
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Source: View Original Filing on SEC EDGAR

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