Cognex Q3 revenue rises 13% to $313M; outlook raised
Cognex raised its quarterly dividend by $0.005 to $0.09 per share, an approximately 6% increase over the prior-quarter payment.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Cognex Corporation (CGNX) reported third-quarter 2026 revenue of $313 million, up 13% year over year; excluding the one-time Commercial Partnership benefit in Q3 2025, revenue increased 19%. Net income was $85 million, versus $18 million, and diluted earnings were $0.50 per share, versus $0.10. Adjusted EBITDA reached $111 million, up 61%, with a 35.5% margin versus 24.9%.
Operating income was $101 million, up 74%, and operating margin was 32.2%, compared with 20.9%. Adjusted diluted EPS was $0.53, up 61% year over year. Cash from operating activities was $106 million, up 22%.
As of October 4, 2026, cash and investments were $846 million and Cognex had no debt. For Q4 2026, Cognex guided to revenue of $270–$290 million, adjusted EBITDA margin of 29%–32%, and adjusted diluted EPS of $0.37–$0.41. Full-year 2026 guidance was raised to revenue of $1.143–$1.163 billion, adjusted EBITDA margin of 31%–32%, and adjusted diluted EPS of $1.68–$1.72. Cognex announced a definitive agreement to acquire RealSense in an all-cash transaction expected to close during Q4 2026.
6 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year revenue guidance increased to $1.143–$1.163 billion.
- Moderate pointQuarterly revenue was $313 million, up 13% year over year.
- Moderate pointNet income reached $85 million, up 372% year over year.
- Moderate pointAdjusted EBITDA was $111 million, up 61% year over year.
- Moderate pointOperating cash flow rose 22% to $106 million.
- Minor pointThe quarterly dividend increased approximately 6% to $0.09 per share.
Negative
- None.
Filing Explained
The board declared a quarterly cash dividend of
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
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, or exhibit attachments filed with this report.
Key Figures
Quarterly revenue: $313 million; $277 million in Q3 2025
Net income: $85 million; $18 million in Q3 2025
Diluted EPS: $0.50; $0.10 in Q3 2025
+4 more
7 metrics
Quarterly revenue
$313 million; $277 million in Q3 2025
Third quarter 2026; year-over-year comparison
Net income
$85 million; $18 million in Q3 2025
Third quarter 2026; up 372% year over year
Diluted EPS
$0.50; $0.10 in Q3 2025
Third quarter 2026
Adjusted EBITDA
$111 million; $69 million in Q3 2025
Third quarter 2026; up 61% year over year
Cash provided by operating activities
$106 million; $87 million in Q3 2025
Third quarter 2026; up 22% year over year
Quarterly dividend
$0.09 per share
Declared November 4, 2026
Full-year revenue guidance
$1.143–$1.163 billion
New 2026 guidance
Key Terms
Adjusted EBITDA, Commercial Partnership, Free cash flow conversion rate, Adjusted diluted earnings per share
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA margin was 35.5%"
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.
Commercial Partnership financial
"excluding the one-time benefit from the Commercial Partnership"
A commercial partnership is a formal agreement between two or more businesses to work together on selling, distributing, marketing, or developing products or services so they can reach customers or generate revenue more effectively. For investors it matters because such deals can open new markets, share costs and risks, speed up growth, or create steady revenue streams—like two shops teaming up so each can offer more products and attract more customers than they could alone.
Free cash flow conversion rate financial
"Free Cash Flow (FCF) conversion rate was 122% 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.
Earnings Snapshot
Revenue: $313 million · Guidance included
Third quarter 2026
Revenue
$313 million
+13% year over year
Net income
$85 million
+372% year over year
Operating income
$101 million
+74% year over year
Adjusted EBITDA
$111 million
+61% year over year
Diluted EPS
$0.50
+400% year over year
Adjusted diluted EPS
$0.53
+61% year over year
Guidance
Q4 2026: revenue $270–$290 million; adjusted EBITDA margin 29%–32%; adjusted diluted EPS $0.37–$0.41. Full-year 2026: revenue $1.143–$1.163 billion; adjusted EBITDA margin 31%–32%; adjusted diluted EPS $1.68–$1.72.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did Cognex (CGNX) report in Q3 2026?
Cognex reported $313 million in Q3 2026 revenue, up 13% from $277 million a year earlier. Excluding the one-time Q3 2025 Commercial Partnership benefit, revenue grew 19% year over year.
What is Cognex's full-year 2026 guidance?
Cognex raised full-year 2026 guidance to revenue of $1.143–$1.163 billion, adjusted EBITDA margin of 31%–32%, and adjusted diluted EPS of $1.68–$1.72.
When is the Cognex (CGNX) dividend payable, and who qualifies?
The $0.09-per-share quarterly dividend is payable December 3, 2026, to shareholders of record at the close of business on November 19, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
Date of Report (date of earliest event reported)
___________________________________
(Exact name of registrant as specified in its charter)
___________________________________
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices and zip code) | ||||||||
( | ||||||||
(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 | ||||||
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 November 4, 2026, Cognex Corporation (the "Company") issued a news release to report its financial results for the quarter ended October 4, 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 November 4, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per share. The dividend is payable on December 3, 2026, to all shareholders of record as of the close of business on November 19, 2026.
Item 9.01 - Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description | |||||||
99.1 | News release, dated November 4, 2026, by Cognex Corporation with respect to financial results for the quarter ended October 4, 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 4th day of November, 2026.
COGNEX CORPORATION | |||||
By: | /s/ Dennis Fehr | ||||
Name: | Dennis Fehr | ||||
Title: | Senior Vice President of Finance and Chief Financial Officer | ||||
Exhibit 99.1
Cognex Reports Third Quarter 2026 Results
November 4, 2026 — NATICK, MA — Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the third quarter ended October 4, 2026.
Third-Quarter Financial and Operating Highlights
•Achieved record quarterly revenue of $313 million, an increase of 13% year over year, driven by broad-based strength across most major end markets; excluding the Q3 2025 one-time benefit from the commercial partnership with a medical lab automation channel partner (the "Commercial Partnership” or “CP”), revenue grew 19% year over year.
•Operating margin was 32.2%; delivered an Adjusted EBITDA margin of 35.5%, up 1,060 basis points year over year. Excluding the CP, Adjusted EBITDA margin expanded 1,340 basis points year over year, marking the ninth consecutive quarter of margin expansion.
•Net income per diluted share was $0.50; generated Adjusted diluted earnings per share of $0.53, up 61% year over year, representing the ninth consecutive quarter of growth. Excluding the CP, Adjusted EPS (diluted) increased 89% year over year.
•Increased full-year 2026 guidance; continue to anticipate strong double-digit revenue growth and year-over-year expansion in profitability.
•Announced the entry into a definitive agreement to acquire RealSense, Inc., a leader in depth-sensing cameras and vision technology for robotic perception and physical artificial intelligence (AI). The all-cash transaction is expected to close during the fourth quarter of 2026.
•Announced the launch of the In-Sight® 1750, a next-generation wafer and panel identification system designed for the Semiconductor industry, one of the most demanding automation markets.
•Cognex to host 2027 Investor Day in June at its Natick, MA headquarters.
“Our third-quarter results reflect strong execution across the business, with record revenue, broad-based growth across most of our major end markets, and continued progress against our strategic objectives,” said Matt Moschner, President and CEO. “We believe we are strengthening our leadership in AI-powered machine vision through innovation, expanding our long-term growth opportunity through the announced acquisition of RealSense, and continuing to help position Cognex to benefit from what we see as powerful trends in automation, robotics, and artificial intelligence.”
Dennis Fehr, CFO, added, “We believe Q3 was another strong proof point for our profitable growth strategy. Record revenue, significant margin expansion, and Adjusted EBITDA flow-through above 100% demonstrate the progress we have made transforming our operating model. Our strong balance sheet and disciplined capital allocation strategy enabled us to pursue the RealSense acquisition, while retaining flexibility to invest in both organic and inorganic growth opportunities with the potential to create further value for shareholders.”
1
Financial Performance Highlights for the Third Quarter
(Dollars in millions, except per share amounts)
| Three-months ended | |||||||||||||||||||||||||||||
| October 04, 2026 | September 28, 2025 as Reported | September 28, 2025 ex CP | Y/Y Change as Reported | Y/Y Change ex CP | |||||||||||||||||||||||||
| Revenue | $313 | $277 | $264 | +13% | +19% | ||||||||||||||||||||||||
| Operating Income | $101 | $58 | $47 | +74% | +115% | ||||||||||||||||||||||||
| % of Revenue | 32.2% | 20.9% | 17.9% | +1,130 bps | +1,430 bps | ||||||||||||||||||||||||
Adjusted EBITDA1 | $111 | $69 | $58 | 61% | +91% | ||||||||||||||||||||||||
| % of Revenue | 35.5% | 24.9% | 22.1% | +1,060 bps | +1,340 bps | ||||||||||||||||||||||||
| Net Income per Diluted Share | $0.50 | $0.10 | $0.06 | +400% | +733% | ||||||||||||||||||||||||
Adjusted EPS (Diluted)1 | $0.53 | $0.33 | $0.28 | +61% | +89% | ||||||||||||||||||||||||
1Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.
•Revenue was $313 million, compared with $277 million in the second quarter of 2025, an increase of 13%, driven by broad-based strength across most major end markets. Excluding the one-time benefit from the Commercial Partnership, revenue grew 19% year over year. Foreign currency exchange did not have a meaningful impact on consolidated revenue in the quarter.
•Gross margin was 70.8% compared to 67.6% in the third quarter of 2025. Adjusted gross margin was 71.3% compared to 68.4% in the third quarter of 2025, an increase of 290 basis points. The year-over-year increase was primarily driven by favorable mix, higher volume, and faster-than-expected pricing execution. These benefits more than offset the expected memory cost headwinds in the quarter.
•Operating expenses were $121 million compared to $130 million in the third quarter of 2025, a decrease of 7%. Adjusted operating expenses were $116 million compared to $125 million in the third quarter of 2025, a decrease of 7%, primarily reflecting continued cost management activities, somewhat offset by higher sales commissions.
•Operating income was $101 million compared to $58 million in the third quarter of 2025, an increase of 74%. Operating margin was 32.2% compared to 20.9% in the third quarter of 2025, an increase of 1,130 basis points. Adjusted operating margin was 34.2% compared to 23.2% in the third quarter of 2025, an increase of 1,100 basis points.
•Adjusted EBITDA was $111 million compared to $69 million in the third quarter of 2025, an increase of 61%. Adjusted EBITDA margin was 35.5% compared to 24.9% in the third quarter of 2025, an increase of 1,060 basis points. Excluding the one-time benefit from the Commercial Partnership, Adjusted EBITDA margin increased 1,340 basis points year over year, driven by revenue growth, strong Adjusted Gross Margin and disciplined cost management.
•Net income of $85 million compared to $18 million in the third quarter of 2025, an increase of 372%. Adjusted net income of $90 million compared to $56 million in the third quarter of 2025, an increase of 61%.
•Net income per diluted share was $0.50 compared to $0.10 in the third quarter of 2025, an increase of 400%. Adjusted diluted earnings per share were $0.53 compared to $0.33 in the third quarter of 2025, an increase of 61%. Excluding the one-time benefit from the Commercial Partnership, Adjusted diluted earnings per share increased 89% year over year.
2
Balance Sheet and Cash Flow Highlights
•As of October 4, 2026, Cognex’s financial position remained strong, with $846 million in cash and investments and no debt.
•During the third quarter, Cognex generated $106 million of cash from operating activities compared to $87 million in the third quarter of 2025, an increase of 22%.
•During the third quarter, Cognex generated Free Cash Flow (FCF) of $104 million compared to $86 million in the third quarter of 2025, an increase of 21%. Third quarter FCF conversion rate was 122% of net income and 116% of Adjusted net income. Trailing twelve-month FCF conversion rate was 118% of net income and 106% of Adjusted net income.
•Cognex paid $14 million in dividends to shareholders in the third quarter.
Dividend
On November 4, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.09 per share, representing an increase of $0.005 per share, or approximately 6%, over the $0.085 per share dividend paid in the prior quarter. The dividend is payable on December 3, 2026, to all shareholders of record at the close of business on November 19, 2026.
Guidance
Cognex issued fourth-quarter guidance and increased full-year 2026 guidance; details are summarized in the tables below.
Table 1: Fourth-Quarter 2026 Guidance
| (Dollars in millions, except per share amounts) | Q4 2026 Guidance | Q4 2025 Results | Y/Y Change* | ||||||||||||||
| Revenue | $270 - $290 | $252 | +11% | ||||||||||||||
Adj. EBITDA Margin1 | 29% - 32% | 22.7% | +780 bps | ||||||||||||||
Adj. EPS (diluted)1 | $0.37 - $0.41 | $0.27 | +44% | ||||||||||||||
Table 2: Full-Year 2026 Guidance
| (Dollars in millions, except per share amounts) | New 2026 Guidance | Prior 2026 Guidance | 2025 Results | 2025 Results ex CP | Y/Y Change* | Y/Y Change* ex CP | ||||||||||||||||||||
| Revenue | $1,143 - $1,163 | $1,130 - $1,150 | $994 | $982 | +16% | +17% | ||||||||||||||||||||
Adj. EBITDA Margin1 | 31% - 32% | 29% - 31% | 21.5% | 20.7% | +1,000 bps | +1,080 bps | ||||||||||||||||||||
Adj. EPS (diluted)1 | $1.68 - $1.72 | $1.64 - $1.68 | $1.02 | $0.97 | +67% | +75% | ||||||||||||||||||||
* At the midpoint of guidance.
3
1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex’s control. Additionally, these items are outside of Cognex’s normal business operations and not used by management to assess Cognex’s operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled “Reconciliation of Selected Items From GAAP to Non-GAAP”. In Q4 2025, the GAAP operating margin was 14.0% and GAAP earnings per share (diluted) were $0.19, 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 November 5, 2026, at 8:30 a.m. Eastern Standard Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside the United States.
•A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.
4
Forward-Looking Statements
Certain statements made in this release, as well as oral statements made by Cognex Corporation ("Cognex", "we", "us", "our", or the "Company") from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "projects," "intends," "plans," "aims," "will," "may," "shall," "could," "should," "opportunity," "goal," "objective," "target," "milestone" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the closing, timing, integration, and expected results from acquired businesses, including RealSense, Inc. ("RealSense"), the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, financial and operating models, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the timely manufacturing and distribution of high-quality products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in 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) challenges in closing, integrating, and achieving expected results from acquired businesses, including RealSense, as well as exposure to potential liabilities and increased costs 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 and diverse customer base in an increasing number of geographies; (9) information security breaches and other cybersecurity threats, including through the emergence of agentic AI; (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 data, as well as our 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, including memory chips; (13) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive end markets; (14) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (15) potential impairment charges with respect to our investments or acquired intangible assets; (16) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (17) fluctuations in foreign currency exchange rates and the use of derivative instruments; (18) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (19) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (20) stock price volatility; (21) our involvement in time-consuming and costly litigation or activist shareholder activities; and (22) 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.
5
COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| October 4, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 694,695 | $ | 262,925 | |||||||
| Current investments | 997 | 74,037 | |||||||||
Accounts receivable, net of allowance for credit losses of $781 and $728 in 2026 and 2025, respectively | 216,720 | 146,713 | |||||||||
| Unbilled revenue | 12,763 | 16,980 | |||||||||
| Inventories | 158,453 | 137,889 | |||||||||
| Prepaid expenses and other current assets | 68,206 | 58,702 | |||||||||
| Total current assets | 1,151,834 | 697,246 | |||||||||
| Non-current investments | 150,292 | 305,339 | |||||||||
| Property, plant, and equipment, net | 79,720 | 86,015 | |||||||||
| Operating lease assets | 66,153 | 72,310 | |||||||||
| Goodwill | 386,105 | 386,279 | |||||||||
| Intangible assets, net | 63,295 | 81,100 | |||||||||
| Deferred income taxes | 374,517 | 383,272 | |||||||||
| Other assets | 4,551 | 4,994 | |||||||||
| Total assets | $ | 2,276,467 | $ | 2,016,555 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 74,708 | $ | 50,203 | |||||||
| Accrued expenses | 88,618 | 91,397 | |||||||||
| Accrued income taxes | 10,627 | 9,141 | |||||||||
| Deferred revenue and customer deposits | 42,450 | 21,094 | |||||||||
| Operating lease liabilities | 12,314 | 11,716 | |||||||||
| Total current liabilities | 228,717 | 183,551 | |||||||||
| Non-current operating lease liabilities | 58,048 | 64,870 | |||||||||
| Deferred income taxes | 243,132 | 250,512 | |||||||||
| Reserve for income taxes | 23,000 | 24,269 | |||||||||
| Other liabilities | 2,080 | 1,452 | |||||||||
| Total liabilities | 554,977 | 524,654 | |||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $.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: 168,372 and 166,997 shares in 2026 and 2025, respectively | 337 | 334 | |||||||||
| Additional paid-in capital | 1,310,477 | 1,138,708 | |||||||||
| Retained earnings | 467,646 | 406,355 | |||||||||
| Accumulated other comprehensive loss, net of tax | (56,970) | (53,496) | |||||||||
| Total shareholders’ equity | 1,721,490 | 1,491,901 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,276,467 | $ | 2,016,555 | |||||||
6
COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
| Three-months Ended | Nine-months Ended | ||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | October 4, 2026 | September 28, 2025 | ||||||||||||||||||||
| Revenue | $ | 313,387 | $ | 276,892 | $ | 873,087 | $ | 742,021 | |||||||||||||||
Cost of revenue (1) | 91,644 | 89,602 | 254,632 | 242,532 | |||||||||||||||||||
| Gross profit | 221,743 | 187,290 | 618,455 | 499,489 | |||||||||||||||||||
| Percentage of revenue | 70.8 | % | 67.6 | % | 70.8 | % | 67.3 | % | |||||||||||||||
Research, development, and engineering expenses (1) | 33,897 | 35,081 | 103,313 | 102,910 | |||||||||||||||||||
| Percentage of revenue | 10.8 | % | 12.7 | % | 11.8 | % | 13.9 | % | |||||||||||||||
Selling, general, and administrative expenses (1) | 87,024 | 94,444 | 268,930 | 269,289 | |||||||||||||||||||
| Percentage of revenue | 27.8 | % | 34.1 | % | 30.8 | % | 36.3 | % | |||||||||||||||
| Operating income | 100,822 | 57,765 | 246,212 | 127,290 | |||||||||||||||||||
| Percentage of revenue | 32.2 | % | 20.9 | % | 28.2 | % | 17.2 | % | |||||||||||||||
| Foreign currency gain (loss) | (744) | 840 | (2,951) | (3,116) | |||||||||||||||||||
| Investment income | 3,358 | 4,197 | 13,285 | 12,227 | |||||||||||||||||||
| Other income (expense) | (146) | 61 | (2,199) | 2,322 | |||||||||||||||||||
| Income before income tax expense | 103,290 | 62,863 | 254,347 | 138,723 | |||||||||||||||||||
| Income tax expense | 18,470 | 45,199 | 45,067 | 56,945 | |||||||||||||||||||
| Net income | $ | 84,820 | $ | 17,664 | $ | 209,280 | $ | 81,778 | |||||||||||||||
| Percentage of revenue | 27.1 | % | 6.4 | % | 24.0 | % | 11.0 | % | |||||||||||||||
| Net income per weighted-average common and common-equivalent share: | |||||||||||||||||||||||
| Basic | $ | 0.50 | $ | 0.11 | $ | 1.25 | $ | 0.49 | |||||||||||||||
| Diluted | $ | 0.50 | $ | 0.10 | $ | 1.23 | $ | 0.48 | |||||||||||||||
| Weighted-average common and common-equivalent shares outstanding: | |||||||||||||||||||||||
| Basic | 168,309 | 167,840 | 167,377 | 168,324 | |||||||||||||||||||
| Diluted | 171,027 | 169,323 | 169,860 | 169,507 | |||||||||||||||||||
| Cash dividends per common share | $ | 0.085 | $ | 0.080 | $ | 0.255 | $ | 0.240 | |||||||||||||||
(1) Amounts include stock-based compensation expense, as follows: | |||||||||||||||||||||||
| Cost of revenue | $ | 592 | $ | 489 | $ | 2,109 | $ | 1,694 | |||||||||||||||
| Research, development, and engineering | 3,491 | 3,794 | 11,973 | 11,933 | |||||||||||||||||||
| Selling, general, and administrative | 7,063 | 8,133 | 20,209 | 21,022 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 11,146 | $ | 12,416 | $ | 34,291 | $ | 34,649 | |||||||||||||||
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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 Ended | Nine-months Ended | ||||||||||||||||||||||||||||
| October 4, 2026 | September 28, 2025 | October 4, 2026 | September 28, 2025 | ||||||||||||||||||||||||||
| Gross profit (GAAP) | $ | 221,743 | $ | 187,290 | $ | 618,455 | $ | 499,489 | |||||||||||||||||||||
| Acquisition and integration costs | 219 | 213 | 653 | 666 | |||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 1,317 | 1,379 | 3,977 | 4,099 | |||||||||||||||||||||||||
| Reorganization charges | 274 | 400 | 1,569 | 486 | |||||||||||||||||||||||||
| Adjusted gross profit | $ | 223,553 | $ | 189,282 | $ | 624,654 | $ | 504,740 | |||||||||||||||||||||
| GAAP gross margin | 70.8 | % | 67.6 | % | 70.8 | % | 67.3 | % | |||||||||||||||||||||
| Adjusted gross margin | 71.3 | % | 68.4 | % | 71.5 | % | 68.0 | % | |||||||||||||||||||||
| Operating expense (GAAP) | $ | 120,921 | $ | 129,525 | $ | 372,243 | $ | 372,199 | |||||||||||||||||||||
| Acquisition and integration costs | (2,553) | (180) | (2,583) | (977) | |||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | (954) | (1,260) | (3,121) | (3,846) | |||||||||||||||||||||||||
| Reorganization charges | (951) | (2,966) | (6,041) | (4,588) | |||||||||||||||||||||||||
| Adjusted operating expense | $ | 116,463 | $ | 125,119 | $ | 360,498 | $ | 362,788 | |||||||||||||||||||||
| Operating income (GAAP) | $ | 100,822 | $ | 57,765 | $ | 246,212 | $ | 127,290 | |||||||||||||||||||||
| Acquisition and integration costs | 2,772 | 393 | 3,236 | 1,643 | |||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 2,271 | 2,639 | 7,098 | 7,945 | |||||||||||||||||||||||||
| Reorganization charges | 1,225 | 3,366 | 7,610 | 5,074 | |||||||||||||||||||||||||
| Adjusted operating income | $ | 107,090 | $ | 64,163 | $ | 264,156 | $ | 141,952 | |||||||||||||||||||||
| GAAP operating margin | 32.2 | % | 20.9 | % | 28.2 | % | 17.2 | % | |||||||||||||||||||||
| Adjusted operating margin | 34.2 | % | 23.2 | % | 30.3 | % | 19.1 | % | |||||||||||||||||||||
| Depreciation (adjusted for amounts included in Acquisition and integration costs) | 4,309 | 4,666 | 13,139 | 14,844 | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 111,399 | $ | 68,829 | $ | 277,295 | $ | 156,796 | |||||||||||||||||||||
| Adjusted EBITDA margin | 35.5 | % | 24.9 | % | 31.8 | % | 21.1 | % | |||||||||||||||||||||
| Net income (GAAP) | $ | 84,820 | $ | 17,664 | $ | 209,280 | $ | 81,778 | |||||||||||||||||||||
| Acquisition and integration costs | 2,772 | 393 | 3,236 | 1,643 | |||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 2,271 | 2,639 | 7,098 | 7,945 | |||||||||||||||||||||||||
| Reorganization charges | 1,225 | 3,366 | 7,610 | 5,074 | |||||||||||||||||||||||||
| Loss on sale of business | — | — | 1,539 | — | |||||||||||||||||||||||||
| Losses on sale of investments to fund acquisition | 2,407 | — | 2,407 | — | |||||||||||||||||||||||||
| Discrete tax (benefit) expense | (1,454) | 33,650 | (2,183) | 33,132 | |||||||||||||||||||||||||
| Tax impact of reconciling items | (2,242) | (1,615) | (5,982) | (3,871) | |||||||||||||||||||||||||
| Adjusted net income | $ | 89,799 | $ | 56,097 | $ | 223,005 | $ | 125,701 | |||||||||||||||||||||
| Earnings per share of common stock, diluted (GAAP) | $ | 0.50 | $ | 0.10 | $ | 1.23 | $ | 0.48 | |||||||||||||||||||||
| Acquisition and integration costs | 0.02 | 0.00 | 0.02 | 0.01 | |||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 0.01 | 0.02 | 0.04 | 0.05 | |||||||||||||||||||||||||
| Reorganization charges | 0.01 | 0.02 | 0.04 | 0.03 | |||||||||||||||||||||||||
| Loss on sale of business | — | — | 0.01 | — | |||||||||||||||||||||||||
| Losses on sale of investments to fund acquisition | 0.01 | — | 0.01 | — | |||||||||||||||||||||||||
| Discrete tax (benefit) expense | (0.01) | 0.20 | (0.01) | 0.20 | |||||||||||||||||||||||||
| Tax impact of reconciling items | (0.01) | (0.01) | (0.04) | (0.02) | |||||||||||||||||||||||||
| Adjusted earnings per share of common stock, diluted | $ | 0.53 | $ | 0.33 | $ | 1.31 | $ | 0.74 | |||||||||||||||||||||
| Effective tax rate (GAAP) | 17.9 | % | 71.9 | % | 17.7 | % | 41.0 | % | |||||||||||||||||||||
| Discrete tax benefit (expense) | 1.4 | % | (53.5) | % | 0.9 | % | (23.9) | % | |||||||||||||||||||||
| Net impact of other reconciling items | 0.5 | % | 0.6 | % | 0.7 | % | 0.9 | % | |||||||||||||||||||||
| Adjusted effective tax rate | 19.8 | % | 19.0 | % | 19.3 | % | 18.0 | % | |||||||||||||||||||||
| Cash provided by operating activities (GAAP) | $ | 106,415 | $ | 87,485 | $ | 220,661 | $ | 170,612 | |||||||||||||||||||||
| Capital expenditures | (2,639) | (1,452) | (6,928) | (6,147) | |||||||||||||||||||||||||
| Free cash flow | $ | 103,776 | $ | 86,033 | $ | 213,733 | $ | 164,465 | |||||||||||||||||||||
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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 October 4, 2026, these costs consisted primarily of severance and consulting fees.
Loss on sale of business:
•The Company has recognized a pre-tax loss related to the divestiture of its Japan-focused trading business, which includes direct costs associated with the divestiture incurred during the nine-month period ended October 4, 2026.
Losses on sale of investments to fund acquisition:
•The Company has recognized a pre-tax loss related to the sale of investments, primarily corporate bonds, during the three-month period ended October 4, 2026. The proceeds from these sales, along with existing cash balances, are intended to fund the acquisition of RealSense that is expected to close in the fourth quarter of 2026.
Discrete tax (benefit) expense and tax impact of reconciling items:
•Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period’s actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.
•We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.
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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 across a diverse set of end markets, including logistics, consumer electronics, automotive, packaging, and semiconductor.
Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near 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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