Cognex Reports Third Quarter 2025 Results

NATICK, Mass., Oct. 29, 2025 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the third quarter ended September 28, 2025.

Third-Quarter Financial and Operating Highlights

"I'm pleased to report Q3 was another strong quarter for Cognex," said Matt Moschner, President and CEO. "We delivered outstanding financial results, which reflect our commitment to profitable growth and disciplined execution. At the same time, we remain focused on advancing our strategic objective: to be the leading provider of AI technology for industrial machine vision. Additionally, we continued to execute our salesforce transformation, acquiring new customers in underpenetrated verticals such as Packaging, using our easy-to-use, AI-enabled products."

Dennis Fehr, CFO, added, "Our strong Q3 results reflect disciplined execution against a clear plan: driving profitable growth, maintaining cost discipline, and optimizing capital allocation. We delivered meaningful progress on operational efficiency and generated exceptional cash flow, reinforcing our ability to continue to create value for shareholders. We believe these efforts position us for sustainable margin improvement as we move through the cycle."

Financial Performance Highlights for the Third Quarter

(Dollars in millions, except per share amounts)

Three-months ended

September

28, 2025

September

28, 2025

September

29, 2024

Y/Y Change

As Reported

Excluding CP

As Reported

Excluding CP

Revenue

$277

$264

$235

+18 %

+13 %

Operating Income

$58

$47

$32

+83 %

+50 %

% of Revenue

20.9 %

17.9 %

13.4 %

+750 bps

+450 bps

Adjusted EBITDA*

$69

$58

$41

67 %

+42 %

% of Revenue

24.9 %

22.1 %

17.6 %

+730 bps

+450 bps

Net Income per Diluted Share

$0.10

$0.06

$0.17

-39 %

-67 %

Adjusted EPS (Diluted)*

$0.33

$0.28

$0.20

+69 %

+44 %

Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.

Balance Sheet and Cash Flow Highlights

Dividend

On October 29, 2025, Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share, representing an increase of $0.005 per share, or approximately 6%, over the $.08 per share dividend paid in the prior quarter. The dividend is payable on November 28, 2025, to all shareholders of record at the close of business on November 13, 2025.

Guidance

Cognex issued fourth-quarter 2025 guidance; details are summarized in the table below.

As of the date of this release, Cognex continues to expect no material impact on Adjusted Earnings per Share or Adjusted EBITDA margin from tariffs.

(Dollars in millions, except per share amounts)

Q4 2025

Guidance

Q4 2024

Results

Y/Y Change**

Revenue

$230 - $245

$230

+3 %

Adjusted EBITDA Margin 1

17.0% - 20.0%

18.5 %

Flat

Adjusted Earnings Per Share (diluted) 1

$0.19 - $0.24

$0.20

+7.5 %

**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". 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 2024 the GAAP operating margin was 13.4% and GAAP earnings per share (diluted) were $0.16.

Analyst Conference Call and Simultaneous Webcast

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"). 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 inability to manage direct and indirect disruptions to our supply chain, which could cause delays in obtaining components for our products at reasonable prices; (12) the failure to manufacture and deliver products in a timely manner; (13) the inability to obtain, or the delay in obtaining, components for our products at reasonable prices; (14) the inability to design and manufacture high-quality products; (15) the loss of, or curtailment of purchases by, large customers in the logistics, consumer electronics, or automotive industries; (16) challenges in accurately forecasting our financial results due to seasonal and cyclical variations in customer purchasing patterns and economic and market volatility; (17) potential impairment charges with respect to our investments or acquired intangible assets; (18) exposure to additional tax liabilities, increases and fluctuations in our effective tax rate, and other tax matters; (19) fluctuations in foreign currency exchange rates and the use of derivative instruments; (20) unfavorable global economic conditions, including, without limitation, increases in interest rates, elevated inflation rates, and recession risks; (21) business disruptions from natural or man-made disasters, public health crises, or other events outside our control; (22) stock price volatility; and (23) 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 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.

COGNEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)

September 28,

2025

December 31, 2024

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 245,898

$ 186,094

Current investments, allowance for credit losses of $0 in 2025 and 2024

54,368

59,956

Accounts receivable, allowance for credit losses of $732 and $827 in 2025 and 2024,

respectively

154,612

143,359

Unbilled revenue

16,909

3,055

Inventories

143,679

157,527

Prepaid expenses and other current assets

55,453

63,376

Total current assets

670,919

613,367

Non-current investments, allowance for credit losses of $0 in 2025 and 2024

300,078

340,898

Property, plant, and equipment, net

89,868

98,445

Operating lease assets

74,182

67,326

Goodwill

392,084

384,937

Intangible assets, net

86,751

90,684

Deferred income taxes

383,611

392,166

Other assets

5,257

5,027

Total assets

$ 2,002,750

$ 1,992,850

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 45,480

$ 38,046

Accrued expenses

86,708

71,760

Accrued income taxes

2,705

25,685

Deferred revenue and customer deposits

23,767

25,035

Operating lease liabilities

10,613

8,854

Total current liabilities

169,273

169,380

Non-current operating lease liabilities

68,312

61,363

Deferred income taxes

249,082

217,155

Reserve for income taxes

26,359

26,365

Other liabilities

1,082

Total liabilities

513,114

475,345

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: 167,549 and 170,434 shares in 2025 and 2024,

respectively

335

341

Additional paid-in capital

1,123,134

1,090,638

Retained earnings

412,347

499,303

Accumulated other comprehensive loss, net of tax

(46,180)

(72,777)

Total shareholders' equity

1,489,636

1,517,505

Total liabilities and shareholders' equity

$ 2,002,750

$ 1,992,850

COGNEX CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

Three-months Ended

Nine-months Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Revenue

$ 276,892

$ 234,742

$ 742,021

$ 684,831

Cost of revenue (1)

89,602

75,343

242,532

216,896

Gross profit

187,290

159,399

499,489

467,935

Percentage of revenue

67.6 %

67.9 %

67.3 %

68.3 %

Research, development, and engineering expenses (1)

35,081

35,210

102,910

107,277

Percentage of revenue

12.7 %

15.0 %

13.9 %

15.7 %

Selling, general, and administrative expenses (1)

94,444

92,625

269,289

276,433

Percentage of revenue

34.1 %

39.5 %

36.3 %

40.4 %

Operating income

57,765

31,564

127,290

84,225

Percentage of revenue

20.9 %

13.4 %

17.2 %

12.3 %

Foreign currency gain (loss)

840

1,221

(3,116)

1,086

Investment income

4,197

3,561

12,227

9,797

Other income (expense)

209

2,322

581

Income before income tax expense

62,863

36,555

138,723

95,689

Income tax expense

45,199

6,964

56,945

17,864

Net income

$ 17,664

$ 29,591

$ 81,778

$ 77,825

Percentage of revenue

6.4 %

12.6 %

11.0 %

11.4 %

Net income per weighted-average common and common-

equivalent share:

Basic

$ 0.11

$ 0.17

$ 0.49

$ 0.45

Diluted

$ 0.10

$ 0.17

$ 0.48

$ 0.45

Weighted-average common and common-equivalent shares

outstanding:

Basic

167,840

171,519

168,324

171,588

Diluted

169,323

172,753

169,507

172,733

Cash dividends per common share

$ 0.080

$ 0.075

$ 0.240

$ 0.225

(1) Amounts include stock-based compensation expense, as follows:

Cost of revenue

$ 489

$ 442

$ 1,694

$ 1,460

Research, development, and engineering

3,794

3,707

11,933

11,636

Selling, general, and administrative

8,133

8,952

21,022

26,271

Total stock-based compensation expense

$ 12,416

$ 13,101

$ 34,649

$ 39,367

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, including adjusted gross 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. Cognex defines its non-GAAP metrics as follows:

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

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

Please see the section "Reconciliation of Selected Items from GAAP to Non-GAAP" below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.

COGNEX CORPORATION

RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP

Dollars in thousands, except per share amounts

(Unaudited)

Three-months Ended

Nine-months Ended

September

28, 2025

September 29,

2024

September

28, 2025

September 29,

2024

Gross profit (GAAP)

$ 187,290

$ 159,399

$ 499,489

$ 467,935

Acquisition and integration costs

213

281

666

2,082

Amortization of acquisition-related intangible assets

1,379

1,640

4,099

4,457

Reorganization charges

400

—

486

—

Adjusted gross profit

$ 189,282

$ 161,320

$ 504,740

$ 474,474

GAAP gross margin

67.6 %

67.9 %

67.3 %

68.3 %

Adjusted gross margin

68.4 %

68.7 %

68.0 %

69.3 %

Operating expense (GAAP)

$ 129,525

$ 127,835

$ 372,199

$ 383,710

Acquisition and integration costs

(180)

(962)

(977)

(3,468)

Amortization of acquisition-related intangible assets

(1,260)

(1,746)

(3,846)

(4,469)

Reorganization charges

(2,966)

—

(4,588)

—

Adjusted operating expense

$ 125,119

$ 125,127

$ 362,788

$ 375,773

Operating income (GAAP)

$ 57,765

$ 31,564

$ 127,290

$ 84,225

Acquisition and integration costs

393

1,243

1,643

5,550

Amortization of acquisition-related intangible assets

2,639

3,386

7,945

8,926

Reorganization charges

3,366

—

5,074

—

Adjusted operating income

$ 64,163

$ 36,193

$ 141,952

$ 98,701

GAAP operating margin

20.9 %

13.4 %

17.2 %

12.3 %

Adjusted operating margin

23.2 %

15.4 %

19.1 %

14.4 %

Depreciation (adjusted for amounts included in Acquisition and integration costs)

4,666

5,027

14,844

15,254

Adjusted EBITDA

$ 68,829

$ 41,220

$ 156,796

$ 113,955

Adjusted EBITDA margin

24.9 %

17.6 %

21.1 %

16.6 %

Net income (GAAP)

$ 17,664

$ 29,591

$ 81,778

$ 77,825

Acquisition and integration costs

393

1,243

1,643

5,550

Amortization of acquisition-related intangible assets

2,639

3,386

7,945

8,926

Reorganization charges

3,366

—

5,074

—

Discrete tax (benefit) expense

33,650

889

33,132

3,511

Tax impact of reconciling items

(1,615)

(1,176)

(3,871)

(3,563)

Adjusted net income

$ 56,097

$ 33,933

$ 125,701

$ 92,249

Earnings per share of common stock, diluted (GAAP)

$ 0.10

$ 0.17

$ 0.48

$ 0.45

Acquisition and integration costs

—

0.01

0.03

Amortization of acquisition-related intangible assets

0.02

0.05

Reorganization charges

0.02

—

0.03

—

Discrete tax (benefit) expense

0.20

0.01

0.20

0.02

Tax impact of reconciling items

(0.01)

(0.02)

Adjusted earnings per share of common stock, diluted

$ 0.33

$ 0.20

$ 0.74

$ 0.53

Effective tax rate (GAAP)

71.9 %

19.1 %

41.0 %

18.7 %

Discrete tax benefit (expense)

(53.5) %

(2.4) %

(23.9) %

(3.7) %

Net impact of other reconciling items

0.6 %

1.0 %

0.9 %

1.3 %

Adjusted effective tax rate

19.0 %

17.6 %

18.0 %

16.3 %

Cash provided by operating activities (GAAP)

$ 87,485

$ 56,271

$ 170,612

$ 97,677

Capital expenditures

(1,452)

(4,399)

(6,147)

(12,970)

Free cash flow

$ 86,033

$ 51,872

$ 164,465

$ 84,707

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:

Acquisition and integration costs:

Amortization of acquisition-related intangible assets:

Reorganization charges:

Discrete tax (benefit) expense and tax impact of reconciling items:

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 Contacts:

Greer Aviv – Head of Investor Relations

Jordan Bertier – Senior Manager, Investor Relations

Cognex Corporation

ir@cognex.com

SOURCE Cognex Corporation