Cognex Reports Fourth Quarter 2025 Results
NATICK, Mass., Feb. 11, 2026 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the fourth quarter and full year 2025.
Fourth-Quarter and Full-Year Financial and Operating Highlights
"2025 marked a return to profitable growth for Cognex, with constant‑currency revenue growth of 8% and adjusted EPS growth of 38%," said Matt Moschner, President and CEO. "We made significant progress against each of our strategic objectives, including advancing our technology leadership in AI-enabled industrial machine vision, raising the bar on our end-to-end customer experience, and making steady progress toward our customer growth objective."
Mr. Moschner continued, "We are also taking meaningful steps to optimize our portfolio – exiting approximately $22 million of non‑core, no‑growth or low‑margin revenue – and continuing to transform our operating model, which is expected to deliver an additional $35 to $40 million in annualized cost reductions by the end of 2026. We believe these changes, coupled with our ongoing salesforce transformation, will help maintain growth, expand margins, and allow for continued investment in new AI technologies and customer experience capabilities necessary to deepen our competitive advantage."
Dennis Fehr, CFO, added, "We believe our 2025 results again demonstrated our ability to drive profitable growth and the earnings power of our model. Adjusted EBITDA margin, excluding the one-time Commercial Partnership benefit, expanded 360 basis points year over year to 20.7%. We surpassed our first execution milestone of 20% a full year ahead of plan driven by focused execution and strong cost discipline. Building on the actions we've already completed, our next milestone is a 25% Adjusted EBITDA margin – targeted on a run‑rate basis by the end of 2026 – as we focus on creating long‑term value for shareholders through sustainable margin expansion."
Financial Performance Highlights for the Fourth Quarter
(Dollars in millions, except per share amounts)
Three-months ended
December 31, 2025
December 31, 2024
Y/Y Change
Revenue
$252
$230
+10 %
Operating Income
$35
$31
+14 %
% of Revenue
14.0 %
13.4 %
+60 bps
Adjusted EBITDA*
$57
$42
35 %
% of Revenue
22.7 %
18.5 %
+420 bps
Net Income per Diluted Share
$0.19
$0.16
+18 %
Adjusted EPS (Diluted)*
$0.27
$0.20
+35 %
*Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.
Financial Performance Highlights for the Year
(Dollars in millions, except per share amounts)
Twelve-months ended
December
31, 2025
December
31, 2025
December
31, 2024
Y/Y Change
Y/Y Change
As Reported
Excluding CP
As Reported
As Reported
Excluding CP
Revenue
$994
$982
$915
+9 %
+7 %
Operating Income
$163
$152
$115
+41 %
+32 %
% of Revenue
16.3 %
15.5 %
12.6 %
+370 bps
+290 bps
Adjusted EBITDA*
$214
$204
$156
37 %
+31 %
% of Revenue
21.5 %
20.7 %
17.1 %
+440 bps
+360 bps
Net Income per Diluted Share
$0.68
$0.63
$0.62
+10 %
+2 %
Adjusted EPS (Diluted)*
$1.02
$0.97
$0.74
+38 %
+31 %
*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 February 11, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on March 12, 2026, to all shareholders of record at the close of business on February 26, 2026.
First-Quarter 2026 Guidance
Cognex issued first-quarter 2026 guidance; details are summarized in the table below.
(Dollars in millions, except per share amounts)
Q1 2026
Guidance
Q1 2025
Results
Y/Y Change*
Revenue
$235 - $255
$216
+13 %
Adjusted EBITDA Margin 1
19.0% - 22.0%
16.8 %
+370 bps
Adjusted Earnings Per Share (diluted) 1
$0.22 - $0.26
$0.16
+50 %
*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 Q1 2025 the GAAP operating margin was 12.1% and GAAP earnings per share (diluted) were $0.14.
Analyst Conference Call and Simultaneous Webcast
Forward-Looking Statements
Certain statements made in this release, as well as oral statements made by 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 Exchange Act. 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, 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 and effectively plan for succession including managing the transition of our Chief Executive Officer, 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 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; (9) information security breaches and other cybersecurity threats; (10) the failure to comply with laws or regulations relating to data privacy, data protection, AI, 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; (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 industries; (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, 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)
December 31,
2025
2024
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$ 262,925
$ 186,094
Current investments, amortized cost of $74,050 and $60,725 in 2025 and 2024,
respectively, allowance for credit losses of $0 in 2025 and 2024
74,037
59,956
Accounts receivable, allowance for credit losses of $728 and $827 in 2025 and 2024,
respectively
146,713
143,359
Unbilled revenue
16,980
3,055
Inventories
137,889
157,527
Prepaid expenses and other current assets
58,702
63,376
Total current assets
697,246
613,367
Non-current investments, amortized cost of $302,539 and $345,033 in 2025 and 2024,
respectively, allowance for credit losses of $0 in 2025 and 2024
305,339
340,898
Property, plant, and equipment, net
86,015
98,445
Operating lease assets
72,310
67,326
Goodwill
386,279
384,937
Intangible assets, net
81,100
90,684
Deferred income taxes
383,272
392,166
Other assets
4,994
5,027
Total assets
$ 2,016,555
$ 1,992,850
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 50,203
$ 38,046
Accrued expenses
91,397
71,760
Accrued income taxes
9,141
25,685
Deferred revenue and customer deposits
21,094
25,035
Operating lease liabilities
11,716
8,854
Total current liabilities
183,551
169,380
Non-current operating lease liabilities
64,870
61,363
Deferred income taxes
250,512
217,155
Reserve for income taxes
24,269
26,365
Other liabilities
1,452
1,082
Total liabilities
524,654
475,345
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock, $0.01 par value - Authorized: 400 shares in 2025 and 2024,
respectively, no shares issued and outstanding
—
—
Common stock, $0.002 par value – Authorized: 300,000 shares in 2025 and 2024,
respectively, issued and outstanding: 166,997 and 170,434 shares in 2025 and 2024,
respectively
334
341
Additional paid-in capital
1,138,708
1,090,638
Retained earnings
406,355
499,303
Accumulated other comprehensive loss, net of tax
(53,496)
(72,777)
Total shareholders' equity
1,491,901
1,517,505
Total liabilities and shareholders' equity
$ 2,016,555
$ 1,992,850
COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three-months Ended
Twelve-months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenue
$ 252,338
$ 229,684
$ 994,359
$ 914,515
Cost of revenue (1)
86,434
71,825
328,966
288,721
Gross profit
165,904
157,859
665,393
625,794
Percentage of revenue
65.7 %
68.7 %
66.9 %
68.4 %
Research, development, and engineering expenses (1)
36,060
32,538
138,970
139,815
Percentage of revenue
14.3 %
14.2 %
14.0 %
15.3 %
Selling, general, and administrative expenses (1)
94,568
94,481
363,857
370,914
Percentage of revenue
37.5 %
41.1 %
36.6 %
40.6 %
Operating income
35,276
30,840
162,566
115,065
Percentage of revenue
14.0 %
13.4 %
16.3 %
12.6 %
Foreign currency gain (loss)
(966)
445
(4,082)
1,531
Investment income
4,723
4,174
16,950
13,971
Other income (expense)
5,046
341
7,368
922
Income before income tax expense
44,079
35,800
182,802
131,489
Income tax expense
11,415
7,454
68,360
25,318
Net income
$ 32,664
$ 28,346
$ 114,442
$ 106,171
Percentage of revenue
12.9 %
12.3 %
11.5 %
11.6 %
Net income per weighted-average common and common-
equivalent share:
Basic
$ 0.20
$ 0.17
$ 0.68
$ 0.62
Diluted
$ 0.19
$ 0.16
$ 0.68
$ 0.62
Weighted-average common and common-equivalent shares
outstanding:
Basic
167,256
171,282
168,049
171,438
Diluted
168,896
172,508
169,367
172,611
Cash dividends per common share
$ 0.085
$ 0.080
$ 0.325
$ 0.305
(1) Amounts include stock-based compensation expense, as follows:
Cost of revenue
$ 522
$ 506
$ 2,216
$ 1,966
Research, development, and engineering
3,403
2,992
15,336
14,628
Selling, general, and administrative
9,943
9,578
30,965
35,849
Total stock-based compensation expense
$ 13,868
$ 13,076
$ 48,517
$ 52,443
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
Twelve-months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Gross profit (GAAP)
$ 165,904
$ 157,859
$ 665,393
$ 625,794
Acquisition and integration costs
212
213
878
2,295
Amortization of acquisition-related intangible assets
1,344
1,360
5,443
5,817
Reorganization charges
171
18
657
18
Excess and obsolete inventory charges
$ 13,067
$ —
$ 13,067
$ —
Adjusted gross profit
$ 180,698
$ 159,450
$ 685,438
$ 633,924
GAAP gross margin
65.7 %
68.7 %
66.9 %
68.4 %
Adjusted gross margin
71.6 %
69.4 %
68.9 %
69.3 %
Operating expense (GAAP)
$ 130,628
$ 127,019
$ 502,827
$ 510,729
Acquisition and integration costs
(211)
(761)
(1,188)
(4,229)
Amortization of acquisition-related intangible assets
(1,215)
(1,132)
(5,061)
(5,601)
Reorganization charges
(1,240)
(2,972)
(5,828)
(2,972)
Adjusted operating expense
$ 127,962
$ 122,154
$ 490,750
$ 497,927
Operating income (GAAP)
$ 35,276
$ 30,840
$ 162,566
$ 115,065
Acquisition and integration costs
423
974
2,066
6,524
Amortization of acquisition-related intangible assets
2,559
2,492
10,504
11,418
Reorganization charges
1,411
2,990
6,485
2,990
Excess and obsolete inventory charges
13,067
—
13,067
—
Adjusted operating income
$ 52,736
$ 37,296
$ 194,688
$ 135,997
GAAP operating margin
14.0 %
13.4 %
16.3 %
12.6 %
Adjusted operating margin
20.9 %
16.2 %
19.6 %
14.9 %
Depreciation (adjusted for amounts included in Acquisition and integration costs)
4,541
5,139
19,385
20,393
Adjusted EBITDA
$ 57,277
$ 42,435
$ 214,073
$ 156,390
Adjusted EBITDA margin
22.7 %
18.5 %
21.5 %
17.1 %
Net income (GAAP)
$ 32,664
$ 28,346
$ 114,442
$ 106,171
Acquisition and integration costs
423
974
2,066
6,524
Amortization of acquisition-related intangible assets
2,559
2,492
10,504
11,418
Reorganization charges
1,411
2,990
6,485
2,990
Excess and obsolete inventory charges
13,067
—
13,067
—
Gain on sale of property
(5,053)
—
(5,053)
—
Discrete tax (benefit) expense
3,401
2,220
36,533
5,731
Tax impact of reconciling items
(2,117)
(2,008)
(5,988)
(5,571)
Adjusted net income
$ 46,355
$ 35,014
$ 172,056
$ 127,263
Earnings per share of common stock, diluted (GAAP)
$ 0.19
$ 0.16
$ 0.68
$ 0.62
Acquisition and integration costs
—
0.01
0.01
0.04
Amortization of acquisition-related intangible assets
0.02
0.01
0.06
0.07
Reorganization charges
0.01
0.02
0.04
0.02
Excess and obsolete inventory charges
0.08
—
0.08
—
Gain on sale of property
(0.03)
—
(0.03)
—
Discrete tax (benefit) expense
0.02
0.01
0.22
0.03
Tax impact of reconciling items
(0.01)
(0.01)
(0.04)
(0.03)
Adjusted earnings per share of common stock, diluted
$ 0.27
$ 0.20
$ 1.02
$ 0.74
Effective tax rate (GAAP)
25.9 %
20.8 %
37.4 %
19.3 %
Discrete tax benefit (expense)
(7.7) %
(6.2) %
(20.0) %
(4.4) %
Net impact of other reconciling items
(0.2) %
2.5 %
0.6 %
1.6 %
Adjusted effective tax rate
17.9 %
17.1 %
18.0 %
16.5 %
Cash provided by operating activities (GAAP)
$ 74,902
$ 51,404
$ 245,514
$ 149,081
Capital expenditures
(2,596)
(2,073)
(8,743)
(15,043)
Free cash flow
$ 72,306
$ 49,331
$ 236,771
$ 134,038
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:
Excess and obsolete inventory charges:
Gain on sale of property:
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
Cognex Corporation
[email protected]
SOURCE Cognex Corporation