We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cognex Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up
Read MoreHide Full Article
Key Takeaways
Cognex Q4 EPS rose 35% Y/Y to 27 cents, beating estimates as revenues climbed 10%.
CGNX posted 71.6% gross margin and 20.9% operating margin, both up sharply Y/Y.
Cognex guided Q1 2026 revenues of $235-$255M and EPS of 22-26 cents per share.
Cognex (CGNX - Free Report) reported fourth-quarter 2025 non-GAAP earnings of 27 cents per share, which beat the Zacks Consensus Estimate by 23.85%. The bottom line increased 35% year over year.
Revenues of $252.3 million beat the Zacks Consensus Estimate by 7.17%. The figure appreciated 10% year over year on a reported basis and 9% on a constant-currency (cc) basis.
Cognex shares are up 23.45% in pre-market trading. The company’s shares have increased 26.9% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s appreciation of 21.6%.
CGNX Operating Details
Fourth-quarter gross margin on a non-GAAP basis was 71.6%, expanding 220 basis points (bps) year over year.
Cognex Corporation Price, Consensus and EPS Surprise
Selling, general & administrative (SG&A) expenses increased 0.1% year over year to $94.6 million. Research & development (R&D) expenses were $36.1 million, up 10.8% year over year.
As a percentage of revenues, SG&A expenses decreased 360 bps year over year to 37.5%, whereas R&D expenses inched up 20 bps year over year to 14.3%.
The non-GAAP operating margin was 20.9%, up 470 bps year over year.
CGNX’s Balance Sheet Remains Strong
As of Dec. 31, 2025, Cognex had cash and cash equivalents of $262.9 million compared with $245.9 million as of Sept. 28.
In the fourth quarter, CGNX generated $74.9 million in cash from operating activities compared with the previous quarter’s $87.5 million.
The company generated a free cash flow of $72.3 million in the reported quarter.
Cognex declared a quarterly cash dividend of $0.085 per share payable on March 12, 2026, to all shareholders of record as on Feb. 26, 2026.
CGNX Offers Q1 Guidance
For the first quarter of 2026, Cognex expects non-GAAP revenues between $235 million and $255 million and an adjusted EBITDA margin in the range of 19-22%.
Non-GAAP earnings are anticipated between 22 cents and 26 cents per share.
Micron Technology shares have gained 347.6% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 24.6% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2, 2026. The company sports a Zacks Rank #1.
MKS shares have gained 133% in the past 12-month period. MKSI is set to report its fourth-quarter 2025 results on Feb. 17, 2026. The company currently sports a Zacks Rank #1.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Cognex Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up
Key Takeaways
Cognex (CGNX - Free Report) reported fourth-quarter 2025 non-GAAP earnings of 27 cents per share, which beat the Zacks Consensus Estimate by 23.85%. The bottom line increased 35% year over year.
Revenues of $252.3 million beat the Zacks Consensus Estimate by 7.17%. The figure appreciated 10% year over year on a reported basis and 9% on a constant-currency (cc) basis.
Cognex shares are up 23.45% in pre-market trading. The company’s shares have increased 26.9% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s appreciation of 21.6%.
CGNX Operating Details
Fourth-quarter gross margin on a non-GAAP basis was 71.6%, expanding 220 basis points (bps) year over year.
Cognex Corporation Price, Consensus and EPS Surprise
Cognex Corporation price-consensus-eps-surprise-chart | Cognex Corporation Quote
Selling, general & administrative (SG&A) expenses increased 0.1% year over year to $94.6 million. Research & development (R&D) expenses were $36.1 million, up 10.8% year over year.
As a percentage of revenues, SG&A expenses decreased 360 bps year over year to 37.5%, whereas R&D expenses inched up 20 bps year over year to 14.3%.
The non-GAAP operating margin was 20.9%, up 470 bps year over year.
CGNX’s Balance Sheet Remains Strong
As of Dec. 31, 2025, Cognex had cash and cash equivalents of $262.9 million compared with $245.9 million as of Sept. 28.
In the fourth quarter, CGNX generated $74.9 million in cash from operating activities compared with the previous quarter’s $87.5 million.
The company generated a free cash flow of $72.3 million in the reported quarter.
Cognex declared a quarterly cash dividend of $0.085 per share payable on March 12, 2026, to all shareholders of record as on Feb. 26, 2026.
CGNX Offers Q1 Guidance
For the first quarter of 2026, Cognex expects non-GAAP revenues between $235 million and $255 million and an adjusted EBITDA margin in the range of 19-22%.
Non-GAAP earnings are anticipated between 22 cents and 26 cents per share.
Zacks Rank & Stocks to Consider
Currently, CGNX carries a Zacks Rank #3 (Hold).
Micron Technology (MU - Free Report) , MongoDB (MDB - Free Report) , and MKS (MKSI - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Micron Technology shares have gained 347.6% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 24.6% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2, 2026. The company sports a Zacks Rank #1.
MKS shares have gained 133% in the past 12-month period. MKSI is set to report its fourth-quarter 2025 results on Feb. 17, 2026. The company currently sports a Zacks Rank #1.