Cognex Corp

Latest Results (02.04.2026):

Cognex Corp's fourth quarter of 2025 results show a return to profitable growth: Q4 revenue of $252 million (up 10% YoY, +9% constant-currency), stronger profitability with adjusted EBITDA margin expansion, and continued cash generation and shareholder returns. Management also announced portfolio exits and cost-reduction targets to further improve margins into 2026.

Revenue and Growth

Q4 2025 revenue was $252M, +10% versus Q4 2024 (9% ex-FX). Full‑year 2025 revenue was $994M, +9% YoY (8% ex‑FX); excluding a one‑time commercial partnership benefit, full‑year revenue grew 7%.

Margins and Profitability

Q4 operating margin was 14.0%; Q4 adjusted EBITDA was $57M and adjusted EBITDA margin was 22.7% (up 420 bps YoY, sixth consecutive quarter of expansion). Full‑year adjusted EBITDA margin was 21.5% (+440 bps YoY) and 20.7% excluding the one‑time partnership benefit (+360 bps).

Earnings Per Share

Q4 net income per diluted share (GAAP) was $0.19 (+18% YoY); Q4 adjusted diluted EPS was $0.27 (+35% YoY). Full‑year adjusted diluted EPS was $1.02, up 38% YoY (GAAP diluted EPS $0.68).

Cash Flow and Capital Returns

As of Dec 31, 2025 Cognex held $642M in cash and investments with no debt. Q4 operating cash flow was $75M and Q4 free cash flow was $72M. The company returned $206M to shareholders in 2025, including $151M in buybacks and $55M in dividends.

Balance Sheet and Buyback Authorization

Cognex ended 2025 with $642M cash & investments, no debt, and had $115M remaining under the prior repurchase authorization; the Board approved an additional $500M repurchase authorization on Feb 11, 2026.

Strategic Actions and Cost Savings

Management completed a strategic portfolio review and is exiting ~$22M of non‑core/low‑margin revenue. The company expects an additional $35–$40M of annualized cost reductions by end of 2026 and is targeting a 25% adjusted EBITDA margin on a run‑rate basis by end of 2026.

Guidance and Dividend

Q1 2026 guidance: revenue $235–$255M; adjusted EBITDA margin 19.0%–22.0%; adjusted diluted EPS $0.22–$0.26 (midpoint implies ~13% revenue growth vs Q1 2025 and +50% adjusted EPS). The Board declared a quarterly cash dividend of $0.085 per share payable March 12, 2026.