Cognex Reports Third Quarter 2026 Results
COGNEX CORP (CGNX) filed an SEC Form 8-K — Results of Operations and Financial Condition. 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 Financ
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst that could drive short‑term price appreciation.
Market read
Cognex's strong earnings and acquisition signal growth in AI‑enabled vision, likely benefiting related tech stocks.
What to watch
Integration risk of the RealSense acquisition could temper long‑term upside.
Cognex Reports Third Quarter 2026 Results
Record quarterly revenue, broad-based end-market strength, substantial operating-margin expansion, 61% Adjusted EBITDA growth, strong free cash flow, and increased full-year guidance characterized the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three-months ended October 4, 2026GAAP | $313M | – | +13% |
| Revenue, nine-months ended October 4, 2026GAAP | $873,087 | – | – |
| Revenue excluding Commercial Partnership, three-months ended October 4, 2026other | $313M | – | +19% |
| Cost of revenue, three-months ended October 4, 2026GAAP | $91,644 | – | – |
| Cost of revenue, nine-months ended October 4, 2026GAAP | $254,632 | – | – |
| Gross profit, three-months ended October 4, 2026GAAP | $221,743 | – | – |
| Gross margin, three-months ended October 4, 2026GAAP | 70.8% | – | – |
| Adjusted gross profit, three-months ended October 4, 2026non-GAAP | $223,553 | – | – |
| Adjusted gross margin, three-months ended October 4, 2026non-GAAP | 71.3% | – | +290 basis points |
| Gross margin, nine-months ended October 4, 2026GAAP | 70.8% | – | – |
| Adjusted gross margin, nine-months ended October 4, 2026non-GAAP | 71.5% | – | – |
| Research, development, and engineering expenses, three-months ended October 4, 2026GAAP | $33,897 | – | – |
| Selling, general, and administrative expenses, three-months ended October 4, 2026GAAP | $87,024 | – | – |
| Operating expenses, three-months ended October 4, 2026GAAP | $121M | – | -7% |
| Adjusted operating expenses, three-months ended October 4, 2026non-GAAP | $116M | – | -7% |
| Operating expenses, nine-months ended October 4, 2026GAAP | $372,243 | – | – |
| Adjusted operating expenses, nine-months ended October 4, 2026non-GAAP | $360,498 | – | – |
| Operating income, three-months ended October 4, 2026GAAP | $101M | – | +74% |
| Operating margin, three-months ended October 4, 2026GAAP | 32.2% | – | +1,130 basis points |
| Adjusted operating income, three-months ended October 4, 2026non-GAAP | $107,090 | – | – |
| Adjusted operating margin, three-months ended October 4, 2026non-GAAP | 34.2% | – | +1,100 basis points |
| Operating income, nine-months ended October 4, 2026GAAP | $246,212 | – | – |
| Operating margin, nine-months ended October 4, 2026GAAP | 28.2% | – | – |
| Adjusted operating income, nine-months ended October 4, 2026non-GAAP | $264,156 | – | – |
| Adjusted operating margin, nine-months ended October 4, 2026non-GAAP | 30.3% | – | – |
| Adjusted EBITDA, three-months ended October 4, 2026non-GAAP | $111M | – | +61% |
| Adjusted EBITDA margin, three-months ended October 4, 2026non-GAAP | 35.5% | – | +1,060 basis points |
| Adjusted EBITDA excluding Commercial Partnership, three-months ended October 4, 2026non-GAAP | $111M | – | +91% |
| Adjusted EBITDA margin excluding Commercial Partnership, three-months ended October 4, 2026non-GAAP | 35.5% | – | +1,340 basis points |
| Adjusted EBITDA, nine-months ended October 4, 2026non-GAAP | $277.3M | – | – |
| Adjusted EBITDA margin, nine-months ended October 4, 2026non-GAAP | 31.8% | – | – |
| Net income, three-months ended October 4, 2026GAAP | $85M | – | +372% |
| Net income margin, three-months ended October 4, 2026GAAP | 27.1% | – | – |
| Adjusted net income, three-months ended October 4, 2026non-GAAP | $90M | – | +61% |
| Net income, nine-months ended October 4, 2026GAAP | $209,280 | – | – |
| Net income margin, nine-months ended October 4, 2026GAAP | 24.0% | – | – |
| Adjusted net income, nine-months ended October 4, 2026non-GAAP | $223,005 | – | – |
| Diluted earnings per share, three-months ended October 4, 2026GAAP | $0.50 | – | +400% |
| Adjusted diluted earnings per share, three-months ended October 4, 2026non-GAAP | $0.53 | – | +61% |
| Adjusted diluted earnings per share excluding Commercial Partnership, three-months ended October 4, 2026non-GAAP | $0.53 | – | +89% |
| Diluted earnings per share, nine-months ended October 4, 2026GAAP | $1.23 | – | – |
| Adjusted diluted earnings per share, nine-months ended October 4, 2026non-GAAP | $1.31 | – | – |
| Effective tax rate, three-months ended October 4, 2026GAAP | 17.9% | – | – |
| Adjusted effective tax rate, three-months ended October 4, 2026non-GAAP | 19.8% | – | – |
| Cash provided by operating activities, three-months ended October 4, 2026GAAP | $106M | – | +22% |
| Free cash flow, three-months ended October 4, 2026non-GAAP | $104M | – | +21% |
| Free cash flow conversion rate, three-months ended October 4, 2026non-GAAP | 122% of net income | – | – |
| Free cash flow conversion rate, three-months ended October 4, 2026non-GAAP | 116% of Adjusted net income | – | – |
| Cash provided by operating activities, nine-months ended October 4, 2026GAAP | $220,661 | – | – |
| Free cash flow, nine-months ended October 4, 2026non-GAAP | $213,733 | – | – |
Q4 2026 and Full-Year 2026 outlook
- RevenueQ4 2026: $270 - $290; Full-Year 2026: $1,143 - $1,163
- NoteQ4 2026 Adj. EBITDA Margin: 29% - 32%
- NoteQ4 2026 Adj. EPS (diluted): $0.37 - $0.41
- NoteFull-Year 2026 Adj. EBITDA Margin: 31% - 32%
- NoteFull-Year 2026 Adj. EPS (diluted): $1.68 - $1.72
- NoteFull-Year 2026 revenue Y/Y Change: +16% at the midpoint of guidance; +17% ex CP at the midpoint of guidance
- NoteFull-Year 2026 Adj. EBITDA Margin Y/Y Change: +1,000 bps at the midpoint of guidance; +1,080 bps ex CP at the midpoint of guidance
- NoteFull-Year 2026 Adj. EPS (diluted) Y/Y Change: +67% at the midpoint of guidance; +75% ex CP at the midpoint of guidance
Capital returns
- Cognex paid $14 million in dividends to shareholders in the third quarter.
- On November 4, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.09 per share.
- The dividend represents 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 shareholders of record at the close of business on November 19, 2026.
What drove it
- Revenue growth was driven by broad-based strength across most major end markets.
- Gross-margin expansion was primarily driven by favorable mix, higher volume, and faster-than-expected pricing execution.
- Gross-margin benefits more than offset expected memory cost headwinds in the quarter.
- Adjusted operating expense declined primarily due to continued cost management activities, somewhat offset by higher sales commissions.
- The company announced the launch of the In-Sight 1750, a wafer and panel identification system designed for the Semiconductor industry.
- Cognex announced a definitive agreement to acquire RealSense, Inc.; the all-cash transaction is expected to close during the fourth quarter of 2026.
Concerns
- Expected memory cost headwinds remain a stated cost factor.
- Higher sales commissions partly offset cost management activities.
- The Commercial Partnership created a one-time benefit in Q3 2025, affecting reported year-over-year comparisons.
- The acquisition of RealSense is subject to closing, integration, and expected-results risks.
- The company identified risks related to tariffs, economic conditions in China, supply-chain disruption including memory chips, end-market customer purchasing patterns, and global economic volatility.
What to watch
- Q4 2026 revenue guidance of $270 - $290.
- Q4 2026 Adjusted EBITDA margin guidance of 29% - 32%.
- Q4 2026 Adjusted EPS (diluted) guidance of $0.37 - $0.41.
- Execution against increased full-year 2026 revenue guidance of $1,143 - $1,163.
- Closing of the RealSense acquisition during the fourth quarter of 2026 and related acquisition and integration costs.
- Whether favorable mix, volume, pricing execution, and cost management continue to offset memory cost headwinds.
Balance sheet and cash flow
- As of October 4, 2026, Cognex had $846 million in cash and investments and no debt.
- Cash and cash equivalents were $694,695 as of October 4, 2026, compared with $262,925 as of December 31, 2025.
- Current investments were $997 as of October 4, 2026, compared with $74,037 as of December 31, 2025.
- Non-current investments were $150,292 as of October 4, 2026, compared with $305,339 as of December 31, 2025.
- Cash provided by operating activities was $106 million in the third quarter, compared to $87 million in the third quarter of 2025.
- Free cash flow was $104 million in the third quarter, compared to $86 million in the third quarter of 2025.
- Trailing twelve-month FCF conversion rate was 118% of net income and 106% of Adjusted net income.
Analysis
Cognex delivered record quarterly revenue of $313 million, up 13% year over year, with the company attributing growth to broad-based strength across most major end markets. Excluding the Q3 2025 one-time Commercial Partnership benefit, revenue grew 19% year over year. Foreign currency exchange did not have a meaningful impact on consolidated revenue in the quarter. The filing does not provide segment revenue, so end-market breadth is described only qualitatively.
Profitability improved materially. GAAP gross margin rose to 70.8% from 67.6%, while adjusted gross margin increased to 71.3% from 68.4%. Management attributed the improvement to favorable mix, higher volume, and faster-than-expected pricing execution, which more than offset expected memory cost headwinds. Operating expenses declined to $121 million from $130 million, and GAAP operating margin expanded to 32.2% from 20.9%. Adjusted EBITDA increased to $111 million from $69 million, and its margin increased to 35.5% from 24.9%.
GAAP net income was $85 million, compared with $18 million, and diluted EPS was $0.50, compared with $0.10. Adjusted net income rose to $90 million from $56 million, while adjusted diluted EPS increased to $0.53 from $0.33. The prior-year period included a $33,650 discrete tax expense in the non-GAAP reconciliation, and the reported GAAP effective tax rate moved to 17.9% from 71.9%; adjusted effective tax rate was 19.8% versus 19.0%.
Cash generation remained strong, with $106 million of cash from operating activities and $104 million of free cash flow. Cognex reported $846 million in cash and investments and no debt as of October 4, 2026. The company paid $14 million in dividends during the quarter, declared a quarterly cash dividend of $0.09 per share, and stated that its balance sheet and capital-allocation strategy enabled it to pursue the all-cash RealSense acquisition while retaining flexibility for organic and inorganic investment.
Cognex increased full-year 2026 guidance to revenue of $1,143 - $1,163, adjusted EBITDA margin of 31% - 32%, and adjusted diluted EPS of $1.68 - $1.72. Fourth-quarter guidance calls for revenue of $270 - $290, adjusted EBITDA margin of 29% - 32%, and adjusted diluted EPS of $0.37 - $0.41. Attention now turns to delivery on that outlook, the persistence of pricing, volume, and mix benefits against memory costs, and the expected fourth-quarter closing and integration of RealSense.
Management, verbatim
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.
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.
Matt Moschner, President and CEO
Record revenue, significant margin expansion, and Adjusted EBITDA flow-through above 100% demonstrate the progress we have made transforming our operating model.
Dennis Fehr, CFO
Not in the filing
stated, not guessed- Revenue by reportable segment or end market
- Segment operating income or segment margins
- Prior-quarter figures and sequential comparisons for most Q3 metrics
- Stock repurchases during the quarter
- GAAP revenue, operating margin, net income, or EPS guidance for Q4 2026 and full-year 2026
- Gross margin, operating expense, and tax-rate guidance for Q4 2026 and full-year 2026
- A separately provided previous-release outlook for actual-versus-prior-guidance comparisons
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cognex (NASDAQ: CGNX) filed an 8‑K reporting its Q3 2026 results, including record revenue and an acquisition announcement.
Ticker impact
Cognex reported record Q3 revenue of $313M, 13% YoY growth, and raised full-year 2026 guidance.
likely upward pressure as investors price in higher revenue and profitability.
The company posted double-digit revenue growth, expanded margins, and issued raised guidance, providing fresh material for traders.
Market effects
Boosts outlook for industrial machine‑vision and automation sector.
Positive for US tech stocks and related industrial equipment makers.
Reinforces demand trends in AI‑driven automation worldwide.
Counterpoint
If margin expansion stalls, the stock may face valuation pressure despite the beat.
Key entities
- companyCognex Corporation
Industrial machine‑vision technology provider.
- companyRealSense, Inc.
Depth‑sensing camera and vision technology firm being acquired.
