Cognex Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up

Cognex CGNX 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, MongoDB MDB, and MKS MKSI 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.

 

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This article originally published on Zacks Investment Research (zacks.com).

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