# COGNEX CORP (CGNX)

Informational only - not investment advice.

CIK: 0000851205
SIC: 3823 Industrial Instruments For Measurement, Display, and Control
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3823 Industrial Instruments For Measurement, Display, and Control](/industry/3823/)
Latest 10-K filed: 2026-02-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=851205
Filing source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-12 · accession 0000851205-26-000012 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000851205.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 994,359,000 USD | 2025 | verified |
| Net income | 114,442,000 USD | 2025 | verified |
| Assets | 2,016,555,000 USD | 2025 | verified |
| Free cash flow | 236,771,000 USD | 2025 | computed |
| Net margin | 11.51% | 2025 | computed |
| Operating margin | 16.35% | 2025 | computed |
| Revenue YoY | +8.73% | 2025 | computed |
| ROE | 7.67% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CGNX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.5% | 12.7% | 44 | 10 |
| Operating margin | 16.3% | 16.3% | 56 | 10 |
| Revenue growth | 8.7% | 5.0% | 78 | 10 |
| FCF margin | 23.8% | 22.0% | 78 | 10 |
| ROE | 7.7% | 7.7% | 44 | 10 |
| ROA | 5.7% | 4.4% | 78 | 10 |
| Liabilities / equity | 0.35 | 0.87 | 0 | 10 |
| Current ratio | 3.80 | 1.80 | 100 | 10 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3823 Industrial Instruments For Measurement, Display, and Control, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 994359000 | USD | 2025 | 2026-02-12 |
| Net income | 114442000 | USD | 2025 | 2026-02-12 |
| Assets | 2016555000 | USD | 2025 | 2026-02-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000851205.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 529,515,000 | 766,083,000 | 806,338,000 | 725,625,000 | 811,020,000 | 1,037,098,000 | 1,006,090,000 | 837,547,000 | 914,515,000 | 994,359,000 |
| Net income | 143,694,000 | 176,712,000 | 219,267,000 | 203,865,000 | 176,186,000 | 279,881,000 | 215,525,000 | 113,234,000 | 106,171,000 | 114,442,000 |
| Operating income | 154,066,000 | 258,861,000 | 221,142,000 | 142,602,000 | 170,529,000 | 315,101,000 | 246,229,000 | 130,702,000 | 115,065,000 | 162,566,000 |
| Gross profit | 398,445,000 | 578,794,000 | 600,286,000 | 535,871,000 | 604,599,000 | 759,827,000 | 721,905,000 | 601,241,000 | 625,794,000 | 665,393,000 |
| Diluted EPS | 0.83 | 0.98 | 1.24 | 1.16 | 1.00 | 1.56 | 1.23 | 0.65 | 0.62 | 0.68 |
| Operating cash flow | 182,081,000 | 224,323,000 | 223,454,000 | 253,311,000 | 242,400,000 | 314,065,000 | 243,406,000 | 112,916,000 | 149,081,000 | 245,514,000 |
| Capital expenditures | 12,816,000 | 28,754,000 | 37,095,000 | 21,745,000 | 13,303,000 | 15,455,000 | 19,667,000 | 23,077,000 | 15,043,000 | 8,743,000 |
| Dividends paid | 25,213,000 | 29,037,000 | 31,865,000 | 35,124,000 | 390,508,000 | 43,263,000 | 45,921,000 | 49,079,000 | 52,329,000 | 54,627,000 |
| Share buybacks | 47,149,000 | 123,715,000 | 203,822,000 | 61,690,000 | 51,036,000 | 161,652,000 | 204,314,000 | 79,794,000 | 67,085,000 | 151,233,000 |
| Assets | 1,038,604,000 | 1,287,753,000 | 1,289,667,000 | 1,885,935,000 | 1,800,702,000 | 2,003,662,000 | 1,958,140,000 | 2,017,812,000 | 1,992,850,000 | 2,016,555,000 |
| Liabilities | 76,005,000 | 192,080,000 | 154,404,000 | 530,225,000 | 538,500,000 | 573,569,000 | 519,746,000 | 513,060,000 | 475,345,000 | 524,654,000 |
| Stockholders' equity | 963,385,000 | 1,095,673,000 | 1,135,263,000 | 1,355,710,000 | 1,262,202,000 | 1,430,093,000 | 1,438,394,000 | 1,504,752,000 | 1,517,505,000 | 1,491,901,000 |
| Cash and cash equivalents | 79,641,000 | 106,582,000 | 108,212,000 | 171,431,000 | 269,073,000 | 186,161,000 | 181,374,000 | 202,655,000 | 186,094,000 | 262,925,000 |
| Free cash flow | 169,265,000 | 195,569,000 | 186,359,000 | 231,566,000 | 229,097,000 | 298,610,000 | 223,739,000 | 89,839,000 | 134,038,000 | 236,771,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 27.14% | 23.07% | 27.19% | 28.10% | 21.72% | 26.99% | 21.42% | 13.52% | 11.61% | 11.51% |
| Operating margin | 29.10% | 33.79% | 27.43% | 19.65% | 21.03% | 30.38% | 24.47% | 15.61% | 12.58% | 16.35% |
| Return on equity | 14.92% | 16.13% | 19.31% | 15.04% | 13.96% | 19.57% | 14.98% | 7.53% | 7.00% | 7.67% |
| Return on assets | 13.84% | 13.72% | 17.00% | 10.81% | 9.78% | 13.97% | 11.01% | 5.61% | 5.33% | 5.68% |
| Liabilities / equity | 0.08 | 0.18 | 0.14 | 0.39 | 0.43 | 0.40 | 0.36 | 0.34 | 0.31 | 0.35 |
| Current ratio | 8.00 | 5.59 | 8.54 | 5.04 | 4.55 | 3.39 | 3.82 | 4.47 | 3.62 | 3.80 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CGNX/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000851205.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-10-02 |  |  | 0.19 | reported discrete quarter |
| 2023-Q1 | 2023-04-02 |  |  | 0.15 | reported discrete quarter |
| 2023-Q2 | 2023-07-02 |  |  | 0.33 | reported discrete quarter |
| 2023-Q3 | 2023-10-01 | 197,241,000 | 18,916,000 | 0.11 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 196,670,000 | 11,229,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 210,797,000 | 12,022,000 | 0.07 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 239,292,000 | 36,212,000 | 0.21 | reported discrete quarter |
| 2024-Q3 | 2024-09-29 | 234,742,000 | 29,591,000 | 0.17 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 229,684,000 | 28,346,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-30 | 216,036,000 | 23,603,000 | 0.14 | reported discrete quarter |
| 2025-Q2 | 2025-06-29 | 249,093,000 | 40,511,000 | 0.24 | reported discrete quarter |
| 2025-Q3 | 2025-09-28 | 276,892,000 | 17,664,000 | 0.10 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 252,338,000 | 32,664,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-04-05 | 268,437,000 | 51,704,000 | 0.31 | reported discrete quarter |
| 2026-Q2 | 2026-07-05 | 291,263,000 | 72,756,000 | 0.43 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CGNX's latest 10-K: [/company/CGNX/business/](/company/CGNX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CGNX's latest 10-K: [/company/CGNX/risk-factors/](/company/CGNX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000065/cgnx-20260705.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-07-05

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain statements made in this report, as well as oral statements made by Cognex Corporation ("Cognex", "we", "us", "our", or 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 Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. 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, financial and operating models, 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, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, 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 Iran, 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 in an increasing number of geographies; (9) information security breaches and other cybersecurity threats; (10) the failure to comply with laws or regulations relating to data privacy, data protection, artificial intelligence, 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, including memory chips; (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 end markets; (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 (the "Annual Report"), as updated by Part II - Item 1A of this Quarterly Report on Form 10-Q (this "Quarterly Report"). 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.

Executive Overview

Cognex makes advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. We are a global technology leader in industrial machine vision systems that seek to improve efficiency and help solve critical manufacturing and distribution challenges, providing support across a diverse set of industrial end markets. In addition to revenue derived from the

22

sale of machine vision products, the Company also generates revenue by providing maintenance and support, consulting, and training services to its customers; however, service revenue accounted for less than 10% of total revenue for all periods presented.

Machine vision is used in a variety of end markets where technology is widely recognized as an important component of automated production, distribution, and quality assurance. Virtually every manufacturer or distributor can achieve better quality and efficiency by using machine vision. This results in a broad base of potential customers across a variety of end markets, including logistics, consumer electronics, automotive, packaging, and semiconductor.

Revenue for the second quarter of 2026 totaled $291,263,000, representing an increase of 17% over the second quarter of 2025 due to broad-based strength across most major end markets, as well as the favorable impact of foreign currency exchange rate changes on revenue. Gross margin as a percentage of revenue was 71% for the second quarter of 2026 as compared to 67% for the second quarter of 2025 due to a more favorable end-market mix and higher sales volume, which improved fixed-cost absorption. Operating expenses for the second quarter of 2026 decreased 3% from the second quarter of 2025. The decrease was primarily due to savings from continued cost management activities and lower stock-based compensation expense, partially offset by the unfavorable impact of foreign exchange rates on expenses.

Operating income increased to 29% of revenue for the second quarter of 2026 as compared to 17% of revenue for the second quarter of 2025 due to operating leverage achieved from revenue growth. Net income increased to 25% of revenue, or $0.43 per diluted share, for the second quarter of 2026, as compared to 16% of revenue, or $0.24 per diluted share, for the second quarter of 2025.

Results of Operations

As foreign currency exchange rates are a factor in understanding period-to-period comparisons, we believe the presentation of our results on a constant-currency basis in addition to reported results improves investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. We also use results on a constant-currency basis as one measure to evaluate our performance. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. We generally refer to such amounts calculated on a constant-currency basis as excluding the impact of foreign currency exchange rate changes. Results on a constant-currency basis are not in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and should be considered in addition to, and not a substitute for, results prepared in accordance with U.S. GAAP.

Revenue

Revenue increased by $42,170,000, or 17%, for the three-month period in 2026 and increased $94,571,000, or 20%, for the six-month period in 2026 as compared to the same periods in 2025. Changes in foreign currency exchange rates resulted in a higher level of reported revenue in the 2026 periods as compared to the corresponding periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue increased by 16% for the three-month period in 2026 and 18% for the six-month period in 2026 as compared to the same periods in 2025. The increases were due to broad-based demand across most major end markets.

The following table sets forth our disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.

[[GREPCENT_TABLE]]
[["","","Three-months Ended","","Six-months Ended"],["","","July 5, 2026","","June 29, 2025","","$ Change","","% Change","","July 5, 2026","","June 29, 2025","","$ Change","","% Change"],["","","(unaudited)","","","","","","(unaudited)"],["Americas","","$","117,037","","","$","92,137","","","$","24,900","","","27","%","","$","238,338","","","$","191,867","","","$","46,471","","","24","%"],["Percentage of total revenue","","40","%","","37","%","","","","","","43","%","","41","%"],["Europe","","$","58,891","","","$","66,623","","","$","(7,732)","","","(12)","%","","$","122,706","","","$","115,833","","","$","6,873","","","6","%"],["Percentage of total revenue","","20","%","","27","%","","","","","","22","%","","25","%"],["Greater China","","$","66,125","","","$","45,025","","","$","21,100","","","47","%","","$","103,884","","","$","71,815","","","$","32,069","","","45","%"],["Percentage of total revenue","","23","%","","18","%","","","","","","19","%","","15","%"],["Other Asia","","$","49,210","","","$","45,308","","","$","3,902","","","9","%","","$","94,772","","","$","85,614","","","$","9,158","","","11","%"],["Percentage of total revenue","","17","%","","18","%","","","","","","17","%","","18","%"],["Total revenue","","$","291,263","","","$","249,093","","","$","42,170","","","17","%","","$","559,700","","","$","465,129","","","$","94,571","","","20","%"]]
[[/GREPCENT_TABLE]]

23

Changes in revenue from a geographic perspective were as follows:

•Revenue from customers based in the Americas increased by 27% for the three-month period in 2026 and increased by 24% for the six-month period in 2026 as compared to the same periods in 2025 due to stronger performance across most major end markets. Revenue from customers b

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm
Complete FY 2025 MD&A: /company/CGNX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-12
Report date: 2025-12-31

ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Certain statements made in this report, 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 this Annual Report on Form 10-K. 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.

EXECUTIVE OVERVIEW

Cognex makes advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. We are a global technology leader in industrial machine vision systems that seek to improve efficiency and help solve critical manufacturing and distribution

21

Table of Contents

challenges, providing support across a diverse set of industrial end markets. In addition to revenue derived from the sale of machine vision products, the Company also generates revenue by providing maintenance and support, consulting, and training services to its customers; however, service revenue accounted for less than 10% of total revenue for all periods presented.

Machine vision is used in a variety of industries where technology is widely recognized as an important component of automated production, distribution, and quality assurance. Virtually every manufacturer or distributor can achieve better quality and efficiency by using machine vision. This results in a broad base of potential customers across a variety of industries, including logistics, consumer electronics, automotive, packaging, and semiconductor.

In 2025, revenue was $994,359,000, representing an increase of 9% over the prior year. The increase was primarily due to higher revenue from the logistics and consumer electronics industries.

Gross margin was 67% in 2025 compared to 68% in 2024. The decrease was primarily due to higher charges for excess and obsolete inventory.

Operating expenses decreased 2% over the prior year primarily due to savings from cost management, including headcount reductions. The decrease was partially offset by higher incentive compensation accruals due to stronger business performance, as well as the unfavorable impact of foreign currency exchange rates.

Operating income increased to 16% of revenue in 2025 compared to 13% of revenue in 2024 due to the leverage achieved from revenue growth on lower operating expenses. Net income was 12% of revenue, or $0.68 per share, in 2025 compared to 12% of revenue, or $0.62 per share, in 2024. Net income as a percentage of revenue remained flat, as the operating leverage was offset by an increase in income tax expense driven by a $33 million discrete tax expense accrued in 2025 in connection with the enactment of United States tax legislation known as the One Big Beautiful Bill Act ("OBBBA") (refer to Note 18 to the Consolidated Financial Statements).

The following table sets forth certain consolidated financial data as a percentage of revenue:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025(1)","","2024(1)","","2023(1)"],["Revenue","100","%","","100","%","","100","%"],["Cost of revenue","33","","","32","","","28"],["Gross profit","67","","","68","","","72"],["Research, development, and engineering expenses","14","","","15","","","17"],["Selling, general, and administrative expenses","37","","","41","","","40"],["Loss (recovery) from fire","\u2014","","","\u2014","","","(1)"],["Operating income","16","","","13","","","16"],["Non-operating income","2","","","2","","","1"],["Income before income tax expense","18","","","14","","","16"],["Income tax expense","7","","","3","","","3"],["Net income","12","%","","12","%","","14","%"]]
[[/GREPCENT_TABLE]]

(1) Amounts may not total properly due to rounding.

RESULTS OF OPERATIONS

Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

Revenue

Revenue was $994,359,000 in 2025 compared to $914,515,000 in 2024, representing an increase of 9%. The increase was driven primarily by higher revenue from the logistics and consumer electronics industries. The Company recognized $13 million of one-time revenue during 2025 related to a strategic channel partnership in the medical lab automation industry upon the transfer of software access and inventories to this partner. The favorable impact of foreign currency exchange rates also contributed to the increase. These increases were partially offset by continued weakness in the automotive industry.

22

Table of Contents

The following table sets forth our disaggregated revenue information by geographic area based on the customers' country of domicile (in thousands) for the years ended December 31, 2025 and 2024.

[[GREPCENT_TABLE]]
[["","","Twelve-months Ended"],["","","December 31, 2025","","December 31, 2024","","$ Change","","% Change"],["Americas","","$","407,288","","","$","350,155","","","$","57,133","","","16","%"],["Percentage of total revenue","","41","%","","38","%"],["Europe","","$","251,638","","","$","217,880","","","$","33,758","","","15","%"],["Percentage of total revenue","","25","%","","24","%"],["Greater China","","$","158,456","","","$","164,147","","","$","(5,691)","","","(3)","%"],["Percentage of total revenue","","16","%","","18","%"],["Other Asia","","$","176,977","","","$","182,333","","","$","(5,356)","","","(3)","%"],["Percentage of total revenue","","18","%","","20","%"],["Total revenue","","$","994,359","","","$","914,515","","","$","79,844","","","9","%"]]
[[/GREPCENT_TABLE]]

Changes in revenue from a geographic perspective were as follows:

•Revenue from customers based in the Americas increased by 16% from the prior year. The increase came from all major industries outside of automotive, with particularly strong growth in logistics driven by increased sales to our large e-commerce customers. One-time revenue from our new strategic channel partnership mentioned above, which primarily impacted the Americas region, also contributed to the increase.

•Revenue from customers based in Europe increased by 15% from the prior year. The increase was primarily due to procurement changes made by consumer electronics customers to shift their purchases from entities based in China to Europe. Improved trends in the packaging industry during 2025 and the favorable impact of foreign currency exchange rates also contributed to the increase. These increases were partially offset by weakness in the automotive industry.

•Revenue from customers based in Greater China decreased by 3% from the prior year. The procurement change in Europe mentioned above, as well as shifts in business from consumer electronics customers from China to the Other Asia region, negatively impacted results for the current year. These negative impacts were partially offset by broader growth within the consumer electronics customer base, excluding the regional purchasing shifts, as well as higher revenue from customers in the semiconductor industry.

•Revenue from

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CGNX/mda/fy2025/
All MD&A years: /company/CGNX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CGNX/mda/fy2024/): filed 2025-02-13; accession 0000851205-25-000012 (https://www.sec.gov/Archives/edgar/data/851205/000085120525000012/cgnx-20241231.htm)
- [FY 2023 MD&A](/company/CGNX/mda/fy2023/): filed 2024-02-15; accession 0000851205-24-000027 (https://www.sec.gov/Archives/edgar/data/851205/000085120524000027/cgnx-20231231.htm)
- [FY 2022 MD&A](/company/CGNX/mda/fy2022/): filed 2023-02-16; accession 0000851205-23-000004 (https://www.sec.gov/Archives/edgar/data/851205/000085120523000004/cgnx-20221231.htm)
- [FY 2021 MD&A](/company/CGNX/mda/fy2021/): filed 2022-02-17; accession 0000851205-22-000008 (https://www.sec.gov/Archives/edgar/data/851205/000085120522000008/cgnx-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3823 Industrial Instruments For Measurement, Display, and Control) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CGNX.md · JSON record: /company/CGNX.json · verified financials: /company/CGNX/financials.json / /company/CGNX/financials.csv · machine TOC for the whole site: /llms.txt