Cognex Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did CGNX Beat Earnings? Q4 2025 Results
Cognex delivered a strong finish to fiscal 2025, posting Q4 revenue of $252.34 million, up 9.9% year over year and ahead of the $238.51 million consensus by 5.80%, while adjusted diluted EPS of $0.27 beat the $0.22 estimate by 22.34%, marking the sixth consecutive quarter of double-digit EPS growth. The outperformance was driven by a surge in year-end Factory Automation spending and steady Logistics demand, which together lifted adjusted gross margin 220 basis points to 71.6% and pushed adjusted EBITDA margin to 22.7%, up 420 basis points year over year. CEO Matt Moschner's portfolio review added strategic clarity, with Cognex electing to exit roughly $22.00 million in non-core, low-margin revenue to sharpen focus and improve mix going forward. Analysts have responded by raising forward estimates, reflecting optimism around the company's path to a 25% adjusted EBITDA margin run rate by end of 2026. For Q1 2026, management guided revenue of $235.00 million to $255.00 million, implying approximately 13% year-over-year growth at the midpoint, with adjusted EPS of $0.22 to $0.26.
- Increased year-end spending across Factory Automation end markets
- Steady growth in Logistics
- Revenue growth and disciplined cost management drove Adjusted EBITDA margin expansion of 420 bps year over year in Q4
- Adjusted gross margin improved 220 bps driven by volume and favorable mix
- Constant-currency adjusted operating expenses increased only 2% year over year
- Sixth consecutive quarter of year-over-year Adjusted EBITDA margin expansion
- Sixth consecutive quarter of double-digit year-over-year adjusted EPS growth
“2025 marked a return to profitable growth for Cognex, with constant-currency revenue growth of 8% and adjusted EPS growth of 38%. We made significant progress against each of our strategic objectives, including advancing our technology leadership in AI-enabled industrial machine vision, raising the bar on our end-to-end customer experience, and making steady progress toward our customer growth objective.”
Cognex CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Cognex guided revenue of $235 million to $255 million, representing approximately 13% year-over-year growth at midpoint. Adjusted EBITDA margin is expected to be 19.0% to 22.0%, up 370 basis points year over year at midpoint. Adjusted diluted EPS is guided at $0.22 to $0.26, representing approximately 50% year-over-year growth at midpoint. The company is targeting a 25% Adjusted EBITDA margin on a run-rate basis by end of 2026, and expects to deliver an additional $35 to $40 million in annualized cost reductions by end of 2026. The company is also exiting approximately $22 million of non-core, no-growth or low-margin revenue to improve focus and mix.
CGNX YoY Financials
Figures from SEC filings and company reports. Not investment advice.