Cognex Corporation【CGNX】株式ニュース

Cognex Reports First Quarter 2026 ResultsMay 6, 2026 4:30 PM
PR Newswire (US) NATICK, Mass., May 6, 2026 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the first quarter ended April 5, 2026. First-Quarter Financial and Operating HighlightsRevenue increased 24% year over year, or 21% on a constant-currency basis, exceeding expectations due to broad-based strength across major end markets.Operating margin was 22.3%; Adjusted EBITDA margin reached 26.9%, expanding 1,010 basis points year over year and marking the seventh consecutive quarter of margin improvement.Net income per diluted share was $0.31; Adjusted diluted earnings per share of $0.34 increased 113% year over year, representing the seventh straight quarter of growth.Returned $113 million to shareholders in Q1 primarily through opportunistic share repurchases.Advancing AI vision innovation: introduced two breakthrough AI vision platforms – the In-Sight® 6900 powered by NVIDIA and the In-Sight® 3900 embedded AI vision system powered by Qualcomm.Successfully completed the divestiture of the Japan-focused trading business as part of the announced portfolio optimization."Since the CEO transition was announced a year ago, we've moved with urgency to focus our strategy, strengthen execution, and position Cognex for sustainable, profitable growth," said Matt Moschner, President and CEO. "This was evident in Q1, highlighted by the launch of two breakthrough AI vision systems, the completion of the trading business divestiture and continued execution toward our announced cost reduction target. We believe that this progress is clearly reflected in our Q1 results, with an exceptional start to the year and broad-based outperformance during the quarter."Mr. Moschner continued, "Our latest AI vision products reinforce our technology leadership and objective of becoming the #1 provider of AI-powered machine vision. By combining our industry-leading AI vision tools with high-performance embedded systems and the scalability of OneVision™, we're enabling customers to solve more complex inspection challenges at the edge – faster, easier, and without the cost and complexity of PC-based architectures."Dennis Fehr, CFO, added, "Our strong Q1 performance reflects disciplined execution and continued progress against our profitable growth strategy. As we continue to transform our operating model, we expect to drive higher productivity, support sustainable margin expansion, and reinforce our commitment to creating long-term shareholder value."Financial Performance Highlights for the First Quarter
(Dollars in millions, except per share amounts)
Three-months ended

April 05, 2026
March 30, 2025
Y/Y ChangeRevenue$268
$216
+24 %

Operating Income$60
$26
+131 %% of Revenue22.3 %
12.1 %
+1,020 bps

Adjusted EBITDA*$72
$36
100 %% of Revenue26.9 %
16.8 %
+1,010 bps

Net Income per Diluted Share$0.31
$0.14
+121 %

Adjusted EPS (Diluted)*$0.34
$0.16
+113 %*Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.Revenue was $268 million, compared with $216 million in the first quarter of 2025, an increase of 24%. Excluding the impact of foreign currency exchange (FX), revenue increased 21% compared to the prior year. The year-over-year increase in revenue was driven by broad-based strength across major end markets.Gross margin was 71.1% compared to 66.8% in the first quarter of 2025. Adjusted gross margin of 71.8% compared to 67.6% in the first quarter of 2025, an increase of 420 basis points. The year-over-year increase was primarily driven by favorable mix and volume, slightly offset by tariffs.Operating expenses were $131 million compared to $118 million in the first quarter of 2025, an increase of 11%. Adjusted operating expenses were $125 million compared to $115 million in the first quarter of 2025, an increase of 9%. On a constant-currency basis, Adjusted operating expenses increased 4% year over year, driven by higher incentive compensation, partially offset by disciplined cost management.Operating income was $60 million compared to $26 million in the first quarter of 2025, an increase of 131%. Operating margin was 22.3% compared to 12.1% in the first quarter of 2025, an increase of 1,020 basis points. Adjusted operating margin was 25.2% compared to 14.4% in the first quarter of 2025, an increase of 1,080 basis points.Adjusted EBITDA was $72 million compared to $36 million in the first quarter of 2025, an increase of 100%. Adjusted EBITDA margin was 26.9% compared to 16.8% in the first quarter of 2025, an increase of 1,010 basis points. The year-over-year expansion was driven by revenue growth and favorable mix.Net income of $52 million compared to $24 million in the first quarter of 2025, an increase of 117%. Adjusted net income of $57 million compared to $27 million in the first quarter of 2025, an increase of 111%.Net income per diluted share was $0.31 compared to $0.14 in the first quarter of 2025, an increase of 121%. Adjusted diluted earnings per share were $0.34 compared to $0.16 in the first quarter of 2025, an increase of 113%.Balance Sheet and Cash Flow Highlights As of April 5, 2026, Cognex's financial position remained strong, with $622 million in cash and investments and no debt.During the first quarter, Cognex generated $45 million of cash from operating activities compared to $41 million in the first quarter of 2025, an increase of 10%.During the first quarter, Cognex generated Free Cash Flow (FCF) of $42 million compared to $38 million in the first quarter of 2025, an increase of 11%. First quarter FCF conversion rate was 82% of net income and 74% of Adjusted net income. Trailing twelve-month FCF conversion rate was 169% of net income and 119% of Adjusted net income.Cognex repurchased $99 million of its common stock and paid $14 million in dividends to shareholders in the first quarter.DividendOn May 6, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on June 4, 2026, to all shareholders of record at the close of business on May 21, 2026.Guidance
Cognex issued second-quarter 2026 guidance; details are summarized in the table below.(Dollars in millions, except per share amounts)Q2 2026
Guidance
Q2 2025
Results
Y/Y
Change*Revenue$280 - $300
$249
+16.5 %

Adjusted EBITDA Margin128% - 31%
20.7 %
+880 bps

Adjusted Earnings Per Share (diluted)1$0.40 - $0.44
$0.25
+68.0 %*At the midpoint of guidance.1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex's control. Additionally, these items are outside of Cognex's normal business operations and not used by management to assess Cognex's operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled "Reconciliation of Selected Items From GAAP to Non-GAAP". In Q2 2025 the GAAP operating margin was 17.4% and GAAP earnings per share (diluted) were $0.24.Analyst Conference Call and Simultaneous WebcastCognex will host a conference call on May 7, 2026, at 8:30 a.m. Eastern Daylight Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside the United States.A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor. Forward-Looking StatementsCertain statements made in this release, 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 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, 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, 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; (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, 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 our Quarterly Report on Form 10-Q as filed with the SEC. 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.COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
April 5, 2026
December 31, 2025
(unaudited)

ASSETS

Current assets:

Cash and cash equivalents$       237,343
$             262,925Current investments59,413
74,037Accounts receivable, net of allowance for credit losses of $781 and $728 in 2026 and
2025, respectively170,721
146,713Unbilled revenue16,401
16,980Inventories135,549
137,889Prepaid expenses and other current assets70,922
58,702Total current assets690,349
697,246Non-current investments325,186
305,339Property, plant, and equipment, net84,291
86,015Operating lease assets69,709
72,310Goodwill382,818
386,279Intangible assets, net67,140
81,100Deferred income taxes381,100
383,272Other assets5,025
4,994Total assets$     2,005,618
$          2,016,555

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable$        59,551
$              50,203Accrued expenses77,399
91,397Accrued income taxes6,172
9,141Deferred revenue and customer deposits34,053
21,094Operating lease liabilities12,310
11,716Total current liabilities189,485
183,551Non-current operating lease liabilities61,707
64,870Deferred income taxes252,230
250,512Reserve for income taxes21,336
24,269Other liabilities1,891
1,452Total liabilities526,649
524,654

Shareholders' equity:

Preferred stock, $.01 par value – Authorized: 400 shares in 2026 and 2025,
respectively; no shares issued and outstanding—
—Common stock, $.002 par value – Authorized: 300,000 shares in 2026 and 2025,
respectively; issued and outstanding: 166,527 and 166,997 shares in 2026 and 2025,
respectively333
334Additional paid-in capital1,194,927
1,138,708Retained earnings344,443
406,355Accumulated other comprehensive loss, net of tax(60,734)
(53,496)Total shareholders' equity1,478,969
1,491,901Total liabilities and shareholders' equity$     2,005,618
$          2,016,555COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three-months Ended
April 5, 2026
March 30, 2025

Revenue$        268,437
$        216,036Cost of revenue (1)77,498
71,713Gross profit190,939
144,323Percentage of revenue71.1 %
66.8 %Research, development, and engineering expenses (1)37,025
34,727Percentage of revenue13.8 %
16.1 %Selling, general, and administrative expenses (1)94,041
83,504Percentage of revenue35.0 %
38.7 %Operating income59,873
26,092Percentage of revenue22.3 %
12.1 %Foreign currency gain (loss)(1,345)
(2,453)Investment income4,836
3,990Other income (expense)(1,607)
169Income before income tax expense61,757
27,798Income tax expense10,053
4,195Net income$         51,704
$         23,603Percentage of revenue19.3 %
10.9 %

Net income per weighted-average common and common-equivalent share:

Basic$            0.31
$            0.14Diluted$            0.31
$            0.14

Weighted-average common and common-equivalent shares outstanding:

Basic166,514
169,265Diluted168,386
170,391

Cash dividends per common share$           0.085
$           0.080

(1) Amounts include stock-based compensation expense, as follows:Cost of revenue$             925
$             668Research, development, and engineering5,094
4,696Selling, general, and administrative5,914
4,575Total stock-based compensation expense$         11,933
$           9,939Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures, including adjusted gross profit and margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow and free cash flow conversion rate. Cognex defines its non-GAAP metrics as follows:Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating income and margin: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, tax impact on reconciling items and one-time discrete events (such as loss on sale of business).Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.Free cash flow: Cash provided by operating activities less cash for capital expenditures.Free cash flow conversion rate: Free cash flow divided by adjusted net income.Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex's definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.Please see the section "Reconciliation of Selected Items from GAAP to Non-GAAP" below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments.COGNEX CORPORATION
RECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAP
Dollars in thousands, except per share amounts
(Unaudited)
Three-months Ended
April 5,
2026
March 30,
2025

Gross profit (GAAP)$    190,939
$    144,323Acquisition and integration costs216
242Amortization of acquisition-related intangible assets1,337
1,338Reorganization charges374
86Adjusted gross profit$    192,866
$    145,989GAAP gross margin71.1 %
66.8 %Adjusted gross margin71.8 %
67.6 %Operating expense (GAAP)$    131,066
$    118,231Acquisition and integration costs(15)
(538)Amortization of acquisition-related intangible assets(1,195)
(1,290)Reorganization charges(4,755)
(1,622)Adjusted operating expense$    125,101
$    114,781Operating income (GAAP)$      59,873
$      26,092Acquisition and integration costs231
780Amortization of acquisition-related intangible assets2,532
2,628Reorganization charges5,129
1,708Adjusted operating income$      67,765
$      31,208GAAP operating margin22.3 %
12.1 %Adjusted operating margin25.2 %
14.4 %Depreciation (adjusted for amounts included in Acquisition and integration costs)4,472
5,083Adjusted EBITDA$      72,237
$      36,291Adjusted EBITDA margin26.9 %
16.8 %

Net income (GAAP)$      51,704
$      23,603Acquisition and integration costs231
780Amortization of acquisition-related intangible assets2,532
2,628Reorganization charges5,129
1,708Loss on sale of business1,539
—Discrete tax (benefit) expense(1,179)
(307)Tax impact of reconciling items(2,638)
(1,365)Adjusted net income$      57,318
$      27,047

Earnings per share of common stock, diluted (GAAP)$        0.31
$        0.14Acquisition and integration costs—
—Amortization of acquisition-related intangible assets0.02
0.02Reorganization charges0.03
0.01Loss on sale of business0.01
—Discrete tax (benefit) expense(0.01)
—Tax impact of reconciling items(0.02)
(0.01)Adjusted earnings per share of common stock, diluted$        0.34
$        0.16

Effective tax rate (GAAP)16.3 %
15.1 %Discrete tax benefit (expense)1.9 %
1.1 %Net impact of other reconciling items1.3 %
1.6 %Adjusted effective tax rate19.5 %
17.8 %

Cash provided by operating activities (GAAP)$      45,093
$      40,502Capital expenditures(2,757)
(2,501)Free cash flow$      42,336
$      38,001Description of adjustments:In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:Depreciation:The company incurs expense related to its normal use of property, plant and equipment.Acquisition and integration costs:The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the company acquired in the fourth quarter of 2023.Amortization of acquisition-related intangible assets:The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.Reorganization charges:The Company has incurred charges related to the reorganization of its employees. During the three-month period ended April 5, 2026, these costs consisted primarily of severance and consulting fees.Loss on sale of business:The Company has recognized a pre-tax loss related to the divestiture of its Japan-focused trading business, which includes direct costs associated with the divestiture incurred during the three-month period ended April 5, 2026.Discrete tax (benefit) expense and tax impact of reconciling items:Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period's actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.About Cognex CorporationFor over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods.Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at cognex.com.Investor Relations Contact:
Greer Aviv – Head of Investor Relations
Cognex Corporation
Greer.Aviv@cognex.com View original content to download multimedia:https://www.prnewswire.com/news-releases/cognex-reports-first-quarter-2026-results-302764643.htmlSOURCE Cognex Corporation Original: Cognex Reports First Quarter 2026 Results

Cognex Reports Fourth Quarter 2025 ResultsFebruary 11, 2026 4:30 PM
PR Newswire (US)

NATICK, Mass., Feb. 11, 2026 /PRNewswire/ -- Cognex Corporation (NASDAQ: CGNX), the global technology leader in industrial machine vision, today reported financial results for the fourth quarter and full year 2025.

Fourth-Quarter and Full-Year Financial and Operating HighlightsFourth-quarter revenue grew 10% year over year or 9% on a constant-currency basis.Full-year revenue grew 9% year over year or 8% on a constant-currency basis; excluding the one-time benefit from the commercial partnership with a medical lab automation channel partner (the "Commercial Partnership" or "CP"), revenue grew 7% year over year.Fourth-quarter operating margin of 14.0%; Adjusted EBITDA margin of 22.7%, up 420 basis points year over year, and the sixth consecutive quarter of expansion.Full-year operating margin of 16.3%; Adjusted EBITDA margin of 21.5%, up 440 basis points year over year and up 360 basis points to 20.7% excluding the Commercial Partnership, surpassing 20% execution milestone ahead of plan.Fourth-quarter net income per diluted share was $0.19; Adjusted diluted earnings per share were $0.27, an increase of 35% year over year, the sixth consecutive quarter of double-digit growth.Full-year net income per diluted share was $0.68; Adjusted diluted earnings per share were $1.02, an increase of 38% year over year.Returned $206 million to shareholders during the year, including $151 million in share buybacks.Completed a comprehensive strategic portfolio review and began exiting approximately $22 million of non-core, no-growth or low-margin revenue, sharpening focus and improving mix.Continued operating model optimization is expected to deliver an additional $35 to $40 million in annualized cost reductions by the end of 2026."2025 marked a return to profitable growth for Cognex, with constant-currency revenue growth of 8% and adjusted EPS growth of 38%," said Matt Moschner, President and CEO. "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."Mr. Moschner continued, "We are also taking meaningful steps to optimize our portfolio – exiting approximately $22 million of non-core, no-growth or low-margin revenue – and continuing to transform our operating model, which is expected to deliver an additional $35 to $40 million in annualized cost reductions by the end of 2026. We believe these changes, coupled with our ongoing salesforce transformation, will help maintain growth, expand margins, and allow for continued investment in new AI technologies and customer experience capabilities necessary to deepen our competitive advantage."Dennis Fehr, CFO, added, "We believe our 2025 results again demonstrated our ability to drive profitable growth and the earnings power of our model. Adjusted EBITDA margin, excluding the one-time Commercial Partnership benefit, expanded 360 basis points year over year to 20.7%. We surpassed our first execution milestone of 20% a full year ahead of plan driven by focused execution and strong cost discipline. Building on the actions we've already completed, our next milestone is a 25% Adjusted EBITDA margin – targeted on a run-rate basis by the end of 2026 – as we focus on creating long-term value for shareholders through sustainable margin expansion."Financial Performance Highlights for the Fourth Quarter
(Dollars in millions, except per share amounts)
Three-months ended

December 31, 2025
December 31, 2024
Y/Y ChangeRevenue$252
$230
+10 %

Operating Income$35
$31
+14 %% of Revenue14.0 %
13.4 %
+60 bps

Adjusted EBITDA*$57
$42
35 %% of Revenue22.7 %
18.5 %
+420 bps

Net Income per Diluted Share$0.19
$0.16
+18 %

Adjusted EPS (Diluted)*$0.27
$0.20
+35 %*Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.Revenue was $252 million, compared with $230 million in the fourth quarter of 2024, an increase of 10%. Excluding the impact of foreign currency exchange (FX), revenue increased 9% compared to the prior year. The year-over-year increase in revenue was driven by increased year-end spending across many of our Factory Automation end markets, while Logistics continued to deliver steady growth.Gross margin was 65.7% compared to 68.7% in the fourth quarter of 2024. Adjusted gross margin was 71.6% compared to 69.4% in the fourth quarter of 2024, an increase of 220 basis points. The year-over-year increase was driven by volume and favorable mix slightly offset by tariffs.Operating expenses were $131 million compared to $127 million in the fourth quarter of 2024, an increase of 3%. Adjusted operating expenses were $128 million, compared to $122 million in the fourth quarter of 2024, an increase of 5%. On a constant-currency basis, Adjusted operating expenses increased 2% year over year, reflecting ongoing cost discipline offset by incentive compensation headwinds in the quarter.Operating income was $35 million compared to $31 million in the fourth quarter of 2024, an increase of 14%. Operating margin was 14.0% compared to 13.4% in the fourth quarter of 2024, an increase of 60 basis points. Adjusted operating margin was 20.9% compared to 16.2% in the fourth quarter of 2024, an increase of 470 basis points.Adjusted EBITDA was $57 million compared to $42 million in the fourth quarter of 2024, an increase of 35%. Adjusted EBITDA margin was 22.7% compared to 18.5% in the fourth quarter of 2024, an increase of 420 basis points year over year, the sixth consecutive quarter of year-over-year expansion. The expansion was driven by revenue growth and disciplined cost management.Net income of $33 million compared to $28 million in the fourth quarter of 2024, an increase of 15%. Adjusted net income was $46 million compared to $35 million in the fourth quarter of 2024, an increase of 32%.Net income per diluted share was $0.19 compared to $0.16 in the fourth quarter of 2024, an increase of 18%. Adjusted diluted earnings per share were $0.27 compared to $0.20 in the fourth quarter of 2024, an increase of 35%, the sixth consecutive quarter of double-digit year-over-year growth.Financial Performance Highlights for the Year
(Dollars in millions, except per share amounts)
Twelve-months ended

December
31, 2025
December
31, 2025
December
31, 2024
Y/Y Change
Y/Y Change
As Reported
Excluding CP
As Reported
As Reported
Excluding CPRevenue$994
$982
$915
+9 %
+7 %

Operating Income$163
$152
$115
+41 %
+32 %% of Revenue16.3 %
15.5 %
12.6 %
+370 bps
+290 bps

Adjusted EBITDA*$214
$204
$156
37 %
+31 %% of Revenue21.5 %
20.7 %
17.1 %
+440 bps
+360 bps

Net Income per Diluted Share$0.68
$0.63
$0.62
+10 %
+2 %

Adjusted EPS (Diluted)*$1.02
$0.97
$0.74
+38 %
+31 %*Adjusted EBITDA and Adjusted EPS (Diluted) include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this news release.Revenue was $994 million, compared with $915 million in 2024, an increase of 9%. Excluding the impact of foreign currency exchange (FX), revenue increased 8% compared to the prior year. Excluding the one-time benefit from the Commercial Partnership, revenue grew 7% year over year.Gross margin was 66.9% compared to 68.4% in 2024. Adjusted gross margin was 68.9% compared to 69.3% in 2024, a decline of 40 basis points. The year-over-year decline was primarily due to less favorable industry mix, and, to a lesser extent, the impact from tariffs, partially offset by the one-time benefit from the Commercial Partnership.Operating expenses were $503 million compared to $511 million in 2024, a decrease of 2%. Adjusted operating expenses were $491 million, compared to $498 million in 2024, a decrease of 1%. On a constant-currency basis, Adjusted operating expenses declined 2% year over year, reflecting ongoing cost discipline offset by incentive compensation.Operating income was $163 million compared to $115 million in 2024, an increase of 41%. Operating margin was 16.3% compared to 12.6% in 2024, an increase of 370 basis points. Adjusted operating margin was 19.6% compared to 14.9% in 2024, an increase of 470 basis points.Adjusted EBITDA was $214 million compared to $156 million in 2024, an increase of 37%. Adjusted EBITDA margin was 21.5% compared to 17.1% in 2024, an increase of 440 basis points. Excluding the one-time benefit from the Commercial Partnership, Adjusted EBITDA of $204 million increased 31% year over year and Adjusted EBITDA margin of 20.7% increased 360 basis points year over year driven by revenue growth and disciplined cost management.Net income of $114 million compared to $106 million in 2024, an increase of 8%. Adjusted net income of $172 million compared to $127 million in 2024, an increase of 35%.Net income per diluted share was $0.68 compared to $0.62 in 2024, an increase of 10%. Adjusted diluted earnings per share were $1.02 compared to $0.74 in 2024, an increase of 38%. Excluding the one-time benefit from the Commercial Partnership, Adjusted diluted earnings per share of $0.97 increased 31% year over year.Balance Sheet and Cash Flow Highlights As of December 31, 2025, Cognex's financial position remained strong, with $642 million in cash and investments and no debt.During the fourth quarter, Cognex generated $75 million of cash from operating activities compared to $51 million in the fourth quarter of 2024, an increase of 46%. During 2025, Cognex generated $246 million of cash from operating activities compared to $149 million in 2024, an increase of 65%.During the fourth quarter, Cognex generated Free Cash Flow (FCF) of $72 million compared to $49 million in the fourth quarter of 2024, an increase of 47%. During 2025, Cognex generated FCF of $237 million compared to $134 million in 2024, an increase of 77%. Full-year FCF conversion rate was 207% of net income and 138% of Adjusted net income.During the fourth quarter, Cognex repurchased $25 million of its common stock and paid $14 million in dividends to shareholders. During 2025, Cognex repurchased $151 million of its common stock and paid $55 million in dividends to shareholders.As of December 31, 2025, Cognex had $115 million remaining on its $500 million share repurchase authorization. On February 11, 2026, Cognex's Board of Directors approved an increase of $500 million to the existing share repurchase authorization. Cognex expects to execute repurchases opportunistically, subject to market conditions and other uses of capital.DividendOn February 11, 2026, Cognex's Board of Directors declared a quarterly cash dividend of $0.085 per share. The dividend is payable on March 12, 2026, to all shareholders of record at the close of business on February 26, 2026.First-Quarter 2026 Guidance
Cognex issued first-quarter 2026 guidance; details are summarized in the table below.(Dollars in millions, except per share amounts)Q1 2026
Guidance
Q1 2025
Results
Y/Y Change*Revenue$235 - $255
$216
+13 %

Adjusted EBITDA Margin119.0% - 22.0%
16.8 %
+370 bps

Adjusted Earnings Per Share (diluted)1$0.22 - $0.26
$0.16
+50 %*At the midpoint of guidance.
1Cognex has provided the forward-looking non-GAAP measures of adjusted EBITDA margin, and adjusted earnings per share (diluted), but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as reorganization charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex's control. Additionally, these items are outside of Cognex's normal business operations and not used by management to assess Cognex's operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled "Reconciliation of Selected Items from GAAP to Non-GAAP." In Q1 2025 the GAAP operating margin was 12.1% and GAAP earnings per share (diluted) were $0.14.Analyst Conference Call and Simultaneous WebcastCognex will host a conference call on February 12, 2026, at 8:30 a.m. Eastern Daylight Time (EDT). The telephone number is (877) 704-4573 or (201) 389-0911 if outside the United States.A real-time audio broadcast of the conference call or an archived recording, together with a slide presentation, will be accessible on the Events & Presentations page of the Cognex Investor website: www.cognex.com/investor.Forward-Looking StatementsCertain statements made in this release, 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 the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our Quarterly Reports on Form 10-Q as filed with the SEC. 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. COGNEX CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands)

December 31,
2025
2024
(In thousands)ASSETS

Current assets:

Cash and cash equivalents$           262,925
$                   186,094Current investments, amortized cost of $74,050 and $60,725 in 2025 and 2024,
respectively, allowance for credit losses of $0 in 2025 and 202474,037
59,956Accounts receivable, allowance for credit losses of $728 and $827 in 2025 and 2024,
respectively146,713
143,359Unbilled revenue16,980
3,055Inventories137,889
157,527Prepaid expenses and other current assets58,702
63,376Total current assets697,246
613,367Non-current investments, amortized cost of $302,539 and $345,033 in 2025 and 2024,
respectively, allowance for credit losses of $0 in 2025 and 2024305,339
340,898Property, plant, and equipment, net86,015
98,445Operating lease assets72,310
67,326Goodwill386,279
384,937Intangible assets, net81,100
90,684Deferred income taxes383,272
392,166Other assets4,994
5,027Total assets$       2,016,555
$                1,992,850

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable$             50,203
$                      38,046Accrued expenses91,397
71,760Accrued income taxes9,141
25,685Deferred revenue and customer deposits21,094
25,035Operating lease liabilities11,716
8,854Total current liabilities183,551
169,380Non-current operating lease liabilities64,870
61,363Deferred income taxes250,512
217,155Reserve for income taxes24,269
26,365Other liabilities1,452
1,082Total liabilities524,654
475,345

Commitments and contingencies (Note 11)

Shareholders' equity:

Preferred stock, $0.01 par value - Authorized: 400 shares in 2025 and 2024,
respectively, no shares issued and outstanding—
—Common stock, $0.002 par value – Authorized: 300,000 shares in 2025 and 2024,
respectively, issued and outstanding: 166,997 and 170,434 shares in 2025 and 2024,
respectively334
341Additional paid-in capital1,138,708
1,090,638Retained earnings406,355
499,303Accumulated other comprehensive loss, net of tax(53,496)
(72,777)Total shareholders' equity1,491,901
1,517,505Total liabilities and shareholders' equity$       2,016,555
$                1,992,850 COGNEX CORPORATIONCONSOLIDATED STATEMENT OF OPERATIONS(Unaudited) (In thousands, except per share amounts)

Three-months Ended
Twelve-months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024

Revenue$            252,338
$             229,684
$     994,359
$     914,515Cost of revenue (1)86,434
71,825
328,966
288,721Gross profit165,904
157,859
665,393
625,794Percentage of revenue65.7 %
68.7 %
66.9 %
68.4 %Research, development, and engineering expenses (1)36,060
32,538
138,970
139,815Percentage of revenue14.3 %
14.2 %
14.0 %
15.3 %Selling, general, and administrative expenses (1)94,568
94,481
363,857
370,914Percentage of revenue37.5 %
41.1 %
36.6 %
40.6 %Operating income35,276
30,840
162,566
115,065Percentage of revenue14.0 %
13.4 %
16.3 %
12.6 %Foreign currency gain (loss)(966)
445
(4,082)
1,531Investment income4,723
4,174
16,950
13,971Other income (expense)5,046
341
7,368
922Income before income tax expense44,079
35,800
182,802
131,489Income tax expense11,415
7,454
68,360
25,318Net income$              32,664
$               28,346
$     114,442
$     106,171Percentage of revenue12.9 %
12.3 %
11.5 %
11.6 %

Net income per weighted-average common and common-
equivalent share:

Basic$                   0.20
$                   0.17
$            0.68
$            0.62Diluted$                   0.19
$                   0.16
$            0.68
$            0.62

Weighted-average common and common-equivalent shares
outstanding:

Basic167,256
171,282
168,049
171,438Diluted168,896
172,508
169,367
172,611

Cash dividends per common share$                0.085
$                 0.080
$          0.325
$          0.305

(1) Amounts include stock-based compensation expense, as follows:Cost of revenue$                    522
$                    506
$          2,216
$          1,966Research, development, and engineering3,403
2,992
15,336
14,628Selling, general, and administrative9,943
9,578
30,965
35,849Total stock-based compensation expense$              13,868
$               13,076
$       48,517
$       52,443Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures, including adjusted gross margin, adjusted operating expense, adjusted operating income and margin, adjusted EBITDA and margin, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate, and free cash flow. Cognex defines its non-GAAP metrics as follows:Adjusted gross profit and margin: Gross margin adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating expense: Operating expense adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted operating income and margin: Operating income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted EBITDA and margin: Operating income adjusted for amortization of acquisition-related intangible assets and depreciation, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs and one-time discrete events.Adjusted net income: Net income adjusted for amortization of acquisition-related intangible assets, as well as, if applicable, restructuring charges, reorganization charges, acquisition and integration costs, discrete tax items, tax impact on reconciling items and one-time discrete events.Adjusted earnings per share of common stock, diluted: Adjusted net income divided by diluted weighted average common and common-equivalent shares.Adjusted effective tax rate: Effective tax rate adjusted for discrete tax items and the net impact of the other non-GAAP adjustments.Free cash flow: Cash provided by operating activities less cash for capital expenditures.Free cash flow conversion rate: Free cash flow divided by adjusted net income.Cognex may disclose results on a constant-currency basis as one measure to evaluate its performance and compare results between periods as if the exchange rates had remained constant period-over-period.Cognex believes these non-GAAP financial measures are helpful because they allow investors to more accurately compare results over multiple periods using the same methodology that management employs in its budgeting process, in its review of operating results, and for forecasting and planning for future periods. Cognex's definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain non-recurring expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.Please see the section "Reconciliation of Selected Items from GAAP to Non-GAAP" below for more detailed information regarding non-GAAP financial measures herein, including the items reflected in our adjusted financial metrics and a description of these adjustments. COGNEX CORPORATIONRECONCILIATION OF SELECTED ITEMS FROM GAAP TO NON-GAAPDollars in thousands, except per share amounts (Unaudited)

Three-months EndedTwelve-months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024

Gross profit (GAAP)$         165,904
$         157,859
$      665,393
$      625,794Acquisition and integration costs212
213
878
2,295Amortization of acquisition-related intangible assets1,344
1,360
5,443
5,817Reorganization charges171
18
657
18Excess and obsolete inventory charges$           13,067
$                  —
$        13,067
$               —Adjusted gross profit$         180,698
$         159,450
$      685,438
$      633,924GAAP gross margin65.7 %
68.7 %
66.9 %
68.4 %Adjusted gross margin71.6 %
69.4 %
68.9 %
69.3 %

Operating expense (GAAP)$         130,628
$         127,019
$      502,827
$      510,729Acquisition and integration costs(211)
(761)
(1,188)
(4,229)Amortization of acquisition-related intangible assets(1,215)
(1,132)
(5,061)
(5,601)Reorganization charges(1,240)
(2,972)
(5,828)
(2,972)Adjusted operating expense$         127,962
$         122,154
$      490,750
$      497,927

Operating income (GAAP)$           35,276
$           30,840
$      162,566
$      115,065Acquisition and integration costs423
974
2,066
6,524Amortization of acquisition-related intangible assets2,559
2,492
10,504
11,418Reorganization charges1,411
2,990
6,485
2,990Excess and obsolete inventory charges13,067
—
13,067
—Adjusted operating income$           52,736
$           37,296
$      194,688
$      135,997GAAP operating margin14.0 %
13.4 %
16.3 %
12.6 %Adjusted operating margin20.9 %
16.2 %
19.6 %
14.9 %Depreciation (adjusted for amounts included in Acquisition and integration costs)4,541
5,139
19,385
20,393Adjusted EBITDA$           57,277
$           42,435
$      214,073
$      156,390Adjusted EBITDA margin22.7 %
18.5 %
21.5 %
17.1 %

Net income (GAAP)$           32,664
$           28,346
$      114,442
$      106,171Acquisition and integration costs423
974
2,066
6,524Amortization of acquisition-related intangible assets2,559
2,492
10,504
11,418Reorganization charges1,411
2,990
6,485
2,990Excess and obsolete inventory charges13,067
—
13,067
—Gain on sale of property(5,053)
—
(5,053)
—Discrete tax (benefit) expense3,401
2,220
36,533
5,731Tax impact of reconciling items(2,117)
(2,008)
(5,988)
(5,571)Adjusted net income$           46,355
$           35,014
$      172,056
$      127,263

Earnings per share of common stock, diluted (GAAP)$               0.19
$               0.16
$            0.68
$            0.62Acquisition and integration costs—
0.01
0.01
0.04Amortization of acquisition-related intangible assets0.02
0.01
0.06
0.07Reorganization charges0.01
0.02
0.04
0.02Excess and obsolete inventory charges0.08
—
0.08
—Gain on sale of property(0.03)
—
(0.03)
—Discrete tax (benefit) expense0.02
0.01
0.22
0.03Tax impact of reconciling items(0.01)
(0.01)
(0.04)
(0.03)Adjusted earnings per share of common stock, diluted$               0.27
$               0.20
$            1.02
$            0.74

Effective tax rate (GAAP)25.9 %
20.8 %
37.4 %
19.3 %Discrete tax benefit (expense)(7.7) %
(6.2) %
(20.0) %
(4.4) %Net impact of other reconciling items(0.2) %
2.5 %
0.6 %
1.6 %Adjusted effective tax rate17.9 %
17.1 %
18.0 %
16.5 %

Cash provided by operating activities (GAAP)$           74,902
$           51,404
$      245,514
$      149,081Capital expenditures(2,596)
(2,073)
(8,743)
(15,043)Free cash flow$           72,306
$           49,331
$      236,771
$      134,038Description of adjustments:In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:Depreciation:The company incurs expense related to its normal use of property, plant and equipment.Acquisition and integration costs:The Company has incurred charges related to the purchase and integration of acquired businesses. During the periods presented, these costs were primarily related to the ongoing integration of Moritex Corporation, which the company acquired in the fourth quarter of 2023.Amortization of acquisition-related intangible assets:The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions, and include the amortization of customer relationships, completed technologies, and trademarks that originated from prior acquisitions. The largest driver of intangible asset amortization was the acquisition of Moritex Corporation.Reorganization charges:The Company has incurred charges related to the reorganization of its employees. During the twelve-month period ended December 31, 2025, these costs consisted primarily of severance.Excess and obsolete inventory charges:The Company excluded excess and obsolete inventory charges from non-GAAP gross profit and income measures because it reflects a discrete, non-recurring inventory valuation adjustment driven by a comprehensive strategic product portfolio review under the Company's new leadership team and does not reflect the underlying operating performance of the business.Gain on sale of property:The Company excludes gains and losses on the sale of property from non-GAAP net income measure. These amounts are not reflective of our core operating performance, can vary significantly from period to period based on the timing and size of dispositions, and reduce comparability across periods.Discrete tax (benefit) expense and tax impact of reconciling items:Items unrelated to current period ordinary income or (loss) that generally relate to changes in tax laws, adjustments to prior period's actual liability determined upon filing tax returns, adjustments to previously recorded reserves for uncertain tax positions, establishments and adjustments of valuation allowances, stock based compensation, and adjustments to deferred tax positions.We estimate the tax effect of items identified in the reconciliation by applying the statutory tax rate to the pre-tax amount.About Cognex CorporationFor over 40 years, Cognex has been making advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. Innovative technology in our vision sensors and systems solves critical manufacturing and distribution challenges, providing unparalleled performance for industries from automotive to consumer electronics to packaged goods.Cognex makes these tools more capable and easier to deploy thanks to a longstanding focus on AI, helping factories and warehouses improve quality and maximize efficiency without needing highly technical expertise. We are headquartered near Boston, USA, with locations in over 30 countries and more than 30,000 customers worldwide. Learn more at cognex.com.Investor Contacts:
Greer Aviv – Head of Investor Relations
Cognex Corporation
ir@cognex.com

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Original: Cognex Reports Fourth Quarter 2025 Results