Cognex (CGNX)
NASDAQ:CGNX
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Cognex
(NASDAQ:CGNX)
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Rating:73Outperform
Price Target:
$73.00
▲(31.53% Upside)
Action:Reiterated
Date:05/09/26
CGNX scores well on financial strength and improving fundamentals, supported by strong balance-sheet flexibility, solid free-cash-flow generation, and an upbeat earnings update with margin expansion and growth guidance. The main offsets are a rich valuation (high P/E, low yield) and technically stretched momentum that raises near-term downside risk despite a strong uptrend.
Positive Factors
Balance Sheet Strength
Very low leverage and a stable equity base give Cognex durable financial flexibility to fund R&D, opportunistic M&A, share repurchases and dividends without pressuring liquidity. This structural strength lowers insolvency risk and enables multi-quarter investment in product and go-to-market execution.
Negative Factors
Cash-Flow Variability
Historic swings in free cash flow highlight exposure to cyclical capital spending in end markets. Even with recent improvement, variability can constrain multi-quarter planning, make sustained buybacks/dividends harder to guarantee, and complicate funding of growth initiatives during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a stable equity base give Cognex durable financial flexibility to fund R&D, opportunistic M&A, share repurchases and dividends without pressuring liquidity. This structural strength lowers insolvency risk and enables multi-quarter investment in product and go-to-market execution.
Read all positive factors
Cognex Key Performance Indicators (KPIs)
Cognex (CGNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.30B
Dividend Yield0.89%
Average Volume (3M)2.36M
Price to Earnings (P/E)39.9
Beta (1Y)1.17
Revenue Growth13.81%
EPS Growth23.79%
CountryUS
Employees2,914
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.86
Shares Outstanding166,419,450
10 Day Avg. Volume3,737,787
30 Day Avg. Volume2,358,889
Financial Highlights & Ratios
PEG Ratio5.46
Price to Book (P/B)4.05
Price to Sales (P/S)6.08
P/FCF Ratio25.54
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue9.92
Enterprise Value/Gross Profit14.58
Enterprise Value/Ebitda46.34
Forecast
1Y Price Target
$71.75Price Target Upside29.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.47
Revenue Forecast (FY)$1.10B
Cognex Business Overview & Revenue Model
Company Description
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks worldwide. Its machine vision products are used to automate the manufacturing and tracking of...
How the Company Makes Money
Cognex primarily makes money by selling machine vision and industrial identification hardware and associated software used in factory automation and logistics. Key revenue streams include (1) Machine vision systems and sensors: sales of smart came...
Cognex Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call reflected strong operational and financial outperformance in Q1 — high revenue growth (24% YoY), doubled EBITDA, >100% free cash flow conversion and major product/AI launches — while acknowledging manageable near-term headwinds (memory cost timing, tariffs, FX, portfolio exits) and limited visibility into the second half. Management presented confidence in cost-reduction targets, product-led growth and disciplined capital allocation, offsetting macro uncertainties.Positive Updates
Strong Top-Line Growth
Q1 revenue increased 24% year-over-year (21% on a constant currency basis), marking the seventh consecutive quarter of year-over-year growth. Company issued Q2 revenue guidance of $280M–$300M (midpoint ~16.5% YoY growth).
Negative Updates
Macroeconomic and Geopolitical Uncertainty
Management flagged ongoing risks including geopolitical conflicts, rising energy costs, interest rate uncertainty and limited visibility into the back half of the year, leading to a conservative stance on full-year outlook adjustments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 revenue increased 24% year-over-year (21% on a constant currency basis), marking the seventh consecutive quarter of year-over-year growth. Company issued Q2 revenue guidance of $280M–$300M (midpoint ~16.5% YoY growth).
Read all positive updates
Company Guidance
Cognex guided Q2 revenue of $280–$300 million (≈$290M midpoint, ~16.5% year‑over‑year growth at the midpoint), adjusted EBITDA margin of 28–31% (midpoint ≈+880 basis points YoY) and adjusted EPS of $0.40–$0.44 (midpoint ≈+68% YoY); management noted Q2 will include about $7M of electronics order timing pulled forward from Q3, while the divestiture/noncore exits will reduce revenue by roughly $5M in Q2 and each of the next three quarters and Q3 comparability includes a ~$13M headwind from a prior‑year one‑time partnership benefit—Cognex reaffirmed its $35–$40M annualized net cost‑reduction target to be achieved by end of 2026 and cautioned that full‑year profitability targets will be reassessed as second‑half visibility improves.Cognex Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 994.36M | 914.51M | 837.55M | 1.01B | 1.04B |
| Gross Profit | 712.01M | 665.39M | 625.79M | 601.24M | 721.90M | 759.83M |
| EBITDA | 224.08M | 193.36M | 147.75M | 144.58M | 288.29M | 335.38M |
| Net Income | 142.54M | 114.44M | 106.17M | 113.23M | 215.53M | 279.88M |
Balance Sheet | ||||||
| Total Assets | 2.01B | 2.02B | 1.99B | 2.02B | 1.96B | 2.00B |
| Cash, Cash Equivalents and Short-Term Investments | 296.76M | 262.93M | 246.05M | 332.05M | 400.13M | 323.62M |
| Total Debt | 74.02M | 76.59M | 70.22M | 78.60M | 39.75M | 25.58M |
| Total Liabilities | 526.65M | 524.65M | 475.35M | 513.06M | 519.75M | 573.57M |
| Stockholders Equity | 1.48B | 1.49B | 1.52B | 1.50B | 1.44B | 1.43B |
Cash Flow | ||||||
| Free Cash Flow | 241.11M | 236.77M | 134.04M | 89.84M | 223.74M | 298.61M |
| Operating Cash Flow | 250.10M | 245.51M | 149.08M | 112.92M | 243.41M | 314.06M |
| Investing Cash Flow | -4.28M | 28.02M | -38.97M | 32.27M | -4.45M | -252.54M |
| Financing Cash Flow | -157.22M | -206.69M | -118.42M | -125.61M | -240.37M | -141.62M |
Cognex Technical Analysis
Positive
55.50
Price Trends
54.90
Positive
49.94
Positive
45.93
Positive
Market Momentum
2.65
Positive
59.31
Neutral
22.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGNX, the sentiment is Positive. The current price of 55.5 is below the 20-day moving average (MA) of 60.20, above the 50-day MA of 54.90, and above the 200-day MA of 45.93, indicating a bullish trend. The MACD of 2.65 indicates Positive momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 22.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGNX.
Cognex Risk Analysis
Cognex disclosed 26 risk factors in its most recent earnings report. Cognex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cognex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.30B | 39.87 | 9.56% | 0.89% | 13.81% | 23.79% | |
70 Outperform | $12.07B | 18.96 | 10.88% | ― | 44.48% | 8.59% | |
69 Neutral | $19.97B | 46.10 | 12.24% | 0.54% | 11.44% | 44.67% | |
68 Neutral | $3.47B | 40.71 | 18.76% | 0.82% | 5.19% | -2.69% | |
66 Neutral | $3.58B | 18.75 | 17.44% | ― | -3.99% | 14.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.94B | 13.30 | 33.42% | 0.26% | 4.08% | 15.31% |
* Technology Sector Average
CGNX
Cognex
63.37
33.85
114.70%
BMI
Badger Meter
118.06
-123.55
-51.14%
ITRI
Itron
81.35
-33.45
-29.14%
MKSI
MKS
311.51
226.96
268.45%
SANM
Sanmina-Sci
231.18
149.07
181.55%
VNT
Vontier
28.42
-7.13
-20.05%
Cognex Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsProduct-Related Announcements
Cognex Posts Strong Q1 Results and Boosts AI Vision
Positive
May 6, 2026
On May 6, 2026, Cognex reported first-quarter 2026 results showing revenue rose 24% year on year to $268 million, with operating margin expanding to 22.3% and adjusted diluted EPS more than doubling to $0.34, driven by broad-based demand and favor...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Cognex Shareholders Back Governance Changes and Equity Plan
Positive
Apr 30, 2026
On April 29, 2026, Cognex’s board reclassified Joerg Kuechen so that he is no longer considered an executive officer under U.S. securities rules, reflecting an evolution in his role, while he remains with the company as Head of Mergers and A...
Business Operations and StrategyExecutive/Board Changes
Cognex Announces Board Refresh to Drive AI Growth
Positive
Feb 17, 2026
On February 11, 2026, Cognex Corporation’s board appointed automation veteran Dr. Sami Atiya and enterprise sales executive Chris Donato as directors, effective March 2, 2026, with Atiya’s term running to the 2028 shareholder meeting a...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Cognex Delivers Profitable Growth and Boosts Shareholder Returns
Positive
Feb 11, 2026
On February 11, 2026, Cognex reported that fourth‑quarter 2025 revenue rose 10% year on year to $252 million, with constant‑currency growth of 9%, while full‑year revenue increased 9% and adjusted EPS climbed 38%, marking a retur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.