cgnx-20260405

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended April 5, 2026 or


☐			Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________

Commission File Number 001-34218

COGNEX CORPORATION


(Exact name of registrant as specified in its charter)


Massachusetts						04-2713778
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Vision Drive

Natick, Massachusetts 01760

(508) 650-3000


(Address, including zip code, and telephone number, including area code, of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.002 per share	CGNX	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

As of May 3, 2026, there were 166,419,451 shares of Common Stock, $.002 par value per share, of the registrant outstanding.

INDEX


PART I	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (interim periods unaudited)	3
	Consolidated Statements of Operations for the three-month periods ended April 5, 2026 and March 30, 2025	3
	Consolidated Statements of Comprehensive Income (Loss) for the three-month periods ended April 5, 2026 and March 30, 2025	4
	Consolidated Balance Sheets as of April 5, 2026 and December 31, 2025	5
	Consolidated Statements of Cash Flows for the three-month periods ended April 5, 2026 and March 30, 2025	6
	Consolidated Statements of Shareholders’ Equity for the three-month periods ended April 5, 2026 and March 30, 2025	7
	Notes to Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II	OTHER INFORMATION	28

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

	Signatures	30

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)


	Three-months Ended
	April 5, 2026		March 30, 2025
	(unaudited)
Revenue	$	268,437	$	216,036
Cost of revenue	77,498		71,713
Gross profit	190,939		144,323
Research, development, and engineering expenses	37,025		34,727
Selling, general, and administrative expenses	94,041		83,504

Operating income	59,873		26,092
Foreign currency gain (loss)	(1,345)		(2,453)
Investment income	4,836		3,990
Other income (expense)	(1,607)		169
Income before income tax expense	61,757		27,798
Income tax expense	10,053		4,195
Net income	$	51,704	$	23,603

Net income per weighted-average common and common-equivalent share:
Basic	$	0.31	$	0.14
Diluted	$	0.31	$	0.14

Weighted-average common and common-equivalent shares outstanding:
Basic	166,514		169,265
Diluted	168,386		170,391

Cash dividends per common share	$	0.085	$	0.080

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)


	Three-months Ended
	April 5, 2026		March 30, 2025
	(unaudited)
Net income	$	51,704	$	23,603
Other comprehensive income (loss), net of tax

Available-for-sale investments:
Net unrealized gain (loss), net of tax of $(726) and $875 in the three-month periods, respectively	(2,227)		2,711
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations	(28)		(27)
Net change related to available-for-sale investments	(2,255)		2,684



Net change related to foreign currency translation adjustments	(4,983)		11,447

Other comprehensive income (loss), net of tax	(7,238)		14,131
Total comprehensive income (loss)	$	44,466	$	37,734

The accompanying notes are an integral part of these consolidated financial statements.

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	$	262,925
Current investments	59,413		74,037
Accounts receivable, net of allowance for credit losses of $781 and $728 in 2026 and 2025, respectively	170,721		146,713
Unbilled revenue	16,401		16,980
Inventories	135,549		137,889
Prepaid expenses and other current assets	70,922		58,702
Total current assets	690,349		697,246
Non-current investments	325,186		305,339
Property, plant, and equipment, net	84,291		86,015
Operating lease assets	69,709		72,310
Goodwill	382,818		386,279
Intangible assets, net	67,140		81,100
Deferred income taxes	381,100		383,272
Other assets	5,025		4,994
Total assets	2,005,618		2,016,555

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	59,551	$	50,203
Accrued expenses	77,399		91,397
Accrued income taxes	6,172		9,141
Deferred revenue and customer deposits	34,053		21,094
Operating lease liabilities	12,310		11,716
Total current liabilities	189,485		183,551
Non-current operating lease liabilities	61,707		64,870
Deferred income taxes	252,230		250,512
Reserve for income taxes	21,336		24,269

Other liabilities	1,891		1,452
Total liabilities	526,649		524,654

Commitments and contingencies (Note 7)
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, respectively	333		334
Additional paid-in capital	1,194,927		1,138,708
Retained earnings	344,443		406,355
Accumulated other comprehensive loss, net of tax	(60,734)		(53,496)
Total shareholders’ equity	1,478,969		1,491,901
Total liabilities and shareholders' equity	$	2,005,618	$	2,016,555

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Three-months Ended
	April 5, 2026		March 30, 2025
	(unaudited)
Cash flows from operating activities:
Net income	$	51,704	$	23,603
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense	11,933		9,939
Depreciation of property, plant, and equipment	4,703		5,306

Amortization of intangible assets	2,532		2,628
Excess and obsolete inventory charges	364		197



Loss on sale of business, net of transaction costs	1,539		—
Deferred income taxes	4,740		(4,689)
Other adjustments	(380)		(188)
Change in operating assets and liabilities:
Accounts receivable	(23,711)		(17,183)
Unbilled revenue	593		307
Inventories	8		5,474
Prepaid expenses and other current assets	(12,212)		2,526
Accounts payable	9,390		4,996
Accrued expenses	(13,554)		(6,055)
Accrued income taxes	(2,905)		(3,153)
Deferred revenue and customer deposits	12,889		14,761
Other	(2,540)		2,033
Net cash provided by (used in) operating activities	45,093		40,502
Cash flows from investing activities:
Purchases of investments	(47,013)		(113,297)
Maturities and sales of investments	39,042		148,885
Net proceeds from sale of business	11,519		—
Purchases of property, plant, and equipment, net of proceeds	(2,757)		(2,501)

Net cash provided by (used in) investing activities	791		33,087
Cash flows from financing activities:
Net payments from issuance of common stock under stock plans	44,290		(2,587)
Repurchase of common stock	(98,995)		(102,233)

Payment of dividends	(14,196)		(13,550)
Net cash provided by (used in) financing activities	(68,901)		(118,370)
Effect of foreign exchange rate changes on cash and cash equivalents	(2,565)		2,431
Net change in cash and cash equivalents	(25,582)		(42,350)
Cash and cash equivalents at beginning of period	262,925		186,094
Cash and cash equivalents at end of period	$	237,343	$	143,744

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of dollars, except per share amounts)


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2025	166,997	$	334	$	1,138,708	$	406,355	$	(53,496)	$	1,491,901
Net issuance of common stock under stock plans	1,905	4		44,286		—		—		44,290
Repurchase of common stock	(2,375)	(5)		—		(98,990)		—		(98,995)
Excise tax on repurchase of common stock	—	—		—		(430)		—		(430)
Stock-based compensation expense	—	—		11,933		—		—		11,933
Payment of dividends ($0.085 per common share)	—	—		—		(14,196)		—		(14,196)
Net income	—	—		—		51,704		—		51,704


Net unrealized gain (loss) on available-for-sale investments, net of tax of $(726)	—	—		—		—		(2,227)		(2,227)

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		(28)		(28)
Foreign currency translation adjustment	—	—		—		—		(4,983)		(4,983)
Balance as of April 5, 2026 (unaudited)	166,527	$	333	$	1,194,927	$	344,443	$	(60,734)	$	1,478,969


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares	Par Value
Balance as of December 31, 2024	170,434	$	341	$	1,090,638	$	499,303	$	(72,777)	$	1,517,505
Net issuance of common stock under stock plans	478	1		(2,588)		—		—		(2,587)
Repurchase of common stock	(3,047)	(6)		—		(103,407)		—		(103,413)
Stock-based compensation expense	—	—		9,939		—		—		9,939
Payment of dividends ($0.080 per common share)	—	—		—		(13,550)		—		(13,550)
Net income	—	—		—		23,603		—		23,603


Net unrealized gain (loss) on available-for-sale investments, net of tax of $875	—	—		—		—		2,711		2,711

Reclassification of net realized (gain) loss on the sale of available-for-sale investments	—	—		—		—		(27)		(27)
Foreign currency translation adjustment	—	—		—		—		11,447		11,447
Balance as of March 30, 2025 (unaudited)	167,865	$	336	$	1,097,989	$	405,949	$	(58,646)	$	1,445,628

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1: Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by accounting principles generally accepted in the United States ("GAAP"). Reference should be made to the consolidated financial statements and related notes included in Cognex Corporation's ("Cognex" or the "Company") Annual Report on Form 10-K for the year ended December 31, 2025 for a full description of other significant accounting policies.

In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications necessary to present fairly the Company’s financial position as of April 5, 2026, and the results of its operations for the three-month periods ended April 5, 2026 and March 30, 2025, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 5, 2026 are not necessarily indicative of the results to be expected for the full year.

NOTE 2: New Pronouncements

Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)

This ASU aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. ASU 2024-03 mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The adoption will result in disclosure changes only. Management is currently evaluating the impact that adopting ASU 2024-03 would have on the Company's financial statement disclosures.

Accounting Standards Update (ASU) 2025-06 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

The amendments in this ASU update the accounting and disclosure guidance for internal-use software to better reflect modern, iterative development practices. The amendments replace the former “development stage” model with a judgment-based framework and require entities to evaluate whether significant development uncertainty exists before capitalizing costs. The ASU also incorporates website development guidance into Subtopic 350-40 and aligns disclosures for capitalized software with those for property, plant, and equipment. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-06 would have on the Company's financial statements and disclosures.

Accounting Standards Update (ASU) 2025-11 - Interim Reporting (Topic 270): Narrow-Scope Improvements

The amendments in this ASU improve the navigability and clarity of interim reporting requirements without changing the fundamental nature or scope of existing disclosures. The ASU also clarifies when Topic 270 applies, specifies the form and content of interim financial statements and notes, and introduces a comprehensive list of required interim disclosures compiled from across the Codification. The ASU also adds a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within annual reporting periods beginning after December 15, 2028, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-11 would have on the Company's disclosures.

Accounting Standards Update (ASU) 2025-12 - Codification Improvements

The amendments in this ASU make incremental improvements to clarify, correct, and enhance the usability of the Accounting Standards Codification. The amendments address technical corrections, unintended application issues,

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

and minor improvements across numerous topics, and are not expected to significantly affect current accounting practice. Key areas of clarification include diluted earnings per share calculations, disclosure requirements for lease receivables, guidance on beneficial interests, methods for accounting for treasury stock retirements, and the treatment of receivables transferred from contracts with customers. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-10 would have on the Company's financial statements and disclosures.

NOTE 3: Financial Instruments

Cash, Cash Equivalents, and Investments

The following table summarizes the Company’s cash, cash equivalents, and investments as of April 5, 2026 (in thousands):


	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Investments		Non-current Investments
Cash		$	178,191	$	—	$	—	$	178,191	$	178,191	$	—	$	—
Money market instruments	Level 1	59,152		—		—		59,152		59,152		—		—
Corporate bonds	Level 2	360,314		1,399		(1,304)		360,409		—		58,428		301,981
Treasury notes	Level 2	20,365		26		(26)		20,365		—		985		19,380
Asset-backed securities	Level 2	4,116		—		(291)		3,825		—		—		3,825


Total		$	622,138	$	1,425	$	(1,621)	$	621,942	$	237,343	$	59,413	$	325,186

The following table summarizes the Company’s cash, cash equivalents, and investments as of December 31, 2025 (in thousands):


	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Investments		Non-current Investments
Cash		$	199,755	$	—	$	—	$	199,755	$	199,755	$	—	$	—
Money market instruments	Level 1	63,170		—		—		63,170		63,170		—		—
Corporate bonds	Level 2	342,442		3,149		(240)		345,351		—		66,625		278,726
Treasury notes	Level 2	29,676		167

SEC Form 10-Q filed by Cognex Corporation