Cognex Lifts 2026 Outlook After Record Quarter

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter sales hit a record $313 million, up 13% as reported, and the company raised full-year revenue guidance to as much as $1.163 billion.

Cognex Corporation (CGNX), the industrial machine-vision maker, reported record third-quarter revenue of $313 million for the three months ended October 4, 2026, up 13% from a year earlier. Excluding a one-time benefit from a medical lab automation commercial partnership in the year-ago quarter, sales rose 19%.

That year-over-year pace followed 17% growth in the second quarter and 24% growth in the first quarter. The company said the increase was driven by broad-based strength across most major end markets. Foreign currency did not have a meaningful impact on consolidated revenue.

Operating income was $101 million, and operating margin expanded to 32.2% from 29.4% in the second quarter and 22.3% in the first quarter. Adjusted EBITDA was $111 million, and Adjusted EBITDA margin was 35.5%, marking the ninth consecutive quarter of expansion. Excluding the commercial partnership, Adjusted EBITDA margin expanded 1,340 basis points year over year.

Gross margin was 70.8%. Adjusted gross margin was 71.3%, up 290 basis points from a year earlier. The company said the year-over-year increase was primarily driven by favorable mix, higher volume, and faster-than-expected pricing execution, and that those benefits more than offset expected memory cost headwinds.

Operating expenses were $121 million, down 7% from $130 million a year earlier. Adjusted operating expenses were $116 million, down 7%, which the company attributed primarily to continued cost management, somewhat offset by higher sales commissions.

Net income was $85 million, or $0.50 a share. Adjusted diluted earnings were $0.53 a share, up 61% as reported and 89% excluding the commercial partnership, the ninth consecutive quarter of adjusted EPS growth.

Cash from operations was $106 million. Free cash flow was $104 million, with conversion of 122% of net income and 116% of adjusted net income. As of October 4, 2026, cash and investments totaled $846 million and the company had no debt.

Cognex raised full-year 2026 revenue guidance to $1,143 million to $1,163 million from $1,130 million to $1,150 million. It also raised Adjusted EBITDA margin guidance to 31% to 32% from 29% to 31%, and Adjusted diluted EPS guidance to $1.68 to $1.72 from $1.64 to $1.68. The company said it continues to anticipate strong double-digit revenue growth and year-over-year expansion in profitability.

For the fourth quarter of 2026, Cognex guided to revenue of $270 million to $290 million, Adjusted EBITDA margin of 29% to 32%, and Adjusted diluted EPS of $0.37 to $0.41.

The company announced a definitive all-cash agreement to acquire RealSense, Inc., a depth-sensing camera and vision technology business for robotic perception and physical AI, expected to close in the fourth quarter of 2026. It also launched the In-Sight 1750 wafer and panel identification system for the semiconductor industry.

The board declared a quarterly cash dividend of $0.09 a share, up $0.005 from the prior quarter.