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Jun 29, 2025
Cognex Q2 2025 Earnings Report
Cognex reported financial results for the second quarter ended June 29, 2025, showing growth in revenue, operating income, and net income compared to the prior year.
Key Takeaways
Cognex delivered a strong second quarter in 2025, with revenue increasing by 4% year-over-year to $249 million. The company achieved significant improvements in profitability, with operating income up 13% and net income up 12%. Adjusted EBITDA margin expanded to 20.7%, marking the first time it exceeded 20% since Q2 2023.
Revenue grew 4% year-over-year to $249 million, or 3% on a constant-currency basis.
Operating expenses declined 3% year-over-year due to disciplined cost management.
Operating margin improved to 17.4%, and Adjusted EBITDA margin reached 20.7%, up 80 basis points year-over-year.
Net income per diluted share was $0.24, with Adjusted diluted earnings per share at $0.25, marking a 12% increase year-over-year and the fourth consecutive quarter of growth.
Forward Guidance
Cognex issued third-quarter 2025 guidance, expecting revenue between $245 million and $265 million, and Adjusted EBITDA margin between 19.5% and 22.5%.
Positive Outlook
- Revenue is expected to increase by 9% year-over-year at the midpoint of guidance.
- Adjusted EBITDA margin is projected to increase by 340 basis points year-over-year at the midpoint of guidance.
- Adjusted Earnings Per Share (diluted) are expected to increase by 35% year-over-year at the midpoint of guidance.
- A commercial partnership is expected to result in a one-time revenue benefit of $8 million to $14 million in Q3 2025.
- The company expects U.S. tax law changes (OBBBA) to be neutral to Adjusted EPS in 2025, with a cash tax benefit of $12 million to $15 million.
Challenges Ahead
- The guidance ranges for revenue, Adjusted EBITDA margin, and Adjusted EPS (diluted) are broad, indicating potential variability.
- The one-time benefit from the commercial partnership is excluded from the core guidance ranges, suggesting it's not indicative of ongoing performance.
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