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Sep 28
Cognex Q3 2025 Earnings Report
Cognex reported strong financial results for the third quarter of 2025, driven by revenue growth and disciplined execution.
Key Takeaways
Cognex delivered a strong third quarter in 2025, with revenue increasing 18% year-over-year to $277 million and adjusted diluted earnings per share rising 69% to $0.33. The company achieved an operating margin of 20.9% and an adjusted EBITDA margin of 24.9%, the highest since Q2 2023, reflecting profitable growth and cost discipline.
Revenue grew 18% year-over-year, or 16% on a constant-currency basis, reaching $277 million.
Adjusted diluted earnings per share increased 69% year-over-year to $0.33, marking the fifth consecutive quarter of growth.
Operating margin was 20.9% and Adjusted EBITDA margin was 24.9%, the highest since Q2 2023, indicating strong profitability.
The company returned $37 million to shareholders during the quarter and launched the SLX product portfolio in Logistics.
Cognex
Cognex
Forward Guidance
Cognex provided fourth-quarter 2025 guidance, expecting revenue between $230 million and $245 million, and adjusted diluted earnings per share between $0.19 and $0.24. The company anticipates no material impact from tariffs on Adjusted EPS or Adjusted EBITDA margin.
Positive Outlook
- Revenue guidance for Q4 2025 is $230 - $245 million, with a Y/Y change of +3% at the midpoint.
- Adjusted EPS (diluted) guidance for Q4 2025 is $0.19 - $0.24, with a Y/Y change of +7.5% at the midpoint.
- Adjusted EBITDA Margin guidance for Q4 2025 is 17.0% - 20.0%, which is flat compared to Q4 2024 results.
- No material impact on Adjusted Earnings per Share or Adjusted EBITDA margin is expected from tariffs.
- The company continues to focus on profitable growth and disciplined execution.
Challenges Ahead
- The revenue guidance for Q4 2025 shows a modest year-over-year growth of 3%.
- Adjusted EBITDA Margin guidance is flat compared to the previous year.
- The company cannot forecast certain non-GAAP items without unreasonable effort, limiting full reconciliation to GAAP measures.
- Special items such as reorganization charges and acquisition costs are subject to unpredictable timing and outcome.
- The probable significance of certain non-GAAP information is considered low due to limitations in predictability.