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Dec 31, 2025
Cognex Q4 2025 Earnings Report
Cognex reported strong financial results for the fourth quarter and full year 2025, with significant revenue growth and expanded margins.
Key Takeaways
Cognex Corporation announced robust financial results for the fourth quarter and full year 2025, demonstrating a return to profitable growth. Fourth-quarter revenue increased by 10% year-over-year, reaching $252 million, while adjusted diluted EPS grew by 35% to $0.27. The company also achieved its sixth consecutive quarter of year-over-year adjusted EBITDA margin expansion, reaching 22.7%.
Fourth-quarter revenue increased 10% year-over-year to $252 million, driven by increased year-end spending in Factory Automation and steady Logistics growth.
Adjusted diluted earnings per share rose 35% year-over-year to $0.27, marking the sixth consecutive quarter of double-digit growth.
Adjusted EBITDA margin expanded by 420 basis points year-over-year to 22.7%, reflecting revenue growth and disciplined cost management.
The company completed a strategic portfolio review, exiting approximately $22 million of non-core, no-growth, or low-margin revenue, and expects an additional $35 to $40 million in annualized cost reductions by the end of 2026.
Forward Guidance
Cognex provided first-quarter 2026 guidance, anticipating revenue between $235 million and $255 million, adjusted EBITDA margin between 19.0% and 22.0%, and adjusted diluted earnings per share between $0.22 and $0.26.
Positive Outlook
- Expected revenue growth of 13% year-over-year at the midpoint of guidance.
- Anticipated adjusted EBITDA margin expansion of 370 basis points year-over-year at the midpoint of guidance.
- Projected adjusted diluted earnings per share growth of 50% year-over-year at the midpoint of guidance.
- Continued operating model optimization expected to deliver additional cost reductions.
- Strategic portfolio optimization and salesforce transformation are expected to maintain growth and expand margins.
Challenges Ahead
- Guidance for non-GAAP measures excludes certain special items due to unpredictability.
- The company faces limitations in forecasting certain non-recurring expenses.
- The impact of potential future economic or market volatility is not fully accounted for.
Historical Earnings Impact
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