Cognex (NASDAQ:CGNX) reported record third-quarter revenue and raised its full-year 2026 outlook, citing broad-based demand, stronger logistics growth and cost controls. The machine vision company also said it expects its acquisition of RealSense to close in the fourth quarter.
Revenue rose 19% year over year to $313 million, while adjusted earnings per share increased 89% to a record $0.53, Chief Financial Officer Dennis Fehr said. Adjusted EBITDA climbed 91% to $111 million, and the adjusted EBITDA margin expanded by 1,240 basis points to 35.5%.
Fehr said his discussion of third-quarter results excluded the effect of a one-time commercial partnership benefit recognized in the third quarter of 2025. Free cash flow rose 21% to $104 million, and Cognex ended the quarter with approximately $846 million in cash and investments.
Higher Full-Year Outlook
Cognex raised its 2026 revenue guidance to $1.14 billion to $1.16 billion, with the increase driven by stronger expected growth in logistics. The midpoint implies approximately 16% growth, or 17% excluding the 2025 commercial partnership benefit, Fehr said.
The company also increased its full-year adjusted EBITDA margin forecast to 31% to 32% and projected adjusted earnings of $1.68 to $1.72 per share. At the midpoint, the earnings forecast represents approximately 67% growth, or 75% excluding the partnership benefit.
For the fourth quarter, Cognex expects revenue of $270 million to $290 million, adjusted EBITDA margin of 29% to 32% and adjusted earnings of $0.37 to $0.41 per share. Both the fourth-quarter and full-year operating forecasts exclude RealSense.
Fehr said the fourth-quarter revenue forecast implies approximately 11% growth at the midpoint, though revenue is expected to decline sequentially in line with seasonal patterns in a strong electronics growth year. He also expects a modest sequential decline in gross margin because of the revenue mix and a modest increase in operating expenses, primarily from sales commissions.
The full-year earnings outlook includes approximately $0.08 per share of investment income, down from a prior expectation of $0.11, because Cognex liquidated financial investments to help fund the RealSense transaction, Fehr said.
Logistics and Electronics Lead Demand
Four of Cognex’s five end markets delivered double-digit constant-currency growth in the third quarter, Chief Executive Officer Matt Moschner said. Logistics, the company’s largest market, recorded its 11th consecutive quarter of double-digit growth, prompting Cognex to raise its full-year outlook for the business to double-digit growth.
Moschner said logistics demand extended beyond one large customer and included investments in new warehouse capacity, improvements at existing facilities and adoption of vision inspection technology. He cautioned that near-term growth could moderate or become more uneven after an extended period of strong performance.
Electronics posted its sixth consecutive quarter of double-digit growth, supported by AI-enabled devices, new product designs, data center supply chain investment and geographically diversified manufacturing. Packaging and semiconductor also grew at double-digit rates. Automotive revenue rose by a mid-single-digit percentage, with strength in the Americas partly offset by weakness in Europe.
On a constant-currency basis, revenue grew 42% in the Americas and 29% in China, while Europe declined 15%. Fehr noted that some electronics customers ordered through Americas-based entities rather than European entities, benefiting the Americas comparison and weighing on Europe without reflecting a change in underlying demand. Excluding that procurement change, the Americas still grew by a strong double-digit percentage and Europe declined by a mid-single-digit percentage.
RealSense and Margin Plans
Moschner said the pending RealSense acquisition would extend Cognex into depth sensing and robotic perception. The company’s initial focus includes established applications such as fixed-arm robots, autonomous mobile robots and automated guided vehicles, rather than relying on emerging applications such as humanoid robots.
Cognex also highlighted its new In-Sight 1750 wafer and panel identification reader, which combines edge AI with rules-based tools for semiconductor manufacturing. Moschner said the device is backward compatible with the existing 1740 series, making upgrades easier for customers.
Looking beyond 2026, Moschner said the company sees a potentially more durable industrial growth cycle but declined to provide a specific 2027 growth forecast. Fehr said Cognex still sees room for margin expansion through revenue growth and productivity improvements, with operating expense growth expected to be around an inflationary level next year.
Fehr said Cognex remains on track for approximately $35 million in annualized net cost reductions, normalized for incentive compensation. The company plans to provide a broader financial update on its next earnings call and host an investor day in June 2027.
About Cognex (NASDAQ:CGNX)
Cognex Corporation develops machine vision and industrial identification technologies that help manufacturers and businesses automate inspection, measurement, guidance, and tracking processes. Its systems use cameras, sensors, software, and artificial intelligence to analyze images and identify products, defects, components, and other objects.
The company’s product portfolio includes vision systems, industrial cameras, vision sensors, barcode readers, optical character recognition tools, three-dimensional vision systems, and machine vision software.
