Cognex shares fall 6.8% after hours, with Q3 revenue below estimates

Cognex (CGNX) said on Nov. 4 that third-quarter revenue rose 13% from a year earlier to $313.39 million, below the $319.58 million consensus estimate.

Shares fell 6.8% in after-hours trading as of 4:39 p.m. ET, from a regular-session close of $53.07.

The company, which makes machine vision systems for manufacturing and distribution, said adjusted earnings of 53 cents per share were in line with the 53 cents consensus estimate. Cognex serves more than 30,000 customers worldwide.

Here's how the company did:

• Revenue: $313.39 million vs. $276.89 million a year earlier
• Adjusted EPS (diluted): 53 cents vs. 33 cents a year earlier, against a 53 cents consensus estimate
• Net income per diluted share: 50 cents vs. 10 cents a year earlier
• Operating margin: 32.2% vs. 20.9% a year earlier

Excluding a one-time benefit from a commercial partnership with a medical lab automation channel partner, revenue grew 19% year over year, the company said.

CFO Dennis Fehr said the quarter was “another strong proof point for our profitable growth strategy.”

Full-year 2026 guidance

Cognex raised its full-year 2026 revenue forecast to $1.14 billion to $1.16 billion, from the $1.13 billion to $1.15 billion range it gave on Aug. 5.

Its adjusted EPS forecast rose to $1.68 to $1.72, from $1.64 to $1.68.

For the fourth quarter, the company expects revenue of $270 million to $290 million and adjusted EPS of 37 cents to 41 cents. The company reported fourth-quarter 2025 revenue of $252 million and adjusted EPS of 27 cents.

Acquisition and cash

Cognex said it has agreed to buy RealSense, Inc., a maker of depth-sensing cameras and vision technology, in an all-cash transaction expected to close in the fourth quarter of 2026.

The company sold investments, primarily corporate bonds, and recorded a pre-tax loss of $2.41 million on the sale. It said the proceeds, along with existing cash, are intended to fund the acquisition.

Cognex had $846 million in cash and investments and no debt as of Oct. 4.

CEO Matt Moschner said the company is “strengthening our leadership in AI-powered machine vision through innovation.”

The board declared a quarterly cash dividend of 9 cents per share, up from 8.5 cents. It is payable Dec. 3 to shareholders of record at the close of business on Nov. 19.

Net income has risen in each of the last three quarters, from $17.7 million in the third quarter of 2025 to $72.8 million in the second quarter of fiscal 2026, according to its SEC filings.

Cognex will host a conference call on Nov. 5 at 8:30 a.m. Eastern time.