Cognex Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up

Cognex CGNX reported fourth-quarter 2025 non-GAAP earnings of 27 cents per share, which beat the Zacks Consensus Estimate by 23.85%. The bottom line increased 35% year over year.Revenues of $252.3 million beat the Zacks Consensus Estimate by 7.17%. The figure appreciated 10% year over year on a reported basis and 9% on a constant-currency (cc) basis.Cognex shares are up 23.45% in pre-market trading. The company’s shares have increased 26.9% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s appreciation of 21.6%.CGNX Operating DetailsFourth-quarter gross margin on a non-GAAP basis was 71.6%, expanding 220 basis points (bps) year over year. Cognex Corporation Price, Consensus and EPS Surprise Cognex Corporation price-consensus-eps-surprise-chart | Cognex Corporation QuoteSelling, general & administrative (SG&A) expenses increased 0.1% year over year to $94.6 million. Research & development (R&D) expenses were $36.1 million, up 10.8% year over year.As a percentage of revenues, SG&A expenses decreased 360 bps year over year to 37.5%, whereas R&D expenses inched up 20 bps year over year to 14.3%.The non-GAAP operating margin was 20.9%, up 470 bps year over year.CGNX’s Balance Sheet Remains StrongAs of Dec. 31, 2025, Cognex had cash and cash equivalents of $262.9 million compared with $245.9 million as of Sept. 28.In the fourth quarter, CGNX generated $74.9 million in cash from operating activities compared with the previous quarter’s $87.5 million.The company generated a free cash flow of $72.3 million in the reported quarter.Cognex declared a quarterly cash dividend of $0.085 per share payable on March 12, 2026, to all shareholders of record as on Feb. 26, 2026.CGNX Offers Q1 GuidanceFor the first quarter of 2026, Cognex expects non-GAAP revenues between $235 million and $255 million and an adjusted EBITDA margin in the range of 19-22%.Non-GAAP earnings are anticipated between 22 cents and 26 cents per share.Zacks Rank & Stocks to ConsiderCurrently, CGNX carries a Zacks Rank #3 (Hold). Micron Technology MU, MongoDB MDB, and MKS MKSI are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.Micron Technology shares have gained 347.6% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.MongoDB shares have returned 24.6% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2, 2026. The company sports a Zacks Rank #1.  MKS shares have gained 133% in the past 12-month period. MKSI is set to report its fourth-quarter 2025 results on Feb. 17, 2026. The company currently sports a Zacks Rank #1. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report Cognex Corporation (CGNX): Free Stock Analysis Report MKS Inc. (MKSI): Free Stock Analysis Report MongoDB, Inc. (MDB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks