A maker of machine vision systems, sensors, software, and industrial barcode readers that help factories and warehouses inspect, measure, and track products automatically — with brands like In-Sight, DataMan, and VisionPro. Founded in 1981 by MIT lecturer Robert Shillman, who coaxed two grad students to join him by offering free bicycles. The name comes from "cognition experts," and employees jokingly call themselves "Cognoids."
Cognex gross margin returned to 70.6% as broad demand drove 17% revenue growth and operating margin nearly doubled.
crossed back above 70% for the first time in over two years. rose 17% to $291.3 million and widened 11.9 points to 29.4% as broad end-market demand and a favorable mix lifted profitability while operating expenses fell 3%. The recovery in profitability is now flowing to the at scale, with nearly doubling to $0.43.
Key takeaways
expanded 3.3 points to 70.6%, which management attributed to a more favorable end-market mix and higher sales volume improving fixed-cost absorption.
rose 17% to $291.3 million, driven by broad-based demand across most major end markets and a favorable foreign exchange impact.
nearly doubled to $85.5 million and widened to 29.4% from 17.4% a year ago, as the increase and recovery combined with a 3% decline in operating expenses.
Section summaries
Management's Discussion and Analysis
Revenue rose 17% to $291M with broad end-market strength; gross margin expanded to 71% on favorable mix and volume.
⌄
Q2 2026 grew 17% to $291.3M, driven by broad-based demand across most major end markets and a favorable FX impact.
improved to 71% from 67% a year ago, primarily due to a more favorable end-market mix and higher sales volume improving .
Operating expenses fell 3% to $120.3 million, reflecting cost management savings and lower , partially offset by unfavorable foreign exchange.
Greater China rose 47% on consumer electronics and semiconductor strength, while Europe declined 12% due to a customer procurement shift and automotive softness.
The Board authorized an additional $500 million program upon completion of the existing plan, and the company ended the quarter with $755 million in cash and investments and no .
What changed
Q1 2026 flagged whether the 71.1% could hold in Q2 as end-market mix shifted. It did: gross margin was 70.6%, down only 0.5 points sequentially, confirming the improvement was not a one-time mix event.
Operating expense growth was flagged after rising 11% in Q1 on incentive compensation and reorganization charges. In Q2, expenses fell 3% , suggesting the guided $35–$40 million in annualized cost savings is beginning to show in the run rate.
Automotive was not cited as a drag for a second consecutive quarter, and management noted broad-based demand across most major end markets, indicating the persistent factory-automation soft spot may have bottomed.
The customer procurement shift from China to Europe that reshaped regional in FY2025 reversed direction: Greater China revenue rose 47% while Europe fell 12%, driven by consumer electronics and semiconductor strength in China.
What to watch
Q3 trajectory: whether the 70.6% level holds as end-market mix shifts again, testing whether the return above 70% is structural or dependent on the current demand mix.
pace with the new $500 million authorization: whether management accelerates buybacks from the $99 million Q1 pace now that the program has been expanded, affecting per-share metrics and the cash balance.
Europe stabilization: after a 12% decline on procurement shifts and automotive softness, whether the region returns to growth or remains a geographic soft spot.
Operating expense run rate: whether the 3% decline in Q2 is sustained, confirming that the cost savings program is delivering the guided $35–$40 million in annualized benefit.
Operating expenses fell 3% to $120.3M, reflecting cost management savings and lower , partially offset by unfavorable FX.
margin expanded sharply to 29% from 17% on , with rising to $0.43 per diluted share from $0.24.
Greater China surged 47% on consumer electronics and semiconductor strength, while Europe declined 12% due to a customer procurement shift and automotive softness.
Cash and investments stood at $755M with no ; the Board authorized an additional $500M program upon completion of the existing plan.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the Company’s exposures to market risk since December 31, 2025 as disclosed in Part II, Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in the Annual Report.
⌄
There have been no material changes to the Company’s exposures to market risk since December 31, 2025 as disclosed in Part II, Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in the Annual Report.
Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a materia…
⌄
Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.
For a list of factors that could affect the Company’s business, results of operations, and financial condition, see the risk factors discussion provided in Part I—Item 1A of the Annual Report. There have been no material changes to the risk factors included in the Annual Report.
⌄
For a list of factors that could affect the Company’s business, results of operations, and financial condition, see the risk factors discussion provided in Part I—Item 1A of the Annual Report. There have been no material changes to the risk factors included in the Annual Report.