Cognex (CGNX) Q1 2026 earnings summary

Executive summary

• Revenue grew 24% year-over-year to $268.4 million in Q1 2026, driven by broad-based demand and favorable foreign exchange rates.

• Adjusted EBITDA margin reached 26.9%, marking the seventh consecutive quarter of margin expansion.

• Launched two new AI vision systems (In-Sight 6900 and 3900), strengthening technology leadership and innovation.

• Completed divestiture of Japan-focused trading business, aligning with portfolio optimization and resulting in a pre-tax loss in Q1.

• Returned $113 million to shareholders in Q1, primarily through $99 million in share repurchases.

Financial highlights

• Q1 2026 revenue reached $268.4 million, up 24% year-over-year and 21% on a constant currency basis.

• Adjusted EBITDA margin was 26.9%, up 1,010 basis points year-over-year.

• Adjusted EPS rose 113% year-over-year to $0.34; net income reached $52 million, up 117%.

• Adjusted gross margin expanded 420 basis points to 71.8%.

• Free cash flow was $42 million in Q1, with trailing 12-month free cash flow conversion at 119%.

Outlook and guidance

• Q2 2026 revenue guidance is $280–$300 million, implying 16.5% year-over-year growth at the midpoint.

• Adjusted EBITDA margin expected between 28% and 31%, up from 20.7% in Q2 2025.

• Adjusted EPS for Q2 expected between $0.40 and $0.44, midpoint up 68% year-over-year.

• Full-year outlook slightly adjusted due to macro uncertainty; more clarity expected next quarter.