Cognex (CGNX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $291M, up 17% year-over-year, marking the eighth consecutive quarter of year-over-year growth and broad-based strength across major end markets.

• Adjusted EBITDA margin reached 32.2%, up 1,150 basis points year-over-year, with operating margin at 29.4% and adjusted EPS up 80% year-over-year.

• Free cash flow was $68M, up 70% year-over-year, with a trailing twelve-month free cash flow conversion rate of 114%.

• Growth driven by diversification across customers, channels, adjacencies, and end markets, including expansion into the data center supply chain and launch of the One Vision™ AI platform.

Financial highlights

• Q2 2026 revenue: $291M (+17% year-over-year); adjusted gross profit: $208M (+23% year-over-year).

• Adjusted gross margin expanded to 71.5% (+350bps year-over-year); operating income doubled to $86M, with operating margin up 1,200bps to 29.4%.

• Adjusted EBITDA: $94M (+81% year-over-year); adjusted net income: $76M (+77% year-over-year).

• Adjusted diluted EPS: $0.45 (+80% year-over-year); net income per diluted share: $0.43.

• Free cash flow: $68M (+70% year-over-year); cash and investments at quarter-end: $755M; no debt.

Outlook and guidance

• Q3 2026 revenue guidance: $300–$320M (+12–17% year-over-year, excluding one-time items).

• Q3 2026 adjusted EBITDA margin: 32–35%; adjusted diluted EPS: $0.50–$0.54 (+58–86% year-over-year, excluding one-time items).

• Full-year 2026 revenue guidance: $1,130–$1,150M (+15–16% year-over-year, excluding one-time items).

• Full-year 2026 adjusted EBITDA margin: 29–31%; adjusted diluted EPS: $1.64–$1.68 (+63–71% year-over-year, excluding one-time items).