Cognex Corporation (CGNX) AI Stock Analysis

Cognex Corporation specializes in machine vision products that capture and analyze visual information to automate manufacturing and distribution processes. Its solutions serve industries such as consumer electronics, pharmaceuticals, and automotive components by locating, identifying, inspecting, and measuring discrete items during production. Key software solutions include VisionPro with QuickBuild and Cognex deep learning vision software for complex visual inspection tasks. Cognex also produces hardware, including the In-Sight product line of vision systems and sensors for assembly verification and robotic guidance, alongside DataMan image-based barcode readers and verifiers. Founded in 1981, the Natick, Massachusetts-based company employed 2,745 people.

Cognex delivered a 5-year revenue CAGR of 4.2% from FY2020 to FY2025. Annual revenue shifted from $1.04B in FY2021 to $1.01B in FY2022 and $837.5M in FY2023, before rebounding to $914.5M in FY2024 and $994.4M in FY2025. Gross margin contracted from 73.3% in FY2021 to 66.9% in FY2025, while operating margin fell from 30.4% to 16.3%. Net income decreased from $279.9M in FY2021 to $114.4M in FY2025. For the latest quarter ended June 30, 2026, performance accelerated, with quarterly revenue growth of 16.9% year-over-year and quarterly earnings growth of 79.2% year-over-year.

As of June 30, 2026, Cognex held $404.4M in cash and short-term investments against total debt of $72.5M, yielding a net cash position of $331.9M. The company maintains strong liquidity with a current ratio of 3.93 and a low debt-to-equity ratio of 0.04 against $1.63B in shareholders' equity. In FY2025, operations generated $245.5M in operating cash flow and $236.8M in free cash flow. Capital expenditures totaled $8.7M, while capital returned to shareholders included $151.2M in share buybacks and $54.6M in dividends paid.

Cognex trades at a trailing P/E of 51.9x and a forward P/E of 29.5x, both well above the US-listed Technology peer medians of 28.1x and 18.8x. Its EV/EBITDA multiple of 35.4x also exceeds the peer median of 16.6x, while its price-to-sales ratio is 8.3x versus the peer median of 2.8x. Over the past 12 months, Cognex returned 17.3%, slightly outperforming the S&P 500's 16.8% return. However, over five years, the stock fell 33.9%, underperforming the S&P 500's 83.0% gain.

Cognex pays a quarterly dividend with an annualized forward rate of $0.34, translating to a dividend yield of 0.63% and a payout ratio of 24.5%. While the company has paid dividends for 12 consecutive years, its 5-year annualized dividend growth stands at -31.9%. The most recent ex-dividend date was August 20, 2026.

Wall Street analysts hold 9 Strong Buy, 5 Buy, and 6 Hold ratings on Cognex, with no Sell or Strong Sell ratings. The mean price target of $79.37 represents a 47.0% premium over the last close of $53.99. For the fiscal year ending December 31, 2026, consensus estimates expect EPS of $1.69 on $1.15B in revenue, with EPS projected to reach $2.02 in the next fiscal year. Cognex beat EPS estimates in all 4 of the last 4 quarters, with its next earnings report scheduled for November 4, 2026.

This page is an AI-written research summary of Cognex Corporation (CGNX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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