Cognex Q4 Sales Rise 9.9% to $252.3M, EPS Beats by 22.9%
Machine vision firm Cognex reported Q4 revenue of $252.3 million, up 9.9% year-over-year and 5.4% above forecasts, and delivered adjusted EPS of $0.27, a 22.9% beat. The company guided Q1 sales at $245 million, 7.1% above estimates, and targets $35–40 million in annual cost savings by end-2026.
1. Q4 Financial Results
Cognex posted Q4 revenue of $252.3 million, a 9.9% increase from a year earlier and 5.4% above analyst estimates. Adjusted EPS of $0.27 outpaced forecasts by 22.9% and operating income rose 14% to $35 million.
2. Guidance and Outlook
The company set Q1 revenue guidance at a $245 million midpoint, 7.1% above consensus, and forecasts full-year adjusted EPS of $0.24. Management plans to deliver $35–40 million in annualized cost reductions by the end of 2026.
3. Shareholder Returns and Portfolio Optimization
During 2025 Cognex returned $206 million to shareholders, including $151 million in share repurchases, and initiated the exit of approximately $22 million of non-core, low-margin revenue to sharpen its portfolio.
4. Margin Expansion Drivers
Fourth-quarter adjusted EBITDA margin expanded 420 basis points year-over-year to 22.7%, driven by volume gains and mix improvements, while adjusted gross margin rose 220 basis points to 71.6%, partially offset by tariffs.