Cognex posts record Q3 revenue of $313 million and raises 2026 outlook

Record revenue and wider margins

For the quarter ended October 4, 2026, Cognex said revenue rose 13% from the year-earlier period, driven by broad-based strength across most major end markets. The prior-year quarter included a one-time benefit from a commercial partnership with a medical lab automation channel partner. Excluding that benefit, the company said revenue grew 19%.

Profitability improved sharply. Operating income was $101 million, up 74% from $58 million, and operating margin reached 32.2% against 20.9% a year earlier. Adjusted EBITDA was $111 million, with a margin of 35.5%, up 1,060 basis points. Excluding the partnership benefit, the adjusted EBITDA margin expanded 1,340 basis points, which Cognex described as the ninth consecutive quarter of margin expansion.

Net income per diluted share was $0.50, compared with $0.10 a year ago. Adjusted diluted earnings per share were $0.53, up 61%, or up 89% excluding the partnership benefit.

Gross margin was 70.8%, versus 67.6% in the third quarter of 2025. Adjusted gross margin was 71.3%, up 290 basis points. According to the company, favorable mix, higher volume and faster-than-expected pricing execution more than offset the expected memory cost headwinds. Operating expenses fell 7% to $121 million.

RealSense acquisition and new semiconductor product

Cognex announced a definitive agreement to acquire RealSense, Inc., which it describes as a leader in depth-sensing cameras and vision technology for robotic perception and physical artificial intelligence. The all-cash transaction is expected to close during the fourth quarter of 2026.

President and CEO Matt Moschner said the deal expands the company's long-term growth opportunity. He added that Cognex believes it is "strengthening our leadership in AI-powered machine vision through innovation." CFO Dennis Fehr said the company's balance sheet and capital allocation strategy enabled the acquisition while keeping flexibility for organic and inorganic investment.

Cognex also launched the In-Sight 1750, a next-generation wafer and panel identification system designed for the semiconductor industry, which the company called one of the most demanding automation markets. Separately, it will host its 2027 Investor Day in June at its headquarters in Natick, Massachusetts.

Cash position, dividend and guidance

As of October 4, 2026, Cognex held $846 million in cash and investments and had no debt. Operating cash flow in the quarter was $106 million, up 22% from $87 million. Free cash flow was $104 million, up 21%, and the company paid $14 million in dividends.

The board declared a quarterly dividend of $0.09 per share, an increase of $0.005, or about 6%, from the prior quarter's $0.085. It is payable on December 3, 2026, to shareholders of record at the close of business on November 19, 2026.

Cognex raised its full-year 2026 guidance:

• Revenue: $1,143 million to $1,163 million, up from $1,130 million to $1,150 million.
• Adjusted EBITDA margin: 31% to 32%, up from 29% to 31%.
• Adjusted diluted EPS: $1.68 to $1.72, up from $1.64 to $1.68.

For the fourth quarter, the company guided to revenue of $270 million to $290 million, an adjusted EBITDA margin of 29% to 32% and adjusted diluted EPS of $0.37 to $0.41.

What it means

The results show Cognex combining higher sales with lower operating costs, and Fehr pointed to adjusted EBITDA flow-through above 100%. The RealSense deal, if completed as planned, would add depth-sensing technology aimed at robotics and physical AI, areas the company says it sees as powerful trends. The raised outlook indicates management expects strong double-digit revenue growth and higher profitability to continue through the end of 2026.