Cognex (CGNX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $291.3M, up 17% year-over-year, with broad-based strength across major end markets and favorable foreign exchange impacts.

• Adjusted EBITDA margin reached 32.2%, expanding 1,150 basis points year-over-year, marking the eighth consecutive quarter of margin expansion.

• Net income per diluted share was $0.43, with adjusted EPS of $0.45, up 80% year-over-year.

• Launched One Vision™ platform, accelerating AI-powered vision application deployment and expanding into high-growth markets like data center supply chain.

• Growth driven by diversification across customers, channels, adjacencies, and end markets, with 4,500 new customers year-to-date and expansion into the data center supply chain.

Financial highlights

• Q2 2026 revenue: $291.3M (+17% year-over-year); adjusted gross profit: $208M (+23% year-over-year); adjusted EBITDA: $94M (+81% year-over-year); adjusted net income: $76M (+77% year-over-year).

• Adjusted gross margin expanded to 71.5% (+350bps year-over-year); operating margin rose to 29.4% (+1,200bps year-over-year).

• Free cash flow for Q2: $68M, up 70% year-over-year; trailing twelve-month free cash flow conversion rate: 114%.

• Cash and investments totaled $755M as of July 5, 2026; no long-term debt.

• Returned nearly 80% of free cash flow to shareholders via buybacks and dividends over the trailing 12 months.

Outlook and guidance

• Q3 2026 revenue guidance: $300–$320M, up 12–17% year-over-year; adjusted EBITDA margin: 32–35%; adjusted EPS: $0.50–$0.54.

• Full-year 2026 revenue guidance: $1,130–$1,150M, up 15–16% year-over-year; adjusted EBITDA margin: 29–31%; adjusted EPS: $1.64–$1.68, implying 63–71% year-over-year growth.

• Guidance reflects improved visibility and confidence in execution, despite monitoring macro and geopolitical risks.