What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 148 added, 96 removed, 496 unchanged (33% of the section changed)

3 unchanged sentences

(In thousands, except per share amounts)

Three-months Ended

April 5, 2026 March 30, 2025

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

(unaudited) (unaudited)

Revenue $ 291,263 $ 249,093 $ 559,700 $ 465,129

21 unchanged sentences

(In thousands)

Three-months Ended

April 5, 2026 March 30, 2025

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

(unaudited) (unaudited)

Net income $ 72,756 $ 40,511 $ 124,460 $ 64,114

1 unchanged sentence

Available-for-sale investments:

Net unrealized gain (loss), net of tax of $( 726 ) and $ 875 in the three-month periods, respectively

Net unrealized gain (loss), net of tax of $( 309 ) and $ 1,435 in the three months, respectively, and net of tax of $( 1,035 ) and $ 2,310 in the six-month periods, respectively

( 957 ) 1,742 ( 3,184 ) 4,453

8 unchanged sentences

(In thousands, except per share amounts)

April 5, 2026 December 31, 2025

July 5, 2026 December 31, 2025

Current assets:

46 unchanged sentences

(In thousands)

Three-months Ended

April 5, 2026 March 30, 2025

Six-months Ended

July 5, 2026 June 29, 2025

Cash flows from operating activities:

22 unchanged sentences

Maturities and sales of investments 56,000 248,570

Net proceeds from sale of business 11,519 —

Net proceeds from sale of business, net of direct costs 11,519 —

Purchases of property, plant, and equipment, net of proceeds ( 4,289 ) ( 4,695 )

3 unchanged sentences

Repurchase of common stock ( 105,231 ) ( 102,233 )

Payment of excise tax on prior year common stock repurchases ( 1,151 ) —

Payment of dividends ( 28,454 ) ( 26,981 )

7 unchanged sentences

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except per share amounts)

Common Stock Additional

Paid-in Capital Retained Earnings Accumulated

Comprehensive

Shareholders’

Shares Par Value

Balance as of April 5, 2026 (unaudited)

166,527 $ 333 $ 1,194,927 $ 344,443 $ ( 60,734 ) $ 1,478,969

Net issuance of common stock under stock plans 1,816 3 88,405 — — 88,408

Repurchase of common stock ( 126 ) — — ( 6,236 ) — ( 6,236 )

Excise tax on repurchase of common stock — — — 430 — 430

Stock-based compensation expense — — 11,212 — — 11,212

Payment of dividends ($ 0.085 per common share)

— — — ( 14,258 ) — ( 14,258 )

Net income — — — 72,756 — 72,756

Net unrealized gain (loss) on available-for-sale investments, net of tax of $( 309 )

— — — — ( 957 ) ( 957 )

Foreign currency translation adjustment — — — — ( 769 ) ( 769 )

Balance as of July 5, 2026 (unaudited) 168,217 $ 336 $ 1,294,544 $ 397,135 $ ( 62,460 ) $ 1,629,555

Common Stock Additional

Paid-in Capital Retained Earnings Accumulated

Comprehensive

Shareholders’

Shares Par Value

Balance as of March 30, 2025 (unaudited)

167,865 $ 336 $ 1,097,989 $ 405,949 $ ( 58,646 ) $ 1,445,628

Net issuance of common stock under stock plans 34 — 175 — — 175

Excise tax on repurchase of common stock — — — 11 — 11

Stock-based compensation expense — — 12,294 — — 12,294

Payment of dividends ($ 0.080 per common share)

— — — ( 13,431 ) — ( 13,431 )

Net income — — — 40,511 — 40,511

Net unrealized gain (loss) on available-for-sale investments, net of tax of $ 1,435

— — — — 1,742 1,742

Reclassification of net realized (gain) loss on the sale of available-for-sale investments — — — — ( 27 ) ( 27 )

Foreign currency translation adjustment — — — — 19,154 19,154

Balance as of June 29, 2025 (unaudited) 167,899 $ 336 $ 1,110,458 $ 433,040 $ ( 37,777 ) $ 1,506,057

The accompanying notes are an integral part of these consolidated financial statements.

COGNEX CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of dollars, except per share amounts)

8 unchanged sentences

Repurchase of common stock ( 2,501 ) ( 5 ) — ( 105,226 ) — ( 105,231 )

Excise tax on repurchase of common stock — — — ( 430 ) — ( 430 )

Stock-based compensation expense — — 23,145 — — 23,145

6 unchanged sentences

Foreign currency translation adjustment — — — — ( 5,752 ) ( 5,752 )

Balance as of April 5, 2026 (unaudited)

Balance as of July 5, 2026 (unaudited)

168,217 $ 336 $ 1,294,544 $ 397,135 $ ( 62,460 ) $ 1,629,555

8 unchanged sentences

Repurchase of common stock ( 3,047 ) ( 6 ) — ( 102,227 ) — ( 102,233 )

Excise tax on repurchase of common stock — — — ( 1,169 ) — ( 1,169 )

Stock-based compensation expense — — 22,233 — — 22,233

6 unchanged sentences

Foreign currency translation adjustment — — — — 30,601 30,601

Balance as of March 30, 2025 (unaudited)

Balance as of June 29, 2025 (unaudited)

167,899 $ 336 $ 1,110,458 $ 433,040 $ ( 37,777 ) $ 1,506,057

3 unchanged sentences

Summary of Significant Accounting Policies

As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by accounting principles generally accepted in the United States ("GAAP").

Reference should be made to the consolidated financial statements and related notes included in Cognex Corporation's ("Cognex" or the "Company") Annual Report on Form 10-K for the year ended December 31, 2025 for a full description of other significant accounting policies.

In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications necessary to present fairly the Company’s financial position as of April 5, 2026, and the results of its operations for the three-month periods ended April 5, 2026 and March 30, 2025, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 5, 2026 are not necessarily indicative of the results to be expected for the full year.

In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications necessary to present fairly the Company’s financial position as of July 5, 2026, and the results of its operations for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.

The results disclosed in the Consolidated Statements of Operations for the three-month or six-month periods ended July 5, 2026 are not necessarily indicative of the results to be expected for the full year.

New Pronouncements

31 unchanged sentences

Cash, Cash Equivalents, and Investments

The following table summarizes the Company’s cash, cash equivalents, and investments as of April 5, 2026 (in thousands):

The following table summarizes the Company’s cash, cash equivalents, and investments as of July 5, 2026 (in thousands):

Fair Value Level Amortized

20 unchanged sentences

and asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement.

All of the Company's securities as of April 5, 2026 and December 31, 2025 were denominated in U.S.

All of the Company's securities as of July 5, 2026 and December 31, 2025 were denominated in U.S.

Dollars, with the exception of certain certificates of deposit.

3 unchanged sentences

They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations.

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $ 3,793,000 and $ 3,852,000 as of April 5, 2026 and December 31, 2025,

Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $ 5,051,000 and $ 3,852,000 as of July 5, 2026 and December 31, 2025,

COGNEX CORPORATION

2 unchanged sentences

Realized Gains (Losses) on Debt Securities

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month periods ended April 5, 2026 and March 30, 2025 (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

The following table summarizes the Company's gross realized gains and losses on the sale of debt securities for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively (in thousands):

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Gross realized gains $ — $ 30 $ 28 $ 57

4 unchanged sentences

Unrealized Losses on Debt Securities

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 5, 2026 (in thousands):

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of July 5, 2026 (in thousands):

Unrealized Loss Position For:

18 unchanged sentences

When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows.

Based on this evaluation, no allowance for credit losses on debt securities was recorded as of April 5, 2026 or December 31, 2025.

Based on this evaluation, no allowance for credit losses on debt securities was recorded as of July 5, 2026 or December 31, 2025.

Management currently intends to hold these securities to full value recovery at maturity.

2 unchanged sentences

Debt Securities Maturities

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 5, 2026 (in thousands):

<1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 5, 2026 (in thousands):

<1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-8 Years Total

Corporate bonds $ 95,908 $ 87,861 $ 120,459 $ 54,883 $ 69,561 $ — $ 428,672

8 unchanged sentences

The Company had the following outstanding forward contracts (in thousands):

April 5, 2026 December 31, 2025

July 5, 2026 December 31, 2025

Currency Notional

7 unchanged sentences

British Pound 4,000 5,308 4,000 5,383

Japanese Yen 800,000 5,034 400,000 2,563

Swiss Franc 2,000 2,515 — —

Indian Rupee 300,000 3,163 400,000 4,436

Swiss Franc 2,000 2,487 — —

Korean Won — — 9,000,000 6,239

Japanese Yen — — 400,000 2,563

COGNEX CORPORATION

3 unchanged sentences

Fair Value Fair Value

Balance Sheet Location Fair Value Level April 5, 2026 December 31, 2025 Balance Sheet Location Fair Value Level April 5, 2026 December 31, 2025

Balance Sheet Location Fair Value Level July 5, 2026 December 31, 2025 Balance Sheet Location Fair Value Level July 5, 2026 December 31, 2025

Derivatives Not Designated as Hedging Instruments:

3 unchanged sentences

Net amounts presented on the Consolidated Balance Sheets $ 501 $ 791 $ 1,979 $ 367

The Company’s forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability and are therefore classified as Level 2.

The Company’s foreign currency forward contracts are measured at fair value using observable market inputs, including quoted forward foreign exchange rates obtained from a large, third-party pricing service.

As the valuation uses observable market data and does not rely on significant unobservable inputs, these contracts are classified within Level 2 of the fair value hierarchy.

The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency.

1 unchanged sentence

Information regarding the effect of derivative instruments on the Consolidated Statements of Operations was as follows (in thousands):

Statement of Operations Location Three-months Ended

April 5, 2026 March 30, 2025

Statement of Operations Location Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Derivatives Not Designated as Hedging Instruments:

2 unchanged sentences

Inventories consisted of the following (in thousands):

April 5, 2026 December 31, 2025

July 5, 2026 December 31, 2025

Raw materials $ 73,345 $ 75,417

9 unchanged sentences

Foreign exchange rate changes ( 4,353 )

Balance as of April 5, 2026 $ 382,818

Amortized intangible assets as of April 5, 2026 consisted of the following (in thousands):

Balance as of July 5, 2026 $ 381,385

Amortized intangible assets as of July 5, 2026 consisted of the following (in thousands):

Value Accumulated

4 unchanged sentences

Non-compete agreements 60 ( 58 ) 2

Balance as of April 5, 2026 $ 113,941 $ ( 46,801 ) $ 67,140

Balance as of July 5, 2026 $ 113,416 $ ( 48,952 ) $ 64,464

Amortized intangible assets as of December 31, 2025 consisted of the following (in thousands):

6 unchanged sentences

Balance as of December 31, 2025 $ 127,716 $ ( 46,616 ) $ 81,100

Future amortization expense related to intangible assets as of April 5, 2026 is as follows (in thousands):

Future amortization expense related to intangible assets as of July 5, 2026 is as follows (in thousands):

Remainder of fiscal 2026 $ 4,309

Thereafter 24,541

On April 1, 2026, the Company completed the divestiture of its Japan-focused trading business, which was originally acquired as part of the acquisition of Moritex Corporation in 2023.

On April 1, 2026, the Company completed the divestiture of its Japan-focused trading business, which was originally acquired as part of the acquisition of Moritex Corporation ("Moritex") in 2023.

In connection with the divestiture, the Company derecognized $ 541,000 of goodwill and $ 10,636,000 of customer relationship intangible assets, representing the net carrying amounts attributable to the disposed business.

7 unchanged sentences

Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.

The changes in the warranty obligation for the three-month periods ended April 5, 2026 and March 30, 2025 were as follows (in thousands):

The changes in the warranty obligation for the six-month periods ended July 5, 2026 and June 29, 2025 were as follows (in thousands):

Balance as of December 31, 2025 $ 5,474

1 unchanged sentence

Fulfillment of warranty obligations ( 2,112 )

Balance as of April 5, 2026 $ 5,648

Balance as of July 5, 2026 $ 6,280

Balance as of December 31, 2024 $ 5,140

2 unchanged sentences

Foreign exchange rate changes 17

Balance as of March 30, 2025 $ 5,728

Balance as of June 29, 2025 $ 5,918

Commitments and Contingencies

As of April 5, 2026, the Company had outstanding purchase orders totaling $ 50,616,000 to procure inventory from various vendors.

As of July 5, 2026, the Company had outstanding purchase orders totaling $ 66,839,000 to procure inventory from various vendors.

Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties.

These purchase commitments relate primarily to expected sales in the next twelve months.

A significant portion of the Company's outstanding inventory purchase orders as of April 5, 2026, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products.

A significant portion of the Company's outstanding inventory purchase orders as of July 5, 2026, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products.

The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer.

1 unchanged sentence

Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.

The Company's accrual for such losses was not material as of April 5, 2026 and March 30, 2025.

The Company's accrual for such losses was not material as of July 5, 2026 and June 29, 2025.

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company.

4 unchanged sentences

Stock Repurchase Program

In March 2022, the Company's Board of Directors (the "Board") authorized a program providing for the repurchase of $ 500,000,000 of the Company's common stock (the "Program").

Under the Program, in addition to repurchases made in prior periods, the Company repurchased 3,047,000 shares at a total cost of $ 103,413,000 during the three-month period ended March 30, 2025 and 2,375,000 shares at a total cost of $ 98,995,000 during the three-month period ended April 5, 2026, leaving a remaining balance of $ 16,025,000 as of April 5, 2026.

On February 11, 2026, the Board authorized the repurchase of an additional $ 500,000,000 of the Company's common stock upon completion of the Program.

In March 2022, the Company's Board of Directors (the "Board") authorized a program providing for the repurchase of up to $ 500,000,000 of the Company's common stock (the "Program").

Under the Program, in addition to repurchases made in prior periods, the Company repurchased 3,047,000 shares at a total cost of $ 102,233,000 during the six-month period ended June 29, 2025 and 2,501,000 shares at a total cost of $ 105,231,000 during the six-month period ended July 5, 2026, leaving a remaining balance of $ 9,789,000 as of July 5, 2026.

On February 11, 2026, the Board authorized the repurchase of up to an additional $ 500,000,000 of the Company's common stock upon completion of the Program.

The Company may repurchase shares under these programs in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements.

2 unchanged sentences

The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs").

The following table summarizes the number of stock-based awards granted by the Company and the weighted-average grant-date fair value per unit for the three-month periods ended April 5, 2026 and March 30, 2025:

Three-months Ended

April 5, 2026 March 30, 2025

The following table summarizes the number of stock-based awards granted by the Company and the weighted-average grant-date fair value per unit for the three-month and six-month periods ended July 5, 2026 and June 29, 2025:

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Stock-Based Awards Granted

2 unchanged sentences

thousands) Weighted-

Grant-Date Fair Value Stock-Based Awards Granted

thousands) Weighted-

Grant-Date Fair Value Stock-Based Awards Granted

thousands) Weighted-

Grant-Date Fair Value

2 unchanged sentences

Performance restricted stock units — $ — — $ — 71 $ 56.13 184 $ 32.14

During the three-month periods ended April 5, 2026 and March 30, 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date.

14 290 1,156 3,082

During the first quarters of 2026 and 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date.

The number of shares earned could range between 0 % and 120 % based on achievement of the performance condition, which includes certain financial targets.

3 unchanged sentences

one consisting of senior management and members of the Board, and another consisting of all other employees.

The Company currently applies an estimated annual forfeiture rate of 12 % to all stock-based awards for senior management and a rate of 13 % for all other employees.

The Company currently applies an estimated annual forfeiture rate of 12 % to all stock-based awards for senior management and members of the Board and a rate of 13 % for all other employees.

Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover.

1 unchanged sentence

Additionally, in the first quarter of 2026, the Company revised its forfeiture rate applied specifically to stock-based awards for its former chief executive officer to 100 % due to his retirement from the Board effective March 2, 2026, resulting in credits of $ 5,031,000 .

As of April 5, 2026, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $ 68,857,000 , which is expected to be recognized over a weighted-average period of 1.8 years.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of July 5, 2026, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $ 58,768,000 , which is expected to be recognized over a weighted-average period of 1.6 years.

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Cost of revenue $ 592 $ 537 $ 1,517 $ 1,205

2 unchanged sentences

Total stock-based compensation expense $ 11,212 $ 12,294 $ 23,145 $ 22,233

No compensation expense was capitalized as of April 5, 2026 or December 31, 2025.

No compensation expense was capitalized as of July 5, 2026 or December 31, 2025.

Revenue Recognition

The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Americas $ 117,037 $ 92,137 $ 238,338 $ 191,867

4 unchanged sentences

The following table summarizes disaggregated revenue information by revenue type (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Standard products and services 247,100 216,035 504,635 420,545

2 unchanged sentences

Costs to Fulfill a Contract

Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $ 17,224,000 and $ 10,592,000 as of April 5, 2026 and December 31, 2025, respectively.

Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $ 20,120,000 and $ 10,592,000 as of July 5, 2026 and December 31, 2025, respectively.

Accounts Receivable, Contract Assets, and Contract Liabilities

Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value.

Accounts receivable represents amounts billed and currently due from customers which are reported at their net estimated realizable value.

The Company maintains an allowance against its accounts receivable for credit losses.

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the deferred revenue and customer deposits activity for the three-month periods ended April 5, 2026 and March 30, 2025 (in thousands):

The following table summarizes the deferred revenue and customer deposits activity for the six-month periods ended July 5, 2026 and June 29, 2025, respectively (in thousands):

Balance as of December 31, 2025 $ 21,094

3 unchanged sentences

Foreign exchange rate changes 342

Balance as of April 5, 2026 $ 34,053

Balance as of July 5, 2026 $ 48,978

Balance at December 31, 2024 $ 25,035

2 unchanged sentences

Foreign exchange rate changes 655

Balance as of March 30, 2025 $ 39,858

Balance as of June 29, 2025 $ 53,077

As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations for our contracts that have an original expected duration of less than one year.

The remaining unsatisfied performance obligations for our contracts that have an original expected duration of more than one year, primarily related to extended warranties, are not material.

The Company's effective tax rate was 16 % and 15 % for the three-month periods ended April 5, 2026 and March 30, 2025, respectively.

The Company's effective tax rate was 19 % and 18 % for the three-month and six-month periods ended July 5, 2026, respectively and 16 % and 15 % for the three-month and six-month periods ended June 29, 2025, respectively.

For the three-month period ended July 5, 2026, the Company recorded a net discrete tax expense of $ 450,000 primarily driven by return-to-provision adjustments and uncertain tax reserves.

For the six-month period ended July 5, 2026, the Company recorded a net discrete tax benefit of $ 729,000 primarily driven by excess tax benefits related to stock-based compensation.

For the three-month period ended June 29, 2025, the Company recorded a net discrete tax benefit of $ 211,000 , primarily driven by adjustments to uncertain tax reserves partially offset by excess tax liabilities related to stock-based compensation.

For the six-month period ended June 29, 2025, the Company recorded a net discrete benefit of $ 518,000 primarily driven by adjustments to deferred tax balances and uncertain tax reserves partially offset by excess tax liabilities related to stock-based compensation.

Excluding the impact of discrete tax items, the Company's effective tax rate was 18 % for the three-month and six-month periods in 2026 and 16 % for the same periods in 2025.

The increase was primarily due to a greater portion of Company's pre-tax income being earned in higher tax rate jurisdictions.

The Company has defined its major tax jurisdictions as the United States, Ireland, China, Japan, and Korea, and within the United States, Massachusetts.

1 unchanged sentence

federal statutory corporate tax rate of 21 %.

These foreign tax rate differences resulted in a favorable impact to the effective tax rate for both the three-month periods ended April 5, 2026 and March 30, 2025.

For the three-month period ended April 5, 2026, the Company recorded a net discrete tax benefit of $ 1,179,000 , primarily driven by excess tax benefits related to stock‑based compensation.

For the three-month period ended March 30, 2025, the Company recorded a net discrete tax benefit of $ 307,000 , primarily driven by deferred tax adjustments partially offset by excess tax liabilities related to stock‑based compensation.

The Company’s reserve for income taxes, including gross interest and penalties, was $ 24,195,000 as of April 5, 2026, of which $ 21,336,000 was classified as a non-current liability and $ 2,859,000 was classified as an offset to deferred tax assets.

These foreign tax rate differences resulted in a favorable impact to the effective tax rate for both the three-month and six-month periods ended July 5, 2026 and June 29, 2025.

The Company’s reserve for income taxes, including gross interest and penalties, was $ 24,935,000 as of July 5, 2026, of which $ 21,963,000 was classified as a non-current liability and $ 2,972,000 was classified as an offset to deferred tax assets.

If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period.

Within the United States, the tax years 2022 through 2025 remain open to examination by the Internal Revenue Service, and 2021 through 2025 remain open to examination by various state tax authorities.

The tax years 2017 through 2025 remain open to examination by various international taxing authorities in other jurisdictions in which the Company operates.

Within the United States, the tax years 2022 through 2025 r emain open to examination by the Internal Revenue Service, a nd 2021 through 2025 re main open to examination by various state tax authorities.

The tax years 2017 through 2025 remain open to examination by various international taxing authorities in other jurisdictions in w hich the Company operates.

COGNEX CORPORATION

5 unchanged sentences

multinational entity exposure to top-up tax under Pillar Two, which expired at the end of 2025.

In 2026, OECD released the framework for a side-by-side system, providing a permanent solution for multinational entities headquartered in jurisdictions that had not fully adopted the Pillar Two Model Rules into domestic law but have current domestic tax regimes meeting certain requirements, including a high statutory tax rates (at least 20%) that had not fully adopted the Pillar Two Model Rules into domestic law.

However, uncertainty remains related to the implementation of this arrangement across the various jurisdictions in which the Company operates, and the Company is now subject to top-up tax effective January 1, 2026.

This minimum tax is treated as a period cost but did not have a material impact on the Company's financial results of operations for the three-month period ended April 5, 2026.

However, given that uncertainty remains related to the implementation of this arrangement across the various jurisdictions in which the Company operates, the Company anticipates exposure to top-up tax effective January 1, 2026.

This minimum tax is treated as a period cost but did not have a material impact on the Company's financial results of operations for the six-month period ended July 5, 2026.

The Company continues to monitor legislative developments.

Earnings per Share

The following table shows the computation of basic and diluted earnings per share for the three-month periods ended April 5, 2026 and March 30, 2025 (in thousands, except per share amounts):

Three-months Ended

April 5, 2026 March 30, 2025

The following table shows the computation of basic and diluted earnings per share for the three-month and six-month periods ended July 5, 2026 and June 29, 2025 (in thousands, except per share amounts):

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Net income $ 72,756 $ 40,511 $ 124,460 $ 64,114

5 unchanged sentences

Diluted 0.43 0.24 0.74 0.38

The computation of diluted weighted-average common shares outstanding excludes the following weighted average anti-dilutive stock-based awards outstanding for the three-month periods ended April 5, 2026 and March 30, 2025 (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

The computation of diluted weighted-average common shares outstanding excludes the following weighted average anti-dilutive stock-based awards outstanding for the three-month and six-month periods ended July 5, 2026 and June 29, 2025 (in thousands):

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Stock options 1,776 10,418 2,661 10,095

11 unchanged sentences

Segment expenses were disaggregated based on the information the chief operating decision maker uses to assess performance and allocate resources considering both quantitative and qualitative factors.

The following table summarizes significant segment expenses, which represents the difference between segment revenue and segment net income (in thousands):

Three-months Ended

April 5, 2026 March 30, 2025

The following table summarizes significant segment expenses, which represent the difference between segment revenue and segment net income (in thousands):

Three-months Ended Six-months Ended

July 5, 2026 June 29, 2025 July 5, 2026 June 29, 2025

Revenue $ 291,263 $ 249,093 $ 559,700 $ 465,129

5 unchanged sentences

Incentive compensation (2)

2,296 2,368 4,320 3,439

Stock-based compensation 3,388 3,443 8,482 8,139

1 unchanged sentence

Other segment expenses (3)

7,270 6,997 17,601 16,928

Total research, development, and engineering expenses 32,391 33,102 69,416 67,829

15 unchanged sentences

Net income $ 72,756 $ 40,511 $ 124,460 $ 64,114

(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $ 3,067,000 and $ 3,018,000 for the three-month periods ended April 5, 2026 and March 30, 2025, respectively.

(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $ 3,036,000 and $ 6,103,000 for the three-month and six-month periods ended July 5, 2026, respectively, and $ 3,144,000 and $ 6,162,000 for the three-month and six-month periods ended June 29, 2025, respectively.

(2) Incentive compensation includes company bonus and sales commissions.

(3) Other segment expenses include outside services, prototyping materials, sales demonstration equipment, travel and entertainment, marketing programs, rent, and reorganization charges, among other less significant expenses.

Segment assets amounted to $ 2,005,618,000 and $ 2,016,555,000 as of April 5, 2026 and December 31, 2025, respectively.

Segment assets amounted to $ 2,178,650,000 and $ 2,016,555,000 as of July 5, 2026 and December 31, 2025, respectively.

COGNEX CORPORATION

1 unchanged sentence

Business Disposal

On April 1, 2026, the Company completed the divestiture of its Japan-focused trading business, which was originally acquired as part of the acquisition of Moritex Corporation ("Moritex") in 2023.

On April 1, 2026, the Company completed the divestiture of its Japan-focused trading business, which was originally acquired as part of the acquisition of Moritex in 2023.

The disposal group met the definition of a business under ASC 805 as it included inputs and substantive processes that together significantly contributed to the ability to create outputs.

7 unchanged sentences

Total liabilities $ 314

The Company recognized a pre-tax loss of ¥ 240,445,000 Japanese Yen ($ 1,539,000 U.S.

Dollars based on the closing-date foreign exchange rate), which includes direct costs associated with the divestiture incurred during the three-month period ended April 5, 2026 of ¥ 82,895,000 Japanese Yen ($ 530,000 U.S.

Dollars based on the closing-date foreign exchange rate) and is presented within “Other income (expense)” in the Consolidated Statements of Operations for the three-month period ended April 5, 2026.

In the first quarter of 2026, the Company recognized a pre-tax loss of ¥ 240,445,000 Japanese Yen ($ 1,539,000 U.S.

Dollars based on the closing-date foreign exchange rate), which includes direct costs associated with the divestiture of ¥ 82,895,000 Japanese Yen ($ 530,000 U.S.

Dollars based on the closing-date foreign exchange rate) and is presented within “Other income (expense)” in the Consolidated Statements of Operations for the six-month period ended July 5, 2026.

The transaction did not have a material impact on the Company’s income tax expense or tax position.

1 unchanged sentence

For the year ended December 31, 2025, the divested business accounted for approximately 2 % of the Company’s overall revenue.

Accordingly, the transaction does not meet the criteria for discontinued operations presentation and as a result, the results of operations of the disposal group are presented within continued operations for the three-month period ended April 5, 2026.

The business was not a reportable segment and was included within the Company’s single operating segment as described in Note 12, Segment Information.

5 unchanged sentences

Following the divestiture, the remaining goodwill associated with the continuing reporting unit was supported by a substantial excess of fair value of the reporting unit over its carrying value, and therefore no impairment charge was recognized.

COGNEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Subsequent Events

On May 6, 2026, the Board declared a cash dividend of $ 0.085 per share.

The dividend is payable on June 4, 2026 to all shareholders of record as of the close of business on May 21, 2026.

Additionally, on April 29, 2026, the shareholders of the Company approved an amendment to the Cognex Corporation 2023 Stock Option and Incentive Plan (the “2023 Plan”) to increase the maximum amount of shares of common stock available to be issued under the plan by 4,600,000 shares.

On August 5, 2026, the Board declared a cash dividend of $ 0.085 per share.

The dividend is payable on September 3, 2026 to all shareholders of record as of the close of business on August 20, 2026.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements