Cognex (CGNX)
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-09
$61.87-0.58%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Cognex grows revenue about 10% a year, backed by strong demand. Profit margins stay healthy near 20%. Operating income rose from $26M to $60M in one year. The company shows steady progress on key priorities.
Revenue growth could slow if logistics spending shrinks more. Margins may compress if cost control weakens. The recent guidance cut signals risks to near-term growth.
The price is about 29% above our fair value near $50. Analysts expect roughly 10% revenue growth. Our fair value is below the Street median, reflecting caution on margin and growth sustainability.
Breaks if: Gross profit falls below $144M in any quarter
Breaks if: Operating income falls below $26M in any quarter
Breaks if: Revenue falls below $268M in 2026-Q2
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a durable compounder with a focus on revenue growth and margin expansion. The current thesis state is intact, supported by strong recent results, but the valuation is stretched compared to peers.
The market seems to expect continued strong performance, but the valuation is expensive relative to peers. There is a low expectations gap, indicating that investors may be cautious about potential future performance.
Management is on track with priorities to increase revenue growth and expand margins. Recent financial performance has been strong, but there is moderate risk due to the potential for guidance cuts in future earnings calls.
Key factors include the Fed's interest rate decisions and the performance of sector bellwethers. If these companies continue to perform well, it could support CGNX's growth.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Revenue growth is also increasing, which is a good sign. There are no new threats identified that could weaken this view.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Drive broad-based revenue growth across major end markets with focus on AI-enabled machine vision and diversification.
Stated as a priority in 2 of last 2 quarters. Revenue grew from $216 million in 2025-Q1 to $268 million in 2026-Q1 (+24%), and from $249 million in 2025-Q2 to $291 million in 2026-Q2 (+17%). Management emphasizes broad-based strength and diversification, and the trajectory is delivering strong growth.
“Record quarterly revenue of $291 million, up 17% year over year, driven by broad-based strength across most major end markets.”
“Revenue increased 24% year over year, or 21% on a constant-currency basis, exceeding expectations due to broad-based strength across major end markets.”
Over the next 1 to 3 years, CGNX's performance will depend on management execution and external economic factors. Not investment advice.