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Investing.com -- Cognex Corporation (NASDAQ:CGNX) saw its shares surge 12.2% after the industrial machine vision technology leader reported second-quarter earnings that exceeded analyst expectations and provided strong guidance for the third quarter.
The company posted adjusted earnings per share of $0.25, beating the analyst estimate of $0.24, while revenue reached $249 million, surpassing the consensus estimate of $246.13 million. Revenue increased 4% YoY, or 3% on a constant-currency basis, driven by growth in Logistics and strength in Factory Automation, particularly in Consumer Electronics and Packaging (NYSE:PKG).
"We’re focused on executing on our strategic priorities and delivering on our long-term financial framework to drive shareholder value," said Matt Moschner, President and CEO. "The second quarter represents an early, but meaningful, step forward in this journey."
Cognex’s adjusted EBITDA margin expanded to 20.7%, up 80 basis points YoY, marking the first time it exceeded 20% since the second quarter of 2023. Operating expenses declined 3% YoY, reflecting the company’s disciplined cost management approach.
For the third quarter of 2025, Cognex provided guidance for revenue between $245-265 million, above the consensus estimate of $248 million. The company also expects adjusted earnings per share of $0.24-$0.29, compared to analysts’ expectations of $0.24.
The strong performance was accompanied by robust cash generation, with operating cash flow increasing 54% YoY to $43 million. Free cash flow jumped 74% to $40 million compared to the same period last year.
Cognex also announced the launch of OneVision, a breakthrough cloud platform for AI-powered Machine Vision, further strengthening its technological leadership position in the industrial automation sector.
The company maintained its quarterly dividend of $0.08 per share, payable on August 28, 2025, to shareholders of record as of August 14, 2025.
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