Key Takeaways CGNX expects Q4 revenues of $230-$245 million and EPS of 19-24 cents per share in the quarter overall.Cognex expects SLX adoption in logistics and AI-enabled products to drive sales and win clients in packaging.CGNX sees continued growth in consumer electronics, modest semiconductor gains and benefits from cost control.Cognex (CGNX) is scheduled to report its fourth-quarter 2025 results on Feb. 11.For the fourth quarter of 2025, CGNX expects revenues between $230 million and $245 million, sugg ...

The Zacks Electronics – Testing Equipment industry players like AMETEK (AME) , Fortive (FTV) and Cognex (CGNX) are benefiting from 5G-related growth opportunities, strengthening automation drive and the Industry 4.0 momentum. The increasing adoption of software-enabled testing instruments and devices is another positive. However, the industry has been suffering from a challenging global macroeconomic environment, end-market volatility, unfavorable forex and growing geopolitical tensions. The sluggish automo ...

Baron Fund, an investment management company, released its Q4 2025 letter for “Baron Small Cap Fund”. A copy of the letter can be downloaded here. The market extended its positive trends in the fourth quarter. The Baron Small Cap Fund was down 1.56% in the quarter compared to 1.22% gain for the Russell 2000 Growth Index. The fund returned (0.66)% in 2025, trailing the index by 13.67 percentage points. The yearly performance was weak both on an absolute and a relative basis. Large-cap growth stocks led the ...

The last couple of years have proven that automation isn’t immune to larger macroeconomic cycles, as many companies have pulled back on their spending in the face of weaker demand and greater uncertainty. That has made life difficult for Cognex (Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

The last couple of years have proven that automation isn’t immune to larger macroeconomic cycles, as many companies have pulled back on their spending in the face of weaker demand and greater uncertainty. That has made life difficult for Cognex (Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

Global Automation The Long View: Robotics -- Physical AI and the next phase of industrial Robot Renaissance Jay Huang, Ph.D. +852 2123 2631 jay.huang@bernsteinsg.com Weibin Liang, Ph.D. +852 2123 2666 weibin.liang@bernsteinsg.com Dien Wang, Ph.D. +852 2123 2622 dien.wang@bernsteinsg.com Robotics is a frontier of physical AI. For industrial robots, there has been a notable inflection in adoption — a renaissance — since around 2020 (Exhibit 4). Most recently, the progression of AI is ushering this Robot Renai ...

Core Insights - Cognex Corporation (NASDAQ:CGNX) is recognized as one of the 14 Best Mid-Cap Dividend Stocks to Buy Now [1] - Barclays has adjusted its price target for Cognex to $54 from $56 while maintaining an Overweight rating, citing strong demand in industrial technology sectors [2] Group 1: Product Development and Market Position - Cognex has launched its first lineup of Solutions Experience (SLX™) devices aimed at addressing common challenges in major industrial verticals [3] - The initial SLX devices focus on logistics, designed for both new automation facilities and as add-ons for existing automated systems, featuring reliable barcode reading and AI-powered item detection [4] - Future plans include expanding the SLX lineup with more AI-driven, user-friendly devices tailored to specific automation needs, aiming to reduce total cost of ownership (TCO) and enhance overall equipment effectiveness (OEE) [5] Group 2: Industry Outlook - The industrial technology sector is experiencing strong demand trends in key markets such as data centers, factory automation, electronics, test and measurement, and semiconductors, which supports a positive outlook for Cognex [2]

Summary of the Conference Call on Robotics and Physical AI Industry Overview - The discussion centers around the **industrial robotics industry**, highlighting a significant shift in adoption since 2020, referred to as a **Robot Renaissance** [1][16]. - The industry is experiencing a new phase driven by advancements in **AI**, which is expected to elevate the **CAGR** (Compound Annual Growth Rate) to the low-teens and significantly increase the long-term **TAM** (Total Addressable Market) [1][2]. Key Points and Arguments Evolution of Robotics - The original Robot Renaissance involved a transition from **pre-programmed, fixed paths** to **real-time flexible path planning**, enabling applications like machine tending, palletizing, and smart welding [2][6]. - The next phase focuses on **complex task planning**, allowing for high dexterity tasks and deeper collaborations between machines and humans [2][6]. - Without these advancements, growth in the industrial robot sector would likely slow to single digits; however, the forecasted ten-year CAGR is expected to accelerate to **12%** [2][11]. Role of Physical AI - **Physical AI** is described as a multi-layer AI ecosystem that enhances robot capabilities without disrupting existing robot manufacturers [3][4]. - The ecosystem includes: 1. Robots and their **digital twins** 2. **Task/path planning software** powered by multimodal AI 3. **Sensors** for collecting physical data 4. A **digital representation** of the environment for simulating interactions [3][30]. Market Dynamics - Demand for **sensors**, both vision and non-vision, is expected to rise significantly, supporting advanced robotic task planning and the development of "world models" [4][38]. - Leading companies like **FANUC** are expanding into the "brain" layer of Physical AI while seeking collaborations in both the "brain" and "world" layers [4][38]. Key Beneficiaries - Major beneficiaries of the trends in industrial robotics include **FANUC**, **Keyence**, and **Mech-Mind** (the latter being a private company) [5][35]. - The report recommends an **Outperform** rating for FANUC, Keyence, Inovance, Cognex, Hikvision, and Harmonic Drive, while suggesting a **Market Perform** rating for Estun [51]. Additional Insights - The report emphasizes the **variance in robot penetration** across different industries, indicating significant growth potential in sectors with low automation adoption rates [2][19]. - The integration of **NVIDIA's technology** with FANUC's systems is highlighted as a strategic move to enhance simulation capabilities in production environments [49]. Conclusion - The industrial robotics sector is poised for substantial growth driven by advancements in Physical AI and complex task planning, with key players positioned to benefit from these trends. The forecasted CAGR of **12%** over the next decade reflects the optimistic outlook for the industry [2][11].

Core Viewpoint - Cognex Corporation (NASDAQ:CGNX) is recognized for its strong performance and potential in the machine vision market, despite a cautious outlook from Truist for the industrial sector in 2026 [2][3]. Financial Performance - In Q3 2025, Cognex reported revenue of $277 million, reflecting an 18% increase year-over-year [4]. - The operating margin was 20.9%, and the adjusted EBITDA margin improved to 24.9%, marking a 730 basis point increase from the previous year [4]. - Net income per diluted share was $0.10, while adjusted diluted EPS reached $0.33, a 69% increase from the prior year, indicating the fifth consecutive quarter of earnings growth [5]. - Operating cash flow improved to $87 million, up from $56 million in Q3 2024 [5]. Shareholder Returns - The company returned $37 million to shareholders during the quarter, exceeding 100% of free cash flow over the past twelve months [6]. Product Development - Cognex launched its Solutions Experience (SLX) product portfolio in Logistics, which integrates AI-enabled vision applications into a growing logistics market [6]. Market Position - Cognex is a leading provider of machine vision systems, software, sensors, and industrial barcode readers utilized in manufacturing and automation globally [7].

Core Insights - The Mairs & Power Growth Fund reported a 7.99% gain in Q3 2025, closely aligning with the S&P 500 Total Return Index's 8.12% and outperforming the Morningstar Large Blend index's 6.93% [1] - Year-to-date, the fund is up 10.12%, trailing the S&P 500 TR at 14.83% and the peer group at 13.06% [1] Company Insights - Cognex Corporation (NASDAQ:CGNX) is highlighted as a key investment, providing machine vision products that automate manufacturing and distribution tasks [2][3] - Cognex's stock had a one-month return of 2.32% and a 52-week gain of 0.53%, with a market capitalization of $6.354 billion as of December 10, 2025 [2] - The company reported Q3 2025 revenue of $277 million, an 18% year-over-year increase, or 16% on a constant currency basis [4] Industry Insights - The machine vision field has seen significant advancements due to AI, enabling systems to operate reliably in real-world conditions, which is expected to accelerate adoption in the coming years [3] - Cognex is positioned to benefit from the trend of manufacturing onshoring in the U.S. and the increasing demand for factory automation [3]