Cognex Corporation (CGNX) Stock Analysis
Technology · Scientific & Technical Instruments
Sell if holding. At $66.29, A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.0): -1.5; Thin upside margin: 3.5%.
Cognex makes machine vision systems, sensors, vision software, and barcode readers for factory and warehouse automation, selling globally across logistics, packaging, consumer electronics, and automotive markets. With 67% of 2025 revenue from international customers, the company... Read more
Sell if holding. At $66.29, A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.0): -1.5; Thin upside margin: 3.5%. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.0/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 44d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Cognex Corporation
About Cognex Corporation
67% of Cognex's revenue in 2025 came from customers outside the United States, with approximately 25% from Europe, 16% from Greater China, and 26% from other international regions. The company employed 2,745 people at December 31, 2025 and spent $139 million on research, development, and engineering — 14% of revenue. Cognex's four largest end markets — logistics, packaging, consumer electronics, and automotive — combined for approximately 85% of total 2025 revenue.
Cognex sells machine vision systems, sensors, vision software, and barcode readers through a direct sales force complemented by OEM, distribution, and system integrator partners. Hardware products including In-Sight vision systems and DataMan barcode readers are assembled by contract manufacturers primarily in Indonesia and Malaysia, with optical components manufactured at in-house plants in China and Vietnam acquired through the 2023 Moritex Corporation acquisition ($270 million enterprise value). Service offerings represent less than 10% of total revenue. In 2025, Cognex launched OneVision, a cloud-based platform for AI model training and deployment, and its first SLX logistics-focused devices. The company's salesforce transformation in 2025 restructured the go-to-market model around three teams: market creation, market penetration, and partner enablement. U.S. export controls affecting Chinese semiconductor companies have had a negative impact on China revenue, though the company characterized the impact as immaterial to total revenue through year-end 2025.
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The most concentrated supply chain dependency is Cognex's reliance on a primary contract manufacturer located in Indonesia. The 10-K notes that production and test equipment unique to Cognex products creates practical challenges to shifting production in a timely manner even when the manufacturer has plants elsewhere — a risk that materialized in 2022 when a fire at the Indonesian facility destroyed significant inventories and delayed shipments through the first half of 2023. This single-site dependency, combined with exposure to U.S.-China trade restrictions affecting both Greater China revenue (16% of 2025 sales) and component sourcing from Chinese suppliers, could weigh on results if geopolitical conditions deteriorate further.
See also: Technology · Scientific & Technical Instruments
From Cognex Corporation's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-15Recent Developments — Cognex Corporation
Latest news
- NEWS What sovereign risk Cognex (CGNX)? (Near Lows) 2026-04-29 - Portfolio Management - Newser — Newser negative
- NEWS Cognex (CGNX) Projected to Post Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Comerica Bank Lowers Stock Holdings in Cognex Corporation $CGNX - MarketBeat — MarketBeat neutral
- NEWS Strong Earnings Report Lifted Cognex Corporation (CGNX) in Q1 - Yahoo Finance — Yahoo Finance positive
- NEWS Cognex: Reindustrialization And The Military Industrial Complex Can Drive Global Growth - Seeking Alpha — Seeking Alpha positive
Generated 2026-06-15T18:11:46Z.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
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Frequently Asked Questions
Sell if holding. At $66.29, A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 5.0): -1.5; Thin upside margin: 3.5%. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $61.65. Score 6.0/10, moderate confidence.
Take-profit target: $68.62 (+3.5% upside). Prior stop was $61.65. Stop-loss: $61.65.
Thin upside margin: 3.5%; Leverage penalty (D/E 5.0): -1.5.
Cognex Corporation trades at a P/E of 74.8 (forward 36.1). TrendMatrix value score: 4.2/10. Verdict: Sell.
29 analysts cover CGNX with a consensus score of 3.9/5. Average price target: $76.
What does Cognex Corporation do?Cognex makes machine vision systems, sensors, vision software, and barcode readers for factory and warehouse...
Cognex makes machine vision systems, sensors, vision software, and barcode readers for factory and warehouse automation, selling globally across logistics, packaging, consumer electronics, and automotive markets. With 67% of 2025 revenue from international customers, the company earns primarily through hardware and software product sales, with service revenue under 10% of total. Products are assembled by contract manufacturers in Indonesia and Malaysia, with optical components manufactured in China and Vietnam.