Cognex Sees 9% Q3 Revenue Growth with AI Strategy and Cost Discipline

Cognex Corporation has outlined a 9% target for Q3 revenue growth, driven by its AI strategy and disciplined cost focus. The company's new CEO, Matthew Moschner, emphasized three strategic objectives: becoming the #1 provider of AI technology for industrial machine vision applications, delivering the best customer experience, and doubling revenue within the next five years.

Cognex Corporation has set a 9% target for Q3 2025 revenue growth, underpinned by its AI strategy and disciplined cost focus. The company's new CEO, Matthew Moschner, has outlined three strategic objectives: becoming the leading provider of AI technology for industrial machine vision applications, delivering the best customer experience, and doubling revenue within the next five years.

In the Q2 2025 earnings call, Moschner emphasized the importance of these objectives and the progress made towards them. He noted that the company's sales force transformation is generating positive results and is a key component of this strategy. Additionally, Moschner announced a new leadership team, stating that this team has decades of experience in the industry and with Cognex, and that together they will drive an ambitious profitable growth agenda.

Cognex expects Q3 2025 revenue to be between $245 million and $265 million, reflecting 9% year-over-year growth at the midpoint. This growth is anticipated to come from both the logistics and broader factory automation businesses. The company also expects adjusted EBITDA margin to be in the range of 19.5% to 22.5%, with the midpoint representing a 340 basis point expansion compared to last year. Adjusted earnings per share are anticipated to be between $0.24 and $0.29, with the midpoint representing 35% year-over-year EPS growth.

Moschner highlighted the company's new AI cloud platform, OneVision, noting positive early adoption and impact. He stated that OneVision is setting a new benchmark for how game-changing AI vision tools are deployed, simplifying complexity without compromising performance. The company also expects a one-time benefit from a new commercial partnership, which is expected to add $8 million to $14 million in revenue in Q3.

Recent trade agreements and tariff changes are not expected to materially impact adjusted EBITDA margin or EPS. However, a 50 basis point dilution to gross margin is anticipated. The company is monitoring potential demand shifts related to tariffs and supply chain relocations, particularly in Asia.

Cognex's Q2 2025 earnings call highlighted a step-change in profitability and operational discipline, with management projecting continued revenue and margin growth in Q3. The company remains focused on cost control and capital returns amid ongoing macro and trade uncertainties, positioning itself for long-term leadership in industrial machine vision.

References:
[1] https://www.marketscreener.com/news/cognex-corporation-provides-earnings-guidance-for-the-third-quarter-of-2025-ce7c5fdcda89f024
[2] https://seekingalpha.com/news/4475887-cognex-outlines-9-percent-q3-revenue-growth-target-with-ai-strategy-and-disciplined-cost
[3] https://www.investing.com/news/company-news/cognex-q2-2025-slides-revenue-growth-continues-with-ai-strategy-advancement-93CH-4161332