Key Points
Cognex delivered solid numbers for the fourth quarter.
Investors believe this could be the inflection point for the struggling machine vision stock.
- 10 stocks we like better than Cognex ›
Artificial intelligence (AI) darlings might be cratering on fears of a bubble and a spending pause, but one stock is defying the trend, and how! Shares of Cognex (NASDAQ: CGNX) jumped 39.2% this morning, hitting a 52-week high $59.88 per share.
The AI machine vision stock is up a staggering 62% so far in 2026, as of this writing.
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The biggest takeaway from Cognex's earnings
Cognex's AI-powered machine vision solutions automate a large part of the businesses for manufacturers and logistics providers, helping them boost efficiency and productivity while cutting costs. Detecting defects, guiding robots, and tracking and sorting packages are just some of the things Cognex's machine vision systems can do.
Cognex released its fourth-quarter earnings after market close on Feb. 11, and the stock skyrocketed 39% higher on Thursday morning.
Cognex's Q4 GAAP earnings grew 10% while adjusted earnings surged 35% year over year on 10% revenue growth, handily beating estimates. Its cash flow from operating activities and free cash flow jumped almost 46% each during the quarter.
The biggest catalyst for the stock price, however, was Cognex's guidance. It expects around 13% growth in revenue for the first quarter of fiscal 2026 and is guiding for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization margin of 19% to 22%, up substantially from its Q1 2025 margin of 16.8%.
Why investors are buying this AI stock hand over fist
Investors are perceiving Cognex's strong numbers and EBITDA margin guidance as the first signal of the company's turnaround.
Cognex struggled through 2025 due to weak results and poor demand from major industries, including automotive. With management launching a restructuring program to exit $22 million in revenue, investors feared a shrinking top line and believed management was cutting down costs only because growth was getting harder to come by.
Instead, management has issued stronger-than-expected revenue and margin guidance, sending Cognes shares zooming as investors see value in a potential AI turnaround stock that lost nearly 21% value in just the last three months of 2025.
Should you buy stock in Cognex right now?
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
