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• Revenue: $216 million, representing 2% year-on-year growth or 5% on a constant currency basis.

• Adjusted Gross Margin: 67.6%, a decline of 120 basis points from the previous year.

• Adjusted EBITDA Margin: Improved by 490 basis points year-on-year to 16.8%.

• Diluted EPS (GAAP): $0.14, up from $0.07 a year ago.

• Adjusted Diluted EPS: $0.16, up from $0.11 a year ago.

• Free Cash Flow: $38 million in Q1, compared to $10 million in the previous year.

• Share Buybacks: $102 million, the largest quarterly buyback since Q1 2022.

• Logistics Revenue Growth: Continued double-digit year-on-year growth.

• Automotive Revenue: Declined year-on-year due to weakness across all geographies.

• Consumer Electronics Revenue: Down year-on-year, primarily due to project timing.

• Semiconductor Revenue: Growth driven by high bandwidth memory chip investments.

• Packaging Market: Business remained stable with a modest recovery in healthcare.

• Warning! GuruFocus has detected 5 Warning Signs with CGNX.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cognex Corp (NASDAQ:CGNX) announced a successful CEO transition, with Matt Moschner set to take over, ensuring continuity and strategic growth.

• The company reported a 5% year-on-year revenue growth on a constant currency basis, marking the third consecutive quarter of organic growth.

• Cognex Corp (NASDAQ:CGNX) launched the Insight 8,900 smart camera, enhancing its AI-driven product strategy and offering significant potential in industrial machine vision applications.

• The logistics sector showed strong performance, with double-digit revenue growth for the fifth consecutive quarter, driven by investments from large e-commerce players.

• Cognex Corp (NASDAQ:CGNX) demonstrated strong financial discipline, achieving a 490 basis point year-on-year improvement in adjusted EBITDA margin, reflecting effective cost management.

Negative Points

• The automotive sector experienced a decline in revenue year-on-year, with continued weakness across all geographies, impacting overall performance.

• Consumer electronics revenue was down in Q1 due to project timing, contributing to a mixed outlook for the sector.

• The macroeconomic environment remains uncertain, with geopolitical and tariff-related risks potentially impacting future performance.

• Cognex Corp (NASDAQ:CGNX) faces ongoing pricing challenges in China, which could affect gross margins despite efforts to offset these pressures.

• The company anticipates a 50 basis point dilution in adjusted gross margin due to tariff impacts, despite efforts to mitigate direct cost effects.