Goldman Sachs Keeps Sell Rating on Cognex, Increases Price Target to $40
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 16 2025
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Should l Buy CGNX?
Source: Benzinga
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Analyst Views on CGNX
Wall Street analysts forecast CGNX stock price to fall
6 Analyst Rating
3 Buy
2 Hold
1 Sell
Moderate Buy
Current: 58.670
Low
35.00
Averages
45.33
High
54.00
Current: 58.670
Low
35.00
Averages
45.33
High
54.00
About CGNX
Cognex Corporation invents and commercializes technologies that address various critical manufacturing and distribution challenges. The Company is a global provider of machine vision products and solutions that improve efficiency and quality in businesses across industrial end markets. It operates through the machine vision technology segment. Its solutions blend physical products and software to capture and analyze visual information, allowing for the automation of manufacturing and distribution tasks for customers worldwide. Machine vision products are used to automate the manufacturing or distribution and tracking of discrete items, such as mobile phones, electric vehicle batteries and e-commerce packages, by locating, identifying, inspecting, and measuring them. Machine vision is important for applications in which human vision is inadequate to meet requirements for size, accuracy, or speed, or in instances where substantial cost savings or quality improvements are maintained.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
Cognex Corporation Q4 2025 Earnings Call Highlights
- Return to Profitability: Cognex achieved an 8% year-over-year revenue growth and a 38% adjusted EPS growth in 2025, marking a return to profitable growth that enhances market confidence and lays a solid foundation for future development.
- Strategic Progress: The company made significant strides in logistics and factory automation, launching several AI-driven products that strengthen its competitive position within approximately $3.2 billion of its $7 billion served market, expected to drive market share gains.
- Cost Control Measures: Cognex announced the exit from low-margin product lines generating $22 million in revenue and plans to achieve $35 million to $40 million in annualized cost reductions by the end of 2026, aimed at improving overall operational efficiency and profitability.
- Optimistic Outlook: The company expects Q1 2026 revenue between $235 million and $255 million, representing approximately 13% year-over-year growth, with adjusted EPS anticipated to grow by 50%, indicating strong growth potential in the market.
See More
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- Freight Brokers and AI: Freight brokers, once seen as beneficiaries of artificial intelligence, are now facing challenges from software companies leveraging AI technology.
- Shift in Perception: The shift in perception highlights the evolving landscape of the freight industry as AI continues to advance and disrupt traditional roles.
- Impact on the Industry: This change suggests that freight brokers may need to adapt to remain competitive in an increasingly automated environment.
- Future Considerations: The situation raises questions about the long-term implications of AI on various sectors within the logistics and transportation industries.
See More
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- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
Cognex Shares Surge 39% to 52-Week High Following Strong Earnings
- Stock Surge: Cognex shares jumped 39.2% post-earnings release, reaching a 52-week high of $59.88 per share, indicating strong market confidence in the company's performance and a potential recovery in the AI sector.
- Strong Financials: In Q4, Cognex reported a 10% year-over-year increase in GAAP revenue and a 35% rise in adjusted earnings, surpassing estimates, while operating cash flow and free cash flow each surged nearly 46%, showcasing significant improvements in cost management and operational efficiency.
- Optimistic Guidance: The company anticipates approximately 13% revenue growth for Q1 2026, with adjusted EBITDA margins projected to rise from 16.8% in Q1 2025 to between 19% and 22%, providing investors with a strong signal of the company's turnaround potential.
- Positive Market Reaction: Following a challenging 2025, where management initiated a restructuring plan to address a $22 million revenue loss, the robust earnings and guidance have led investors to reassess Cognex's value, driving a stock rebound and reflecting optimism about future growth prospects.
See More
US Stock Market Volatility as Tech Stocks Weigh Down Indices
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
See More
