COGNEX CORP, 10-K filed on 2/12/2026
Annual Report
v3.25.4
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2025
Feb. 01, 2026
Jun. 27, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 001-34218    
Entity Registrant Name COGNEX CORP    
Entity Incorporation, State or Country Code MA    
Entity Tax Identification Number 04-2713778    
Entity Address, Address Line One One Vision Drive    
Entity Address, City or Town Natick    
Entity Address, State or Province MA    
Entity Address, Postal Zip Code 01760    
City Area Code 508    
Local Phone Number 650-3000    
Title of 12(b) Security Common Stock, par value $.002 per share    
Trading Symbol CGNX    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 5,267,183,673
Entity Common Stock, Shares Outstanding   165,707,920  
Entity Central Index Key 0000851205    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
Document Financial Statement Error Correction [Flag] false    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name GRANT THORNTON LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 248
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2025
Sep. 28, 2025
Jun. 29, 2025
Mar. 30, 2025
Dec. 31, 2024
Sep. 29, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Oct. 01, 2023
Jul. 02, 2023
Apr. 02, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]                              
Revenue                         $ 994,359 $ 914,515 $ 837,547
Cost of revenue                         328,966 288,721 236,306
Gross margin                         665,393 625,794 601,241
Research, development, and engineering expenses                         138,970 139,815 139,400
Selling, general, and administrative expenses                         363,857 370,914 339,139
Loss (recovery) from fire                         0 0 (8,000)
Operating income                         162,566 115,065 130,702
Foreign currency gain (loss)                         (4,082) 1,531 (10,039)
Investment income                         16,950 13,971 14,093
Other income (expense)                         7,368 922 592
Income before income tax expense                         182,802 131,489 135,348
Income tax expense on continuing operations                         68,360 25,318 22,114
Net income                         $ 114,442 $ 106,171 $ 113,234
Net income per weighted-average common and common-equivalent share:                              
Net income (in dollars per share)                         $ 0.68 $ 0.62 $ 0.66
Diluted earnings per weighted-average common and common-equivalent share:                              
Net income (in dollars per share)                         $ 0.68 $ 0.62 $ 0.65
Weighted-average common and common-equivalent shares outstanding:                              
Basic (in shares)                         168,049 171,438 172,249
Diluted (in shares)                         169,367 172,611 173,399
Cash dividends per common share (in dollars per share) $ 0.085 $ 0.080 $ 0.080 $ 0.080 $ 0.080 $ 0.075 $ 0.075 $ 0.075 $ 0.075 $ 0.070 $ 0.070 $ 0.070 $ 0.325 $ 0.305 $ 0.286
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 114,442 $ 106,171 $ 113,234
Available-for-sale investments:      
Net unrealized gain (loss), net of tax of $1,885, $1,245, and $4,389 in 2025, 2024, and 2023, respectively 5,961 3,809 10,507
Reclassification of net realized (gain) loss into current operations (156) 8 1,954
Net change related to available-for-sale investments 5,805 3,817 12,461
Foreign currency translation adjustments:      
Foreign currency translation adjustments 13,476 (31,258) 11,500
Net change related to foreign currency translation adjustments 13,476 (31,258) 11,500
Other comprehensive income (loss), net of tax 19,281 (27,441) 23,961
Total comprehensive income (loss) $ 133,723 $ 78,730 $ 137,195
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Tax effect of unrealized gain (loss) on available-for-sale investments $ 1,885 $ 1,245 $ 4,389
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 262,925 $ 186,094
Current investments, amortized cost of $74,050 and $60,725 in 2025 and 2024, respectively, allowance for credit losses of $0 in 2025 and 2024 74,037 59,956
Accounts receivable, allowance for credit losses of $728 and $827 in 2025 and 2024, respectively 146,713 143,359
Unbilled revenue 16,980 3,055
Inventories 137,889 157,527
Prepaid expenses and other current assets 58,702 63,376
Total current assets 697,246 613,367
Non-current investments, amortized cost of $302,539 and $345,033 in 2025 and 2024, respectively, allowance for credit losses of $0 in 2025 and 2024 305,339 340,898
Property, plant, and equipment, net 86,015 98,445
Operating lease assets 72,310 67,326
Goodwill 386,279 384,937
Intangible assets, net 81,100 90,684
Deferred income taxes 383,272 392,166
Other assets 4,994 5,027
Total assets 2,016,555 1,992,850
Current liabilities:    
Accounts payable 50,203 38,046
Accrued expenses 91,397 71,760
Accrued income taxes 9,141 25,685
Deferred revenue and customer deposits 21,094 25,035
Operating lease liabilities 11,716 8,854
Total current liabilities 183,551 169,380
Non-current operating lease liabilities 64,870 61,363
Deferred income taxes 250,512 217,155
Reserve for income taxes 24,269 26,365
Other liabilities 1,452 1,082
Total liabilities 524,654 475,345
Commitments and contingencies (Note 11)
Shareholders’ equity:    
Preferred stock, $0.01 par value - Authorized: 400 shares in 2025 and 2024, respectively, no shares issued and outstanding 0 0
Common stock, $0.002 par value – Authorized: 300,000 shares in 2025 and 2024, respectively, issued and outstanding: 166,997 and 170,434 shares in 2025 and 2024, respectively 334 341
Additional paid-in capital 1,138,708 1,090,638
Retained earnings 406,355 499,303
Accumulated other comprehensive loss, net of tax (53,496) (72,777)
Total shareholders’ equity 1,491,901 1,517,505
Total liabilities and shareholders' equity $ 2,016,555 $ 1,992,850
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Current investments, amortized cost $ 74,050 $ 60,725
Current investment, allowance for credit loss 0 0
Accounts receivable, allowance for credit losses 728 827
Non-current investments, amortized cost 302,539 345,033
Non-current investments, allowance for credit losses $ 0 $ 0
Preferred stock par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock par value, in dollars per share $ 0.002 $ 0.002
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 166,997,000 170,434,000
Common stock, shares outstanding (in shares) 166,997,000 170,434,000
Authorized shares (in shares) 400,000 400,000
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 114,442 $ 106,171 $ 113,234
Adjustments to reconcile net income to net cash provided by operating activities:      
Stock-based compensation expense 48,517 52,443 54,768
Depreciation of property, plant, and equipment 20,289 21,271 17,270
Loss (gain) on disposal of property, plant, and equipment 164 88 229
Gain from sale of training center property (5,053) 0 0
Amortization of intangible assets 10,504 11,418 4,610
Excess and obsolete inventory charges 15,643 2,505 3,775
Fair value adjustment on acquired inventories (Note 21) 0 1,224 2,829
Amortization of discounts or (premiums) on investments (731) 306 1,745
Realized (gain) loss on sale of investments (156) 8 1,954
Change in deferred income taxes 40,147 (21,507) (19,779)
Accounts receivable (1,358) (32,128) 23,346
Unbilled revenue (13,869) (693) (255)
Inventories 4,863 (1,253) (22,591)
Prepaid expenses and other current assets 5,655 1,514 2,469
Accounts payable 11,707 18,352 (13,744)
Accrued expenses 15,957 2,916 (35,309)
Accrued income taxes (16,806) (9,278) (16,745)
Deferred revenue and customer deposits (4,178) (6,216) (9,122)
Other (223) 1,940 4,232
Net cash provided by operating activities 245,514 149,081 112,916
Cash flows from investing activities:      
Purchases of investments (290,224) (850,852) (184,056)
Maturities and sales of investments 320,279 828,370 496,462
Proceeds from sale of training center property 6,704 0 0
Purchases of property, plant, and equipment, net of proceeds from disposals (8,743) (15,043) (23,077)
Net payments related to business acquisitions (Note 21) 0 (1,444) (257,056)
Net cash provided by (used in) investing activities 28,016 (38,969) 32,273
Cash flows from financing activities:      
Net payments from issuance of common stock under stock plans (445) 994 3,268
Repurchase of common stock (151,233) (67,085) (79,794)
Payment Of Excise Tax, Prior Year Common Stock Repurchases (388) 0 0
Payment of dividends (54,627) (52,329) (49,079)
Net cash used in financing activities (206,693) (118,420) (125,605)
Effect of foreign exchange rate changes on cash and cash equivalents 9,994 (8,253) 1,697
Net change in cash and cash equivalents 76,831 (16,561) 21,281
Cash and cash equivalents at beginning of year 186,094 202,655 181,374
Cash and cash equivalents at end of year $ 262,925 $ 186,094 $ 202,655
v3.25.4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Beginning Balance at Dec. 31, 2022 $ 1,438,394 $ 345 $ 979,167 $ 528,179 $ (69,297)
Beginning Balance, shares (in shares) at Dec. 31, 2022   172,631      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net issuance of common stock under stock plans (in shares)   691      
Net issuance of common stock under stock plans 3,268 $ 1 3,267    
Repurchase of common stock (79,794) $ (3)   (79,791)  
Repurchase of common stock (in shares)   (1,723)      
Stock-based compensation expense 54,768   54,768    
Payment of dividends ($0.325 per common share) (49,079)     (49,079)  
Net income 113,234     113,234  
Net unrealized gain (loss), net of tax of $1,885, $1,245, and $4,389 in 2025, 2024, and 2023, respectively 10,507       10,507
Net unrealized gain (loss) on available-for-sale investments, net of tax 10,507        
Reclassification of net realized (gain) loss on the sale of available-for-sale investments 1,954       1,954
Foreign currency translation adjustment 11,500       11,500
Balance at Dec. 31, 2023 1,504,752 $ 343 1,037,202 512,543 (45,336)
Balance, shares (in shares) at Dec. 31, 2023   171,599      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net issuance of common stock under stock plans (in shares)   546      
Net issuance of common stock under stock plans 994 $ 1 993    
Repurchase of common stock (67,085) $ (3)   (67,082)  
Repurchase of common stock (in shares)   (1,711)      
Stock-based compensation expense 52,443   52,443    
Payment of dividends ($0.325 per common share) (52,329)     (52,329)  
Net income 106,171     106,171  
Net unrealized gain (loss), net of tax of $1,885, $1,245, and $4,389 in 2025, 2024, and 2023, respectively 3,809       3,809
Net unrealized gain (loss) on available-for-sale investments, net of tax 3,809        
Reclassification of net realized (gain) loss on the sale of available-for-sale investments 8       8
Foreign currency translation adjustment (31,258)       (31,258)
Balance at Dec. 31, 2024 $ 1,517,505 $ 341 1,090,638 499,303 (72,777)
Balance, shares (in shares) at Dec. 31, 2024 170,434 170,434      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net issuance of common stock under stock plans (in shares) 265 797      
Net issuance of common stock under stock plans $ (445) $ 2 (447)    
Excise tax on repurchase of common stock (1,539)     (1,539)  
Repurchase of common stock (151,233) $ (9)   (151,224)  
Repurchase of common stock (in shares)   (4,234)      
Stock-based compensation expense 48,517   48,517    
Payment of dividends ($0.325 per common share) (54,627)     (54,627)  
Net income 114,442     114,442  
Net unrealized gain (loss), net of tax of $1,885, $1,245, and $4,389 in 2025, 2024, and 2023, respectively 5,961       5,961
Net unrealized gain (loss) on available-for-sale investments, net of tax 5,961        
Reclassification of net realized (gain) loss on the sale of available-for-sale investments (156)       (156)
Foreign currency translation adjustment 13,476       13,476
Balance at Dec. 31, 2025 $ 1,491,901 $ 334 $ 1,138,708 $ 406,355 $ (53,496)
Balance, shares (in shares) at Dec. 31, 2025 166,997 166,997      
v3.25.4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Tax effect of unrealized gain on available-for-sale investments $ 1,885 $ 1,245 $ 4,389
v3.25.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
The accompanying consolidated financial statements reflect the application of the significant accounting policies described below.
Nature of Operations
Cognex Corporation (the "Company" or "Cognex") makes advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. The Company is a global technology leader in industrial machine vision systems that improve efficiency and solve critical manufacturing and distribution challenges, providing products and services across a diverse set of industrial end markets.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition and income taxes.
Basis of Consolidation
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated.
Foreign Currency Translation
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is included in shareholders’ equity as accumulated other comprehensive loss.
Fair Value Measurements
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based on the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based on management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period.
Cash, Cash Equivalents, and Investments
Money market instruments, as well as debt securities with original maturities of three months or less, are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as current investments. Debt securities with remaining maturities greater than one year are classified as non-current investments. Bonds with call options are classified based on their original maturity date and asset-backed securities are classified based on their effective maturity date taking into account the expected timing of the underlying payments used as collateral. It is the Company’s policy to invest in debt securities with maturities that do not exceed five years.
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, included in shareholders’ equity as accumulated other comprehensive loss. Realized gains and losses are calculated using the specific identification method. Realized gains and losses, interest income, and the amortization of the discount or premium on debt securities arising at acquisition, are included in "Investment income" on the Consolidated Statements of Operations.
Management monitors its debt securities to determine whether a loss exists related to the credit quality of the issuer. If the present value of the cash flows expected to be collected from the security is less than the amortized cost basis
of the security, then a credit loss exists and an allowance against the security for credit losses is recorded. The allowance is limited to the amount by which fair value is below amortized cost, recognizing that the investment could be sold at fair value. Credit losses continue to be remeasured in subsequent reporting periods. Credit losses and recoveries related to debt securities are included in “Other income (expense)” on the Consolidated Statements of Operations. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows.
Accounts Receivable
The Company extends credit with various payment terms to customers based on an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes an allowance against accounts receivable for credit losses when it determines receivables are at risk for collection based on the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, and general economic and industry conditions, as well as various other factors. Receivables are written off against this allowance in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a recovery of the credit loss. Credit losses and recoveries related to accounts receivable are included in "Selling, general, and administrative expenses" on the Consolidated Statements of Operations.
Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
Purchase price variances are incurred when actual costs are different than standard costs due to favorable or unfavorable market prices. Management applies judgment to recognize purchase price variances in the same period that the associated standard costs of the finished goods that consume these components are sold.
The Company’s inventory is subject to technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based on assumptions about future demand, product transitions, general economic and industry conditions, and other circumstances, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required.
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company could recognize a higher-than-normal gross margin if the reserved inventory were subsequently sold.
In accordance with the accounting principles applied in business combinations, acquired inventories are recorded at fair value on the acquisition date. This valuation policy typically results in the write-up of inventories above the acquired company’s pre-acquisition carrying value, which results in a lower-than-normal gross margin when these acquired inventories are sold.
Property, Plant, and Equipment
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ original useful lives are 39 years, building improvements’ useful lives range from five to ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to ten years. Land that is leased or granted, as well as leasehold improvements, are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations.
In accordance with the accounting principles applied in business combinations, acquired property, plant, and equipment are recorded at fair value on the acquisition date. This valuation policy typically results in the write-up of property, plant, and equipment above the acquired company’s pre-acquisition carrying value, which results in a higher depreciation expense over the estimated lives of the assets.
Internal-use Software
Internal-use software is software acquired, internally developed, or modified solely to meet the Company's internal needs, and during the software's development no substantive plan exists to sell the software. The accounting treatment for computer software developed for internal use depends on the nature of activities performed at each stage of development. The preliminary project stage includes conceptual formulation of design alternatives, determination of system requirements, vendor demonstrations, and final selection of vendors, and during this stage costs are expensed as incurred. The application development stage includes software configuration, coding, hardware installation, and testing. During this stage, certain costs are capitalized, if material, including external direct costs of materials and services, as well as payroll and payroll-related costs for employees who are directly associated with the project, while certain costs are expensed as incurred, including training and data conversion costs. The post-implementation stage includes support and maintenance, and during this stage costs are expensed as incurred.
Capitalization begins when both the preliminary project stage is completed and management commits to funding the project. Capitalization ceases at the point the project is substantially complete and ready for its intended use, that is, after all substantial testing is completed. Costs of specified upgrades and enhancements to internal-use software are capitalized if it is probable that those expenditures result in additional functionality. Capitalized costs are amortized on a straight-line basis over the estimated useful life.
Leases
At inception of a contract, the Company determines whether that contract is or contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. The Company has control of the asset if it has the right to direct the use of the asset and obtains substantially all of the economic benefits from the use of the asset throughout the period of use.
As a practical expedient, the Company does not recognize a lease asset or lease liability for leases with a lease term of twelve months or less. In the determination of the lease term, the Company considers the existence of extension or termination options and the probability of those options being exercised.
Lease contracts may include fixed lease components and non-lease components, such as common area maintenance and utilities for property leases. As a practical expedient, the Company accounts for the non-lease components together with the lease components as a single lease component for all of its leases.
The Company classifies a lease as a finance lease when it meets any of the following criteria at the lease commencement date: (1) the lease transfers ownership of the underlying asset to the Company by the end of the lease term; (2) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; (3) the lease term is for the major part of the remaining economic life of the underlying asset (the Company considers a major part to be 75% or more of the remaining economic life of the underlying asset); (4) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset (the Company considers substantially all the fair value to be 90% or more of the fair value of the underlying asset amount); or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria above are met, the Company classifies the lease as an operating lease.
On the lease commencement date, the Company records a lease asset and lease liability on the balance sheet. The lease asset consists of: (1) the amount of the initial lease liability; (2) any lease payments made to the lessor at or before the lease commencement date, minus any lease incentives received; and (3) any initial direct cost incurred by the Company. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are capitalized as part of the lease asset. The lease liability equals the present value of the future cash payments discounted using the Company's incremental borrowing rate. The Company’s incremental borrowing rate is the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments over a similar term which was estimated using the Secured Overnight Financing Rate (SOFR) plus a 2% credit risk spread.
Operating lease expense equals the total cash payments recognized on a straight-line basis over the lease term. The amortization of the lease asset is calculated as the straight-line lease expense less the accretion of the interest on the lease liability each period. The lease liability is reduced by the cash payment less the interest each period.
Goodwill
Goodwill is stated at cost. The Company evaluates the potential impairment of goodwill annually at the beginning of each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. The Company performs a qualitative assessment of goodwill to determine whether further impairment testing is necessary. Factors that management considers in this assessment include general economic and industry conditions, overall financial performance (both current and projected), changes in strategy, changes in the composition or carrying amount of net assets, and market capitalization. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to perform a quantitative impairment test. Under this quantitative analysis, the fair value of the reporting unit is compared with its carrying value, including goodwill. If the carrying value exceeds the fair value of the reporting unit, the Company recognizes an impairment charge. The Company estimates the fair value of its reporting unit using the income approach based on a discounted cash flow model. In addition, the Company uses the market approach, which compares the reporting unit to publicly traded companies and transactions involving similar businesses, to support the conclusions based on the income approach.
Intangible Assets
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending on facts and circumstances. The useful lives of customer relationships range from seven to fifteen years, completed technologies range from five to nine years, non-compete agreements is seven years, and trademarks is three years. In-process technology is an indefinite-lived intangible asset until the technology is completed, at which point it is amortized over its estimated useful life.
The Company evaluates the potential impairment of intangible assets whenever events or circumstances indicate the carrying value of the assets may not be recoverable. For finite-lived intangible assets that are subject to amortization, the Company follows a two-step process for impairment testing. In step one, known as the recoverability test, the carrying value of the asset is compared to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the undiscounted future cash flows is less than the carrying value, the asset is not recoverable and step two is performed. In step two, the impairment charge is measured as the amount by which the carrying value of the asset exceeds its fair value.
Warranty Obligations
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from one to three years from the time of sale based on the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based on historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data.
Contingencies
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies are expensed as incurred.
Derivative Instruments
Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fair value of the Company’s economic hedges utilizing foreign currency forward contracts are included in "Foreign currency gain (loss)" on the Consolidated Statements of Operations. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers.” The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied.
Identifying the Contract with the Customer
The Company identifies contracts with customers as agreements that create enforceable rights and obligations, which typically take the form of customer contracts or purchase orders. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.
Identifying the Performance Obligations in the Contract
The Company identifies performance obligations as promises in contracts to transfer distinct goods or services. Standard products and services that the Company regularly sells separately, which customers can benefit from either on their own or with other readily available resources and are distinct within the context of the customer contract, are accounted for as distinct performance obligations. Application-specific customer solutions that are comprised of a combination of products and services are accounted for as one performance obligation to deliver a total solution to the customer. On-site support services that are provided to the customer after the solution is deployed are accounted for as a separate performance obligation.
Shipping and handling activities for which the Company is responsible under the terms and conditions of the sale are not accounted for as performance obligations but as fulfillment costs. These activities are required to fulfill the Company’s promise to transfer the goods and are expensed when revenue is recognized.
The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. If revenue is recognized before immaterial promises have been completed, then the costs related to such immaterial promises are accrued at the time of sale.
Determining the Transaction Price
The Company determines the transaction price as the amount of consideration it expects to receive in exchange for transferring promised goods or services to the customer. Amounts collected from customers for sales taxes are excluded from the transaction price.
If a contract includes a variable amount, such as consideration that may vary because of rebates, price concessions, or other similar items, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending on the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances.
The Company records revenue net of estimated returns. As a practical expedient, the Company estimates the transaction price using the expected value based on its history of return experience using a portfolio approach in which the Company’s total revenue is reduced by an estimate of total customer returns. Management reasonably expects that the effect of applying a portfolio approach to a group of contracts would not differ materially from considering each contract separately.
Allocating the Transaction Price to the Performance Obligations
The Company allocates the transaction price to each performance obligation at contract inception based on a relative stand-alone selling price basis, or the price at which the Company would sell the good or service separately to similar customers in similar circumstances.
Recognizing Revenue When (or As) the Performance Obligations are Satisfied
The Company recognizes revenue when it transfers the promised goods or services to the customer. Revenue for standard products is recognized at the point in time when the customer obtains control of the goods, which is typically upon shipment or delivery when the customer has legal title, physical possession of hardware or access to software, the risks and rewards of ownership, and an enforceable obligation to pay for the products. Revenue for services, which are not material, is typically recognized over the time the service is provided.
Revenue for application-specific customer solutions is recognized at the point in time when the solution is validated, which is the point in time when the Company can reasonably determine that the agreed-upon specifications in the contract have been met and the customer should reasonably accept the performance obligations in the arrangement. Although the customer may have taken legal title and physical possession of the goods when they arrived at the customer’s designated site, the significant risks and rewards of ownership transfer to the customer only upon validation. Revenue for on-site support services related to these solutions is recognized over the time the service is provided.
In certain instances, an arrangement may include customer-specified acceptance provisions or performance guarantees that allow the customer to accept or reject delivered products that do not meet the customer’s requirements. If the Company can reasonably determine that control of a good or service has been transferred to the customer in accordance with the agreed-upon requirements in the contract, then customer acceptance is a formality. If acceptance provisions are presumed to be substantive, then revenue is deferred until customer acceptance.
For the Company’s standard products and services, revenue recognition and billing typically occur at the same time. For application-specific customer solutions, however, the agreement with the customer may provide for billing terms which differ from the timing of revenue recognition, resulting in either deferred revenue or unbilled revenue. The Company also has a strategic channel partnership that provides the partner with access to Company software at a point in time, while payment terms extend beyond the period in which revenue is recognized. Under this arrangement, revenue is recognized when control of the license is transferred to the partner, and amounts recognized in advance of billing are recorded as unbilled revenue.
Credit assessments are performed to determine payment terms, which vary by region, industry, and customer. Prepayment terms result in contract liabilities for customer deposits. When credit is granted to customers, payment is typically due 30 to 90 days from billing. The Company's contracts typically have an original expected duration of less than one year, and therefore as a practical expedient, the Company has elected to ignore the impact of the time value of money on such contracts and to expense sales commissions. The Company recognizes an asset for costs to fulfill a contract if the costs relate directly to the contract and to future performance, and the costs are expected to be recovered.
Management exercises judgment when determining the amount of revenue to be recognized each period. Such judgments include, but are not limited to, assessing the customer’s ability and intention to pay substantially all of the contract consideration when due, determining when two or more contracts should be combined and accounted for as a single contract, determining whether a contract modification has occurred, assessing whether promises are immaterial in the context of the contract, determining whether material promises in a contract represent distinct performance obligations, estimating the transaction price for a contract that contains variable consideration, determining the stand-alone selling price of each performance obligation, determining whether control is transferred over time or at a point in time for performance obligations, determining the timing of validation and that the agreed-upon specifications in the contract have been met, and assessing whether formal customer acceptance provisions are substantive.
Research and Development
Research and development costs primarily include costs related to personnel, prototyping materials and equipment, and outside services. Research and development costs are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs may be capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant.
Advertising Costs
Advertising costs are expensed as incurred and totaled $1,432,000 in 2025, $1,286,000 in 2024, and $1,190,000 in 2023.
Stock-Based Compensation
The Company’s stock-based awards that result in compensation expense consist of stock options and restricted stock units ("RSUs"), including performance restricted stock units ("PRSUs"). The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options or the settlement of RSUs. When a stock option is exercised or an RSU is settled, the Company issues new shares from this pool. Management is responsible for determining the appropriate valuation model and estimating the fair value of stock-based awards, and in doing so, considers a number of factors, including information provided by an outside valuation advisor and the observable market price of the Company's common stock on the grant date. The fair value of RSUs is determined based on the observable market price of the Company's common stock on the grant date less the present value of expected future dividends. The fair value of PRSUs where the performance goal includes service and market conditions is calculated using a Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. The fair value of PRSUs subject to service and non-market performance conditions is determined based on the observable market price of the Company’s common stock on the grant date, less the present value of expected future dividends. When determining the grant-date fair value of stock-based awards, management further considers whether an adjustment is required to the observable market price or volatility of the Company's common stock that is used in the valuation as a result of material non-public information if that information is expected to result in a material increase in share price.
The Company recognizes compensation expense related to stock-based awards using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option or RSU as if the award was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based on the number of awards for which the requisite service has been completed. Compensation expense for PRSUs subject to service and non-market performance conditions is recognized based on management’s assessment of the probable level of achievement, with cumulative catch-up adjustments recorded in the period in which that assessment changes.
No compensation expense is recognized for awards that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered award. The Company applies estimated forfeiture rates to its unvested awards to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an award, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based on the employee’s service, and an increase or decrease to compensation expense is recorded to true up the final expense.
Taxes
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained.
The portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are classified as a non-current liability. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense.
Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for the impact of Net CFC Tested Income (NCTI), formally known as Global Intangible Low-Taxed Income (GILTI), tax in deferred taxes.
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as non-operating income when earned.
Net Income Per Share
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and restricted stock units and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share as their effect would be anti-dilutive.
Comprehensive Income
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Our policy for releasing the income tax effects from accumulated other comprehensive (loss) income is to release when the corresponding pretax accumulated other comprehensive (loss) income items are reclassified to earnings. Accumulated other comprehensive loss, net of tax, consists of foreign currency translation adjustment losses of $54,332,000, $67,808,000, and $36,550,000 as of December 31, 2025, 2024, and 2023, respectively; net unrealized gains on available-for-sale investments of $2,107,000 as of December 31, 2025, and net unrealized losses on available-for-sale investments of $3,698,000, and $7,515,000 as of December 31, 2024 and 2023, respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 at each year end.
Concentrations of Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and accounts receivable. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain liquidity and safety. The Company has historically not experienced any significant realized losses on its debt securities. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has historically not experienced any significant losses related to the collection of its accounts receivable.
A significant portion of the Company's products is presently manufactured by a third-party contractor located in Indonesia. This contract manufacturer has agreed to provide the Company with termination notification periods and last-time-buy rights, if and when that may be applicable.
Certain key electronic and mechanical components, such as integrated circuit chips, are fundamental to the design of Cognex products. Due to the impact of global supply chain challenges and other factors, we have experienced, and may continue to experience, disruptions to the supply of components for our products that have resulted, and may continue to result, in higher purchase costs, higher delivery costs, and manufacturing delays.
The Company sources components from preferred vendors that are selected based on price, quality and performance considerations. In the event of a supply disruption from a preferred vendor, these components typically may be purchased from alternative vendors, which may result in higher purchase costs and manufacturing delays based on the time required to identify and obtain sufficient quantities from an alternative source. Certain Cognex products utilize components that are available from only one source. If we are unable to secure adequate supply from these sources, we may have to redesign our products, which may lead to higher costs, delays in manufacturing, and loss of sales.
Business Combinations
The Company determines whether a transaction qualifies as a business combination by applying the definition of a business, which requires the assets acquired and liabilities assumed to be inputs and processes that have the ability to contribute to the creation of outputs. The Company accounts for business combinations under the acquisition method of accounting, which requires the following steps: (1) identifying the acquirer, (2) determining the
acquisition date, (3) recognizing and measuring the identifiable assets acquired and the liabilities assumed, and (4) recognizing and measuring goodwill. The Company measures the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. Management is responsible for determining the appropriate valuation model and estimated fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. Management bases the fair value of assets, including identifiable intangible assets acquired, on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. Goodwill is recognized as of the acquisition date as the excess of the consideration transferred over the net amount of assets acquired and liabilities assumed. Transaction costs are expensed as incurred.
v3.25.4
New Pronouncements
12 Months Ended
Dec. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
New Pronouncements New Pronouncements
Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, is equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024 and are applied on a prospective basis. The Company adopted ASU 2023-09 in 2025. Refer to Note 18 for the related disclosures.
Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)
This ASU aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. ASU 2024-03 mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The adoption will result in disclosure changes only.
Accounting Standards Update (ASU) 2025-05 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets
This ASU provides a practical expedient to simplify the measurement of credit losses for certain receivables and contract assets. The amendments allow entities to assume that current conditions at the balance sheet date will persist over the life of these assets, eliminating the need to develop forward-looking forecasts required under the current expected credit loss ("CECL") model. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption is permitted. Management does not expect ASU 2025-05 to have a material impact on the Company's financial statements and disclosures.
Accounting Standards Update (ASU) 2025-06 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
The amendments in this ASU update the accounting and disclosure guidance for internal-use software to better reflect modern, iterative development practices. The amendments replace the former “development stage” model with a judgment-based framework and require entities to evaluate whether significant development uncertainty exists before capitalizing costs. The ASU also incorporates website development guidance into Subtopic 350-40 and aligns disclosures for capitalized software with those for property, plant, and equipment. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-06 would have on the Company's financial statements and disclosures.
Accounting Standards Update (ASU) 2025-09 - Derivatives and Hedging (Topic 815): Hedge Accounting Improvements
The amendments in this ASU provide targeted updates to align hedge accounting with the economics of an entity's risk‑management activities and resolve issues arising from the global reference rate reform initiative. Specifically,
the ASU addresses similar risk assessments for cash flow hedges, hedging forecasted interest payments on choose-your-rate debt instruments, cash flow hedges of nonfinancial forecasted transactions, net written options as hedging instruments, and foreign currency denominated debt instruments as hedging instruments and hedged items (dual hedge). For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. The Company currently does not utilize any of the hedging instruments impacted by this ASU.
Accounting Standards Update (ASU) 2025-11 - Interim Reporting (Topic 270): Narrow-Scope Improvements
The amendments in this ASU improve the navigability and clarity of interim reporting requirements without changing the fundamental nature or scope of existing disclosures. The ASU also clarifies when Topic 270 applies, specifies the form and content of interim financial statements and notes, and introduces a comprehensive list of required interim disclosures compiled from across the Codification. The ASU also adds a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within annual reporting periods beginning after December 15, 2028, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-11 would have on the Company's disclosures.
Accounting Standards Update (ASU) 2025-12 - Codification Improvements
The amendments in this ASU make incremental improvements to clarify, correct, and enhance the usability of the Accounting Standards Codification. The amendments address technical corrections, unintended application issues, and minor improvements across numerous topics, and are not expected to significantly affect current accounting practice. Key areas of clarification include diluted earnings per share calculations, disclosure requirements for lease receivables, guidance on beneficial interests, methods for accounting for treasury stock retirements, and the treatment of receivables transferred from contracts with customers. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-10 would have on the Company's financial statements and disclosures.
v3.25.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable
Inputs (Level 2)
Unobservable Inputs (Level 3)
Assets:
Money market instruments$63,170 $— $— 
Corporate bonds— 345,351 — 
Treasury notes— 29,843 — 
Asset-backed securities— 4,182 — 
Economic hedge forward contracts— 791 — 
Liabilities:
Economic hedge forward contracts— 367 — 
The Company’s money market instruments are reported at fair value based on the daily market price for identical assets in active markets, and are therefore classified as Level 1.
The Company’s debt securities and forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data.
They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.
Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis
Non-financial assets, such as property, plant and equipment, operating lease assets, goodwill, and intangible assets, are required to be measured at fair value only when an impairment loss is recognized. The Company evaluates these long-lived assets for impairment whenever events or changes in circumstances, referred to as "triggering events," indicate the carrying value may not be recoverable. Additionally, the Company evaluates the potential impairment of goodwill annually at the beginning of each fourth quarter. The Company did not record impairment charges related to non-financial assets in 2025, 2024, or 2023.
v3.25.4
Cash, Cash Equivalents, and Investments
12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents, and Investments Cash, Cash Equivalents, and Investments
Cash, cash equivalents, and investments consisted of the following (in thousands):
December 31,
20252024
Cash$199,755 $170,852 
Money market instruments63,170 15,242 
Cash and cash equivalents262,925 186,094 
Corporate bonds66,625 55,742 
Treasury notes7,412 2,487 
Sovereign bonds 990 
Asset-backed securities 737 
Current investments74,037 59,956 
Corporate bonds278,726 285,174 
Treasury notes22,431 43,147 
Asset-backed securities4,182 12,577 
Non-current investments305,339 340,898 
$642,301 $586,948 
Money market instruments consist of treasury bills, corporate commercial paper, and certificates of deposit that are highly liquid and mature in three months or less. Corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury notes consist of debt securities issued by the U.S. government; sovereign bonds consist of direct debt issued by foreign governments; and asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement. All of the Company's securities as of December 31, 2025 and 2024 were denominated in U.S. Dollars.
The Company’s cash balance included foreign bank balances totaling $130,094,000 and $156,027,000 as of December 31, 2025 and 2024, respectively.
Accrued interest receivable is included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $3,852,000 and $4,144,000 as of December 31, 2025 and 2024, respectively.
The following table summarizes the Company’s available-for-sale investments as of December 31, 2025 (in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Current:
Corporate bonds$66,661 $125 $(161)$66,625 
Treasury notes7,389 23 — 7,412 
Non-current:
Corporate bonds275,781 3,024 (79)278,726 
Treasury notes22,287 144 — 22,431 
Asset-backed securities4,471 — (289)4,182 
$376,589 $3,316 $(529)$379,376 
The following table summarizes the Company’s available-for-sale investments as of December 31, 2024 (in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Current:
Corporate bonds$56,472 $$(733)$55,742 
Treasury notes2,501 — (14)2,487 
Sovereign bonds1,013 — (23)990 
Asset-backed securities739 — (2)737 
Non-current:
Corporate bonds288,332 408 (3,566)285,174 
Treasury notes43,570 (425)43,147 
Asset-backed securities13,131 — (554)12,577 
$405,758 $413 $(5,317)$400,854 
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2025 (in thousands):
Unrealized Loss
Position For Less than
12 Months
Unrealized Loss
Position For Greater than
12 Months
Total
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Corporate bonds$30,602 $(73)$22,412 $(167)$53,014 $(240)
Asset-backed securities— — 4,182 (289)4,182 (289)
$30,602 $(73)$26,594 $(456)$57,196 $(529)
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2024 (in thousands):
Unrealized Loss
Position For Less than
12 Months
Unrealized Loss
Position For Greater than
12 Months
Total
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Corporate bonds$172,049 $(2,227)$87,815 $(2,071)$259,864 $(4,298)
Treasury notes42,149 (425)2,487 (14)44,636 (439)
Asset-backed securities11,024 (547)2,290 (10)13,314 (557)
Sovereign bonds— — 990 (23)990 (23)
$225,222 $(3,199)$93,582 $(2,118)$318,804 $(5,317)
Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of December 31, 2025, 2024, or 2023. Management currently intends to hold these securities to full value recovery at maturity.
The following table summarizes the Company's gross realized gains and losses on the sale of debt securities (in thousands):
Year Ended December 31,
202520242023
Gross realized gains$180 $$111 
Gross realized losses(24)(16)(2,065)
Net realized gains (losses)$156 $(8)$(1,954)
Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive loss.
The following table summarizes the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2025 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 YearsTotal
Corporate bonds$66,625 $77,129 $99,911 $68,109 $33,577 $345,351 
Treasury notes7,412 15,421 7,010 — — 29,843 
Asset-backed securities— — — 1,624 2,558 4,182 
$74,037 $92,550 $106,921 $69,733 $36,135 $379,376 
v3.25.4
Inventories
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of the following (in thousands):
  
December 31,
 20252024
Raw materials$75,417 $86,917 
Work-in-process4,877 5,544 
Finished goods57,595 65,066 
$137,889 $157,527 
In the fourth quarter of 2025, the Company recorded a charge of $13,067,000 for excess and obsolete inventory following a comprehensive strategic product portfolio review under our new leadership team. As part of this strategic review, the Company is reducing focus on certain legacy products, which increased the risk of excess and obsolete inventory.
v3.25.4
Property, Plant, and Equipment
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment Property, Plant, and Equipment
Property, plant, and equipment consisted of the following (in thousands):
December 31,
20252024
Land$8,018 $8,711 
Buildings36,626 38,878 
Building improvements42,580 46,496 
Leasehold improvements22,702 21,642 
Computer hardware and software60,218 57,791 
Manufacturing test equipment49,465 45,523 
Furniture and fixtures6,406 6,468 
226,015 225,509 
Less: accumulated depreciation(140,000)(127,064)
$86,015 $98,445 
In December 2025, the Company sold the 19,000 square-foot building adjacent to our corporate headquarters and the underlying land for $6,704,000. This building was previously used as a training center for our sales function. Our new training center will be located inside our corporate headquarters. In connection with the sale, the Company disposed of property, plant, and equipment with a cost basis of $6,044,000 and accumulated depreciation of $4,393,000, which resulted in a $5,053,000 gain on the sale of assets and is included in "Other income (expense)" on the Consolidated Statements of Operations.
The Company also disposed of additional property, plant, and equipment with a cost basis of $5,811,000 and accumulated depreciation of $5,647,000 in 2025, resulting in a loss of 164,000. The Company disposed of property, plant, and equipment with a cost basis of $9,580,000 and accumulated depreciation of $9,492,000 in 2024, resulting in a loss of $88,000.
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of December 31, 2025, there were no options to terminate and nineteen options to extend that were accounted for in the determination of the lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the outstanding leases as of December 31, 2025. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of December 31, 2025.
The components of lease expense were as follows (in thousands):
December 31, 2025December 31, 2024December 31, 2023
Operating lease expense$14,002 $14,131 $11,598 
Short-term lease expense (1)
1,008 $407 427 
(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability
Supplemental balance sheet information related to leases was as follows:
December 31, 2025December 31, 2024
Weighted average remaining lease term7.2 years9.9 years
Weighted average discount rate5.9 %5.9 %
Supplemental cash flow information related to leases was as follows (in thousands):
December 31, 2025December 31, 2024December 31, 2023
Cash paid for amounts included in the measurement of operating lease liabilities$14,000 $13,683 $10,148 
Future operating lease cash payments are as follows (in thousands):
Year Ended December 31, Amount
2026$15,863 
202714,506 
202812,966 
202911,158 
203010,038 
Thereafter28,887 
Total undiscounted lease payments$93,418 
Less: imputed interest$16,832 
Total operating lease liabilities$76,586 
The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that commenced in June of 2023 and a second 27,000 square-foot premises that commenced in December of 2025. The second component of the lease was recorded on the Consolidated Balance Sheets in 2025 upon commencement. Undiscounted lease payment obligations associated with the second lease component, which has an original term of eight years, is included in the lease liability maturity table above and total $8,329,000, $936,000 of which is payable in 2026. Additionally, in December 2025, the Company entered into a sublease agreement for this second lease component for a term of eight years. The sublease also contains two components: a 15,000 square-foot premises that commenced in December of 2025 and a second 12,000 square-foot premises that has a commencement date in December of 2026. The Company recognized income of $33,000 related to this sublease agreement in 2025.
Future operating sublease receipts for both sublease components are as follows (in thousands):
Year Ended December 31, Amount
2026$541 
20271,023 
20281,046 
20291,048 
20301,072 
Thereafter3,204 
Total undiscounted sublease receipts$7,934 
In 2025, the Company also entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The lease was recorded on the Consolidated Balance Sheet upon commencement in June of 2025. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Undiscounted lease payment obligations associated with this lease are included in the lease liability maturity table above and total $8,969,000, $897,000 of which is payable in 2026.
v3.25.4
Goodwill
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The changes in the carrying value of goodwill were as follows (in thousands):
Amount
Balance as of December 31, 2023$393,181 
Moritex Corporation measurement period adjustments (refer to Note 21)6,478 
Foreign exchange rate changes(14,722)
Balance as of December 31, 2024384,937 
Foreign exchange rate changes1,342 
Balance as of December 31, 2025$386,279 
For its 2025 annual analysis of goodwill, management elected to perform a qualitative assessment. Based on this assessment, management believes it is more likely than not that the fair value of the reporting unit exceeds its carrying value. The Company did not record impairment charges related to goodwill in 2025, 2024, or 2023.
v3.25.4
Intangible Assets
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consisted of the following (in thousands):
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Customer relationships$68,241 $(14,843)$53,398 
Completed technologies58,603 (31,110)27,493 
Trademarks812 (610)202 
Non-compete agreements60 (53)7 
Balance as of December 31, 2025$127,716 $(46,616)$81,100 
 Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Customer relationships$67,781 $(10,229)$57,552 
Completed technologies58,373 (25,766)32,607 
Trademarks810 (337)473 
Non-compete agreements340 (288)52 
Balance as of December 31, 2024$127,304 $(36,620)$90,684 
The Company did not record impairment charges related to intangible assets in 2025, 2024, or 2023.
Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands):
Year Ended December 31,Amount
2026$9,832 
20278,906 
20288,176 
20298,176 
20307,633 
Thereafter38,377 
$81,100 
v3.25.4
Accrued Expenses
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consisted of the following (in thousands):
December 31,
20252024
Incentive compensation$35,688 $18,735 
Foreign retirement obligations10,726 10,445 
Salaries and payroll taxes8,170 5,123 
Warranty obligations5,474 5,140 
Vacation5,162 3,945 
Other26,177 28,372 
$91,397 $71,760 
The changes in the warranty obligation were as follows (in thousands):
Balance as of December 31, 2022$4,375 
Provisions for warranties issued during the period2,940 
Fulfillment of warranty obligations(3,078)
Foreign exchange rate changes
Balance as of December 31, 20234,244 
Provisions for warranties issued during the period4,794 
Fulfillment of warranty obligations(3,883)
Foreign exchange rate changes(15)
Balance as of December 31, 20245,140 
Provisions for warranties issued during the period3,468 
Fulfillment of warranty obligations(3,138)
Foreign exchange rate changes
Balance as of December 31, 2025$5,474 
v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
As of December 31, 2025, the Company had outstanding purchase orders totaling $57,690,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in 2026.
A significant portion of the Company's outstanding inventory purchase orders as of December 31, 2025, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company purchased $5,042,000, $17,461,000, and $10,616,000 in 2025, 2024, or 2023, respectively, of inventories as a result of the Company's obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.
Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.
v3.25.4
Indemnification Provisions
12 Months Ended
Dec. 31, 2025
Guarantees [Abstract]  
Indemnification Provisions Indemnification Provisions
Except as limited by Massachusetts law, the by-laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which he or she is involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. The maximum potential amount of future payments the Company could be required to make under these provisions is unlimited. The Company has never incurred significant costs related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is not material.
In the ordinary course of business, the Company may accept standard limited indemnification provisions in connection with the sale of its products, whereby it indemnifies its customers for certain direct damages incurred in connection with third-party patent or other intellectual property infringement claims with respect to the use of the Company’s products. The maximum potential amount of future payments the Company could be required to make under these provisions is, in many, but not all instances, subject to fixed monetary limits. The Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is not material.
In the ordinary course of business, the Company also accepts limited indemnification provisions from time to time, whereby it indemnifies customers for certain direct damages incurred in connection with bodily injury and property damage arising from the use of the Company’s products. Future payments the Company could be required to make under these provisions is generally recoverable under the Company’s insurance policies. As a result of this coverage, and the fact that the Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions, the Company believes the estimated fair value of these provisions is not material.
v3.25.4
Derivative Instruments
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company’s foreign currency risk management strategy is designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of generally up to three months but not greater than one year to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.
The Company had the following outstanding forward contracts (in thousands):
December 31, 2025December 31, 2024
CurrencyNotional
Value
USD
Equivalent
Notional
Value
USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Mexican Peso160,000 $8,881 220,000 $10,701 
Hungarian Forint2,500,000 7,600 2,360,000 5,951 
Korean Won9,000,000 6,239 — — 
British Pound4,000 5,383 3,200 4,008 
Indian Rupee400,000 4,436 — — 
Chinese Renminbi20,000 2,865 95,000 12,990 
Japanese Yen400,000 2,563 2,000,000 12,789 
Singapore Dollar (1)
  40,000 29,457 
Euro  25,000 26,029 
Swiss Franc  2,200 2,432 
Canadian Dollar  2,000 1,390 
(1) In January 2026, the Company entered into a forward contract for the Singapore Dollar with a notional value of S$34 million and a USD equivalent of $27 million.
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Fair Value LevelDecember 31, 2025December 31, 2024Fair Value LevelDecember 31, 2025December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid
expenses and other current assets
Level 2$791 $689 Accrued expensesLevel 2$367 $757 
The following table summarizes the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Asset DerivativesLiability Derivatives
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Gross amounts of recognized assets$791 $689 Gross amounts of recognized liabilities$367 $757 
Gross amounts offset — Gross amounts offset — 
Net amount of assets presented$791 $689 Net amount of liabilities presented$367 $757 
Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands):
 Location in Financial StatementsYear Ended December 31,
202520242023
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$1,368 $1,945 $(10,023)
v3.25.4
Revenue Recognition
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The following table summarizes disaggregated revenue information by geographic area based on the customer's country of domicile (in thousands):
Year Ended December 31,
202520242023
Americas$407,288 $350,155 $330,415 
Europe251,638 217,880 220,665 
Greater China158,456 164,147 164,115 
Other Asia176,977 182,333 122,352 
$994,359 $914,515 $837,547 

The following table summarizes disaggregated revenue information by revenue type (in thousands):
Year Ended December 31,
202520242023
Standard products and services (1)
$880,015 $795,319 $734,140 
Application-specific customer solutions114,344 119,196 103,407 
$994,359 $914,515 $837,547 
(1) In 2025, the Company entered into a commercial partnership with a strategic channel partner (the “Partner”) to better serve Original Equipment Manufacturer (OEM) customers in the specialized field of medical lab automation. Through 2030, the Partner has exclusive rights to sell machine vision hardware in combination with licensed Company software, in exchange for annual minimum license fees paid to the Company. The contract includes a substantive termination penalty if the contract is cancelled by the Partner. As such, the Company recognized the minimum license fees as revenue in 2025, at the point in time when the Partner received access to the software. Also in 2025, the Company transferred related inventories at cost to the Partner. As a result of the upfront recognition of the license revenue and transfer of inventories, the Company recognized one-time revenue of approximately $13 million in 2025, which is included in the "Standard products and services" amount in the table above.
Costs to Fulfill a Contract
Costs to fulfill customer contracts are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $10,592,000, $10,705,000, and $13,265,000 as of December 31, 2025, 2024, and 2023, respectively. Costs to fulfill customer contracts are amortized when the Company transfers the promised goods and services to the customer. The amount of amortization during 2025 related to costs deferred as of December 31, 2024 amounted to $9,831,000, and the amount of amortization during 2024 related to costs deferred as of December 31, 2023 amounted to $12,512,000.
Accounts Receivable
Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses.
The following table summarizes changes in the allowance for credit losses (in thousands):
Amount
Balance as of December 31, 2023$583 
Increases to the allowance for credit losses459 
Write-offs, net of recoveries(222)
Foreign exchange rate changes
Balance as of December 31, 2024827 
Increases to the allowance for credit losses477 
Write-offs, net of recoveries(555)
Foreign exchange rate changes(21)
Balance as of December 31, 2025$728 
Contract Assets
The following table summarizes the contract assets (in thousands):
Year Ended December 31,
202520242023
Unbilled revenue$16,980 $3,055 $2,402 
Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing primarily for certain application-specific customer solutions contracts, as well as for upfront license revenue recognized in connection with the strategic channel partnership mentioned above. Our rights to consideration are generally unconditional at the time our performance obligations are satisfied. The increase in unbilled revenue as of December 31, 2025 was primarily due to $10,365,000 of upfront license revenue recognized in 2025 in connection with the strategic channel partnership. Although the license revenue was recognized upfront, payments are expected to be received over the duration of the partnership, resulting in unbilled revenue.
Contract Liabilities
Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.
The following table summarizes the deferred revenue and customer deposits activity (in thousands):
Amount
Balance as of December 31, 2023$31,525 
Deferral of revenue billed in the current period, net of recognition21,998 
Recognition of revenue deferred in prior period(28,108)
Foreign exchange rate changes(380)
Balance as of December 31, 202425,035 
Deferral of revenue billed in the current period, net of recognition18,100 
Recognition of revenue deferred in prior period(22,728)
Foreign exchange rate changes687 
Balance as of December 31, 2025$21,094 
As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations for contracts that have an original expected duration of less than one year. The remaining unsatisfied performance obligations for contracts that have an original expected duration of more than one year, primarily related to extended hardware warranties, are not material.
v3.25.4
Shareholders' Equity
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Shareholders’ Equity Shareholders’ Equity
Preferred Stock
The Company has 400,000 shares of authorized but unissued $.01 par value preferred stock.
Common Stock
The Company has 300,000,000 shares of authorized $.002 par value common stock.
Each outstanding share of common stock entitles the record holder to one vote on all matters submitted to a vote of the Company’s shareholders. Common shareholders are also entitled to dividends when and if declared by the Company’s Board of Directors (the "Board").
Stock Repurchases
In March 2022, the Board authorized a program providing for the repurchase of up to $500,000,000 of the Company's common stock (the "Program"). Under the Program, in addition to repurchases made in prior years, the Company repurchased 1,723,000 shares at a cost of $79,794,000 in 2023, 1,711,000 shares at a cost of $67,085,000 in 2024, and 4,234,000 shares at a cost of $151,233,000 in 2025, leaving a remaining balance of $115,020,000 as of December 31, 2025. On February 11, 2026, the Board authorized the repurchase of an additional $500,000,000 of the Company's common stock upon completion of the Program.
The Company may repurchase shares under these programs in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.
Dividends
The Board declared and paid cash dividends of $0.070 per share in the first, second, and third quarters of 2023, $0.075 per share in the fourth quarter of 2023 and in the first, second, and third quarters of 2024, and $0.080 per share in the fourth quarter of 2024 and in the first, second, and third quarters of 2025. The dividend was increased to $0.085 per share in the fourth quarter of 2025.
Future dividends will be declared at the discretion of the Board and will depend on such factors as the Board deems relevant, including, among other things, the Company's ability to generate positive cash flow from operations.
v3.25.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Plans
The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). In May 2023, the shareholders of the Company approved the Cognex Corporation 2023 Stock Option and Incentive Plan (the “2023 Plan”). The 2023 Plan permits awards of stock options (both incentive and non-qualified options), stock appreciation rights, RSUs, and PRSUs. Up to 8,100,000 shares of common stock (subject to adjustment in the event of stock splits and other similar events) may be issued pursuant to awards granted under the 2023 Plan. In connection with the approval of the 2023 Plan, no further awards will be made under the Cognex Corporation 2001 General Stock Option Plan, as amended and restated (the “2001 Plan”), and the Cognex Corporation 2007 Stock Option and Incentive Plan, as amended and restated (the “2007 Plan”). With the approval of the 2023 Plan, the 10,610,800 shares of common stock subject to awards granted under the 2001 Plan and the 2007 Plan that were outstanding as of May 3, 2023 may become eligible for issuance under the 2023 Plan if such awards are forfeited, cancelled, or otherwise terminated (other than by exercise) (the “Carryover Shares”). As of December 31, 2025, forfeitures, cancellations, and other terminations from the 2001 Plan and the 2007 Plan have resulted in 1,584,542 Carryover Shares, raising the authorized total shares that may be issued under the 2023 Plan to 9,684,542.
As of December 31, 2025, the Company had 4,006,000 shares available for issuance under its stock plans. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over five years based on continuous employment and expire ten years from the grant date. RSUs generally vest upon three years of continuous employment or incrementally over such three year period. PRSUs generally vest upon three years of continuous employment and achievement of performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Participants are not entitled to dividends on stock options, RSUs, or PRSUs.
Stock Options
The following table summarizes the Company’s stock option activity:
Shares
(in thousands)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20249,543 $49.40 
Granted1,669 32.38 
Exercised(265)24.36 
Forfeited or expired(557)48.57 
Outstanding as of December 31, 202510,390 $47.35 5.45$9,725 
Exercisable as of December 31, 20256,007 $51.47 3.55$3,531 
Options vested or expected to vest as of December 31, 2025 (1)
9,551 $48.17 5.18$7,949 
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
The total cash received as a result of stock option exercises was $6,432,000 in 2025, $6,011,000 in 2024, and $11,104,000 in 2023. In connection with these exercises, the tax benefit (expense) realized by the Company was $1,802,000 in 2025, $(4,021,000) in 2024, and $(4,691,000) in 2023.
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
Year Ended December 31,
202520242023
Risk-free rate4.3 %4.3 %4.0 %
Expected dividend yield0.99 %0.76 %0.61 %
Expected volatility39 %39 %39 %
Expected term (in years)5.14.75.0
Risk-free rate
The risk-free rate was based on a treasury instrument whose term was consistent with the contractual term of the option.
Expected dividend yield
The current dividend yield was calculated by annualizing the cash dividend declared by the Board and dividing that result by the closing stock price on the grant date. 
Expected volatility
The expected volatility was based on a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock.
Expected term
The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time.
The weighted-average grant-date fair value of stock options granted was $12.14 in 2025, $14.89 in 2024, and $17.76 in 2023.
The total intrinsic value of stock options exercised was $4,179,000 in 2025, $4,626,000 in 2024, and $6,227,000 in 2023. The total fair value of stock options vested was $24,197,000 in 2025, $29,309,000 in 2024, and $34,751,000 in 2023.
Restricted Stock Units (RSUs)
The following table summarizes the Company's RSUs activity:
Shares
(in thousands)
Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 20241,690 $44.75 
Granted1,320 32.80 
Vested(731)49.18 
Forfeited or expired(163)37.58 
Nonvested as of December 31, 20252,116 $36.32 
The fair value of RSUs was determined based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. The weighted-average grant-date fair value of RSUs granted was $32.80 in 2025, $38.90 in 2024, and $46.14 in 2023. There were 731,000, 429,000, and 521,000 RSUs that vested in 2025, 2024, and 2023, respectively.
Tax obligations for vested RSUs are settled by withholding a portion of the shares prior to distribution to the shareholder. The total cash used by the Company to fund the tax payments was $6,877,000 in 2025, $5,017,000 in 2024, and $7,836,000 in 2023. In connection with these vested RSUs, the tax benefit (expense) realized by the Company was $(9,250,000) in 2025, $(7,401,000) in 2024, and $(3,229,000) in 2023.
Performance Restricted Stock Units (PRSUs)
The following table summarizes the Company's PRSUs activity:
Shares
(in thousands)
Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 2024134 $46.82 
Granted184 32.14 
Vested— — 
Forfeited or expired(33)62.49 
Nonvested as of December 31, 2025285 $35.53 
During 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date. The number of shares earned could range between 0% and 120% based on achievement of the performance condition, which includes certain financial targets over the three year measurement period. The fair value of these PRSUs is calculated based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes.
During 2023 and 2024, the Company granted PRSUs that vest upon the satisfaction of service and market conditions stipulated in the award grant. The fair value of these awards was determined using a Monte Carlo simulation model to estimate the probability of meeting those conditions.
The weighted average grant-date fair value of PRSUs granted was $32.14 in 2025, $39.05 in 2024, and $44.86 in 2023. No PRSUs vested in 2025, 2024, and 2023.
Stock-Based Compensation Expense
The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 11% to all stock-based awards for senior management and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. Credits of $4,789,000, $1,832,000, and $234,000 were recorded in 2025, 2024, and 2023, respectively, to true up previously recorded compensation expense for this forfeiture rate revision.
As of December 31, 2025, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested stock-based awards, including stock options, RSUs, and PRSUs, was $48,015,000, which is expected to be recognized over a weighted-average period of 1.5 years.
The total stock-based compensation expense and the related income tax benefit recognized was $48,517,000 and $6,820,000, respectively, in 2025, $52,443,000 and $8,387,000, respectively, in 2024, and $54,768,000 and $8,442,000, respectively, in 2023. No compensation expense was capitalized in 2025, 2024, or 2023.
The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$2,216 $1,966 $1,979 
Research, development, and engineering15,336 14,628 16,480 
Selling, general, and administrative30,965 35,849 36,309 
$48,517 $52,443 $54,768 
v3.25.4
Employee Savings Plan
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Savings Plan Employee Savings Plan
Under the Company's Employee Savings Plan, a defined contribution plan, all U.S. employees who have attained age 21 may contribute up to 100% of their pay on a pre-tax basis under the Company's Employee Savings Plan, subject to the annual dollar limitations established by the Internal Revenue Service ("IRS"). The Company matches 50% of the first 6% of pay an employee contributes. Company contributions vest 25%, 50%, 75%, and 100% after one, two, three, and four years of continuous employment with the Company, respectively. Company contributions totaled $3,590,000 in 2025, $3,535,000 in 2024, and $3,392,000 in 2023. Cognex stock is not an investment alternative and Company contributions are not made in the form of Cognex stock.
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In 2025, the Company adopted ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, is equal to or greater than five percent of total income taxes paid. These changes have been applied prospectively.
Income from continuing operations before income tax expense consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Domestic73,505 35,253 16,039 
Foreign109,297 96,236 119,309 
182,802 131,489 135,348 
Income tax expense consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Current:
Federal$4,576 $28,009 $29,084 
State4,440 4,524 3,544 
Foreign19,647 12,795 9,207 
28,663 45,328 41,835 
Deferred:
Federal30,481 (22,273)(24,731)
State668 (1,324)(5,877)
Foreign8,548 3,587 10,887 
39,697 (20,010)(19,721)
$68,360 $25,318 $22,114 
Effective Tax Rate Reconciliation
A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, presented in accordance with the prospectively adopted ASU 2023-09, was as follows for the year ended December 31, 2025:
Year Ended December 31, 2025
$%
U.S. federal statutory income tax rate$38,39721.0 %
State and local tax effects (1)
3,6292.0 %
Foreign tax effects
Ireland
Foreign rate differential(4,355)(2.4)%
Transfer pricing adjustment2,1851.2 %
Other5940.3 %
Japan1,3250.7 %
Germany1,2320.7 %
China2,4211.3 %
Other jurisdictions6880.4 %
Tax on Unremitted Foreign Earnings(414)(0.2)%
Changes in tax rate due to new enacted law33,23718.2 %
Cross-border tax laws
Net CFC Tested Income4,1122.2 %
Foreign tax credits(16,257)(8.9)%
Other3020.2 %
Tax credits
R&D tax credits(3,186)(1.7)%
Valuation allowance changes2720.1 %
Non-taxable items
Share based compensation4,3702.4 %
Other5760.3 %
Unrecognized tax benefits(1,055)(0.6)%
All other adjustments not categorized2870.2 %
Total worldwide effective tax expense and rate68,36037.4 %
(1) State Taxes in California, Illinois, Massachusetts, Michigan, Minnesota, Pennsylvania, and Tennessee made up the majority (greater than 50%) of tax effect in this category.

A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows for the years ended December 31, 2024 and December 31, 2023:
 Year Ended December 31,
 20242023
Income tax expense at U.S. federal statutory corporate tax rate21 %21 %
State income taxes, net of federal benefit
Foreign tax rate differential(4)(6)
Tax credits(3)(3)
Taxation on multinational operations(5)(3)
Tax reserves
Limitation on deduction for executive compensation
Discrete tax expense related to employee stock-based compensation
Discrete tax benefit for audit settlements— 
Discrete tax expense for foreign earnings not indefinitely reinvested— 
Discrete tax expense related to tax return filings— 
Discrete tax expense related to rate revaluation on state tax assets— 
Discrete tax benefit related to GILTI adjustments— (2)
Discrete tax benefit for release of valuation allowance— (4)
Other
Income tax expense19 %16 %
Tax Reserves
The changes in gross amounts of unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):
Balance of reserve for income taxes as of December 31, 2022
$13,647 
Reductions as a result of tax positions taken in prior periods(242)
Additions as a result of tax positions taken in prior periods12,556 
Additions as a result of tax positions taken in the current period1,877 
Reductions relating to settlements with taxing authorities(1,230)
Reductions as a result of the expiration of the applicable statutes of limitations(894)
Balance of reserve for income taxes as of December 31, 2023
25,714 
Reductions as a result of tax positions taken in prior periods(39)
Additions as a result of tax positions taken in prior periods208 
Additions as a result of tax positions taken in the current period1,935 
Reductions relating to settlements with taxing authorities(2,751)
Reductions as a result of the expiration of the applicable statutes of limitations(1,331)
Balance of reserve for income taxes as of December 31, 2024
23,736 
Reductions as a result of tax positions taken in prior periods(1,597)
Additions as a result of tax positions taken in prior periods825 
Additions as a result of tax positions taken in the current period1,853 
Reductions relating to settlements with taxing authorities— 
Reductions as a result of the expiration of the applicable statutes of limitations(3,547)
Balance of reserve for income taxes as of December 31, 2025
$21,270 
The Company’s reserve for income taxes, including gross interest and penalties, was $27,042,000 as of December 31, 2025, of which $24,269,000 was classified as a non-current liability and $2,773,000 was classified as an offset to deferred tax assets. The Company's reserve for income taxes, including gross interest and penalties, was $28,733,000 as of December 31, 2024, of which $26,365,000 was classified as a non-current liability and $2,368,000 was classified as an offset to deferred tax assets. The amount of gross interest and penalties included in these balances was $5,773,000 and $4,997,000 as of December 31, 2025 and 2024, respectively. If the Company’s
tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period.
The Company has defined its major tax jurisdictions as the United States, Ireland, China, Japan, and Korea and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, 34.7% in Japan, and 20.9% in Korea, compared to the U.S. federal statutory corporate tax rate of 21%. These differences resulted in a favorable impact to the effective tax rate for all periods presented as shown in the Effective Tax Rate Reconciliation section. Management has determined that earnings from its legal entities in China will be indefinitely reinvested to provide local funding for growth, and that earnings from all other jurisdictions will not be indefinitely reinvested. The Company recorded non-current deferred tax liabilities of $986,000 and $1,400,000 in 2025 and 2024, respectively, with respect to earnings that are not indefinitely reinvested.
In 2023, the Company qualified for a tax holiday in China, which can be renewed every three years. A portion of the Company's business in China operates under this tax incentive program, which expires at the end of fiscal year 2026. This tax incentive may be extended if specific conditions are met. The net impact of this tax incentive program was to increase the Company's net income by approximately $977,000 in 2025 ($0.01 per share, diluted) and by approximately $845,000 in 2024 ($0.01 per share, basic and diluted). The tax effect of this benefit on net income per share for 2023 was not material.
Within the United States, the tax years 2021 through 2024 remain open to examination by the Internal Revenue Service ("IRS") and various state taxing authorities. The tax years 2013 through 2024 remain open to examination by various taxing authorities in foreign jurisdictions in which the Company operates. Management believes the Company is adequately reserved for these audits. The final determination of tax audits could result in favorable or unfavorable changes in our estimates. Any reserves associated with this audit period will not be released until the issue is settled or the audit is concluded.
Interest and penalties included in income tax expense were $1,689,000 in 2025, $2,145,000 in 2024, and $1,032,000 in 2023.
Cash paid for income taxes for the year ended December 31, 2025 was as follows:
2025
U.S. federal$23,586 
State and local2,417 
Japan6,669 
China2,106 
Other7,553 
Total income taxes paid$42,331 
Cash paid for income taxes totaled $59,849,000 in 2024 and $56,618,000 in 2023.
Deferred Tax Assets and Liabilities
The tax effects of temporary differences and attributes that give rise to deferred income tax assets and liabilities as of December 31, 2025 and December 31, 2024 were as follows (in thousands):
December 31,
 20252024
Deferred tax assets:
Intangible asset in connection with change in tax structure$361,385 $369,474 
Capitalization of R&D expenses26,620 35,948 
Stock-based compensation expense21,617 22,428 
Tax credit carryforwards10,849 10,186 
Inventory and revenue related8,583 8,355 
Bonuses, commissions, and other compensation8,894 6,949 
Depreciation— 2,877 
Foreign net operating losses645 1,306 
Other1,607 4,624 
Total deferred tax assets440,200 462,147 
Valuation allowance(2,737)(2,515)
$437,463 $459,632 
Deferred tax liabilities:
NCTI (formerly GILTI) tax basis differences in connection with change in tax structure$(274,026)$(254,213)
Amortization(27,958)(29,008)
Depreciation(1,744)— 
Reserve for unremitted foreign earnings(986)(1,400)
$(304,714)$(284,621)
Net deferred taxes$132,749 $175,011 
Change in Tax Structure and Net CFC Tested Income
In 2019, the Company made changes to its international tax structure due to legislation by the European Union regarding low tax structures that resulted in an intercompany sale of intellectual property. As a result, the Company recorded an associated deferred tax asset of $437,500,000 in Ireland based on the fair value of the intellectual property that is being realized over fifteen years as future tax deductions. From a United States perspective, the sale was disregarded, and any future deductions claimed in Ireland are added back to taxable income as part of Net CFC Tested Income ("NCTI", formerly, Global Intangible Low-Taxed Income) minimum tax. The Company recorded an associated deferred tax liability of $350,000,000, representing the NCTI minimum tax related to the fair value of the intellectual property. On July 4, 2025, tax legislation known as One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. OBBBA modified certain international tax provisions such as NCTI. As a result of this legislation, in 2025, the Company accrued a discrete tax expense of $33,237,000 to increase its NCTI deferred tax liability.
Other Deferred Tax Assets and Liabilities
Beginning in 2022, the Tax Cuts and Jobs Act eliminated the option to deduct research and development expenditures in the period incurred and required taxpayers to capitalize and amortize such expenditures over five or fifteen years, as applicable, pursuant to Section 174 of the Internal Revenue Code. Accordingly, the Company recorded deferred tax assets resulting from the capitalization of research and development expenditures. OBBBA modified the provisions contained in the Tax Cuts and Jobs Act to allow the deduction of domestic research and development expenditures in the period incurred beginning January 1, 2025. The Company has modified its deferred tax position accordingly.
As of December 31, 2025, the Company had foreign net operating loss carryforwards of $645,000, state tax credit carryforwards of $8,019,000 that will begin to expire for the 2033 tax return, and foreign tax credit carryforwards of $2,830,000, that will begin to expire for the 2028 tax return. As of December 31, 2024, the Company had foreign net operating loss carryforwards of $1,306,000, state tax credit carryforwards of $7,619,000, and foreign tax credit carryforwards of $2,567,000.
As of December 31, 2025, the Company had a valuation allowance for foreign net operation loss carryforwards of $549,000 and a valuation allowance for foreign tax credits of $2,188,000 that were not considered to be realized. As of December 31, 2024, the Company had a valuation allowance for foreign net operation loss carryforwards of 599,000 and a valuation allowance for foreign tax credits of $1,916,000 that was not considered to be realized. Should these credits be utilized in a future period, the reserve associated with these credits would be reversed in the period when it is determined that the credits can be utilized to offset future income tax liabilities.
While the deferred tax assets, net of valuation allowance, are not assured of realization, management has evaluated the realizability of these deferred tax assets and has determined that it is more likely than not that these assets will be realized. In reaching this conclusion, we have evaluated certain relevant criteria including the Company’s historical profitability, current projections of future profitability, and the lives of tax credits, net operating losses, and other carryforwards. Should the Company fail to generate sufficient pre-tax profits in future periods, we may be required to establish valuation allowances against these deferred tax assets, resulting in a charge to current operations in the period of determination.
v3.25.4
Earnings per Share
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
The following table shows the computation of basic and diluted earnings per share as follows (in thousands, except per share amounts):
 Year Ended December 31,
202520242023
Net income114,442 106,171 113,234 
Basic weighted-average common shares outstanding168,049 171,438 172,249 
Effect of dilutive stock options1,318 1,173 1,150 
Diluted weighted-average common and common-equivalent shares outstanding169,367 172,611 173,399 
Earnings per share
Basic0.68 0.62 0.66 
Diluted0.68 0.62 0.65 
The computation of diluted weighted-average common shares outstanding excludes the following weighted average anti-dilutive stock-based awards outstanding as follows (in thousands):
202520242023
Stock options10,238 8,497 6,854 
Restricted stock units17 — — 
Performance restricted stock units — — 
Total weighted average anti-dilutive stock-based awards outstanding10,255 8,497 6,854 
v3.25.4
Segment and Geographic Information
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company operates in one segment, machine vision technology. The Company has a single, company-wide management team that administers operations as a whole rather than as discrete operating segments. The Company’s chief operating decision maker is the chief executive officer, who assesses performance and allocates resources at the corporate level, as compared to the geography, product line, or end market levels. The Company offers a variety of machine vision products that have similar economic characteristics and are distributed by the same sales channels to the same types of customers.
The following table summarizes information about geographic areas (in thousands):
United StatesEuropeGreater ChinaOtherTotal
Year Ended December 31, 2025
Revenue$329,125 $251,638 $158,456 $255,140 $994,359 
Long-lived assets48,838 14,112 13,631 14,428 $91,009 
Year Ended December 31, 2024
Revenue$306,766 $217,880 $164,147 $225,722 $914,515 
Long-lived assets56,948 15,655 14,844 16,025 $103,472 
Year Ended December 31, 2023
Revenue$288,324 $220,665 $164,115 $164,443 $837,547 
Long-lived assets62,946 17,005 17,028 15,958 $112,937 
Revenue is presented geographically based on the customer’s country of domicile.
Revenue from a single customer accounted for 15% and 10% of total revenue in 2025 and 2024, respectively. Revenue from this customer was not greater than 10% of total revenue in 2023. Accounts receivable from this customer were not greater than 10% of total accounts receivable as of December 31, 2025 and was 10% of total accounts receivable as of December 31, 2024.
The measure of segment profit or loss for the Company's single segment is net income. Segment expenses were disaggregated based on the information the chief operating decision maker uses to assess performance and allocate resources considering both quantitative and qualitative factors. The following table summarizes significant segment expenses, which represents the difference between segment revenue and segment net income, (in thousands):
Year Ended December 31,
202520242023
Revenue$994,359 $914,515 $837,547 
Less:
Cost of revenue (1)
328,966 288,721 236,306 
Gross profit665,393 625,794 601,241 
Less:
Research, development, and engineering expenses
Salaries and fringe benefits75,690 79,544 78,762 
Incentive compensation (2)
9,537 4,711 1,446 
Stock-based compensation15,336 14,628 16,480 
Depreciation and amortization2,628 3,229 3,056 
Other segment expenses (3)
35,779 37,703 39,656 
Total research, development, and engineering expenses138,970 139,815 139,400 
Selling, general, and administrative expenses
Salaries and fringe benefits174,526 179,898 166,612 
Incentive compensation (2)
55,932 45,565 35,513 
Stock-based compensation30,965 35,849 36,309 
Depreciation and amortization15,759 16,936 11,759 
Other segment expenses (3)
86,675 92,666 88,946 
Total selling, general, and administrative expenses363,857 370,914 339,139 
Loss (recovery) from fire — (8,000)
Operating income162,566 115,065 130,702 
Foreign currency gain (loss)(4,082)1,531 (10,039)
Investment income16,950 13,971 14,093 
Other income (expense)7,368 922 592 
Income before income tax expense182,802 131,489 135,348 
Income tax expense68,360 25,318 22,114 
Net income$114,442 $106,171 $113,234 
(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $12,406,000, $12,524,000, and $7,065,000 for 2025, 2024, and 2023, respectively.
(2) Incentive compensation includes company bonus and sales commissions.
(3) Other segment expenses include outside services, prototyping materials, sales demonstration equipment, travel and entertainment, marketing programs, rent, and allocations, among other less significant expenses.
v3.25.4
Business Acquisitions
12 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Business Acquisitions Business Combinations
Moritex Corporation
On October 18, 2023, the Company acquired all the outstanding shares of Moritex Corporation ("Moritex"), a global provider of premium optical components based in Japan, for an enterprise value of ¥40 billion Japanese Yen, or approximately $270 million U.S. Dollars based on the closing date foreign exchange rate.
The cash-free, debt-free enterprise value was adjusted by cash acquired, debt assumed, and final working capital balances to arrive at total consideration to be allocated to assets acquired and liabilities assumed of ¥44,376,245,000 ($296,138,000 based on the closing date foreign exchange rate), of which ¥44,227,414,000
($295,144,000) was paid in cash on the closing date and ¥148,831,000 ($994,000) was paid during the first quarter of 2024 as a purchase price adjustment based on the closing balance sheet. The Company acquired cash balances totaling $38,088,000 as part of this transaction, to arrive at a net cash outflow of $257,056,000 on the closing date. There was no contingent consideration as part of this transaction.
In the fourth quarter of 2024, the Company recorded measurement-period adjustments that increased goodwill by $6,478,000 and are reflected in the final purchase price allocation below. The adjustments consisted primarily of changes to deferred income tax liabilities based on the final push-down accounting for intangible assets to legal-entity jurisdictions, a reduction in customer relationships based on a methodology refinement, and changes to provisional assets and liabilities based on new information obtained within the one-year measurement period that refined initial estimates.
The portfolio of Moritex optical components allows us to expand our served market to include high-end lenses and lighting and provide our customers with a more complete product offering by replacing third-party components with Cognex-manufactured optical components. Moritex also provides the Company with a more substantial presence in Japan, which is an important machine vision market where we believe we can increase our share through a stronger local presence.
This transaction was accounted for as a business combination. Identifiable assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date, which were valued using level 3 inputs for intangible assets, inventories, and property, plant and equipment. Pro-forma information, as well as revenue and earnings from the date of the acquisition, are not presented because they are not material to the Company’s consolidated financial statements. Transaction costs were approximately $5,800,000 and were expensed as incurred as part of SG&A expenses on the Consolidated Statement of Operations.
The purchase price was allocated as follows (in thousands):
Cash and cash equivalents$38,088 
Accounts receivable11,543 
Inventories21,882 
Property, plant and equipment19,805 
Goodwill151,525 
Customer relationships64,800 
Completed technologies32,300 
Trademarks850 
Deferred income tax assets4,162 
Other assets3,363 
Accounts payable(6,639)
Accrued expenses(14,718)
Deferred income tax liabilities(22,665)
Reserve for income taxes(5,864)
Other liabilities(2,294)
Purchase price$296,138 
The customer relationships, completed technologies, and trademarks are included in "Intangible assets" on the Consolidated Balance Sheet. The customer relationships are being amortized to SG&A expenses over fifteen years, the completed technologies are being amortized to cost of revenue over nine years, and the trademarks are being amortized to SG&A expenses over three years. None of the acquired goodwill is deductible for tax purposes.
v3.25.4
Loss from Fire
12 Months Ended
Dec. 31, 2025
Unusual or Infrequent Items, or Both [Abstract]  
Loss from Fire Loss (Recovery) from FireOn June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia, destroying a significant amount of Cognex inventories. In 2023, the Company recorded recoveries related to the fire of $8,000,000, consisting of $2,500,000 for proceeds received from the Company's insurance carrier in relation to a business interruption claim and $5,500,000 for proceeds received as part of a financial settlement for lost inventory and other losses incurred as a result of the fire.
v3.25.4
Subsequent Events
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On February 11, 2026, the Board declared a cash dividend of $0.085 per share. The dividend is payable March 12, 2026 to all shareholders of record as of the close of business on February 26, 2026.
On February 11, 2026, the Board authorized the repurchase of an additional $500,000,000 of the Company's common stock through open market purchases, privately negotiated transactions, or otherwise in compliance with applicable securities laws. The Board also reauthorized the Company to establish Rule 10b5-1 trading plans. Rule 10b5-1 trading plans allow companies to repurchase shares at times when they might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. The Company may repurchase shares pursuant to its repurchase program depending upon a variety of factors, including, among other things, the impact of dilution from equity-based awards, stock price, share availability, and cash requirements.
On February 11, 2026, the Company disclosed its intent to divest its Japan‑focused trading business, which was acquired as part of the Moritex acquisition, for a target purchase price between $10 million and $12 million, including the sale of related inventories. Divestiture of this business would not constitute a strategic shift that would have a major effect on the Company’s operations or financial results. The Company is targeting a transaction close in the second quarter of 2026. Management is currently evaluating the financial statement impact; however, due the timing of related negotiations an estimate of such impact cannot be reasonably determined as of the date these financial statements were issued.
The Company evaluated subsequent events through February 12, 2026, the date the financial statements were issued. Other than the aforementioned items, there were no additional material recognized or unrecognized subsequent events identified.
v3.25.4
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
Additions
DescriptionBalance at
Beginning
of Period
Charged to
Costs and
Expenses
Charged
to Other
Accounts
DeductionsOtherBalance at
End of
Period
(In thousands)
Allowance for Credit Losses on Accounts Receivable:
2025$827 $477 $— $(555)
(1)
$(21)
(2)
$728 
2024$583 $459 $— $(222)
(1)
$
(2)
$827 
2023$730 $500 $— $(645)
(1)
$(2)
(2)
$583 
Reserve for Sales Returns:
2025$2,518 $500 $— $— 
(1)
$— 
(2)
$3,018 
2024$2,018 $500 $— $— 
(1)
$— 
(2)
$2,518 
2023$1,518 $500 $— $— 
(1)
$— 
(2)
$2,018 
Deferred Tax Valuation Allowance:
2025$2,515 $222 $— $— $— $2,737 
2024$943 $1,572 $— $— $— $2,515 
2023$7,661 $— $— $(6,718)$— $943 
(1)Specific write-offs
(2)Foreign currency exchange rate changes
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
As part of our overall “Enterprise Risk Management” program, the Company has implemented a cybersecurity risk management program that is informed by recognized industry standards and frameworks. Our cybersecurity risk management program includes a number of components, including information security program assessments, penetration testing, and threat simulation exercises that are conducted periodically by both internal and external resources, such as cybersecurity industry vendors, consultants, and auditors, as well as continuous monitoring of critical risks from cybersecurity threats using automated tools. During onboarding and periodically thereafter, we conduct trainings for the Company’s employees and contractors about cybersecurity risks, including sending test phishing emails for training purposes to all users of the Company’s email system.
As part of our cybersecurity risk management program, we maintain processes to assess and review the cybersecurity practices of third-party vendors and service providers, including utilization of software to evaluate, assess, and monitor cybersecurity risks posed by third parties that provide critical services or handle confidential information. Additionally, prior to engaging a critical third-party vendor or service provider, and periodically thereafter, we conduct security audits of such third parties, and, as appropriate, include security requirements in contracts.
We, like other companies in our industry, face a number of cybersecurity risks in connection with our business. Although such risks have not materially affected us, including our business strategy, results of operations, or financial condition, to date, we have, from time to time, experienced threats and security incidents related to our data and systems, including denial of service and phishing attacks. For more information about the cybersecurity risks we face, see the risk factor entitled “Information security breaches may adversely affect our business” in Item 1A- Risk Factors.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] As part of our overall “Enterprise Risk Management” program, the Company has implemented a cybersecurity risk management program that is informed by recognized industry standards and frameworks. Our cybersecurity risk management program includes a number of components, including information security program assessments, penetration testing, and threat simulation exercises that are conducted periodically by both internal and external resources, such as cybersecurity industry vendors, consultants, and auditors, as well as continuous monitoring of critical risks from cybersecurity threats using automated tools. During onboarding and periodically thereafter, we conduct trainings for the Company’s employees and contractors about cybersecurity risks, including sending test phishing emails for training purposes to all users of the Company’s email system.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our cybersecurity risk management program and related operations and processes are managed by our Information Security team (the “IS Team”), which is led by the Senior Director of Information Security and supported by internal resources and external vendors, auditors, and consulting engagements when appropriate. The Senior Director of Information Security role is currently held by an individual who has over twenty years of experience managing information security programs. The IS Team is responsible for assessing risks from cybersecurity threats, including their potential business impact and likelihood of occurrence, as well as implementing risk mitigations and remediations.
The IS Team provides reports on cybersecurity risk management processes to the Chief Financial Officer and other leaders of the Company on a quarterly basis, or as potentially critical risks from cybersecurity threats or incidents arise.
The IS Team provides reports on a semi-annual basis to the Audit Committee, which oversees cybersecurity risks pursuant to the Audit Committee Charter. The Audit Committee periodically reports on cybersecurity risk management to the full Board of Directors of the Company (the "Board"). The IS team also provides an annual direct report on cybersecurity risk management to the Board. The Board, as a whole and through its committees, has responsibility for the oversight of risk management.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The IS Team provides reports on a semi-annual basis to the Audit Committee, which oversees cybersecurity risks pursuant to the Audit Committee Charter. The Audit Committee periodically reports on cybersecurity risk management to the full Board of Directors of the Company (the "Board"). The IS team also provides an annual direct report on cybersecurity risk management to the Board. The Board, as a whole and through its committees, has responsibility for the oversight of risk management.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our cybersecurity risk management program and related operations and processes are managed by our Information Security team (the “IS Team”), which is led by the Senior Director of Information Security and supported by internal resources and external vendors, auditors, and consulting engagements when appropriate. The Senior Director of Information Security role is currently held by an individual who has over twenty years of experience managing information security programs. The IS Team is responsible for assessing risks from cybersecurity threats, including their potential business impact and likelihood of occurrence, as well as implementing risk mitigations and remediations.
The IS Team provides reports on cybersecurity risk management processes to the Chief Financial Officer and other leaders of the Company on a quarterly basis, or as potentially critical risks from cybersecurity threats or incidents arise.
The IS Team provides reports on a semi-annual basis to the Audit Committee, which oversees cybersecurity risks pursuant to the Audit Committee Charter. The Audit Committee periodically reports on cybersecurity risk management to the full Board of Directors of the Company (the "Board"). The IS team also provides an annual direct report on cybersecurity risk management to the Board. The Board, as a whole and through its committees, has responsibility for the oversight of risk management.
Cybersecurity Risk Role of Management [Text Block]
Our cybersecurity risk management program and related operations and processes are managed by our Information Security team (the “IS Team”), which is led by the Senior Director of Information Security and supported by internal resources and external vendors, auditors, and consulting engagements when appropriate. The Senior Director of Information Security role is currently held by an individual who has over twenty years of experience managing information security programs. The IS Team is responsible for assessing risks from cybersecurity threats, including their potential business impact and likelihood of occurrence, as well as implementing risk mitigations and remediations.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The IS Team provides reports on cybersecurity risk management processes to the Chief Financial Officer and other leaders of the Company on a quarterly basis, or as potentially critical risks from cybersecurity threats or incidents arise.
The IS Team provides reports on a semi-annual basis to the Audit Committee, which oversees cybersecurity risks pursuant to the Audit Committee Charter
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The Senior Director of Information Security role is currently held by an individual who has over twenty years of experience managing information security programs.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The IS Team is responsible for assessing risks from cybersecurity threats, including their potential business impact and likelihood of occurrence, as well as implementing risk mitigations and remediations.
The IS Team provides reports on cybersecurity risk management processes to the Chief Financial Officer and other leaders of the Company on a quarterly basis, or as potentially critical risks from cybersecurity threats or incidents arise.
The IS Team provides reports on a semi-annual basis to the Audit Committee, which oversees cybersecurity risks pursuant to the Audit Committee Charter. The Audit Committee periodically reports on cybersecurity risk management to the full Board of Directors of the Company (the "Board"). The IS team also provides an annual direct report on cybersecurity risk management to the Board. The Board, as a whole and through its committees, has responsibility for the oversight of risk management.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Nature of Operations
Nature of Operations
Cognex Corporation (the "Company" or "Cognex") makes advanced machine vision easy, paving the way for manufacturing and distribution companies to become faster, smarter, and more efficient through automation. The Company is a global technology leader in industrial machine vision systems that improve efficiency and solve critical manufacturing and distribution challenges, providing products and services across a diverse set of industrial end markets.
Use of Estimates in the Preparation of Financial Statements
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition and income taxes.
Basis of Consolidation
Basis of Consolidation
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated.
Foreign Currency
Foreign Currency Translation
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is included in shareholders’ equity as accumulated other comprehensive loss.
Fair Value Measurements
Fair Value Measurements
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based on the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based on management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period.
Cash, Cash Equivalents, and Investments
Cash, Cash Equivalents, and Investments
Money market instruments, as well as debt securities with original maturities of three months or less, are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as current investments. Debt securities with remaining maturities greater than one year are classified as non-current investments. Bonds with call options are classified based on their original maturity date and asset-backed securities are classified based on their effective maturity date taking into account the expected timing of the underlying payments used as collateral. It is the Company’s policy to invest in debt securities with maturities that do not exceed five years.
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, included in shareholders’ equity as accumulated other comprehensive loss. Realized gains and losses are calculated using the specific identification method. Realized gains and losses, interest income, and the amortization of the discount or premium on debt securities arising at acquisition, are included in "Investment income" on the Consolidated Statements of Operations.
Management monitors its debt securities to determine whether a loss exists related to the credit quality of the issuer. If the present value of the cash flows expected to be collected from the security is less than the amortized cost basis
of the security, then a credit loss exists and an allowance against the security for credit losses is recorded. The allowance is limited to the amount by which fair value is below amortized cost, recognizing that the investment could be sold at fair value. Credit losses continue to be remeasured in subsequent reporting periods. Credit losses and recoveries related to debt securities are included in “Other income (expense)” on the Consolidated Statements of Operations. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows.
Cash, Cash Equivalents, and Investments
Cash, Cash Equivalents, and Investments
Money market instruments, as well as debt securities with original maturities of three months or less, are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as current investments. Debt securities with remaining maturities greater than one year are classified as non-current investments. Bonds with call options are classified based on their original maturity date and asset-backed securities are classified based on their effective maturity date taking into account the expected timing of the underlying payments used as collateral. It is the Company’s policy to invest in debt securities with maturities that do not exceed five years.
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, included in shareholders’ equity as accumulated other comprehensive loss. Realized gains and losses are calculated using the specific identification method. Realized gains and losses, interest income, and the amortization of the discount or premium on debt securities arising at acquisition, are included in "Investment income" on the Consolidated Statements of Operations.
Management monitors its debt securities to determine whether a loss exists related to the credit quality of the issuer. If the present value of the cash flows expected to be collected from the security is less than the amortized cost basis
of the security, then a credit loss exists and an allowance against the security for credit losses is recorded. The allowance is limited to the amount by which fair value is below amortized cost, recognizing that the investment could be sold at fair value. Credit losses continue to be remeasured in subsequent reporting periods. Credit losses and recoveries related to debt securities are included in “Other income (expense)” on the Consolidated Statements of Operations. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows.
Accounts Receivable
Accounts Receivable
The Company extends credit with various payment terms to customers based on an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes an allowance against accounts receivable for credit losses when it determines receivables are at risk for collection based on the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, and general economic and industry conditions, as well as various other factors. Receivables are written off against this allowance in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a recovery of the credit loss. Credit losses and recoveries related to accounts receivable are included in "Selling, general, and administrative expenses" on the Consolidated Statements of Operations.
Inventories
Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
Purchase price variances are incurred when actual costs are different than standard costs due to favorable or unfavorable market prices. Management applies judgment to recognize purchase price variances in the same period that the associated standard costs of the finished goods that consume these components are sold.
The Company’s inventory is subject to technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based on assumptions about future demand, product transitions, general economic and industry conditions, and other circumstances, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required.
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company could recognize a higher-than-normal gross margin if the reserved inventory were subsequently sold.
In accordance with the accounting principles applied in business combinations, acquired inventories are recorded at fair value on the acquisition date. This valuation policy typically results in the write-up of inventories above the acquired company’s pre-acquisition carrying value, which results in a lower-than-normal gross margin when these acquired inventories are sold.
Property, Plant, and Equipment
Property, Plant, and Equipment
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ original useful lives are 39 years, building improvements’ useful lives range from five to ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to ten years. Land that is leased or granted, as well as leasehold improvements, are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations.
In accordance with the accounting principles applied in business combinations, acquired property, plant, and equipment are recorded at fair value on the acquisition date. This valuation policy typically results in the write-up of property, plant, and equipment above the acquired company’s pre-acquisition carrying value, which results in a higher depreciation expense over the estimated lives of the assets.
Internal-use Software
Internal-use Software
Internal-use software is software acquired, internally developed, or modified solely to meet the Company's internal needs, and during the software's development no substantive plan exists to sell the software. The accounting treatment for computer software developed for internal use depends on the nature of activities performed at each stage of development. The preliminary project stage includes conceptual formulation of design alternatives, determination of system requirements, vendor demonstrations, and final selection of vendors, and during this stage costs are expensed as incurred. The application development stage includes software configuration, coding, hardware installation, and testing. During this stage, certain costs are capitalized, if material, including external direct costs of materials and services, as well as payroll and payroll-related costs for employees who are directly associated with the project, while certain costs are expensed as incurred, including training and data conversion costs. The post-implementation stage includes support and maintenance, and during this stage costs are expensed as incurred.
Capitalization begins when both the preliminary project stage is completed and management commits to funding the project. Capitalization ceases at the point the project is substantially complete and ready for its intended use, that is, after all substantial testing is completed. Costs of specified upgrades and enhancements to internal-use software are capitalized if it is probable that those expenditures result in additional functionality. Capitalized costs are amortized on a straight-line basis over the estimated useful life.
Leases
Leases
At inception of a contract, the Company determines whether that contract is or contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. The Company has control of the asset if it has the right to direct the use of the asset and obtains substantially all of the economic benefits from the use of the asset throughout the period of use.
As a practical expedient, the Company does not recognize a lease asset or lease liability for leases with a lease term of twelve months or less. In the determination of the lease term, the Company considers the existence of extension or termination options and the probability of those options being exercised.
Lease contracts may include fixed lease components and non-lease components, such as common area maintenance and utilities for property leases. As a practical expedient, the Company accounts for the non-lease components together with the lease components as a single lease component for all of its leases.
The Company classifies a lease as a finance lease when it meets any of the following criteria at the lease commencement date: (1) the lease transfers ownership of the underlying asset to the Company by the end of the lease term; (2) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; (3) the lease term is for the major part of the remaining economic life of the underlying asset (the Company considers a major part to be 75% or more of the remaining economic life of the underlying asset); (4) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset (the Company considers substantially all the fair value to be 90% or more of the fair value of the underlying asset amount); or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria above are met, the Company classifies the lease as an operating lease.
On the lease commencement date, the Company records a lease asset and lease liability on the balance sheet. The lease asset consists of: (1) the amount of the initial lease liability; (2) any lease payments made to the lessor at or before the lease commencement date, minus any lease incentives received; and (3) any initial direct cost incurred by the Company. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are capitalized as part of the lease asset. The lease liability equals the present value of the future cash payments discounted using the Company's incremental borrowing rate. The Company’s incremental borrowing rate is the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments over a similar term which was estimated using the Secured Overnight Financing Rate (SOFR) plus a 2% credit risk spread.
Operating lease expense equals the total cash payments recognized on a straight-line basis over the lease term. The amortization of the lease asset is calculated as the straight-line lease expense less the accretion of the interest on the lease liability each period. The lease liability is reduced by the cash payment less the interest each period.
Goodwill
Goodwill
Goodwill is stated at cost. The Company evaluates the potential impairment of goodwill annually at the beginning of each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. The Company performs a qualitative assessment of goodwill to determine whether further impairment testing is necessary. Factors that management considers in this assessment include general economic and industry conditions, overall financial performance (both current and projected), changes in strategy, changes in the composition or carrying amount of net assets, and market capitalization. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to perform a quantitative impairment test. Under this quantitative analysis, the fair value of the reporting unit is compared with its carrying value, including goodwill. If the carrying value exceeds the fair value of the reporting unit, the Company recognizes an impairment charge. The Company estimates the fair value of its reporting unit using the income approach based on a discounted cash flow model. In addition, the Company uses the market approach, which compares the reporting unit to publicly traded companies and transactions involving similar businesses, to support the conclusions based on the income approach.
Intangible Assets
Intangible Assets
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending on facts and circumstances. The useful lives of customer relationships range from seven to fifteen years, completed technologies range from five to nine years, non-compete agreements is seven years, and trademarks is three years. In-process technology is an indefinite-lived intangible asset until the technology is completed, at which point it is amortized over its estimated useful life.
The Company evaluates the potential impairment of intangible assets whenever events or circumstances indicate the carrying value of the assets may not be recoverable. For finite-lived intangible assets that are subject to amortization, the Company follows a two-step process for impairment testing. In step one, known as the recoverability test, the carrying value of the asset is compared to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the undiscounted future cash flows is less than the carrying value, the asset is not recoverable and step two is performed. In step two, the impairment charge is measured as the amount by which the carrying value of the asset exceeds its fair value.
Warranty Obligations
Warranty Obligations
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from one to three years from the time of sale based on the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based on historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data.
Contingencies
Contingencies
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies are expensed as incurred.
Derivative Instruments
Derivative Instruments
Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fair value of the Company’s economic hedges utilizing foreign currency forward contracts are included in "Foreign currency gain (loss)" on the Consolidated Statements of Operations. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows.
Revenue Recognition
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers.” The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied.
Identifying the Contract with the Customer
The Company identifies contracts with customers as agreements that create enforceable rights and obligations, which typically take the form of customer contracts or purchase orders. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.
Identifying the Performance Obligations in the Contract
The Company identifies performance obligations as promises in contracts to transfer distinct goods or services. Standard products and services that the Company regularly sells separately, which customers can benefit from either on their own or with other readily available resources and are distinct within the context of the customer contract, are accounted for as distinct performance obligations. Application-specific customer solutions that are comprised of a combination of products and services are accounted for as one performance obligation to deliver a total solution to the customer. On-site support services that are provided to the customer after the solution is deployed are accounted for as a separate performance obligation.
Shipping and handling activities for which the Company is responsible under the terms and conditions of the sale are not accounted for as performance obligations but as fulfillment costs. These activities are required to fulfill the Company’s promise to transfer the goods and are expensed when revenue is recognized.
The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. If revenue is recognized before immaterial promises have been completed, then the costs related to such immaterial promises are accrued at the time of sale.
Determining the Transaction Price
The Company determines the transaction price as the amount of consideration it expects to receive in exchange for transferring promised goods or services to the customer. Amounts collected from customers for sales taxes are excluded from the transaction price.
If a contract includes a variable amount, such as consideration that may vary because of rebates, price concessions, or other similar items, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending on the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances.
The Company records revenue net of estimated returns. As a practical expedient, the Company estimates the transaction price using the expected value based on its history of return experience using a portfolio approach in which the Company’s total revenue is reduced by an estimate of total customer returns. Management reasonably expects that the effect of applying a portfolio approach to a group of contracts would not differ materially from considering each contract separately.
Allocating the Transaction Price to the Performance Obligations
The Company allocates the transaction price to each performance obligation at contract inception based on a relative stand-alone selling price basis, or the price at which the Company would sell the good or service separately to similar customers in similar circumstances.
Recognizing Revenue When (or As) the Performance Obligations are Satisfied
The Company recognizes revenue when it transfers the promised goods or services to the customer. Revenue for standard products is recognized at the point in time when the customer obtains control of the goods, which is typically upon shipment or delivery when the customer has legal title, physical possession of hardware or access to software, the risks and rewards of ownership, and an enforceable obligation to pay for the products. Revenue for services, which are not material, is typically recognized over the time the service is provided.
Revenue for application-specific customer solutions is recognized at the point in time when the solution is validated, which is the point in time when the Company can reasonably determine that the agreed-upon specifications in the contract have been met and the customer should reasonably accept the performance obligations in the arrangement. Although the customer may have taken legal title and physical possession of the goods when they arrived at the customer’s designated site, the significant risks and rewards of ownership transfer to the customer only upon validation. Revenue for on-site support services related to these solutions is recognized over the time the service is provided.
In certain instances, an arrangement may include customer-specified acceptance provisions or performance guarantees that allow the customer to accept or reject delivered products that do not meet the customer’s requirements. If the Company can reasonably determine that control of a good or service has been transferred to the customer in accordance with the agreed-upon requirements in the contract, then customer acceptance is a formality. If acceptance provisions are presumed to be substantive, then revenue is deferred until customer acceptance.
For the Company’s standard products and services, revenue recognition and billing typically occur at the same time. For application-specific customer solutions, however, the agreement with the customer may provide for billing terms which differ from the timing of revenue recognition, resulting in either deferred revenue or unbilled revenue. The Company also has a strategic channel partnership that provides the partner with access to Company software at a point in time, while payment terms extend beyond the period in which revenue is recognized. Under this arrangement, revenue is recognized when control of the license is transferred to the partner, and amounts recognized in advance of billing are recorded as unbilled revenue.
Credit assessments are performed to determine payment terms, which vary by region, industry, and customer. Prepayment terms result in contract liabilities for customer deposits. When credit is granted to customers, payment is typically due 30 to 90 days from billing. The Company's contracts typically have an original expected duration of less than one year, and therefore as a practical expedient, the Company has elected to ignore the impact of the time value of money on such contracts and to expense sales commissions. The Company recognizes an asset for costs to fulfill a contract if the costs relate directly to the contract and to future performance, and the costs are expected to be recovered.
Management exercises judgment when determining the amount of revenue to be recognized each period. Such judgments include, but are not limited to, assessing the customer’s ability and intention to pay substantially all of the contract consideration when due, determining when two or more contracts should be combined and accounted for as a single contract, determining whether a contract modification has occurred, assessing whether promises are immaterial in the context of the contract, determining whether material promises in a contract represent distinct performance obligations, estimating the transaction price for a contract that contains variable consideration, determining the stand-alone selling price of each performance obligation, determining whether control is transferred over time or at a point in time for performance obligations, determining the timing of validation and that the agreed-upon specifications in the contract have been met, and assessing whether formal customer acceptance provisions are substantive.
Research and Development
Research and Development
Research and development costs primarily include costs related to personnel, prototyping materials and equipment, and outside services. Research and development costs are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs may be capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred and totaled $1,432,000 in 2025, $1,286,000 in 2024, and $1,190,000 in 2023.
Stock-Based Compensation
Stock-Based Compensation
The Company’s stock-based awards that result in compensation expense consist of stock options and restricted stock units ("RSUs"), including performance restricted stock units ("PRSUs"). The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options or the settlement of RSUs. When a stock option is exercised or an RSU is settled, the Company issues new shares from this pool. Management is responsible for determining the appropriate valuation model and estimating the fair value of stock-based awards, and in doing so, considers a number of factors, including information provided by an outside valuation advisor and the observable market price of the Company's common stock on the grant date. The fair value of RSUs is determined based on the observable market price of the Company's common stock on the grant date less the present value of expected future dividends. The fair value of PRSUs where the performance goal includes service and market conditions is calculated using a Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. The fair value of PRSUs subject to service and non-market performance conditions is determined based on the observable market price of the Company’s common stock on the grant date, less the present value of expected future dividends. When determining the grant-date fair value of stock-based awards, management further considers whether an adjustment is required to the observable market price or volatility of the Company's common stock that is used in the valuation as a result of material non-public information if that information is expected to result in a material increase in share price.
The Company recognizes compensation expense related to stock-based awards using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option or RSU as if the award was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based on the number of awards for which the requisite service has been completed. Compensation expense for PRSUs subject to service and non-market performance conditions is recognized based on management’s assessment of the probable level of achievement, with cumulative catch-up adjustments recorded in the period in which that assessment changes.
No compensation expense is recognized for awards that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered award. The Company applies estimated forfeiture rates to its unvested awards to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an award, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based on the employee’s service, and an increase or decrease to compensation expense is recorded to true up the final expense.
Taxes
Taxes
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained.
The portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are classified as a non-current liability. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense.
Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for the impact of Net CFC Tested Income (NCTI), formally known as Global Intangible Low-Taxed Income (GILTI), tax in deferred taxes.
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as non-operating income when earned.
Net Income Per Share
Net Income Per Share
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and restricted stock units and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share as their effect would be anti-dilutive.
Comprehensive Income
Comprehensive Income
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Our policy for releasing the income tax effects from accumulated other comprehensive (loss) income is to release when the corresponding pretax accumulated other comprehensive (loss) income items are reclassified to earnings. Accumulated other comprehensive loss, net of tax, consists of foreign currency translation adjustment losses of $54,332,000, $67,808,000, and $36,550,000 as of December 31, 2025, 2024, and 2023, respectively; net unrealized gains on available-for-sale investments of $2,107,000 as of December 31, 2025, and net unrealized losses on available-for-sale investments of $3,698,000, and $7,515,000 as of December 31, 2024 and 2023, respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 at each year end.
Concentrations of Risk
Concentrations of Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and accounts receivable. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain liquidity and safety. The Company has historically not experienced any significant realized losses on its debt securities. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has historically not experienced any significant losses related to the collection of its accounts receivable.
A significant portion of the Company's products is presently manufactured by a third-party contractor located in Indonesia. This contract manufacturer has agreed to provide the Company with termination notification periods and last-time-buy rights, if and when that may be applicable.
Certain key electronic and mechanical components, such as integrated circuit chips, are fundamental to the design of Cognex products. Due to the impact of global supply chain challenges and other factors, we have experienced, and may continue to experience, disruptions to the supply of components for our products that have resulted, and may continue to result, in higher purchase costs, higher delivery costs, and manufacturing delays.
The Company sources components from preferred vendors that are selected based on price, quality and performance considerations. In the event of a supply disruption from a preferred vendor, these components typically may be purchased from alternative vendors, which may result in higher purchase costs and manufacturing delays based on the time required to identify and obtain sufficient quantities from an alternative source. Certain Cognex products utilize components that are available from only one source. If we are unable to secure adequate supply from these sources, we may have to redesign our products, which may lead to higher costs, delays in manufacturing, and loss of sales.
Business Acquisitions
Business Combinations
The Company determines whether a transaction qualifies as a business combination by applying the definition of a business, which requires the assets acquired and liabilities assumed to be inputs and processes that have the ability to contribute to the creation of outputs. The Company accounts for business combinations under the acquisition method of accounting, which requires the following steps: (1) identifying the acquirer, (2) determining the
acquisition date, (3) recognizing and measuring the identifiable assets acquired and the liabilities assumed, and (4) recognizing and measuring goodwill. The Company measures the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. Management is responsible for determining the appropriate valuation model and estimated fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. Management bases the fair value of assets, including identifiable intangible assets acquired, on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. Goodwill is recognized as of the acquisition date as the excess of the consideration transferred over the net amount of assets acquired and liabilities assumed. Transaction costs are expensed as incurred.
New Accounting Pronouncements New Pronouncements
Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
The amendments in this ASU apply to all entities that are subject to Topic 740, Income Taxes. The amendments require public business entities to disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. They also require all entities to disclose income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions in which income taxes paid, net of refunds received, is equal to or greater than five percent of total income taxes paid. For public business entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2024 and are applied on a prospective basis. The Company adopted ASU 2023-09 in 2025. Refer to Note 18 for the related disclosures.
Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)
This ASU aims to enhance transparency for users of financial statements by requiring public business entities to disaggregate specific expense categories. ASU 2024-03 mandates disclosures in the notes to financial statements detailing the composition and trends of key expense categories within major income statement captions. These enhanced disclosures are intended to help investors more effectively assess the entity’s performance, understand its cost structure, and make more accurate forecasts of future cash flows. For public business entities, ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The adoption will result in disclosure changes only.
Accounting Standards Update (ASU) 2025-05 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets
This ASU provides a practical expedient to simplify the measurement of credit losses for certain receivables and contract assets. The amendments allow entities to assume that current conditions at the balance sheet date will persist over the life of these assets, eliminating the need to develop forward-looking forecasts required under the current expected credit loss ("CECL") model. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption is permitted. Management does not expect ASU 2025-05 to have a material impact on the Company's financial statements and disclosures.
Accounting Standards Update (ASU) 2025-06 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
The amendments in this ASU update the accounting and disclosure guidance for internal-use software to better reflect modern, iterative development practices. The amendments replace the former “development stage” model with a judgment-based framework and require entities to evaluate whether significant development uncertainty exists before capitalizing costs. The ASU also incorporates website development guidance into Subtopic 350-40 and aligns disclosures for capitalized software with those for property, plant, and equipment. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-06 would have on the Company's financial statements and disclosures.
Accounting Standards Update (ASU) 2025-09 - Derivatives and Hedging (Topic 815): Hedge Accounting Improvements
The amendments in this ASU provide targeted updates to align hedge accounting with the economics of an entity's risk‑management activities and resolve issues arising from the global reference rate reform initiative. Specifically,
the ASU addresses similar risk assessments for cash flow hedges, hedging forecasted interest payments on choose-your-rate debt instruments, cash flow hedges of nonfinancial forecasted transactions, net written options as hedging instruments, and foreign currency denominated debt instruments as hedging instruments and hedged items (dual hedge). For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. The Company currently does not utilize any of the hedging instruments impacted by this ASU.
Accounting Standards Update (ASU) 2025-11 - Interim Reporting (Topic 270): Narrow-Scope Improvements
The amendments in this ASU improve the navigability and clarity of interim reporting requirements without changing the fundamental nature or scope of existing disclosures. The ASU also clarifies when Topic 270 applies, specifies the form and content of interim financial statements and notes, and introduces a comprehensive list of required interim disclosures compiled from across the Codification. The ASU also adds a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within annual reporting periods beginning after December 15, 2028, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-11 would have on the Company's disclosures.
Accounting Standards Update (ASU) 2025-12 - Codification Improvements
The amendments in this ASU make incremental improvements to clarify, correct, and enhance the usability of the Accounting Standards Codification. The amendments address technical corrections, unintended application issues, and minor improvements across numerous topics, and are not expected to significantly affect current accounting practice. Key areas of clarification include diluted earnings per share calculations, disclosure requirements for lease receivables, guidance on beneficial interests, methods for accounting for treasury stock retirements, and the treatment of receivables transferred from contracts with customers. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted. Management is currently evaluating the impact that adopting ASU 2025-10 would have on the Company's financial statements and disclosures.
v3.25.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable
Inputs (Level 2)
Unobservable Inputs (Level 3)
Assets:
Money market instruments$63,170 $— $— 
Corporate bonds— 345,351 — 
Treasury notes— 29,843 — 
Asset-backed securities— 4,182 — 
Economic hedge forward contracts— 791 — 
Liabilities:
Economic hedge forward contracts— 367 — 
v3.25.4
Cash, Cash Equivalents, and Investments (Tables)
12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
Components of Cash, Cash Equivalents and Investments
Cash, cash equivalents, and investments consisted of the following (in thousands):
December 31,
20252024
Cash$199,755 $170,852 
Money market instruments63,170 15,242 
Cash and cash equivalents262,925 186,094 
Corporate bonds66,625 55,742 
Treasury notes7,412 2,487 
Sovereign bonds 990 
Asset-backed securities 737 
Current investments74,037 59,956 
Corporate bonds278,726 285,174 
Treasury notes22,431 43,147 
Asset-backed securities4,182 12,577 
Non-current investments305,339 340,898 
$642,301 $586,948 
Summary of Available-for-Sale Investments
The following table summarizes the Company’s available-for-sale investments as of December 31, 2025 (in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Current:
Corporate bonds$66,661 $125 $(161)$66,625 
Treasury notes7,389 23 — 7,412 
Non-current:
Corporate bonds275,781 3,024 (79)278,726 
Treasury notes22,287 144 — 22,431 
Asset-backed securities4,471 — (289)4,182 
$376,589 $3,316 $(529)$379,376 
The following table summarizes the Company’s available-for-sale investments as of December 31, 2024 (in thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Current:
Corporate bonds$56,472 $$(733)$55,742 
Treasury notes2,501 — (14)2,487 
Sovereign bonds1,013 — (23)990 
Asset-backed securities739 — (2)737 
Non-current:
Corporate bonds288,332 408 (3,566)285,174 
Treasury notes43,570 (425)43,147 
Asset-backed securities13,131 — (554)12,577 
$405,758 $413 $(5,317)$400,854 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2025 (in thousands):
Unrealized Loss
Position For Less than
12 Months
Unrealized Loss
Position For Greater than
12 Months
Total
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Corporate bonds$30,602 $(73)$22,412 $(167)$53,014 $(240)
Asset-backed securities— — 4,182 (289)4,182 (289)
$30,602 $(73)$26,594 $(456)$57,196 $(529)
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2024 (in thousands):
Unrealized Loss
Position For Less than
12 Months
Unrealized Loss
Position For Greater than
12 Months
Total
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Corporate bonds$172,049 $(2,227)$87,815 $(2,071)$259,864 $(4,298)
Treasury notes42,149 (425)2,487 (14)44,636 (439)
Asset-backed securities11,024 (547)2,290 (10)13,314 (557)
Sovereign bonds— — 990 (23)990 (23)
$225,222 $(3,199)$93,582 $(2,118)$318,804 $(5,317)
Realized Gain (Loss) on Investments
The following table summarizes the Company's gross realized gains and losses on the sale of debt securities (in thousands):
Year Ended December 31,
202520242023
Gross realized gains$180 $$111 
Gross realized losses(24)(16)(2,065)
Net realized gains (losses)$156 $(8)$(1,954)
Effective Maturity Dates of Available-for-Sale Investments
The following table summarizes the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2025 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 YearsTotal
Corporate bonds$66,625 $77,129 $99,911 $68,109 $33,577 $345,351 
Treasury notes7,412 15,421 7,010 — — 29,843 
Asset-backed securities— — — 1,624 2,558 4,182 
$74,037 $92,550 $106,921 $69,733 $36,135 $379,376 
v3.25.4
Inventories (Tables)
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventories
Inventories consisted of the following (in thousands):
  
December 31,
 20252024
Raw materials$75,417 $86,917 
Work-in-process4,877 5,544 
Finished goods57,595 65,066 
$137,889 $157,527 
v3.25.4
Property, Plant, and Equipment (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment
Property, plant, and equipment consisted of the following (in thousands):
December 31,
20252024
Land$8,018 $8,711 
Buildings36,626 38,878 
Building improvements42,580 46,496 
Leasehold improvements22,702 21,642 
Computer hardware and software60,218 57,791 
Manufacturing test equipment49,465 45,523 
Furniture and fixtures6,406 6,468 
226,015 225,509 
Less: accumulated depreciation(140,000)(127,064)
$86,015 $98,445 
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of components of lease expense
The components of lease expense were as follows (in thousands):
December 31, 2025December 31, 2024December 31, 2023
Operating lease expense$14,002 $14,131 $11,598 
Short-term lease expense (1)
1,008 $407 427 
(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability
Supplemental cash flow information related to leases was as follows (in thousands):
December 31, 2025December 31, 2024December 31, 2023
Cash paid for amounts included in the measurement of operating lease liabilities$14,000 $13,683 $10,148 
Supplemental balance sheet information related to leases
Supplemental balance sheet information related to leases was as follows:
December 31, 2025December 31, 2024
Weighted average remaining lease term7.2 years9.9 years
Weighted average discount rate5.9 %5.9 %
Schedule of lease payments
Future operating lease cash payments are as follows (in thousands):
Year Ended December 31, Amount
2026$15,863 
202714,506 
202812,966 
202911,158 
203010,038 
Thereafter28,887 
Total undiscounted lease payments$93,418 
Less: imputed interest$16,832 
Total operating lease liabilities$76,586 
Schedule of future operating sublease receipts
Future operating sublease receipts for both sublease components are as follows (in thousands):
Year Ended December 31, Amount
2026$541 
20271,023 
20281,046 
20291,048 
20301,072 
Thereafter3,204 
Total undiscounted sublease receipts$7,934 
v3.25.4
Goodwill (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the Carrying Value of Goodwill
The changes in the carrying value of goodwill were as follows (in thousands):
Amount
Balance as of December 31, 2023$393,181 
Moritex Corporation measurement period adjustments (refer to Note 21)6,478 
Foreign exchange rate changes(14,722)
Balance as of December 31, 2024384,937 
Foreign exchange rate changes1,342 
Balance as of December 31, 2025$386,279 
v3.25.4
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Amortized Intangible Assets
Intangible assets consisted of the following (in thousands):
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Customer relationships$68,241 $(14,843)$53,398 
Completed technologies58,603 (31,110)27,493 
Trademarks812 (610)202 
Non-compete agreements60 (53)7 
Balance as of December 31, 2025$127,716 $(46,616)$81,100 
 Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Customer relationships$67,781 $(10,229)$57,552 
Completed technologies58,373 (25,766)32,607 
Trademarks810 (337)473 
Non-compete agreements340 (288)52 
Balance as of December 31, 2024$127,304 $(36,620)$90,684 
Estimated Amortization Expense Succeeding Fiscal Years
Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands):
Year Ended December 31,Amount
2026$9,832 
20278,906 
20288,176 
20298,176 
20307,633 
Thereafter38,377 
$81,100 
v3.25.4
Accrued Expenses (Tables)
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Constituents of Accrued Expenses
Accrued expenses consisted of the following (in thousands):
December 31,
20252024
Incentive compensation$35,688 $18,735 
Foreign retirement obligations10,726 10,445 
Salaries and payroll taxes8,170 5,123 
Warranty obligations5,474 5,140 
Vacation5,162 3,945 
Other26,177 28,372 
$91,397 $71,760 
Changes in Warranty Obligations
The changes in the warranty obligation were as follows (in thousands):
Balance as of December 31, 2022$4,375 
Provisions for warranties issued during the period2,940 
Fulfillment of warranty obligations(3,078)
Foreign exchange rate changes
Balance as of December 31, 20234,244 
Provisions for warranties issued during the period4,794 
Fulfillment of warranty obligations(3,883)
Foreign exchange rate changes(15)
Balance as of December 31, 20245,140 
Provisions for warranties issued during the period3,468 
Fulfillment of warranty obligations(3,138)
Foreign exchange rate changes
Balance as of December 31, 2025$5,474 
v3.25.4
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The Company had the following outstanding forward contracts (in thousands):
December 31, 2025December 31, 2024
CurrencyNotional
Value
USD
Equivalent
Notional
Value
USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Mexican Peso160,000 $8,881 220,000 $10,701 
Hungarian Forint2,500,000 7,600 2,360,000 5,951 
Korean Won9,000,000 6,239 — — 
British Pound4,000 5,383 3,200 4,008 
Indian Rupee400,000 4,436 — — 
Chinese Renminbi20,000 2,865 95,000 12,990 
Japanese Yen400,000 2,563 2,000,000 12,789 
Singapore Dollar (1)
  40,000 29,457 
Euro  25,000 26,029 
Swiss Franc  2,200 2,432 
Canadian Dollar  2,000 1,390 
(1) In January 2026, the Company entered into a forward contract for the Singapore Dollar with a notional value of S$34 million and a USD equivalent of $27 million.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Fair Value LevelDecember 31, 2025December 31, 2024Fair Value LevelDecember 31, 2025December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid
expenses and other current assets
Level 2$791 $689 Accrued expensesLevel 2$367 $757 
Offsetting Assets
The following table summarizes the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Asset DerivativesLiability Derivatives
December 31, 2025December 31, 2024December 31, 2025December 31, 2024
Gross amounts of recognized assets$791 $689 Gross amounts of recognized liabilities$367 $757 
Gross amounts offset — Gross amounts offset — 
Net amount of assets presented$791 $689 Net amount of liabilities presented$367 $757 
Derivative Instruments, Gain (Loss)
Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands):
 Location in Financial StatementsYear Ended December 31,
202520242023
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$1,368 $1,945 $(10,023)
v3.25.4
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table summarizes disaggregated revenue information by geographic area based on the customer's country of domicile (in thousands):
Year Ended December 31,
202520242023
Americas$407,288 $350,155 $330,415 
Europe251,638 217,880 220,665 
Greater China158,456 164,147 164,115 
Other Asia176,977 182,333 122,352 
$994,359 $914,515 $837,547 

The following table summarizes disaggregated revenue information by revenue type (in thousands):
Year Ended December 31,
202520242023
Standard products and services (1)
$880,015 $795,319 $734,140 
Application-specific customer solutions114,344 119,196 103,407 
$994,359 $914,515 $837,547 
(1) In 2025, the Company entered into a commercial partnership with a strategic channel partner (the “Partner”) to better serve Original Equipment Manufacturer (OEM) customers in the specialized field of medical lab automation. Through 2030, the Partner has exclusive rights to sell machine vision hardware in combination with licensed Company software, in exchange for annual minimum license fees paid to the Company. The contract includes a substantive termination penalty if the contract is cancelled by the Partner. As such, the Company recognized the minimum license fees as revenue in 2025, at the point in time when the Partner received access to the software. Also in 2025, the Company transferred related inventories at cost to the Partner. As a result of the upfront recognition of the license revenue and transfer of inventories, the Company recognized one-time revenue of approximately $13 million in 2025, which is included in the "Standard products and services" amount in the table above.
Allowance for Credit Loss
The following table summarizes changes in the allowance for credit losses (in thousands):
Amount
Balance as of December 31, 2023$583 
Increases to the allowance for credit losses459 
Write-offs, net of recoveries(222)
Foreign exchange rate changes
Balance as of December 31, 2024827 
Increases to the allowance for credit losses477 
Write-offs, net of recoveries(555)
Foreign exchange rate changes(21)
Balance as of December 31, 2025$728 
Contract with Customer, Contract Asset and Contract Liability
The following table summarizes the contract assets (in thousands):
Year Ended December 31,
202520242023
Unbilled revenue$16,980 $3,055 $2,402 
Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing primarily for certain application-specific customer solutions contracts, as well as for upfront license revenue recognized in connection with the strategic channel partnership mentioned above. Our rights to consideration are generally unconditional at the time our performance obligations are satisfied. The increase in unbilled revenue as of December 31, 2025 was primarily due to $10,365,000 of upfront license revenue recognized in 2025 in connection with the strategic channel partnership. Although the license revenue was recognized upfront, payments are expected to be received over the duration of the partnership, resulting in unbilled revenue.
Contract Liabilities
Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.
The following table summarizes the deferred revenue and customer deposits activity (in thousands):
Amount
Balance as of December 31, 2023$31,525 
Deferral of revenue billed in the current period, net of recognition21,998 
Recognition of revenue deferred in prior period(28,108)
Foreign exchange rate changes(380)
Balance as of December 31, 202425,035 
Deferral of revenue billed in the current period, net of recognition18,100 
Recognition of revenue deferred in prior period(22,728)
Foreign exchange rate changes687 
Balance as of December 31, 2025$21,094 
v3.25.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
The following table summarizes the Company’s stock option activity:
Shares
(in thousands)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20249,543 $49.40 
Granted1,669 32.38 
Exercised(265)24.36 
Forfeited or expired(557)48.57 
Outstanding as of December 31, 202510,390 $47.35 5.45$9,725 
Exercisable as of December 31, 20256,007 $51.47 3.55$3,531 
Options vested or expected to vest as of December 31, 2025 (1)
9,551 $48.17 5.18$7,949 
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
The total cash received as a result of stock option exercises was $6,432,000 in 2025, $6,011,000 in 2024, and $11,104,000 in 2023. In connection with these exercises, the tax benefit (expense) realized by the Company was $1,802,000 in 2025, $(4,021,000) in 2024, and $(4,691,000) in 2023.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
Year Ended December 31,
202520242023
Risk-free rate4.3 %4.3 %4.0 %
Expected dividend yield0.99 %0.76 %0.61 %
Expected volatility39 %39 %39 %
Expected term (in years)5.14.75.0
Nonvested Restricted Stock Shares Activity
The following table summarizes the Company's RSUs activity:
Shares
(in thousands)
Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 20241,690 $44.75 
Granted1,320 32.80 
Vested(731)49.18 
Forfeited or expired(163)37.58 
Nonvested as of December 31, 20252,116 $36.32 
Schedule of Performance Restricted Stock Units
Performance Restricted Stock Units (PRSUs)
The following table summarizes the Company's PRSUs activity:
Shares
(in thousands)
Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 2024134 $46.82 
Granted184 32.14 
Vested— — 
Forfeited or expired(33)62.49 
Nonvested as of December 31, 2025285 $35.53 
During 2025, the Company granted PRSUs that vest upon the achievement of (1) a service condition of three years of continuous employment and (2) a performance condition established by the Compensation Committee of the Board as of the grant date. The number of shares earned could range between 0% and 120% based on achievement of the performance condition, which includes certain financial targets over the three year measurement period. The fair value of these PRSUs is calculated based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes.
During 2023 and 2024, the Company granted PRSUs that vest upon the satisfaction of service and market conditions stipulated in the award grant. The fair value of these awards was determined using a Monte Carlo simulation model to estimate the probability of meeting those conditions.
Stock-Based Compensation Expense
The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$2,216 $1,966 $1,979 
Research, development, and engineering15,336 14,628 16,480 
Selling, general, and administrative30,965 35,849 36,309 
$48,517 $52,443 $54,768 
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income from continuing operations before income tax expense consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Domestic73,505 35,253 16,039 
Foreign109,297 96,236 119,309 
182,802 131,489 135,348 
Constituents of Provision for Income Taxes
Income tax expense consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Current:
Federal$4,576 $28,009 $29,084 
State4,440 4,524 3,544 
Foreign19,647 12,795 9,207 
28,663 45,328 41,835 
Deferred:
Federal30,481 (22,273)(24,731)
State668 (1,324)(5,877)
Foreign8,548 3,587 10,887 
39,697 (20,010)(19,721)
$68,360 $25,318 $22,114 
Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision
A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, presented in accordance with the prospectively adopted ASU 2023-09, was as follows for the year ended December 31, 2025:
Year Ended December 31, 2025
$%
U.S. federal statutory income tax rate$38,39721.0 %
State and local tax effects (1)
3,6292.0 %
Foreign tax effects
Ireland
Foreign rate differential(4,355)(2.4)%
Transfer pricing adjustment2,1851.2 %
Other5940.3 %
Japan1,3250.7 %
Germany1,2320.7 %
China2,4211.3 %
Other jurisdictions6880.4 %
Tax on Unremitted Foreign Earnings(414)(0.2)%
Changes in tax rate due to new enacted law33,23718.2 %
Cross-border tax laws
Net CFC Tested Income4,1122.2 %
Foreign tax credits(16,257)(8.9)%
Other3020.2 %
Tax credits
R&D tax credits(3,186)(1.7)%
Valuation allowance changes2720.1 %
Non-taxable items
Share based compensation4,3702.4 %
Other5760.3 %
Unrecognized tax benefits(1,055)(0.6)%
All other adjustments not categorized2870.2 %
Total worldwide effective tax expense and rate68,36037.4 %
(1) State Taxes in California, Illinois, Massachusetts, Michigan, Minnesota, Pennsylvania, and Tennessee made up the majority (greater than 50%) of tax effect in this category.

A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows for the years ended December 31, 2024 and December 31, 2023:
 Year Ended December 31,
 20242023
Income tax expense at U.S. federal statutory corporate tax rate21 %21 %
State income taxes, net of federal benefit
Foreign tax rate differential(4)(6)
Tax credits(3)(3)
Taxation on multinational operations(5)(3)
Tax reserves
Limitation on deduction for executive compensation
Discrete tax expense related to employee stock-based compensation
Discrete tax benefit for audit settlements— 
Discrete tax expense for foreign earnings not indefinitely reinvested— 
Discrete tax expense related to tax return filings— 
Discrete tax expense related to rate revaluation on state tax assets— 
Discrete tax benefit related to GILTI adjustments— (2)
Discrete tax benefit for release of valuation allowance— (4)
Other
Income tax expense19 %16 %
Schedule of Unrecognized Tax Benefits Roll Forward
The changes in gross amounts of unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):
Balance of reserve for income taxes as of December 31, 2022
$13,647 
Reductions as a result of tax positions taken in prior periods(242)
Additions as a result of tax positions taken in prior periods12,556 
Additions as a result of tax positions taken in the current period1,877 
Reductions relating to settlements with taxing authorities(1,230)
Reductions as a result of the expiration of the applicable statutes of limitations(894)
Balance of reserve for income taxes as of December 31, 2023
25,714 
Reductions as a result of tax positions taken in prior periods(39)
Additions as a result of tax positions taken in prior periods208 
Additions as a result of tax positions taken in the current period1,935 
Reductions relating to settlements with taxing authorities(2,751)
Reductions as a result of the expiration of the applicable statutes of limitations(1,331)
Balance of reserve for income taxes as of December 31, 2024
23,736 
Reductions as a result of tax positions taken in prior periods(1,597)
Additions as a result of tax positions taken in prior periods825 
Additions as a result of tax positions taken in the current period1,853 
Reductions relating to settlements with taxing authorities— 
Reductions as a result of the expiration of the applicable statutes of limitations(3,547)
Balance of reserve for income taxes as of December 31, 2025
$21,270 
Schedule of Cash Flow, Supplemental Disclosures
Cash paid for income taxes for the year ended December 31, 2025 was as follows:
2025
U.S. federal$23,586 
State and local2,417 
Japan6,669 
China2,106 
Other7,553 
Total income taxes paid$42,331 
Constituents of Deferred Tax Assets
The tax effects of temporary differences and attributes that give rise to deferred income tax assets and liabilities as of December 31, 2025 and December 31, 2024 were as follows (in thousands):
December 31,
 20252024
Deferred tax assets:
Intangible asset in connection with change in tax structure$361,385 $369,474 
Capitalization of R&D expenses26,620 35,948 
Stock-based compensation expense21,617 22,428 
Tax credit carryforwards10,849 10,186 
Inventory and revenue related8,583 8,355 
Bonuses, commissions, and other compensation8,894 6,949 
Depreciation— 2,877 
Foreign net operating losses645 1,306 
Other1,607 4,624 
Total deferred tax assets440,200 462,147 
Valuation allowance(2,737)(2,515)
$437,463 $459,632 
Deferred tax liabilities:
NCTI (formerly GILTI) tax basis differences in connection with change in tax structure$(274,026)$(254,213)
Amortization(27,958)(29,008)
Depreciation(1,744)— 
Reserve for unremitted foreign earnings(986)(1,400)
$(304,714)$(284,621)
Net deferred taxes$132,749 $175,011 
v3.25.4
Earnings per Share (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
 Year Ended December 31,
202520242023
Net income114,442 106,171 113,234 
Basic weighted-average common shares outstanding168,049 171,438 172,249 
Effect of dilutive stock options1,318 1,173 1,150 
Diluted weighted-average common and common-equivalent shares outstanding169,367 172,611 173,399 
Earnings per share
Basic0.68 0.62 0.66 
Diluted0.68 0.62 0.65 
The computation of diluted weighted-average common shares outstanding excludes the following weighted average anti-dilutive stock-based awards outstanding as follows (in thousands):
202520242023
Stock options10,238 8,497 6,854 
Restricted stock units17 — — 
Performance restricted stock units — — 
Total weighted average anti-dilutive stock-based awards outstanding10,255 8,497 6,854 
v3.25.4
Segment and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
The following table summarizes information about geographic areas (in thousands):
United StatesEuropeGreater ChinaOtherTotal
Year Ended December 31, 2025
Revenue$329,125 $251,638 $158,456 $255,140 $994,359 
Long-lived assets48,838 14,112 13,631 14,428 $91,009 
Year Ended December 31, 2024
Revenue$306,766 $217,880 $164,147 $225,722 $914,515 
Long-lived assets56,948 15,655 14,844 16,025 $103,472 
Year Ended December 31, 2023
Revenue$288,324 $220,665 $164,115 $164,443 $837,547 
Long-lived assets62,946 17,005 17,028 15,958 $112,937 
Schedule of Segment Reporting Information, by Segment The following table summarizes significant segment expenses, which represents the difference between segment revenue and segment net income, (in thousands):
Year Ended December 31,
202520242023
Revenue$994,359 $914,515 $837,547 
Less:
Cost of revenue (1)
328,966 288,721 236,306 
Gross profit665,393 625,794 601,241 
Less:
Research, development, and engineering expenses
Salaries and fringe benefits75,690 79,544 78,762 
Incentive compensation (2)
9,537 4,711 1,446 
Stock-based compensation15,336 14,628 16,480 
Depreciation and amortization2,628 3,229 3,056 
Other segment expenses (3)
35,779 37,703 39,656 
Total research, development, and engineering expenses138,970 139,815 139,400 
Selling, general, and administrative expenses
Salaries and fringe benefits174,526 179,898 166,612 
Incentive compensation (2)
55,932 45,565 35,513 
Stock-based compensation30,965 35,849 36,309 
Depreciation and amortization15,759 16,936 11,759 
Other segment expenses (3)
86,675 92,666 88,946 
Total selling, general, and administrative expenses363,857 370,914 339,139 
Loss (recovery) from fire — (8,000)
Operating income162,566 115,065 130,702 
Foreign currency gain (loss)(4,082)1,531 (10,039)
Investment income16,950 13,971 14,093 
Other income (expense)7,368 922 592 
Income before income tax expense182,802 131,489 135,348 
Income tax expense68,360 25,318 22,114 
Net income$114,442 $106,171 $113,234 
(1) Cost of revenue includes depreciation and amortization expense (including amortization of acquired technologies) of $12,406,000, $12,524,000, and $7,065,000 for 2025, 2024, and 2023, respectively.
(2) Incentive compensation includes company bonus and sales commissions.
(3) Other segment expenses include outside services, prototyping materials, sales demonstration equipment, travel and entertainment, marketing programs, rent, and allocations, among other less significant expenses.
v3.25.4
Business Acquisitions - (Tables)
12 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Business Combination, Recognized Asset Acquired and Liability Assumed
The purchase price was allocated as follows (in thousands):
Cash and cash equivalents$38,088 
Accounts receivable11,543 
Inventories21,882 
Property, plant and equipment19,805 
Goodwill151,525 
Customer relationships64,800 
Completed technologies32,300 
Trademarks850 
Deferred income tax assets4,162 
Other assets3,363 
Accounts payable(6,639)
Accrued expenses(14,718)
Deferred income tax liabilities(22,665)
Reserve for income taxes(5,864)
Other liabilities(2,294)
Purchase price$296,138 
v3.25.4
Summary of Significant Accounting Policies - Additional Information (Detail)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Line Items]  
Maximum investment of the company in partnership 5.00%
Building [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 39 years
Building Improvements [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Building Improvements [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Computer Hardware and Software [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Computer Hardware and Software [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Manufacturing Test Equipment [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Manufacturing Test Equipment [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Furniture and Fixtures [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Furniture and Fixtures [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
v3.25.4
Summary of Significant Accounting Policies - Intangible Assets (Details)
Dec. 31, 2025
Completed Technologies And Other Intangible Assets [Member] | Minimum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 5 years
Completed Technologies And Other Intangible Assets [Member] | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 9 years
Customer Relationships [Member] | Minimum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 7 years
Customer Relationships [Member] | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 15 years
Non-compete agreements | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 7 years
Trademarks  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 3 years
v3.25.4
Summary of Significant Accounting Policies - Warranty (Details)
12 Months Ended
Dec. 31, 2025
Minimum [Member]  
Product Liability Contingency [Line Items]  
Product Warranty Period 1 year
Maximum [Member]  
Product Liability Contingency [Line Items]  
Product Warranty Period 3 years
v3.25.4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Revenue Recognition (Details)
12 Months Ended
Dec. 31, 2025
Minimum [Member]  
Disaggregation of Revenue [Line Items]  
Revenue, payment terms 30 days
Maximum [Member]  
Disaggregation of Revenue [Line Items]  
Revenue, payment terms 90 days
v3.25.4
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising costs $ 1,432,000 $ 1,286,000 $ 1,190,000
v3.25.4
Summary of Significant Accounting Policies - Comprehensive Income (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated other comprehensive loss consists of foreign currency translation adjustments, net of tax $ (54,332,000) $ (67,808,000) $ (36,550,000)
Net unrealized losses on available-for-sale investments, net of tax 2,107,000 (3,698,000) (7,515,000)
Losses on currency swaps, net of gains on long-term intercompany loans 1,271,000 1,271,000 1,271,000
Net realized gains reclassified into current operations 156,000 (8,000) (1,954,000)
Accumulated Other Comprehensive Loss [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Net realized gains reclassified into current operations $ 156,000 $ (8,000) $ (1,954,000)
v3.25.4
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring
$ in Thousands
Dec. 31, 2025
USD ($)
Quoted Prices in Active Markets for Identical Assets (Level 1)  
Assets:  
Money market instruments $ 63,170
Corporate bonds 0
Treasury notes 0
Asset-backed securities 0
Economic hedge forward contracts 0
Liabilities:  
Economic hedge forward contracts 0
Significant Other Observable Inputs (Level 2)  
Assets:  
Money market instruments 0
Corporate bonds 345,351
Treasury notes 29,843
Asset-backed securities 4,182
Economic hedge forward contracts 791
Liabilities:  
Economic hedge forward contracts 367
Unobservable Inputs (Level 3)  
Assets:  
Money market instruments 0
Corporate bonds 0
Treasury notes 0
Asset-backed securities 0
Economic hedge forward contracts 0
Liabilities:  
Economic hedge forward contracts $ 0
v3.25.4
Cash, Cash Equivalents and Investments - Components of Cash, Cash Equivalents and Investments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Cash $ 199,755 $ 170,852
Money market instruments 63,170 15,242
Cash and cash equivalents 262,925 186,094
Debt securities, available-for-sale, current 74,037 59,956
Non-current investments 305,339 340,898
Total 642,301 586,948
Treasury Bills [Member]    
Debt Securities, Available-for-sale [Line Items]    
Debt securities, available-for-sale, current 7,412 2,487
Long-term investments 22,431 43,147
Asset-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Debt securities, available-for-sale, current 0 737
Long-term investments 4,182 12,577
Corporate Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Debt securities, available-for-sale, current 66,625 55,742
Long-term investments 278,726 285,174
Sovereign Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Debt securities, available-for-sale, current $ 0 $ 990
v3.25.4
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]      
Cash balance included foreign bank balance $ 130,094 $ 156,027  
Interest Receivable 3,852 4,144  
Gross realized gains 180 8 $ 111
Allowance for credit loss 0 0 0
Gross realized losses $ (24) $ (16) $ (2,065)
v3.25.4
Cash, Cash Equivalents and Investments - Amortized Cost to Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 376,589 $ 405,758
Gross Unrealized Gains 3,316 413
Gross Unrealized Losses (529) (5,317)
Fair Value, Total 379,376 400,854
Treasury Bills [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Total 29,843  
Treasury Bills [Member] | Long-term investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 22,287 43,570
Gross Unrealized Gains 144 2
Gross Unrealized Losses 0 (425)
Fair Value, Total 22,431 43,147
Treasury Bills [Member] | Short-term Investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 7,389 2,501
Gross Unrealized Gains 23 0
Gross Unrealized Losses 0 (14)
Fair Value, Total 7,412 2,487
Asset-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Total 4,182  
Asset-Backed Securities [Member] | Long-term investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 4,471 13,131
Gross Unrealized Gains 0 0
Gross Unrealized Losses (289) (554)
Fair Value, Total 4,182 12,577
Asset-Backed Securities [Member] | Short-term Investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost   739
Gross Unrealized Gains   0
Gross Unrealized Losses   (2)
Fair Value, Total   737
Corporate Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Total 345,351  
Corporate Bonds [Member] | Long-term investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 275,781 288,332
Gross Unrealized Gains 3,024 408
Gross Unrealized Losses (79) (3,566)
Fair Value, Total 278,726 285,174
Corporate Bonds [Member] | Short-term Investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 66,661 56,472
Gross Unrealized Gains 125 3
Gross Unrealized Losses (161) (733)
Fair Value, Total $ 66,625 55,742
Sovereign Bonds [Member] | Short-term Investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost   1,013
Gross Unrealized Gains   0
Gross Unrealized Losses   (23)
Fair Value, Total   $ 990
v3.25.4
Cash, Cash Equivalents and Investments - Gross Unrealized Losses and Fair Value for Available-for-Sale Investments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less than 12 months $ 30,602 $ 225,222
Unrealized Losses, Less than 12 months (73) (3,199)
Fair Value, Greater than 12 Months 26,594 93,582
Unrealized Losses, Greater than 12 Months (456) (2,118)
Fair Value 57,196 318,804
Unrealized Losses (529) (5,317)
Treasury Bills [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less than 12 months   42,149
Unrealized Losses, Less than 12 months   (425)
Fair Value, Greater than 12 Months   2,487
Unrealized Losses, Greater than 12 Months   (14)
Fair Value   44,636
Unrealized Losses   (439)
Asset-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less than 12 months 0 11,024
Unrealized Losses, Less than 12 months 0 (547)
Fair Value, Greater than 12 Months 4,182 2,290
Unrealized Losses, Greater than 12 Months (289) (10)
Fair Value 4,182 13,314
Unrealized Losses (289) (557)
Sovereign Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less than 12 months   0
Unrealized Losses, Less than 12 months   0
Fair Value, Greater than 12 Months   990
Unrealized Losses, Greater than 12 Months   (23)
Fair Value   990
Unrealized Losses   (23)
Corporate Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Fair Value, Less than 12 months 30,602 172,049
Unrealized Losses, Less than 12 months (73) (2,227)
Fair Value, Greater than 12 Months 22,412 87,815
Unrealized Losses, Greater than 12 Months (167) (2,071)
Fair Value 53,014 259,864
Unrealized Losses $ (240) $ (4,298)
v3.25.4
Cash, Cash Equivalents, and Investments - Realized Gain (Loss) on Investments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]      
Gross realized gains $ 180 $ 8 $ 111
Gross realized losses (24) (16) (2,065)
Net realized gains (losses) $ 156 $ (8) $ (1,954)
v3.25.4
Cash, Cash Equivalents and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale [Line Items]    
Less than 1 Year $ 74,037  
1-2 Years 92,550  
2-3 Years 106,921  
3-4 Years 69,733  
4-5 Years 36,135  
Fair Value, Total 379,376 $ 400,854
Treasury Bills [Member]    
Debt Securities, Available-for-sale [Line Items]    
Less than 1 Year 7,412  
1-2 Years 15,421  
2-3 Years 7,010  
3-4 Years 0  
4-5 Years 0  
Fair Value, Total 29,843  
Corporate Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Less than 1 Year 66,625  
1-2 Years 77,129  
2-3 Years 99,911  
3-4 Years 68,109  
4-5 Years 33,577  
Fair Value, Total 345,351  
Asset-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Less than 1 Year 0  
1-2 Years 0  
2-3 Years 0  
3-4 Years 1,624  
4-5 Years 2,558  
Fair Value, Total $ 4,182  
v3.25.4
Inventories - Inventories (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 75,417 $ 86,917
Work-in-process 4,877 5,544
Finished goods 57,595 65,066
Inventories $ 137,889 $ 157,527
v3.25.4
Inventories - Inventory Write Off (Details)
$ in Thousands
3 Months Ended
Dec. 31, 2025
USD ($)
Inventory Disclosure [Abstract]  
Inventory write off $ 13,067
v3.25.4
Property, Plant, and Equipment - Property, Plant, and Equipment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 226,015 $ 225,509
Less: accumulated depreciation (140,000) (127,064)
Property, plant and equipment, net, total 86,015 98,445
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 8,018 8,711
Building [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 36,626 38,878
Building Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 42,580 46,496
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 22,702 21,642
Computer Hardware And Software [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 60,218 57,791
Manufacturing Test Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 49,465 45,523
Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 6,406 $ 6,468
v3.25.4
Property, Plant and Equipment - Additional Information (Details)
ft² in Thousands, $ in Thousands
1 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
ft²
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Property, Plant and Equipment [Line Items]        
Proceeds from sale of training center property   $ 6,704 $ 0 $ 0
Reduction of accumulated depreciation due to disposals   5,647 9,492  
Gain on disposal of property, plant, and equipment   (164) (88) $ (229)
Disposals in period   5,811 9,580  
Loss on disposition of property, plant and equipment   164 $ 88  
Training Center Building and Land        
Property, Plant and Equipment [Line Items]        
Plant, property and equipment disposal, building area (in sqft) | ft² 19      
Proceeds from sale of training center property $ 6,704      
Property, plant and equipment disposed of, cost basis 6,044 $ 6,044    
Reduction of accumulated depreciation due to disposals 4,393      
Gain on disposal of property, plant, and equipment $ 5,053      
v3.25.4
Leases - Narrative (Details)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 29, 2025
ft²
Dec. 31, 2025
USD ($)
ft²
terminationOptions
extension_option
lease_component
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 2023
ft²
lease_component
Lessee, Lease, Description [Line Items]          
Operating lease expense   $ 14,002 $ 14,131 $ 11,598  
Operating lease payments   14,000 13,683 10,148  
Operating lease expense for which no liability or asset was recognized   1,008 407 $ 427  
Operating lease, liability, discounted present value   76,586      
Lessee, Operating Lease, Term of Contract 10 years        
Operating lease assets   $ 72,310 $ 67,326    
Operating lease, weighted average discount rate (percent)   5.90% 5.90%    
Operating lease, weighted average remaining lease term (years)   7 years 2 months 12 days 9 years 10 months 24 days    
Lessee, Operating Lease, Liability, Payments, Due   $ 93,418      
2026   15,863      
Sublease Income   $ 33      
Operating Leases, Number Of Options To Extend | extension_option   19      
Operating Lease, Number Of Options To Terminate | terminationOptions   0      
SINGAPORE          
Lessee, Lease, Description [Line Items]          
Lessee, Operating Lease, Components | lease_component   2     2
SINGAPORE | 88,000 Square-Foot Premises          
Lessee, Lease, Description [Line Items]          
Net Rentable Area | ft²         88,000
SINGAPORE | 27,000 Square-Foot Premises          
Lessee, Lease, Description [Line Items]          
Net Rentable Area | ft²         27,000
Lessee, Operating Lease, Term of Contract         8 years
Lessee, Operating Lease, Liability, Payments, Due   $ 8,329      
2026   $ 936      
SINGAPORE | 15,000 Square-Foot Premises          
Lessee, Lease, Description [Line Items]          
Net Rentable Area | ft²   15,000      
SINGAPORE | 12,343 Square-Foot Premises          
Lessee, Lease, Description [Line Items]          
Net Rentable Area | ft²   12,000      
Aachen Germany          
Lessee, Lease, Description [Line Items]          
Area of Real Estate Property | ft² 6,500        
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, Total   $ 8,969      
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, Year One   $ 897      
Unrecorded Uncontditional Purchase Obligation, Renewal Term 5 years        
v3.25.4
Leases - Schedule of Payments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 15,863
2027 14,506
2028 12,966
2029 11,158
2030 10,038
Thereafter 28,887
Total 93,418
Lessee, Operating Lease, Liability, Undiscounted Excess Amount $ 16,832
v3.25.4
Leases - Schedule of Rental Receipts (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 541
2027 1,023
2028 1,046
2029 1,048
2030 1,072
Thereafter 3,204
Total $ 7,934
v3.25.4
Goodwill - Changes in the Carrying Value of Goodwill (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Goodwill, Beginning Balance $ 384,937 $ 393,181
Foreign exchange rate changes 1,342 (14,722)
Goodwill, Ending Balance $ 386,279 384,937
SAC Sirius Advanced Cybernetics GmbH    
Goodwill [Roll Forward]    
Goodwill, Other Increase (Decrease)   $ 6,478
v3.25.4
Intangible Assets - Amortized Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 127,716 $ 127,304
Accumulated Amortization (46,616) (36,620)
Net Carrying Value 81,100 90,684
Completed Technologies [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 58,603 58,373
Accumulated Amortization (31,110) (25,766)
Net Carrying Value 27,493 32,607
Customer Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 68,241 67,781
Accumulated Amortization (14,843) (10,229)
Net Carrying Value 53,398 57,552
Non-compete agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 60  
Accumulated Amortization (53)  
Net Carrying Value 7  
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 812 810
Accumulated Amortization (610) (337)
Net Carrying Value $ 202 473
Finite-Lived Intangible Asset, Useful Life 3 years  
Non-compete Agreements [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value   340
Accumulated Amortization   (288)
Net Carrying Value   $ 52
v3.25.4
Intangible Assets - Narrative (Details) - Moritex Corporation
$ in Thousands
Oct. 18, 2023
USD ($)
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets $ 64,800
Completed technologies  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets 32,300
Trademarks  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets $ 850
v3.25.4
Intangible Assets - Estimated Amortization Expense Succeeding Fiscal Years (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 9,832  
2027 8,906  
2028 8,176  
2029 8,176  
2030 7,633  
Thereafter 38,377  
Net Carrying Value $ 81,100 $ 90,684
v3.25.4
Accrued Expenses - Constituents of Accrued Expenses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Constituents of accrued expenses    
Incentive compensation $ 35,688 $ 18,735
Salaries and payroll taxes 8,170 5,123
Foreign retirement obligations 10,726 10,445
Vacation 5,162 3,945
Warranty obligations 5,474 5,140
Other 26,177 28,372
Accrued expenses $ 91,397 $ 71,760
v3.25.4
Accrued Expenses - Changes in Warranty Obligations (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]      
Beginning Balance $ 5,140 $ 4,244 $ 4,375
Provisions for warranties issued during the period 3,468 4,794 2,940
Fulfillment of warranty obligations (3,138) (3,883) (3,078)
Foreign exchange rate changes 4 (15) 7
Ending Balance $ 5,474 $ 5,140 $ 4,244
v3.25.4
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]      
Purchase order outstanding $ 57,690    
Other Inventory, Purchased Goods, Gross $ 5,042 $ 17,461 $ 10,616
v3.25.4
Derivative Instruments - Additional Details (Details) - Not Designated as Hedging Instrument [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]      
Maturities of forward of contracts 1 year    
Gains (losses) recognized in net income $ 1,368 $ 1,945 $ (10,023)
Average Remaining Maturity of Foreign Currency Derivatives 3 months    
v3.25.4
Derivative Instruments - Outstanding Forward Contracts (Details) - Not Designated as Hedging Instrument [Member]
€ in Thousands, ₩ in Thousands, ₨ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands
Jan. 30, 2026
USD ($)
Jan. 30, 2026
SGD ($)
Dec. 31, 2025
MXN ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2025
HUF (Ft)
Dec. 31, 2025
KRW (₩)
Dec. 31, 2025
GBP (£)
Dec. 31, 2025
INR (₨)
Dec. 31, 2025
CNY (¥)
Dec. 31, 2025
JPY (¥)
Dec. 31, 2025
SGD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
CHF (SFr)
Dec. 31, 2025
CAD ($)
Dec. 31, 2024
MXN ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
HUF (Ft)
Dec. 31, 2024
KRW (₩)
Dec. 31, 2024
GBP (£)
Dec. 31, 2024
INR (₨)
Dec. 31, 2024
CNY (¥)
Dec. 31, 2024
JPY (¥)
Dec. 31, 2024
SGD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2024
CHF (SFr)
Dec. 31, 2024
CAD ($)
Foreign Exchange Forward | Subsequent Event [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount $ 27,000 $ 34,000                                                
Euro [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       $ 0               € 0       $ 26,029               € 25,000    
Japanese Yen [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       2,563           ¥ 400,000           12,789           ¥ 2,000,000        
Mexican Peso [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount     $ 160,000 8,881                     $ 220,000 10,701                    
British Pound [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       5,383     £ 4,000                 4,008     £ 3,200              
Hungarian Forint [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       7,600 Ft 2,500,000                     5,951 Ft 2,360,000                  
Canadian Dollar [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       0                   $ 0   1,390                   $ 2,000
China, Yuan Renminbi                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       2,865         ¥ 20,000             12,990         ¥ 95,000          
Switzerland, Francs                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       0                 SFr 0     2,432                 SFr 2,200  
Singapore Dollar [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       0             $ 0         29,457             $ 40,000      
India, Rupees                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       4,436       ₨ 400,000               0       ₨ 0            
Korean Won [Member]                                                    
Derivative [Line Items]                                                    
Derivative asset, notional amount       $ 6,239   ₩ 9,000,000                   $ 0   ₩ 0                
v3.25.4
Derivative Instruments - Balance Sheet Location (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivatives, Fair Value [Line Items]    
Net amount of assets presented $ 791 $ 689
Net amount of liabilities presented 367 757
Not Designated as Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Net amount of assets presented 791 689
Net amount of liabilities presented $ 367 $ 757
v3.25.4
Derivative Instruments - Assets and liabilities presented on a net basis due to the right of offset (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative Asset, Fair Value, Gross Asset $ 791 $ 689
Derivative Asset gross amount offset 0 0
Net amount of assets presented 791 689
Derivative Liability, Fair Value, Gross Liability 367 757
Derivative liability gross amount offset 0 0
Net amount of liabilities presented $ 367 $ 757
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
v3.25.4
Derivative Instruments - Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Not Designated as Hedging Instrument [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gains (losses) recognized in net income $ 1,368 $ 1,945 $ (10,023)
v3.25.4
Revenue Recognition - Narratives (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Capitalized Contract Cost, Gross $ 10,592 $ 10,705 $ 13,265
Amortization of Other Deferred Charges 9,831 12,512  
Unbilled revenue 16,980 3,055 2,402
Revenue $ 994,359 $ 914,515 $ 837,547
v3.25.4
Revenue Recognition - Disaggregation by Geography and Type (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Revenue $ 994,359 $ 914,515 $ 837,547
Standard products and services (1)      
Disaggregation of Revenue [Line Items]      
Revenue 880,015 795,319 734,140
Application-specific customer solutions      
Disaggregation of Revenue [Line Items]      
Revenue 114,344 119,196 103,407
License Fees and Transferred Inventory Revenue      
Disaggregation of Revenue [Line Items]      
Revenue 13,000    
License Fees Revenue      
Disaggregation of Revenue [Line Items]      
Revenue 10,365    
Americas [Member]      
Disaggregation of Revenue [Line Items]      
Revenue 407,288 350,155 330,415
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Revenue 251,638 217,880 220,665
Greater China [Member]      
Disaggregation of Revenue [Line Items]      
Revenue 158,456 164,147 164,115
Other Asia [Member]      
Disaggregation of Revenue [Line Items]      
Revenue $ 176,977 $ 182,333 $ 122,352
v3.25.4
Revenue Recognition - Allowance for Credit Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ 827 $ 583
Increases to the allowance for credit losses 477 459
Write-offs, net of recoveries (555) (222)
Foreign exchange rate changes (21) 7
Ending balance $ 728 $ 827
v3.25.4
Revenue Recognition - Deferred Revenue and Customer Deposits Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Customer Contracts Liability, Current    
Beginning balance $ 25,035 $ 31,525
Deferred revenue and customer deposits 18,100 21,998
Recognition of revenue deferred in prior period (22,728) (28,108)
Foreign exchange rate changes 687 (380)
End balance $ 21,094 $ 25,035
v3.25.4
Shareholders' Equity - Additional Information (Detail)
3 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
Vote
$ / shares
shares
Sep. 28, 2025
$ / shares
Jun. 29, 2025
$ / shares
Mar. 30, 2025
$ / shares
Dec. 31, 2024
$ / shares
shares
Sep. 29, 2024
$ / shares
Jun. 30, 2024
$ / shares
Mar. 31, 2024
$ / shares
Dec. 31, 2023
$ / shares
Oct. 01, 2023
$ / shares
Jul. 02, 2023
$ / shares
Apr. 02, 2023
$ / shares
Dec. 31, 2025
USD ($)
Vote
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Feb. 11, 2026
USD ($)
Mar. 03, 2022
USD ($)
Apr. 25, 2018
shares
Class of Stock [Line Items]                                    
Authorized shares (in shares) | shares 400,000       400,000               400,000 400,000        
Preferred stock par value (in dollars per share) | $ / shares $ 0.01       $ 0.01               $ 0.01 $ 0.01        
Common stock par value, in dollars per share | $ / shares $ 0.002       $ 0.002               $ 0.002 $ 0.002        
Common stock, shares authorized (in shares) | shares 300,000,000       300,000,000               300,000,000 300,000,000       300,000,000
Vote entitled for each common share outstanding | Vote 1                       1          
Share Repurchase Program, Remaining Authorized, Amount $ 115,020,000                       $ 115,020,000          
Cash dividends per common share (in dollars per share) | $ / shares $ 0.085 $ 0.080 $ 0.080 $ 0.080 $ 0.080 $ 0.075 $ 0.075 $ 0.075 $ 0.075 $ 0.070 $ 0.070 $ 0.070 $ 0.325 $ 0.305 $ 0.286      
Repurchase Program March 2022                                    
Class of Stock [Line Items]                                    
Repurchase of authorized common stock                                 $ 500,000,000  
Stock Redeemed or Called During Period, Shares | shares                         4,234,000 1,711,000 1,723,000      
Stock Redeemed or Called During Period, Value                         $ 151,233,000 $ 67,085,000 $ 79,794,000      
Repurchase Program February 2026 | Subsequent Event [Member]                                    
Class of Stock [Line Items]                                    
Repurchase of authorized common stock                               $ 500,000,000    
v3.25.4
Stock-Based Compensation Expense - Additional Information (Detail)
12 Months Ended 32 Months Ended
Dec. 31, 2025
USD ($)
group
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
group
shares
May 03, 2023
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of groups within the employee population | group 2     2  
Estimated forfeiture rate for unvested options for senior management 11.00%     11.00%  
Estimated forfeiture rate for unvested options for all non-senior management 13.00%     13.00%  
Increase in compensation expense due to revised estimated forfeiture rates $ 4,789,000 $ 1,832,000 $ 234,000    
Weighted-average grant-date fair values of stock options granted | $ / shares $ 12.14 $ 14.89 $ 17.76    
Total intrinsic values of stock options exercised $ 4,179,000 $ 4,626,000 $ 6,227,000    
Total fair values of stock options vested 24,197,000 29,309,000 34,751,000    
Total unrecognized compensation expense related to non-vested stock options $ 48,015,000     $ 48,015,000  
Recognition period for unrecognized compensation expense 1 year 6 months        
Stock-based compensation expense $ 48,517,000 52,443,000 54,768,000    
Income tax benefit recognized related to stock-based compensation expense 6,820,000 8,387,000 8,442,000    
Compensation expense capitalized $ 0 $ 0 $ 0 $ 0  
Cognex Corporation 2023 Stock Option And Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | shares 9,684,542     9,684,542 8,100,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | shares       1,584,542  
Cognex Corporation 2021 And 2007 Stock Option And Incentive Plans          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares available for grant under stock option plans | shares         10,610,800
Employee Stock Option [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares available for grant under stock option plans | shares 4,006,000     4,006,000  
Expiration period of stock option plan 10 years        
Performance Shares          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Granted, weighted-average exercise price | $ / shares $ 32.14 $ 39.05 $ 44.86    
Vested (in shares) | shares 0 0 0    
Granted | shares 184,000        
Restricted Stock Units (RSUs) [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Cash used to fund tax payments $ 6,877,000 $ 5,017,000 $ 7,836,000    
Income tax benefit recognized related to stock-based compensation expense $ (9,250,000) $ (7,401,000) $ (3,229,000)    
Granted, weighted-average exercise price | $ / shares   $ 38.90 $ 46.14    
Vested (in shares) | shares 731,000 429,000 521,000    
Performance Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period 3 years        
Share-Based Compensation Arrangement by Share-Based Payment Award, Measurement Period 3 years        
Minimum [Member] | Performance Shares          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period for stock option plans 3 years        
Minimum [Member] | Restricted Stock Units (RSUs) [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period for stock option plans 3 years        
Minimum [Member] | Performance Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Achievement Range, Percentage 0.00%        
Maximum [Member] | Employee Stock Option [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period for stock option plans 5 years        
Maximum [Member] | Performance Shares          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period for stock option plans 3 years        
Maximum [Member] | Performance Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Achievement Range, Percentage 120.00%        
v3.25.4
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Shares      
Beginning balance outstanding 9,543    
Granted 1,669    
Exercised (265)    
Forfeited or expired (557)    
Ending balance outstanding 10,390 9,543  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Beginning balance outstanding, weighted-average exercise price $ 49.40    
Granted, weighted-average exercise price 32.38    
Exercised, weighted-average exercise price 24.36    
Forfeited or expired, weighted-average exercise price 48.57    
Ending balance outstanding, weighted-average exercise price $ 47.35 $ 49.40  
Exercisable, Shares 6,007    
Options vested or expected to vest 9,551    
Exercisable, weighted-average exercise price $ 51.47    
Options vested or expected to vest, weighted-average exercise price $ 48.17    
Outstanding, weighted-average remaining contractual term (in years) 5 years 5 months 12 days    
Exercisable, weighted-average remaining contractual term (in years) 3 years 6 months 18 days    
Options vested or expected to vest, weighted-average remaining contractual term (in years) 5 years 2 months 4 days    
Outstanding, aggregate intrinsic value $ 9,725    
Exercisable, aggregate intrinsic value 3,531    
Options vested or expected to vest, aggregate intrinsic value 7,949    
Proceeds from Stock Options Exercised 6,432 $ 6,011 $ 11,104
Share-Based Payment Arrangement, Exercise of Option, Tax Benefit $ 1,802 $ (4,021) $ (4,691)
v3.25.4
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) - Employee Stock Option [Member]
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate 4.30% 4.30% 4.00%
Expected dividend yield 0.99% 0.76% 0.61%
Expected volatility 39.00% 39.00% 39.00%
Expected term (in years) 5 years 1 month 6 days 4 years 8 months 12 days 5 years
v3.25.4
Stock-Based Compensation Expense - Summary of Restricted Stock Option Activity (Detail) - Restricted Stock [Member]
shares in Thousands
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Nonvested beginning balance outstanding | shares 1,690
Granted | shares 1,320
Vested | shares (731)
Forfeited or expired | shares (163)
Nonvested ending balance outstanding | shares 2,116
Weighted-Average Grant Fair Value  
Nonvested beginning balance, weighted-average exercise price | $ / shares $ 44.75
Granted, weighted-average exercise price | $ / shares 32.80
Vested, weighted-average exercise price | $ / shares 49.18
Forfeited or expired, weighted-average exercise price | $ / shares 37.58
Nonvested ending balance, weighted-average exercise price | $ / shares $ 36.32
v3.25.4
Stock-Based Compensation Expense - Stock-Based Compensation Expense (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Recognition period for unrecognized compensation expense 1 year 6 months    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense $ 48,517,000 $ 52,443,000 $ 54,768,000
Income tax benefit recognized related to stock-based compensation expense 6,820,000 8,387,000 8,442,000
Compensation expense capitalized 0 0 0
Product cost of revenue [Member]      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 2,216,000 1,966,000 1,979,000
Research, development, and engineering expenses      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 15,336,000 14,628,000 16,480,000
Selling, general, and administrative [Member]      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense $ 30,965,000 $ 35,849,000 $ 36,309,000
v3.25.4
Stock-Based Compensation - Schedule of Performance Restricted Stock Units (Details) - Performance Shares - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Nonvested beginning balance outstanding 134    
Nonvested beginning balance, weighted-average exercise price $ 46.82    
Granted 184    
Granted, weighted-average exercise price $ 32.14 $ 39.05 $ 44.86
Vested 0 0 0
Vested, weighted-average exercise price $ 0    
Forfeited or expired (33)    
Forfeited or expired, weighted-average exercise price $ 62.49    
Nonvested ending balance outstanding 285 134  
Nonvested ending balance, weighted-average exercise price $ 35.53 $ 46.82  
v3.25.4
Employee Savings Plan - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Minimum age to be eligible to defined contribution plan 21 years    
Maximum contribution by company expressed as percentage of employee pre-tax salary 100.00%    
Company match percent 50.00%    
Percent of employee contribution 6.00%    
Company contributions vest at end of one year 25.00%    
Company contributions vest at end of two years 50.00%    
Company contributions vest at end of three years 75.00%    
Company contributions vest at end of four years 100.00%    
Company contributions to employee savings plan $ 3,590 $ 3,535 $ 3,392
v3.25.4
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 73,505 $ 35,253 $ 16,039
Foreign 109,297 96,236 119,309
Income before income tax expense $ 182,802 $ 131,489 $ 135,348
v3.25.4
Income Taxes - Tax Holiday Effects (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Income Tax Holiday, Aggregate Dollar Amount $ 977 $ 845
Income Tax Holiday, Income Tax Benefits Per Share $ 0.01 $ 0.01
v3.25.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2019
Tax Credit Carryforward [Line Items]        
Domestic $ 73,505 $ 35,253 $ 16,039  
Foreign 109,297 96,236 $ 119,309  
Unrecognized Tax Benefits, Gross 27,042 28,733    
Unrecognized Tax Benefits, Gross, Noncurrent Liability 24,269 26,365    
Unrecognized Tax Benefits, Gross, Offset to Tax Attributes 2,773 2,368    
Interest and penalties, gross $ 5,773 $ 4,997    
Income tax expense at U.S. federal statutory corporate tax rate 21.00% 21.00% 21.00%  
Foreign tax rate differential   (4.00%) (6.00%)  
Income tax penalties and interest expense $ 1,689 $ 2,145 $ 1,032  
Total income taxes paid 42,331 59,849 $ 56,618  
Foreign net operating losses 645 1,306    
Deferred tax assets, valuation allowance $ 2,737 2,515    
Foreign tax structure deferred tax asset       $ 437,500
Deferred tax liabilities, NCTI minimum tax       $ 350,000
Income Tax Contingency [Line Items]        
Tax Years Open To Examination By Internal Revenue Service 2021 through 2024      
Income Tax Examination Years Under Examination Other Entities 2013 through 2024      
Foreign Tax Jurisdiction [Member]        
Tax Credit Carryforward [Line Items]        
Foreign net operating losses $ 645 1,306    
Deferred Tax Assets, Tax Credit Carryforwards, Foreign 2,830 2,567    
Foreign Tax Jurisdiction [Member] | Operating Loss Carryforward        
Tax Credit Carryforward [Line Items]        
Deferred tax assets, valuation allowance 549 599    
Foreign Tax Jurisdiction [Member] | Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Deferred tax assets, valuation allowance $ 2,188 1,916    
Foreign Tax Jurisdiction [Member] | Revenue Commissioners, Ireland [Member]        
Tax Credit Carryforward [Line Items]        
Income tax expense at U.S. federal statutory corporate tax rate 12.50%      
Foreign Tax Jurisdiction [Member] | State Administration of Taxation, China [Member]        
Tax Credit Carryforward [Line Items]        
Income tax expense at U.S. federal statutory corporate tax rate 25.00%      
Foreign Tax Jurisdiction [Member] | KOREA, DEMOCRATIC PEOPLE'S REPUBLIC OF        
Tax Credit Carryforward [Line Items]        
Income tax expense at U.S. federal statutory corporate tax rate 20.90%      
Foreign Tax Jurisdiction [Member] | Japan        
Tax Credit Carryforward [Line Items]        
Income tax expense at U.S. federal statutory corporate tax rate 34.70%      
Domestic Tax Jurisdiction [Member]        
Tax Credit Carryforward [Line Items]        
Income tax expense at U.S. federal statutory corporate tax rate 21.00%      
Deferred Tax Assets, Tax Credit Carryforwards, State $ 8,019 $ 7,619    
v3.25.4
Income Taxes - Constituents of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 4,576 $ 28,009 $ 29,084
State 4,440 4,524 3,544
Foreign 19,647 12,795 9,207
Current income tax expense (benefit), Total 28,663 45,328 41,835
Deferred:      
Federal 30,481 (22,273) (24,731)
State 668 (1,324) (5,877)
Foreign 8,548 3,587 10,887
Deferred income tax expense (benefit), Total 39,697 (20,010) (19,721)
Income tax expense (benefit), continuing operations, Total $ 68,360 $ 25,318 $ 22,114
v3.25.4
Income Taxes - Effective Tax Rate Reconciliation - Reconciliation of the United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate or Income Tax Provision (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. Federal Statutory Tax Rate $ 38,397    
State and Local Income Taxes, Net of Federal Income Tax Effect 3,629    
Tax on Unremitted Foreign Earnings (414)    
Changes in tax rate due to new enacted law 33,237    
Net CFC Tested Income 4,112    
Foreign tax credits (16,257)    
Other 302    
R&D tax credits (3,186)    
Valuation allowance changes 272    
Share based compensation 4,370    
Other 576    
Unrecognized tax benefits (1,055)    
Income tax expense (benefit), continuing operations, Total $ 68,360 $ 25,318 $ 22,114
Percent      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
State and local tax effects (1) 2.00% 2.00% 1.00%
Statutory tax rate difference   (4.00%) (6.00%)
Other   2.00% 2.00%
Tax on Unremitted Foreign Earnings (0.20%)    
Changes in tax rate due to new enacted law 18.20%    
Discrete tax benefit related to GILTI adjustments 2.20% 0.00% (2.00%)
Foreign tax credits (8.90%)    
Other 0.20%    
R&D tax credits (1.70%)    
Valuation allowance changes 0.10% 0.00% (4.00%)
Share based compensation 2.40%    
Other 0.30%    
Unrecognized tax benefits (0.60%)    
Tax credits   (3.00%) (3.00%)
Taxation on multinational operations   (0.05) (0.03)
Tax reserves   0.01 0.03
Limitation on deduction for executive compensation   1.00% 2.00%
Discrete tax expense related to employee stock-based compensation   2.00% 1.00%
Discrete tax benefit for audit settlements   1.00% 0.00%
Tax on Unremitted Foreign Earnings   1.00% 0.00%
Discrete tax expense related to tax return filings   0.00% 2.00%
Discrete tax expense related to rate revaluation on state tax assets   0.00% 2.00%
Income tax expense 37.40% 19.00% 16.00%
Ireland      
Amount      
Statutory tax rate difference $ (4,355)    
Transfer pricing adjustment 2,185    
Other $ 594    
Percent      
Statutory tax rate difference (2.40%)    
Transfer pricing adjustment 1.20%    
Other 0.30%    
Japan      
Amount      
Statutory tax rate difference $ 1,325    
Percent      
Statutory tax rate difference 0.70%    
Germany      
Amount      
Statutory tax rate difference $ 1,232    
Percent      
Statutory tax rate difference 0.70%    
China      
Amount      
Statutory tax rate difference $ 2,421    
Percent      
Statutory tax rate difference 1.30%    
Other      
Amount      
Statutory tax rate difference $ 688    
Percent      
Statutory tax rate difference 0.40%    
Domestic Tax Jurisdiction [Member]      
Percent      
U.S. federal statutory income tax rate 21.00%    
United States      
Amount      
Other $ 287    
Percent      
Other 0.20%    
v3.25.4
Income Taxes - Changes in the Reserve for Income Taxes, Excluding Interest and Penalties (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance of reserve for income taxes $ 23,736 $ 25,714 $ 13,647
Reductions as a result of tax positions taken in prior periods (1,597) (39) (242)
Additions as a result of tax positions taken in prior periods 825 208 12,556
Additions as a result of tax positions taken in the current period 1,853 1,935 1,877
Reductions relating to settlements with taxing authorities 0 (2,751) (1,230)
Reductions as a result of the expiration of the applicable statutes of limitations (3,547) (1,331) (894)
Balance of reserve for income taxes $ 21,270 $ 23,736 $ 25,714
v3.25.4
Income Taxes - Income Taxes Paid (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. federal $ 23,586    
State and local 2,417    
Total income taxes paid 42,331 $ 59,849 $ 56,618
Japan      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 6,669    
China      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 2,106    
Other      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign $ 7,553    
v3.25.4
Income Taxes - Constituents of Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Intangible asset in connection with change in tax structure $ 361,385 $ 369,474
Stock-based compensation expense 21,617 22,428
Tax credit carryforwards 10,849 10,186
Inventory and revenue related 8,583 8,355
Bonuses, commissions, and other compensation 8,894 6,949
Depreciation 0 2,877
Foreign net operating losses 645 1,306
Capitalization of R&D expenses 26,620 35,948
Other 1,607 4,624
Total deferred tax assets 440,200 462,147
Valuation allowance (2,737) (2,515)
Deferred Tax Assets, Net, Noncurrent 437,463 459,632
Deferred tax liabilities:    
NCTI (formerly GILTI) tax basis differences in connection with change in tax structure (274,026) (254,213)
Non deductible federal and state liabilities (27,958) (29,008)
Depreciation (1,744) 0
Deferred Tax Liabilities, Undistributed Foreign Earnings (986) (1,400)
Deferred Tax Liabilities, Net (304,714) (284,621)
Deferred income taxes $ 132,749 $ 175,011
v3.25.4
Earnings per Share - Calculation of Weighted Average Shares (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 114,442 $ 106,171 $ 113,234
Basic weighted-average common shares outstanding 168,049 171,438 172,249
Effect of dilutive stock options 1,318 1,173 1,150
Diluted weighted-average common and common-equivalent shares outstanding 169,367 172,611 173,399
Net income (in dollars per share) $ 0.68 $ 0.62 $ 0.66
Net income (in dollars per share) $ 0.68 $ 0.62 $ 0.65
v3.25.4
Earnings per Share - Additional Information (Detail) - shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options to purchase anti-dilutive common stock 10,255,000 8,497,000 6,854,000
Stock Compensation Plan [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options to purchase anti-dilutive common stock 10,238,000 8,497,000 6,854,000
Restricted Stock [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options to purchase anti-dilutive common stock 17,000 0 0
Performance Shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Stock options to purchase anti-dilutive common stock 0 0 0
v3.25.4
Segment and Geographic Information - Additional Information (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Concentration Risk [Line Items]      
Number of reportable segments | Segment 1    
Cost, Depreciation and Amortization | $ $ 12,406 $ 12,524 $ 7,065
Total Revenue | Revenue from a single customer, percentage | Customer 2 [Member]      
Concentration Risk [Line Items]      
Maximum percentage of revenue accountability 15.00% 10.00%  
Accounts Receivable [Member] | Revenue from a single customer, percentage | Customer 2 [Member]      
Concentration Risk [Line Items]      
Maximum percentage of revenue accountability 10.00% 10.00%  
v3.25.4
Segment and Geographic Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 994,359 $ 914,515 $ 837,547
Long-lived assets 91,009 103,472 112,937
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 329,125 306,766 288,324
Long-lived assets 48,838 56,948 62,946
Europe [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 251,638 217,880 220,665
Long-lived assets 14,112 15,655 17,005
Greater China [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 158,456 164,147 164,115
Long-lived assets 13,631 14,844 17,028
Other [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 255,140 225,722 164,443
Long-lived assets $ 14,428 $ 16,025 $ 15,958
v3.25.4
Segment and Geographic Information - Disaggregation of Segment Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 994,359 $ 914,515 $ 837,547
Cost of revenue 328,966 288,721 236,306
Gross margin 665,393 625,794 601,241
Allocated Share-based Compensation Expense 48,517 52,443 54,768
Research, development, and engineering expenses 138,970 139,815 139,400
Selling, general, and administrative expenses 363,857 370,914 339,139
Loss (recovery) from fire 0 0 (8,000)
Operating income 162,566 115,065 130,702
Foreign currency gain (loss) (4,082) 1,531 (10,039)
Investment income 16,950 13,971 14,093
Other income (expense) 7,368 922 592
Income before income tax expense 182,802 131,489 135,348
Income tax expense on continuing operations 68,360 25,318 22,114
Net income 114,442 106,171 113,234
Research, Development and Engineering Expenses      
Segment Reporting Information [Line Items]      
Labor and Related Expense 75,690 79,544 78,762
Incentive Compensation Expense, Bonus And Sales Commissions 9,537 4,711 1,446
Allocated Share-based Compensation Expense 15,336 14,628 16,480
Depreciation, Depletion and Amortization 2,628 3,229 3,056
Other Expenses 35,779 37,703 39,656
Segment, General, And Engineering Expense      
Segment Reporting Information [Line Items]      
Labor and Related Expense 174,526 179,898 166,612
Incentive Compensation Expense, Bonus And Sales Commissions 55,932 45,565 35,513
Allocated Share-based Compensation Expense 30,965 35,849 36,309
Depreciation, Depletion and Amortization 15,759 16,936 11,759
Other Expenses $ 86,675 $ 92,666 $ 88,946
v3.25.4
Business Acquisitions - Moritex Narrative (Details)
¥ in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Oct. 18, 2023
USD ($)
Oct. 18, 2023
JPY (¥)
Dec. 31, 2025
USD ($)
Mar. 31, 2024
USD ($)
Mar. 31, 2024
JPY (¥)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 18, 2023
JPY (¥)
Business Combination [Line Items]                  
Payments related to business acquisitions           $ 0 $ 1,444 $ 257,056  
Moritex Corporation                  
Business Combination [Line Items]                  
Enterprise value $ 270,000               ¥ 40,000,000
Purchase price 296,138 ¥ 44,376,245              
Cash paid in purchase price 295,144 ¥ 44,227,414   $ 994 ¥ 148,831        
Cash acquired 38,088                
Payments related to business acquisitions 257,056                
Business Combination, Transaction Cost, Excluding Separately Recognized Transaction $ 5,800                
Goodwill, Measurement Period Adjustment     $ 6,478            
v3.25.4
Business Acquisitions - Moritex Purchase Price Allocation (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Oct. 18, 2023
Business Combination [Line Items]        
Goodwill $ 386,279 $ 384,937 $ 393,181  
Moritex Corporation        
Business Combination [Line Items]        
Cash and cash equivalents       $ 38,088
Accounts receivable       11,543
Inventories       21,882
Property, plant and equipment       19,805
Goodwill       151,525
Deferred income tax assets       4,162
Other assets       3,363
Accounts payable       (6,639)
Accrued expenses       (14,718)
Deferred income tax liabilities       (22,665)
Reserve for income taxes       (5,864)
Other liabilities       (2,294)
Purchase price       296,138
Moritex Corporation | Customer relationships        
Business Combination [Line Items]        
Finite-lived intangible assets       64,800
Moritex Corporation | Completed technologies        
Business Combination [Line Items]        
Finite-lived intangible assets       32,300
Moritex Corporation | Trademarks        
Business Combination [Line Items]        
Finite-lived intangible assets       $ 850
v3.25.4
Loss from Fire (Details) - Fire
$ in Thousands
12 Months Ended
Dec. 31, 2023
USD ($)
Unusual or Infrequent Item, or Both [Line Items]  
Insurance Recoveries $ 8,000
Insurance Recoveries, Business Interruption 2,500
Insurance Recoveries, Lost Inventory And Other Losses $ 5,500
v3.25.4
Subsequent Events - (Details) - Subsequent Event [Member] - USD ($)
3 Months Ended
Jul. 05, 2026
Feb. 12, 2026
Feb. 11, 2026
Subsequent Event [Line Items]      
Dividends Payable, Amount Per Share   $ 0.085  
Repurchase Program February 2026      
Subsequent Event [Line Items]      
Repurchase of authorized common stock     $ 500,000,000
Forecast | Minimum [Member]      
Subsequent Event [Line Items]      
Proceeds from Divestiture of Businesses $ 10,000,000    
Forecast | Maximum [Member]      
Subsequent Event [Line Items]      
Proceeds from Divestiture of Businesses $ 12,000,000    
v3.25.4
Schedule II -Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 827    
Balance at End of Period 728 $ 827  
Reserve for Uncollectible Accounts Receivable and Sales Return [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 827 583 $ 730
Charged to Costs and Expenses 477 459 500
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account 0 0 0
Deductions (555) (222) (645)
Other (21) 7 (2)
Balance at End of Period 728 827 583
Sales Returns and Allowances [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2,518 2,018 1,518
Charged to Costs and Expenses 500 500 500
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account 0 0 0
Deductions 0 0 0
Other 0 0 0
Balance at End of Period 3,018 2,518 2,018
Deferred Tax Valuation Allowance [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2,515 943 7,661
Charged to Costs and Expenses 222 1,572 0
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account 0 0 0
Deductions 0 0 (6,718)
Other 0 0 0
Balance at End of Period $ 2,737 $ 2,515 $ 943