Cognex Corporation

Greetings and welcome to Cognex Corporation first quarter 2026 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Greer Aviv, Head of Investor Relations, Thank you. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us. Our earnings release was published yesterday after market closed, and our 10-Q was filed this morning. The earnings materials are available on our Investor Relations website. I am joined here today by Matt Moschner, our CEO, and Dennis Baer, our CFO. Today, we plan to share several key messages with you, including progress on our strategy and market trends, our strong performance in the first quarter, and our expectations for the second quarter. After prepared remarks, we'll open the lines for Q&A. Both our published materials and the call today will reference non-GAAP measures. You can find a reconciliation of certain items from GAAP to non-GAAP in our press release and earnings presentation. Today's earnings materials will contain forward-looking statements, including statements regarding our expectations. Our actual results may differ from our projections due to the risks and uncertainties that are described in our SBC filings, including our most recent form, 10-K. With that, I'll turn the call over to Matt.

Thanks, Greer. Good morning, everyone, and thank you for joining us today. It's hard to believe that nearly a year has passed since my appointment as CEO was announced. Since then, my leadership team and I have moved with urgency to focus our strategy, strength and execution, and position Cognix for sustainable, profitable growth. I'm proud of the progress the team has made and excited about the huge potential still ahead of us. That progress is clearly reflected in our Q1 results, as we delivered an exceptional start to the year. In Q1, revenue, adjusted EBITDA, and adjusted EPS each achieved double-digit year-on-year growth, meaningfully exceeding our expectations and consensus. Turning to page three of our earnings presentation, I'll start with a strategy update. First, innovations. We're advancing our technology leadership with the launch of two breakthrough AI vision systems, reinforcing our goal to be the number one provider of AI-powered machine vision. I will cover these new product introductions in more detail shortly. Second, on portfolio optimization, we successfully completed the divestiture of our Japan-focused trading business on April 1st, ahead of schedule and in line with our expected proceeds. Third, on cost and productivity, we remain on track to achieve the 35 to 40 million in net cost reductions we announced last quarter. These actions help streamline our organization and will support durable margin expansion. Dennis will provide more details on this later in the call. Turning to page four, I am pleased to announce two new embedded vision systems, the Insight 6900 and Insight 3900. Both breakthrough technologies share the same foundation, more AI computing power at the edge, seamless integration with OneVision, and all built on the same Insight Vision Suite software platform. With OneVision now broadly commercially available, these launches enhance our edge-to-cloud AI vision ecosystem and reinforce our leadership in delivering high-performance, scalable, and easy-to-deploy AI solutions. Both strengthen our position in approximately $3.5 billion of our $7 billion served market. Starting with the Insight 6900, This product is designed for customers who need our most powerful AI vision tools but don't want the cost, footprint, and integration burden of a PC-based architecture. Powered by NVIDIA, the 6900 combines our broadest set of image formation hardware with proven advanced AI vision tools, allowing customers to configure their system for demanding, compute-intensive inspection applications. Its flexible architecture supports interchangeable cameras, lenses, and lighting, which help customers dial in the exact configuration they need with less friction. Second, the Insight 3900 is the industry's fastest embedded AI vision system, built for customers who want maximum inspection capability with the simplicity of a fully integrated smart camera. Powered by Qualcomm, the 3900 delivers industry-leading speed, accuracy, and resolution at the edge. Both products are major steps forward in embedded AI vision, bringing more capability to the factory floor with less complexity. Turning to end market performance on page five, momentum from late last year carried into Q1 with broad-based demand across our end markets, led by electronics, semiconductor, and packaging, and continued growth with large logistics customers. The Purchasing Managers Index, or PMI, remains in expansion territory, while at the same time macro uncertainty and other risks have increased, Geopolitical conflicts, rising energy costs, memory chip availability and pricing, and changes to interest rate expectations are all relevant areas we continue to monitor as we look forward to the second half of the year. We are therefore only slightly adjusting our full year end market outlook at this time and expect to provide more clarity during the next earnings call. Starting with logistics, 2026 is off to a strong start. with Q1 marking our ninth consecutive quarter of double-digit growth, once again led by large e-commerce customers. We continue to see encouraging traction with our SLX device portfolio, validating our strategy of layering additional vision capabilities on top of market reading. As the year progresses, we expect growth to normalize to mid- to high-single digits as comps strengthen. Turning to packaging, this end market delivered double-digit revenue growth in Q1, driven by broad-based strengths. Considering the strong start in 2026, we now expect high single-digit growth, supported by continued momentum from our Salesforce transformation and the strength of our AI-enabled ecosystem. As a reminder, this outlook reflects a reduced revenue base following the divestiture of the Japan-focused trading business. Next to electronics, which delivered double-digit growth in Q1, driven by broad-based strength across customers and geographies. For 2026, we continue to expect high single to double-digit growth, supported by ongoing supply chain shifts, a consumer refresh cycle, and new device form factors. Turning to automotive, Q1 revenue increased mid-single digits on a constant currency basis. Performance continues to be different by geography, with meaningful growth in the Americas, offset by ongoing softness in Europe, and some growth in Asia. For the full year, we continue to expect flat, to low single-digit growth. Finally, in semiconductor, Q1 revenue grew double digits, exceeding our expectations and driven by very strong growth across Asia. Based on this strong start, we are narrowing our full-year growth outlook to a high single to double-digit range. Our deep relationships with leading semiconductor equipment manufacturers continue to position us well for sustained growth in this market. In summary, we are very pleased with a strong start to the year. as focused execution drove broad-based outperformance across revenue, margin, and bottom-line earnings. Q1 results reflect meaningful progress against our strategic objectives and position us well to navigate a dynamic macro environment. With that, I'll turn it over to Dennis to walk through the Q1 financials and our second quarter outlook.