COGNEX CORP
For the period ended Oct 4, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 4, 2026 · Filed Nov 5, 2026
CGNX$47.78+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-07-05; filed 2026-08-06.
0000851205-26-000065
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-10-04; filed 2026-11-05.
0000851205-26-000082
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 54 previous paragraphs and 56 current paragraphs.
22 unchanged; 30 reworded; 4 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Investment income decreased by $839,000, or 20%, for the three-month period and increased by $1,058,000, or 9%, for the nine-month period in 2026 as compared to the same periods in 2025. Late in the third quarter of 2026, the Company sold investments, primarily corporate bonds, generating approximately $330 million of cash at a net loss of $2,407,000, which partially offset investment income during the period. The proceeds from these sales, along with existing cash balances, are intended to fund the pending acquisition of RealSense that is expected to close in the fourth quarter of 2026 (refer to Note 14 of the Consolidated Financial Statements).
Current report
In the third quarter of 2025, tax legislation known as the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. OBBBA modifies certain international tax provisions such as the tax on Global Intangible Low Taxed Income (“GILTI”) and renames GILTI as Net CFC Tested Income (“NCTI”). The Company records NCTI taxes on a deferred basis, and as a result of OBBBA’s enactment, accrued a discrete tax expense of $33,265,000 to increase its deferred tax liability during the third quarter of 2025.
Current report
Net cash provided by investing activities totaled $222,008,000 for the nine-month period in 2026 as compared to net cash provided by investing activities of $47,624,000 for the same period in 2025. The increase in investing cash inflow from the prior year was due to the liquidation of a portion of the Company’s investment portfolio late in the third quarter of 2026 generating approximately $330 million in cash intended to fund, along with existing cash balances, the pending acquisition of RealSense. This transaction is expected to close in the fourth quarter of 2026 for approximately $500 million, subject to customary adjustments (refer to Note 14 of the Consolidated Financial Statements).
Current report
On September 22, 2026, the Company announced that it entered into a definitive agreement to acquire RealSense, a leader in depth-sensing cameras and vision technology for robotic perception and physical artificial intelligence, for $500 million in an all-cash transaction, subject to customary adjustments. The Company also expects to provide a three-year approximately $56.5 million cash retention program at target, and up to a maximum of $69 million, for RealSense employees, subject to performance modifiers. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, with the purchase price financed entirely from existing cash and investments (refer to Note 14 of the Consolidated Financial Statements).
Removed paragraphs (2)
Previous report
Investment income increased by $1,051,000, or 26%, for the three-month period and increased by $1,897,000, or 24%, for the six-month period in 2026 as compared to the same periods in 2025 primarily due to a higher invested balance.
Previous report
Net cash used in investing activities totaled $69,693,000 for the six-month period in 2026 as compared to net cash provided by investing activities of $29,121,000 for the same period in 2025. The decrease in investing cash inflow from the prior year was due to a higher level of investment maturities during the six-month period in 2025.
Reworded paragraphs (30)
Previous wording
Certain statements made in this report, as well as oral statements made by Cognex Corporation ("Cognex", "we", "us", "our", or the "Company") from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "projects," "intends," "plans," "aims," "will," "may," "shall," "could," "should," "opportunity," "goal," "objective," "target," "milestone" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the impacts of our strategic portfolio review, the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, financial and operating models, acquisitions, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the distribution of products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in China, and the wars and conflicts involving Iran, Ukraine, and Israel and those that may arise in the future in the geographies where we conduct business; (6) the challenges in …
Excerpt shortened here; the source contains the full paragraph.
Current wording
Certain statements made in this report, as well as oral statements made by Cognex Corporation ("Cognex", "we", "us", "our", or the "Company") from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers can identify these forward-looking statements by our use of the words "expects," "anticipates," "estimates," "potential," "believes," "projects," "intends," "plans," "aims," "will," "may," "shall," "could," "should," "opportunity," "goal," "objective," "target," "milestone" and similar words and other statements of a similar sense. These statements are based on our current estimates and expectations as to prospective events and circumstances, which may or may not be in our control and as to which there can be no firm assurances given. These forward-looking statements, which include statements regarding business and market trends, future financial performance, financial targets, milestones and related timing expectations, the closing, timing, integration, and expected results from acquired businesses, including RealSense, Inc. ("RealSense"), the impact of tariffs, customer demand and order rates and timing of related revenue, future product or revenue mix, research and development activities, sales and marketing activities including our salesforce transformation, new product offerings, innovation and product development activities, customer acceptance of our products, commercial partnerships, capital expenditures, cost management activities including expected annualized operating expense reductions, investments, liquidity, dividends and stock repurchases, strategic and growth plans and opportunities, financial and operating models, and estimated tax benefits and expenses, changes in tax legislation, and other tax matters, involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include: (1) the technological obsolescence of current products, the inability to develop new products, and the inability to achieve growth through expanding and adjacent markets; (2) the impact of competitive pressures; (3) the inability to attract and retain skilled employees and effectively plan for succession, while maintaining our unique corporate culture; (4) the failure to properly manage the timely manufacturing and distribution of high-quality products and services; (5) economic, political, and other risks associated with international sales and operations, including the impact of trade disputes, the imposition of tariffs, the economic climate in China, and the wars and conflicts involving Iran, Ukraine, and Israel and thos…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Revenue for the second quarter of 2026 totaled $291,263,000, representing an increase of 17% over the second quarter of 2025 due to broad-based strength across most major end markets, as well as the favorable impact of foreign currency exchange rate changes on revenue. Gross margin as a percentage of revenue was 71% for the second quarter of 2026 as compared to 67% for the second quarter of 2025 due to a more favorable end-market mix and higher sales volume, which improved fixed-cost absorption. Operating expenses for the second quarter of 2026 decreased 3% from the second quarter of 2025. The decrease was primarily due to savings from continued cost management activities and lower stock-based compensation expense, partially offset by the unfavorable impact of foreign exchange rates on expenses.
Current wording
Revenue for the third quarter of 2026 totaled $313,387,000, representing an increase of 13% over the third quarter of 2025 due to broad-based strength across most major end markets. Gross margin as a percentage of revenue was 71% for the third quarter of 2026 as compared to 68% for the same quarter in 2025 due to a more favorable mix and higher sales volume, which improved fixed-cost absorption. Operating expenses for the third quarter of 2026 decreased 7% from the third quarter of 2025 due primarily to savings from continued cost management activities.
Previous wording
Operating income increased to 29% of revenue for the second quarter of 2026 as compared to 17% of revenue for the second quarter of 2025 due to operating leverage achieved from revenue growth. Net income increased to 25% of revenue, or $0.43 per diluted share, for the second quarter of 2026, as compared to 16% of revenue, or $0.24 per diluted share, for the second quarter of 2025.
Current wording
Operating income increased to 32% of revenue for the third quarter of 2026 as compared to 21% of revenue for the third quarter of 2025 due to operating leverage achieved from revenue growth, strong gross margins, and disciplined cost management. Net income increased to 27% of revenue, or $0.50 per diluted share, for the third quarter of 2026, as compared to 6% of revenue, or $0.10 per diluted share, for the same quarter in 2025. Net income in the third quarter of 2025 was impacted by significantly higher income tax expense from a discrete tax expense of approximately $33 million resulting from the One Big Beautiful Bill Act ("OBBBA").
Previous wording
Revenue increased by $42,170,000, or 17%, for the three-month period in 2026 and increased $94,571,000, or 20%, for the six-month period in 2026 as compared to the same periods in 2025. Changes in foreign currency exchange rates resulted in a higher level of reported revenue in the 2026 periods as compared to the corresponding periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue increased by 16% for the three-month period in 2026 and 18% for the six-month period in 2026 as compared to the same periods in 2025. The increases were due to broad-based demand across most major end markets.
Current wording
Revenue increased by $36,495,000, or 13%, for the three-month period in 2026 and increased by $131,066,000, or 18%, for the nine-month period in 2026 as compared to the same periods in 2025. In the third quarter of 2025, the Company recognized approximately $13 million of one-time revenue related to a strategic channel partnership in the medical lab automation industry upon the transfer of software access and inventories to this partner. Excluding the impact of foreign currency exchange rate changes, which resulted in a higher level of total revenue for the nine-month period, and the one-time revenue related to the strategic channel partnership in the third quarter of 2025, revenue increased by 19% for the three-month period in 2026 and increased by 18% for the nine-month period in 2026 as compared to the same periods in 2025. The increases were due to broad-based higher demand across most major end markets.
Previous wording
The following table sets forth our disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.
Current wording
The following table sets forth our disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands) for the three-month and nine-month periods ended October 4, 2026 and September 28, 2025, respectively.
Previous wording
•Revenue from customers based in the Americas increased by 27% for the three-month period in 2026 and increased by 24% for the six-month period in 2026 as compared to the same periods in 2025 due to stronger performance across most major end markets. Revenue from customers based in the Americas also benefitted from consumer electronics customer procurement changes as purchases shifted from entities based in Europe to the Americas.
Current wording
•Revenue from customers based in the Americas increased by 29% for the three-month period in 2026 and increased by 26% for the nine-month period in 2026 as compared to the same periods in 2025 due to stronger performance across major end markets. Revenue from customers based in the Americas also benefitted from consumer electronics customer procurement changes as purchases shifted from entities based in Europe to the Americas. These increases were partially offset by the one-time revenue from the strategic channel partnership in the third quarter of 2025 mentioned above, which primarily impacted the Americas region.
Previous wording
•Revenue from customers based in Europe decreased by 12% for the three-month period in 2026 and increased by 6% for the six-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in Europe decreased by 15% for the three-month period in 2026 and decreased by 1% for the six-month period in 2026. The decrease for the three-month period was driven by the consumer electronics customer procurement shift from Europe to the Americas mentioned above, as well as ongoing softness in the automotive end market. These decreases were largely offset by stronger performance across our other major end markets, including logistics and packaging, for the six-month period.
Current wording
•Revenue from customers based in Europe decreased by 20% for the three-month period in 2026 and decreased by 4% for the nine-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in Europe decreased by 19% for the three-month period and decreased by 8% for the nine-month period. The decreases were driven by the consumer electronics customer procurement shift from Europe to the Americas and the one-time revenue from the strategic channel partnership in the third quarter of 2025 mentioned above, as well as ongoing softness in the automotive end market, although the rate of decline moderated.
Previous wording
•Revenue from customers based in Greater China increased by 47% for the three-month period in 2026 and increased by 45% for the six-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in Greater China increased by 42% for the three-month period in 2026 and increased by 40% for the six-month period in 2026 primarily due to higher revenue from customers in the consumer electronics and semiconductor end markets.
Current wording
•Revenue from customers based in Greater China increased by 35% for the three-month period in 2026 and increased by 41% for the nine-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in Greater China increased by 29% for the three-month period and increased by 35% for the nine-month period primarily due to higher revenue from customers in the consumer electronics and semiconductor end markets.
Previous wording
•Revenue from customers based in other countries in Asia increased by 9% for the three-month period in 2026 and increased by 11% for the six-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in other countries in Asia increased by 14% for the three-month period in 2026 and increased by 13% for the six-month period in 2026 primarily due to higher revenue from customers in the semiconductor end market. These increases were partially offset by a decrease in revenue from customers in the packaging end market resulting primarily from the divestiture of the Company's Japan-focused trading business on April 1, 2026 (refer to Note 13 of the Consolidated Financial Statements).
Current wording
•Revenue from customers based in other countries in Asia increased by 7% for the three-month period in 2026 and increased by 9% for the nine-month period in 2026 as compared to the same periods in 2025. Excluding the impact of foreign currency exchange rate changes, revenue from customers based in other countries in Asia increased by 12% for the three-month period and increased by 13% for the nine-month period primarily due to higher revenue from customers in the semiconductor end market. These increases were partially offset by a decrease in revenue from customers in the packaging end market resulting primarily from the divestiture of the Company's Japan-focused trading business on April 1, 2026 (refer to Note 13 of the Consolidated Financial Statements). Excluding the impact of this divested business, revenue from customers based in other countries in Asia increased by 23% for both the three-month and nine-month periods.
Previous wording
The following table sets forth our gross profit (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.
Current wording
The following table sets forth our gross profit (in thousands) for the three-month and nine-month periods ended October 4, 2026 and September 28, 2025, respectively.
Previous wording
Gross margin was 71% for the three-month and six-month periods in 2026 as compared to 67% for the same periods in 2025. The increases were primarily due to more favorable end-market mix and higher sales volume, which improved fixed-cost absorption.
Current wording
Gross margin was 71% for the three-month and nine-month periods in 2026 as compared to 68% and 67%, respectively, for the same periods in 2025. The increases were primarily due to more favorable mix, higher sales volume that improved fixed-cost absorption, and the favorable impact of higher average selling prices. These benefits more than offset the unfavorable impact of higher inventory purchase costs, primarily memory costs.
Previous wording
The following table sets forth our operating expenses (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.
Current wording
The following table sets forth our operating expenses (in thousands) for the three-month and nine-month periods ended October 4, 2026 and September 28, 2025, respectively.
Previous wording
Research, development, and engineering ("RD&E") expenses decreased by $711,000, or 2%, for the three-month period in 2026 and increased by $1,587,000, or 2%, for the six-month period in 2026 as compared to the same periods in 2025. For the three-month period in 2026, the decrease was primarily due to savings from continued cost management activities, partially offset by the unfavorable impact of foreign exchange rates. For the six-month period in 2026, higher incentive compensation accruals due to stronger business performance and the unfavorable impact of foreign exchange rates offset savings from cost management activities.
Current wording
Research, development, and engineering ("RD&E") expenses decreased by $1,184,000, or 3%, for the three-month period in 2026 and remained relatively flat for the nine-month period in 2026 as compared to the same periods in 2025. For the three-month period, the decrease was primarily due to savings from continued cost management activities. For the nine-month period, the unfavorable impact of foreign exchange rates offset savings from cost management activities.
Previous wording
RD&E expenses as a percentage of revenue were 11% and 12% for the three-month and six-month periods in 2026 as compared to 13% and 15%, respectively, for the same periods in 2025. We believe that a continued commitment to RD&E activities is essential to maintain or achieve product leadership with our existing products and to provide innovative new product offerings, as well as to provide engineering support for large customers. These percentages are impacted by revenue levels and investment cycles.
Current wording
RD&E expenses as a percentage of revenue were 11% and 12% for the three-month and nine-month periods in 2026 as compared to 13% and 14%, respectively, for the same periods in 2025. We believe that a continued commitment to RD&E activities is essential to maintain or achieve product leadership with our existing products and to provide innovative new product offerings, as well as to provide engineering support for large customers. These percentages are impacted by revenue levels and investment cycles.
Previous wording
Selling, general, and administrative ("SG&A") expenses decreased by $3,476,000, or 4%, and increased by $7,061,000, or 4%, respectively, for the three-month and six-month periods in 2026 as compared to the same periods in 2025. For the three-month period, the decrease was primarily due to savings from continued cost management activities and lower stock-based compensation expense, partially offset by the unfavorable impact of foreign exchange rates. For the six-month period, higher incentive compensation accruals due to stronger business performance, higher reorganization charges incurred to drive efficiencies across the organization, and the unfavorable impact of foreign exchange rates offset savings from cost management activities.
Current wording
Selling, general, and administrative ("SG&A") expenses decreased by $7,420,000, or 8%, for the three-month period in 2026 and remained relatively flat for the nine-month period in 2026 as compared to the same periods in 2025. For the three-month period, the decrease was primarily due to savings from continued cost management activities, partially offset by higher sales commissions and approximately $2.5 million of transaction costs recorded in the third quarter of 2026 related to the Company’s pending acquisition of RealSense that is expected to close in the fourth quarter of 2026 (refer to Note 14 of the Consolidated Financial Statements). For the nine-month period, the unfavorable impact of foreign exchange rates also offset savings from cost management activities.
Previous wording
The following table sets forth our non-operating income (expense) (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.
Current wording
The following table sets forth our non-operating income (expense) (in thousands) for the three-month and nine-month periods ended October 4, 2026 and September 28, 2025, respectively.
Previous wording
The Company recorded foreign currency losses of $862,000 and $2,207,000 for the three-month and six-month periods in 2026, respectively, and losses of $1,503,000 and $3,956,000 for the same periods in 2025, respectively. Foreign currency losses in each period resulted primarily from the revaluation and settlement of assets and liabilities that are denominated in currencies other than the functional currency of the Company, which is the U.S. Dollar, or its subsidiaries.
Current wording
The Company recorded foreign currency losses of $744,000 and $2,951,000 for the three-month and nine-month periods in 2026, respectively, and a gain of $840,000 and a loss of $3,116,000 for the same periods in 2025. Foreign currency gains and losses in each period resulted primarily from the revaluation and settlement of assets and liabilities that are denominated in currencies other than the functional currency of the Company, which is the U.S. Dollar, or its subsidiaries.
Previous wording
The Company recorded other expense of $446,000 and $2,053,000 for the three-month and six-month periods in 2026, respectively, and other income of $2,092,000 and $2,261,000 for the same periods in 2025, respectively. Other expense for the six-month period in 2026 included a pre-tax loss of $1,539,000 related to the divestiture of the Company's Japan-focused trading business (refer to Note 13 of the Consolidated Financial Statements). Other income for the second quarter of 2025 included a one-time, net Employee Retention Credit of $2,119,000 from the U.S. Internal Revenue Service to refund payroll taxes paid during the COVID-19 pandemic.
Current wording
The Company recorded other expense of $146,000 and $2,199,000 for the three-month and nine-month periods in 2026, respectively, and other income of $61,000 and $2,322,000 for the same periods in 2025. Other expense for the nine-month period in 2026 included a pre-tax loss of $1,539,000 related to the divestiture of the Company's Japan-focused trading business (refer to Note 13 of the Consolidated Financial Statements). Other income for the nine-month period in 2025 included a one-time, net Employee Retention Credit of $2,119,000 from the U.S. Internal Revenue Service to refund payroll taxes paid during the COVID-19 pandemic.
Previous wording
The following table sets forth income tax information (in thousands) for the three-month and six-month periods ended July 5, 2026 and June 29, 2025, respectively.
Current wording
The following table sets forth income tax information (in thousands) for the three-month and nine-month periods ended October 4, 2026 and September 28, 2025, respectively.
Previous wording
The Company’s effective tax rate was 19% and 18% for the three-month and six-month periods in 2026, respectively, and 16% and 15% for the same periods in 2025, respectively. The Company recorded a net discrete tax expense of $450,000 and a net discrete tax benefit of $729,000 for the three-month and six-month periods in 2026, respectively, compared to net discrete tax benefits of $211,000 and $518,000 for the three-month and six-month periods in 2025, respectively.
Current wording
The Company’s effective tax rate was 18% for the three-month and nine-month periods in 2026, respectively, and 72% and 41% for the same periods in 2025. The Company recorded net discrete tax benefits of $1,454,000 and $2,184,000 for the three-month and nine-month periods in 2026, respectively, compared to net discrete tax expenses of $33,650,000 and $33,132,000 for the same periods in 2025.
Previous wording
Excluding the impact of discrete tax items, the Company's effective tax rate was 18% for the three-month and six-month periods in 2026 and 16% for the same periods in 2025. The increase was primarily due to a greater portion of the Company's pre-tax income being earned in higher tax rate jurisdictions.
Current wording
Excluding the impact of discrete tax items, the Company's effective tax rate was 19% for the three-month and nine-month periods in 2026, respectively, and 18% and 17% for the same periods in 2025. The increase was primarily due to a greater portion of the Company's pre-tax income being earned in higher tax rate jurisdictions.
Previous wording
The Company has historically been able to generate positive cash flow from operations, which has funded its operating activities and other cash requirements and resulted in an accumulated cash and investment balance of $755,013,000 as of July 5, 2026. The Company has established guidelines relative to credit ratings, diversification, and maturities of its investments to maintain liquidity and safety of its investment portfolio.
Current wording
The Company has historically been able to generate positive cash flow from operations, which has funded its operating activities and other cash requirements and resulted in an accumulated cash and investment balance of $845,984,000 as of October 4, 2026. The Company has established guidelines relative to credit ratings, diversification, and maturities of its investments to maintain liquidity and safety of its investment portfolio.
Previous wording
Net cash provided by operating activities totaled $114,246,000 for the six-month period in 2026 as compared to $83,127,000 for the same period in 2025. The increase in operating cash inflow from the prior year was primarily driven by stronger business performance. This increase was partially offset by higher working capital requirements associated with revenue growth, primarily higher accounts receivable balances and inventory purchases. These impacts were partially offset by lower cash tax payments, driven largely by a one-time transition tax payment on unrepatriated foreign earnings made in the second quarter of 2025 that did not recur in 2026.
Current wording
Net cash provided by operating activities totaled $220,661,000 for the nine-month period in 2026 as compared to $170,612,000 for the same period in 2025. The increase in operating cash inflow from the prior year was driven by stronger business performance. This increase was partially offset by higher working capital requirements associated with revenue growth, primarily higher accounts receivable balances and inventory purchases.
Previous wording
Investing activities also included capital expenditures that totaled $4,289,000 for the six-month period in 2026 as compared to $4,695,000 for the same period in 2025. Capital expenditures in each period consisted primarily of investments in business systems, manufacturing test equipment related to new product introductions, and building and leasehold improvements.
Current wording
Investing activities included capital expenditures that totaled $6,928,000 for the nine-month period in 2026 as compared to $6,147,000 for the same period in 2025. Capital expenditures in each period consisted primarily of investments in business systems, manufacturing test equipment related to new product introductions, and building and leasehold improvements.
Previous wording
Investing activities for the six-month period in 2026 included net proceeds of $11,519,000 from the divestiture of the Company's Japan-focused trading business (refer to Note 13 of the Consolidated Financial Statements).
Current wording
Investing activities for the nine-month period in 2026 also included net proceeds of $11,519,000 from the divestiture of the Company's Japan-focused trading business (refer to Note 13 of the Consolidated Financial Statements).
Previous wording
Net cash used in financing activities totaled $2,138,000 for the six-month period in 2026 and $131,626,000 for the same period in 2025. The decrease in financing cash outflow from the prior year was due to higher proceeds from stock option exercises during the six-month period in 2026.
Current wording
Net cash used in financing activities totaled $11,659,000 for the nine-month period in 2026 and $169,197,000 for the same period in 2025. The decrease in financing cash outflow from the prior year was due to higher proceeds from stock option exercises during the nine-month period in 2026.
Previous wording
In March 2022, the Company's Board of Directors (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 other periods, the Company repurchased 2,501,000 shares at a total cost of $105,231,000 during the six-month period in 2026, leaving a remaining balance of $9,789,000 as of July 5, 2026. On February 11, 2026, the Board authorized the repurchase of up to 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.
Current wording
In March 2022, the Company's Board of Directors (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 other periods, the Company repurchased 2,501,000 shares at a total cost of $105,231,000 during the nine-month period in 2026, leaving a remaining balance of $9,789,000 as of October 4, 2026. On February 11, 2026, the Board authorized the repurchase of up to 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.
Previous wording
The Board declared and paid cash dividends of $0.085 per share for the first and second quarters of 2026, totaling $28,454,000. 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.
Current wording
The Board declared and paid cash dividends of $0.085 per share for the first, second, and third quarters of 2026, totaling $42,763,000. 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.
Previous wording
As of July 5, 2026, the Company had inventory purchase commitments of $66,839,000, with the majority payable within twelve months, and lease payment obligations of $88,148,000, with $16,327,000 payable within twelve months.
Current wording
As of October 4, 2026, the Company had inventory purchase commitments of $64,337,000, with the majority payable within twelve months, and lease payment obligations of $85,633,000, with $16,258,000 payable within twelve months.
Previous wording
We believe that the Company's existing cash and investment balances, together with cash flow from operations, will be sufficient to meet its operating, investing, and financing activities for the next twelve months. In addition, the Company has no long-term debt. We believe that our strong cash position has put us in a relatively good position with respect to anticipated longer-term liquidity needs.
Current wording
We believe that the Company's existing cash and investment balances, together with cash flow from operations, will be sufficient to meet its operating, investing, and financing activities for the next twelve months, including the assumption that the Company completes its acquisition of RealSense. In addition, the Company has no long-term debt. We believe that our strong cash position has put us in a relatively good position with respect to anticipated longer-term liquidity needs.