Cognex Corp at Bernstein Insights Industrials Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay. Let's dive right in. So yeah, let's talk a little bit more about that change since it's a relatively new management team. You guys came out with some recent strategic priorities. I'd love for you to just lay those out for all of us and then we can dive a little bit further.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Great. Okay, so maybe diving a little bit more into that doubling of your customer base. Can you talk about just what changes in the organization do you need to make to realize that goal?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay. So let's actually start at the base. Let's talk about the product cycle, right? So that you're going to need to -- I imagine you're going to need to change that to some extent to reach the customers that you want. So I guess how do you approach developing products differently? Because I have to imagine, you have like the white glove service with like your large clients, the smaller guys to properly reach them, you probably need to have a little bit more DIY. So let's have a conversation about that.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay. So you've got the product development set up. So now let's talk about the sales angle. So I guess how does -- how do you change who you -- I guess who do you recruit differently now versus under your prior model? And then more broadly, can you talk about what sort of incentive structure that you're putting in place so you achieve the outcome that you want?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay, here's the next question, so the umbrella of the question is how do you manage your brand identity? And you've got, I guess the legacy of Cognex has been more focused on the high end bespoke. You're going more towards, I don't want to use the word simple, it's simpler, so obviously not simpler, but less complex (multiple speakers) product types, I guess like what's the most important factor in like executing what seems like maybe like a bit of a tight walk rope between those?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst :

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Got you. Okay, so is there any way to kind of benchmark the progress that you're making on these targets? Maybe what share of your revenues come from new customers? Just kind of get a sense for where you are today versus doubling that base. And then I guess secondly you've given out these 10% to 11% top-line CAGRs. How much of that depends on this customer plan? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 4:30PM, CGNX.OQ - Cognex Corp at Bernstein Insights Industrials Forum

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay, so last year on the customer [brand], I know you're spending a lot of time on it. As you think about the customer acquisition costs, for these new customers, like how does that compare versus your legacy customers. I guess what I'm trying to get at is to what extent is this move margin accretive?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Got it. Okay, so let's switch gears. Let's talk about 2026 to the extent that you can. Yeah, I guess, what are some early thoughts on the evolution of your business into the coming year? If you can provide some color on the top-line, maybe talk about the profitability as well.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay, great. So let's dive a little bit more into like end market by end market, like how are you thinking about what seems like the trough and the shape of the recovery. So maybe just beginning with consumer, can you talk about that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 4:30PM, CGNX.OQ - Cognex Corp at Bernstein Insights Industrials Forum

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Any product cycles to get excited about over the next 12 to 18 months?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : So let's broaden out the conversation. Let's talk through logistics. Let's talk through the packaging.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : -- [and automotive, if you can] (technical difficulty)--

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay, great -- oh yeah, go (multiple speakers)--

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Yeah, let's go through, yeah, let's go through the packaging and then the [auto] (multiple speakers)--

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay. (technical difficulty) take us home.

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay. That was a great around the world. (laughter) Okay, so let's, in the last couple of minutes that we have, I want to spend a couple of moments on AI and I want to take this from the opportunities perspective first, and then we can talk about the threats. So on the opportunity side, can you talk about how you're integrating AI into your product cycle?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Got it. Okay, so we've got one more question left. So in the age of AI, how does Cognex differentiate itself so it doesn't become disintermediated by the next AI native AI competitor? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 4:30PM, CGNX.OQ - Cognex Corp at Bernstein Insights Industrials Forum

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Great. Okay, actually I've got one more question (multiple speakers) from the audience. Okay, so Amazon has a plan to have 1 million robots. What is Cognex's role in Amazon's robot project? What is the business opportunity for Amazon?

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Okay, is there a question over here? Unidentified Participant_1 (inaudible - microphone inaccessible)

Question: Chad Dillard - Sanford C Bernstein & Co LLC - Analyst : Excellent. That's a wrap. Thank you, Dennis. Appreciate it.