Cognex makes machine vision systems that allow machines to "see" — capturing and analyzing images to locate, identify, inspect, and measure discrete items during manufacturing and distribution. Its two core product lines are vision systems and sensors (smart cameras and AI-powered software for part location, defect inspection, assembly verification, and robotic guidance) and barcode readers (the DataMan line, used in logistics, automotive, and consumer electronics for traceability and sortation). Cognex sells primarily through a direct sales force and a network of systems integrators and machine builders, with roughly two-thirds of revenue coming from outside the U.S. The company's four largest end markets — logistics, packaging, consumer electronics, and automotive — together account for roughly 85% of revenue. Cognex's business model is primarily transactional, with revenue driven by units sold and price per unit rather than recurring subscriptions. The company manufactures through third-party contract manufacturers, and its largely fixed cost structure means strong incremental margins when volumes are healthy. Cognex's growth strategy centers on AI technology leadership, including its OneVision cloud-based platform launched in 2025, a salesforce transformation targeting smaller and mid-sized manufacturers, and M&A. The company holds a net cash balance sheet with no debt, and returns capital through buybacks and dividends while preserving flexibility for acquisitions.