COGNEX CORP Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| 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 | ||||||||||||||
| Earnings per share | |||||||||||||||||
| Basic | 0.68 | 0.62 | 0.66 | ||||||||||||||
| Diluted | 0.68 | 0.62 | 0.65 | ||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Stock options | 10,238 | 8,497 | 6,854 | ||||||||||||||
| Restricted stock units | 17 | — | — | ||||||||||||||
| Performance restricted stock units | — | — | — | ||||||||||||||
| Total weighted average anti-dilutive stock-based awards outstanding | 10,255 | 8,497 | 6,854 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.