US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Machine tools orders suggest CGNX upside? Dodge, Existing home sales

Research evidence excerpt

US Electrical Equipment & Multi-Industry: EE/MI Morning Note – Machine tools orders suggest CGNX upside? Dodge, Existing home sales

Global Research

10 July 2026ab

US Electrical Equipment & Multi-Industry Equities

AmericasEE/MI Morning Note – Machine tools orders

suggest CGNX upside? Dodge, Existing home Industrial, Diversified

sales Amit MehrotraAnalyst

amit.mehrotra@ubs.com

+1-201-352 1410

Strong machine tools orders in June support 2Q strength for Cognex – The Japan Neal Burk

AnalystMachine Tool Builders' Association (JMTBA) published preliminary June machine tools

neal.burk@ubs.com

orders yesterday, which showed further acceleration in demand. Orders outside of Japan

+1-212-713 4066

were up 56% year over year in June, up from 38% in May. This translates into 2Q

growth of 46% year over year, accelerating from +35% in 1Q. This sustained strength in Pratap Singh

Analystmachine tools orders should be supportive of broad automation capex momentum. For

pratap-za.singh@ubs.com

Cognex, based on historical regression, this indicates organic sales growth acceleration +1-212-821 3112

to +25% year over year in 2Q, up from 21% in the first quarter. This is meaningfully

ahead of the consensus estimates, which expect a slight moderation to +17% yoy in 2Q, Zachary Walljasper

Associate Analystalthough we note quarterly growth for the company can vary depending on many

zachary.walljasper@ubs.com

factors. This data represents new orders for Japanese metal-cutting machine tools, +1-212-713 9829

which can be considered a good reference for global automation capex. Historically,

orders from outside of Japan have been well correlated with Cognex's organic growth.

See our Japan machinery sector team's note for details: Link.

Here are some other details from the release: