Engaged Capital Pushes Cognex to Cut Costs, Says AI Firm’s Stock Could Double

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Activist investor Engaged Capital has taken a major stake in Cognex (CGNX.O) and is pressing the machine-vision systems maker to slash costs and hire cost consultants — a move it says could help the company’s share price nearly double within two years. Speaking at the 13D Monitor Active-Passive Investment Summit in New York, Engaged’s founder and chief investment officer Glenn Welling described Cognex as “an AI company without the AI valuation.”

Welling did not reveal the size of the stake but called it one of Engaged’s largest holdings. Regulatory filings show the hedge fund manages roughly $700 million in assets. Cognex, which develops smart cameras and barcode readers used by clients such as Amazon and BMW, has a market capitalization of $7.7 billion, though its stock has dropped 50% from its all-time high four years ago.

Now under new leadership — with CEO Matt Moschner and CFO Dennis Fehr — Engaged sees an opportunity for a turnaround. Welling argued that Cognex’s profit margins could rise from 17% to around 40% through tighter spending and sharper focus on high-return R&D projects. By comparison, competitor Keyence maintains margins above 50%.

Cognex has recently revamped some of its products, using artificial intelligence to make them easier to install and operate, opening access to a broader customer base. Welling said Engaged has already held constructive talks with Cognex management and connected them with cost optimization consultants who have worked successfully with other Engaged-backed companies.

OVHcloud Shares Plunge After 2026 Outlook Disappoints Despite Record €1 Billion Revenue

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OVHcloud (OVH.PA), Europe’s largest cloud provider, celebrated a major milestone on Tuesday as annual revenue surpassed €1 billion for the first time — yet its weaker-than-expected 2026 forecast sent investors fleeing. Shares plunged 18% by mid-morning, marking what could become the company’s biggest single-day drop ever if losses persist.

The firm reported 9.3% revenue growth for fiscal 2025, reaching €1.08 billion, with an EBITDA margin of 40.4%. However, its 2026 outlook disappointed the market: OVHcloud now expects organic revenue growth of just 5–7%, well below analyst projections of around 10%, according to Stifel and J.P. Morgan.

In response, the company pledged to improve profitability by targeting a higher core profit margin while maintaining capital expenditures at 30–32% of revenue to bolster its Webcloud segment. The results come as founder Octave Klaba returns as CEO, merging his chairman role to lead the company’s next phase of expansion. Klaba, who owns more than 80% of OVHcloud, previously served as CEO until 2018.

Klaba said the firm will focus on meeting rising AI-driven cloud demand and promoting European digital independence amid global tech rivalries. OVHcloud continues to expand globally, citing growing client bases in Canada, Singapore, and India, while remaining a key competitor to Amazon Web Services, Microsoft Azure, and Google Cloud.

By segment, Private Cloud accounted for 62% of sales, growing 8.5%, Public Cloud rose 17.5% (20% of revenue), and Webcloud increased 3.7% (18% of total). OVHcloud serves 1.6 million clients, including 1,200 enterprise customers generating over €100,000 in annual recurring revenue.

Worldline Narrows 2025 Profit Forecast, Eyes New Asset Sales to Rebuild Investor Trust

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French digital payments group Worldline (WLN.PA) has tightened its 2025 profit forecast and hinted at further asset disposals in the coming weeks, as it seeks to restore investor confidence after a turbulent period marked by governance issues, client losses, and regulatory scrutiny.

The company now expects adjusted EBITDA between €830 million and €855 million ($967 million–$997 million), narrowing the previous range of €825 million to €875 million. It projects free cash flow between –€30 million and breakeven, according to a company statement.

CEO Pierre-Antoine Vacheron said Worldline intends to finalize the planned sale of its Mobility & e-Transactional Services (MTS) unit to Magellan Partners — valued at €410 million — in the first half of 2026, with additional transactions to be announced soon. “My key priority is to restore credibility and trust in the guidance that we give,” Vacheron told reporters.

Worldline has seen its market value plunge nearly 90% since the pandemic peak, following multiple profit warnings, management reshuffles, and a Belgian probe into alleged money laundering at its local branch. The company said it has since completed an external review of its merchant portfolio and compliance framework, which it claims is “in line with industry benchmarks.”

For the third quarter, Worldline reported €1.1 billion in revenue, down 0.8% year-on-year, but meeting analyst expectations. The company plans to unveil its mid-term strategy on November 6, as investors await clearer signals on its restructuring roadmap and future growth strategy.