Nova (NASDAQ:NVMI) Issues Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Nova beat earnings and revenue expectations in Q1 2026, reporting $2.33 EPS versus $2.20 expected and $235.3 million in revenue versus $227.0 million expected. Revenue rose 10.3% year over year, and the company described the quarter as a record first quarter.
• Management issued upbeat Q2 guidance, forecasting revenue of $245 million to $255 million and non-GAAP EPS of $2.34 to $2.48. The company also said demand remains strong across memory, logic, and advanced packaging, with AI-related activity boosting metrology and process control needs.
• The stock rallied and analysts turned more constructive after the report, with Nova shares jumping sharply intraday. Needham raised its price target to $640 and reiterated a Buy rating, while overall analyst sentiment remains a Moderate Buy.

Nova (NASDAQ:NVMI - Get Free Report) released its earnings results on Thursday. The semiconductor company reported $2.33 EPS for the quarter, beating analysts' consensus estimates of $2.20 by $0.13, FiscalAI reports. Nova had a return on equity of 22.90% and a net margin of 29.44%.The business had revenue of $235.31 million for the quarter, compared to analysts' expectations of $227.02 million. During the same quarter in the prior year, the firm earned $2.18 earnings per share. The firm's revenue was up 10.3% on a year-over-year basis. Nova updated its Q2 2026 guidance to 2.340-2.480 EPS.

Here are the key takeaways from Nova's conference call:

• Nova delivered a record first quarter with revenue of $235.3 million, exceeding guidance and supported by record profitability, strong demand in memory, logic, and advanced packaging, plus record service revenue.
• Management highlighted meaningful market share gains, citing a Gartner report showing an additional 400 basis points share gain in Film SIMS and critical dimension metrology, making Nova the second-largest vendor in that market.
• The company said AI-driven demand is increasing process control and metrology intensity across logic, memory, and advanced packaging, which should support continued growth in areas like advanced DRAM, HBM, and hybrid bonding.
• Nova provided Q2 guidance for revenue of $245 million to $255 million and non-GAAP EPS of $2.34 to $2.48, while keeping gross margin expectations around 59% non-GAAP and continuing to invest in R&D and go-to-market capabilities.
• Management said it has improved visibility into next year, with some orders already being planned for 2027 deliveries, and reiterated that the new Asia facility should expand capacity and become operational toward the end of 2026.

Nova Trading Up 10.4%

NASDAQ:NVMI traded up $52.46 during midday trading on Thursday, reaching $556.11. 599,057 shares of the stock traded hands, compared to its average volume of 327,304. The company has a fifty day moving average of $479.99 and a 200 day moving average of $412.10. Nova has a 12 month low of $179.00 and a 12 month high of $565.00. The company has a debt-to-equity ratio of 0.56, a quick ratio of 5.47 and a current ratio of 6.28. The stock has a market capitalization of $17.67 billion, a P/E ratio of 69.43, a PEG ratio of 3.68 and a beta of 1.78.

Wall Street Analysts Forecast Growth

NVMI has been the subject of a number of research reports. Citigroup upped their price objective on Nova from $370.00 to $520.00 and gave the stock a "buy" rating in a report on Friday, February 13th. Jefferies Financial Group reiterated a "buy" rating and set a $640.00 price target on shares of Nova in a research report on Thursday. Needham & Company LLC boosted their price objective on shares of Nova from $500.00 to $640.00 and gave the stock a "buy" rating in a report on Thursday. Evercore restated an "outperform" rating and set a $485.00 price target on shares of Nova in a research report on Friday, February 13th. Finally, Morgan Stanley set a $494.00 price objective on Nova in a research note on Thursday. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Nova currently has an average rating of "Moderate Buy" and a consensus price target of $482.11.

Key Nova News

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Nova reported record first-quarter 2026 revenue of $235.3 million, topping its own guidance and rising 10.3% from a year ago, while EPS of $2.33 beat estimates by $0.13. Nova Reports Record First Quarter 2026 Financial Results
• Positive Sentiment: The company also issued Q2 2026 guidance above Wall Street expectations, reinforcing confidence that demand remains strong.
• Positive Sentiment: Needham raised its price target on Nova to $640 from $500 and reiterated a Buy rating, signaling higher analyst expectations after the earnings beat.
• Positive Sentiment: Market commentary highlighted improving investor sentiment around Nova’s metrology growth and a strong outlook, which likely added to buying interest. Nova Shares Rise After Record Quarter and Strong Outlook
• Neutral Sentiment: Nova announced its annual general meeting for June 18, where shareholders will vote on the board slate, CEO compensation, and auditor reappointment; this is a routine governance update with limited near-term impact. Nova Sets June 18, 2026 Annual Meeting to Vote on Board Slate, CEO Pay and Auditor Reappointment
• Neutral Sentiment: Several articles focused on the earnings transcript and valuation debate, but these were largely commentary rather than new fundamental news. Nova Ltd. (NVMI) Q1 2026 Earnings Call Transcript

Hedge Funds Weigh In On Nova

A number of hedge funds have recently modified their holdings of NVMI. Vanguard Personalized Indexing Management LLC boosted its holdings in shares of Nova by 1.0% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 4,997 shares of the semiconductor company's stock worth $1,641,000 after purchasing an additional 50 shares during the period. The Manufacturers Life Insurance Company increased its holdings in Nova by 0.5% during the 4th quarter. The Manufacturers Life Insurance Company now owns 10,885 shares of the semiconductor company's stock valued at $3,642,000 after purchasing an additional 53 shares during the period. CIBC Private Wealth Group LLC increased its holdings in Nova by 75.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 130 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 56 shares during the period. First Trust Advisors LP raised its position in Nova by 5.7% during the 4th quarter. First Trust Advisors LP now owns 1,368 shares of the semiconductor company's stock valued at $449,000 after purchasing an additional 74 shares during the last quarter. Finally, Orion Porfolio Solutions LLC raised its position in Nova by 9.3% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 967 shares of the semiconductor company's stock valued at $309,000 after purchasing an additional 82 shares during the last quarter. Hedge funds and other institutional investors own 82.99% of the company's stock.

About Nova

Nova Measuring Instruments Ltd NASDAQ: NVMI develops and supplies advanced metrology and process control systems for the semiconductor manufacturing industry. The company's core product line includes spectroscopic ellipsometry and scatterometry tools designed to measure film thickness, critical dimensions, overlay alignment and other key parameters that drive yield and performance in integrated circuit fabrication.

Founded in 1993 and headquartered in Rehovot, Israel, Nova Measuring Instruments has established itself as a critical partner to leading semiconductor foundries and device manufacturers.

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