Nova (NASDAQ:NVMI) Announces Earnings Results

Nova (NASDAQ:NVMI) issued its quarterly earnings data on Thursday. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.13 by $0.01, FiscalAI reports. Nova had a net margin of 28.73% and a return on equity of 24.09%. The company had revenue of $222.62 million during the quarter, compared to the consensus estimate of $220.43 million. During the same quarter last year, the company earned $1.94 earnings per share. Nova’s revenue for the quarter was up 14.3% on a year-over-year basis. Nova updated its Q1 2026 guidance to 2.130-2.250 EPS.

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

• Nova reported record 2025 results — $880.6M revenue (+31% YoY), Q4 revenue of $222.6M (above guidance), strong operating margins and >$1.6B in cash with $218M free cash flow.
• Product traction accelerated — a leading global logic customer selected Nova’s integrated metrology portfolio for CMP in Gate‑All‑Around, and Elipson/Metrion secured multiple strategic qualifications and repeat orders.
• Management expects continued momentum in 2026 driven by Gate‑All‑Around, DRAM/HBM recovery, and advanced packaging; Q1 guidance is $222–$232M revenue and non‑GAAP EPS $2.13–$2.25, and the company aims to outperform WFE.
• Visibility and lead‑time pressure remain a risk (notably in China, which represented ~33% of 2025 sales down from 39%), even as Nova invests in additional Asia production capacity and a new ERP to mitigate constraints.

Nova Stock Performance

Shares of NASDAQ NVMI traded down $37.01 during trading on Thursday, reaching $438.82. The stock had a trading volume of 409,052 shares, compared to its average volume of 436,822. Nova has a one year low of $153.99 and a one year high of $507.27. The company has a debt-to-equity ratio of 0.62, a quick ratio of 4.00 and a current ratio of 4.58. The stock has a market cap of $12.90 billion, a PE ratio of 57.31, a P/E/G ratio of 2.78 and a beta of 1.84. The firm’s 50 day moving average price is $390.31 and its two-hundred day moving average price is $329.56.

Institutional Trading of Nova

Several institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. raised its holdings in shares of Nova by 185.4% during the third quarter. Invesco Ltd. now owns 607,344 shares of the semiconductor company’s stock worth $194,144,000 after purchasing an additional 394,544 shares during the period. Lazard Asset Management LLC boosted its holdings in shares of Nova by 69.2% in the 2nd quarter. Lazard Asset Management LLC now owns 359,221 shares of the semiconductor company’s stock valued at $98,857,000 after buying an additional 146,932 shares during the period. Wasatch Advisors LP grew its position in shares of Nova by 4.9% during the 2nd quarter. Wasatch Advisors LP now owns 2,200,948 shares of the semiconductor company’s stock valued at $605,701,000 after buying an additional 102,250 shares during the last quarter. BNP Paribas Financial Markets raised its stake in Nova by 9,647.7% during the third quarter. BNP Paribas Financial Markets now owns 43,962 shares of the semiconductor company’s stock worth $14,053,000 after acquiring an additional 43,511 shares during the period. Finally, Swiss National Bank lifted its holdings in Nova by 58.8% in the third quarter. Swiss National Bank now owns 88,692 shares of the semiconductor company’s stock worth $28,147,000 after acquiring an additional 32,843 shares during the last quarter. Institutional investors own 82.99% of the company’s stock.

Key Nova News

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Q4 results beat estimates: Nova reported EPS of $2.14 and revenue of $222.6M (up ~14% YoY); profitability remained strong with ~28.7% net margin and 24.1% ROE. Nova Reports Fourth Quarter and Record Full Year 2025 Results
• Positive Sentiment: Raised Q1 2026 guidance: management set EPS guidance of $2.130–2.250 vs. a $2.05 consensus and revenue guidance of $222–$232M (slightly above the ~$221.9M consensus), signaling continued demand. Chip-gear maker Nova beats Q4 views, guides higher
• Neutral Sentiment: Market materials available: company released a press release, slide deck and hosted a conference call — useful for digging into customer trends, geographic mix and backlog details. Listen to Conference Call / View Press Release
• Negative Sentiment: Beat was modest and may disappoint short‑term traders: EPS beat by only $0.01 and revenue beat was small — with a rich valuation (P/E ~57.6) and a recent run toward the 12‑month high, some investors are likely taking profits, producing downward pressure on the stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Benchmark raised their price target on shares of Nova from $280.00 to $345.00 and gave the company a “buy” rating in a report on Friday, November 7th. Morgan Stanley started coverage on Nova in a research note on Monday, December 1st. They set an “equal weight” rating and a $335.00 target price for the company. Jefferies Financial Group reaffirmed a “buy” rating on shares of Nova in a research report on Thursday. Evercore increased their price target on Nova from $290.00 to $340.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Finally, Bank of America raised their price objective on Nova from $380.00 to $450.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $348.57.

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.