Novanta (NASDAQ:NOVT) Shares Gap Up on Better-Than-Expected Earnings

Novanta Inc. (NASDAQ:NOVT)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $153.12, but opened at $169.50. Novanta shares last traded at $172.3830, with a volume of 90,553 shares trading hands.

The technology company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.06. The company had revenue of $265.81 million for the quarter, compared to the consensus estimate of $262.30 million. Novanta had a net margin of 5.35% and a return on equity of 12.06%. The company’s revenue was up 10.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.76 EPS. Novanta has set its FY 2026 guidance at 3.680-3.740 EPS and its Q3 2026 guidance at 0.950-1.000 EPS.

Trending Headlines about Novanta

Here are the key news stories impacting Novanta this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: Novanta reported adjusted EPS of $0.89, up from $0.76 a year earlier and above the $0.83 analyst consensus. Revenue increased 10.3% year over year to $265.81 million, exceeding expectations of $262.30 million. Novanta Q2 Earnings Snapshot
• Positive Sentiment: Strong third-quarter outlook: Management forecast Q3 2026 EPS of $0.95 to $1.00, above the $0.94 consensus estimate. Revenue guidance of $300 million to $304 million was also well above analysts’ expectations of approximately $263.1 million, signaling accelerating growth. Novanta Announces Second-Quarter 2026 Results
• Positive Sentiment: Full-year EPS outlook raised above expectations: Novanta projected FY 2026 EPS of $3.68 to $3.74, ahead of the $3.59 analyst consensus. Full-year revenue guidance was approximately $1.1 billion, broadly consistent with expectations. Novanta Tops Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Despite the favorable results, Novanta’s net margin was 5.35%, while its price-to-earnings ratio remains elevated at roughly 120, leaving the stock sensitive to any future slowdown or guidance reduction.

Analyst Upgrades and Downgrades

NOVT has been the topic of several research analyst reports. Wall Street Zen cut Novanta from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Robert W. Baird set a $180.00 price target on shares of Novanta in a report on Tuesday, June 9th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Novanta in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $180.00.

Insider Buying and Selling

In other Novanta news, CEO Matthijs Glastra sold 7,500 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $150.43, for a total value of $1,128,225.00. Following the transaction, the chief executive officer directly owned 42,761 shares of the company’s stock, valued at $6,432,537.23. This represents a 14.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of NOVT. GW&K Investment Management LLC boosted its holdings in Novanta by 187.3% in the fourth quarter. GW&K Investment Management LLC now owns 736,954 shares of the technology company’s stock worth $87,691,000 after purchasing an additional 480,413 shares in the last quarter. Sculptor Capital LP bought a new stake in shares of Novanta during the 4th quarter worth about $51,265,000. Norges Bank bought a new position in shares of Novanta in the 4th quarter valued at approximately $50,719,000. Schroder Investment Management Group lifted its holdings in Novanta by 206.1% in the 4th quarter. Schroder Investment Management Group now owns 600,146 shares of the technology company’s stock worth $72,540,000 after purchasing an additional 404,097 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in Novanta by 27.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,776,694 shares of the technology company’s stock worth $210,307,000 after purchasing an additional 377,232 shares during the period. Institutional investors and hedge funds own 98.35% of the company’s stock.

Novanta Stock Performance

The company has a market cap of $6.58 billion, a price-to-earnings ratio of 125.85 and a beta of 1.68. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.56 and a quick ratio of 2.69. The firm has a fifty day simple moving average of $153.85 and a 200 day simple moving average of $141.21.

About Novanta

Novanta, Inc (NASDAQ: NOVT) is a global technology company that designs and manufactures precision components, subsystems and software used in advanced photonics and motion control applications. The company serves customers in the medical device and advanced industrial markets, supplying critical technologies for diagnostics and therapeutic systems, semiconductor and electronics manufacturing, and scientific instrumentation. Novanta’s product portfolio includes laser control modules, optics, beam delivery systems, high-precision motors, actuators, stages, and fluidics solutions designed to meet stringent accuracy and reliability requirements.

Novanta’s Photonics segment delivers laser and energy delivery components that enable minimally invasive surgical procedures and diagnostic imaging.