Nova Ltd. (NASDAQ: NVMI) reported record full‑year revenue of $880.6 million, up 31% from $680.5 million in 2024, driven by strong demand in its advanced packaging and materials metrology divisions. Net income rose 41% to $259.2 million, while non‑GAAP earnings per diluted share climbed 29% to $8.62 from $6.69 in 2024, reflecting disciplined cost management and a favorable mix of high‑margin GAA and HBM contracts.
Gross margin for the year settled at 57.4%, slightly below the 57.6% reported in 2024, a modest compression attributed to higher raw‑material costs and a shift toward lower‑margin legacy product lines. Operating margin remained robust at 32% of revenue, supported by operational leverage as revenue expanded and fixed‑cost amortization spread across a larger top line.
In the fourth quarter, Nova generated $222.6 million in revenue, a 14% year‑over‑year increase, and reported non‑GAAP EPS of $2.14, beating the consensus estimate of $2.12 by $0.02. The quarter’s performance was largely driven by a 15% rise in advanced packaging revenue and a 12% lift in metrology services for GAA nodes, offsetting a 5% decline in legacy DRAM tooling sales.
Management highlighted that the company’s tool‑of‑record positions in gate‑all‑around and high‑bandwidth memory markets underpin the robust top‑line growth. CEO Gaby Waisman noted, "2025 was an exceptional year for Nova, as we delivered record revenue and profitability while supporting our customers’ manufacturing challenges across advanced and mature nodes." She added that the company is well positioned to capitalize on the upward investment cycle in 2026.
For the first quarter of 2026, Nova guided revenue of $222–$232 million and adjusted EPS of $2.13–$2.25, a range that matches the upper end of analyst consensus. The flat sequential guidance, however, prompted a muted market reaction, as investors focused on the third consecutive quarter of decelerating sequential growth and the potential cyclical slowdown in the semiconductor industry. Analysts emphasized that while the company’s AI‑driven demand remains strong, the guidance signals caution about near‑term demand acceleration.
The company’s expanded manufacturing capacity in Germany and ongoing customer co‑development initiatives are expected to support continued growth, but the guidance suggests management is balancing optimism with realistic expectations of a gradual demand build‑out in the second half of 2026.
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