Nova Reports Record Second Quarter 2026 Financial Results

Nova Reports Record Second Quarter 2026 Financial Results

PR Newswire

REHOVOT, Israel, Aug. 6, 2026

REHOVOT, Israel, Aug. 6, 2026 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the second quarter, the three-month period ended June 30, 2026.

Second Quarter 2026 Highlights:Record quarterly revenue of $255.0 million, 8% increase QoQ, and up 16% YoY.Record GAAP net income of $75.0 million, or $2.20 per diluted share, 8% increase QoQ, and up 3% YoY.Record non-GAAP net income of $86.5 million, or $2.51 per diluted share, 8% increase QoQ, and up 14% YoY.Record revenue from Advanced logic devices, driven by transition to Gate-All-Around and demand for advanced nodes Record revenue of Advanced Packaging solutions, driven by capacity increases across logic and memory manufacturingGAAP Results (K)Q2 2026Q1 2026Q2 2025Revenues$254,958$235,308$219,989Net Income$75,010$69,259$68,291Earnings per Diluted Share$2.20$2.04$2.14Non-GAAP Results (K)Q2 2026Q1 2026Q2 2025Net Income$86,459$80,265$70,400Earnings per Diluted Share$2.51$2.33$2.20A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.Management Comments"This quarter marks a significant milestone for Nova, surpassing $250 million in quarterly revenue and $2.50 in quarterly non-GAAP EPS, reflecting the run-rate envisioned in our long-term strategic plan," said Gaby Waisman, President and CEO. "We delivered record sales across several of our product lines, including our front-end chemical metrology solution and our Sentronics dimensional metrology solutions for advanced packaging. These results were supported by broad-based customer demand, continued market share gains, and deeper customer engagement across leading-edge device segments. As a result, we enter the coming quarters with increased visibility, a robust opportunity pipeline, and confidence in our ability to deliver another year of profitable growth".2026 Third Quarter Financial OutlookManagement provided an outlook for the third quarter, the period ending September 30, 2026. Based on current estimates, management expects:$277 million to $287 million in revenue$2.46 to $2.61 in diluted GAAP EPS$2.70 to $2.85 in diluted non-GAAP EPS2026 Second Quarter ResultsTotal revenues for the second quarter of 2026 were $255.0 million, an increase of 8% compared with the first quarter of 2026 and an increase of 16% compared with the second quarter of 2025.Gross margin in the second quarter of 2026 was 56.5%, compared with 57.7%, in the first quarter of 2026 and 57.8% in the second quarter of 2025.Operating expenses in the second quarter of 2026 were $68.0 million, compared with $64.9 million in the first quarter of 2026 and $61.6 million in the second quarter of 2025.On a GAAP basis, the Company reported net income of $75.0 million, or $2.20 per diluted share, in the second quarter of 2026. This is compared with net income of $69.3 million, or $2.04 per diluted share, in the first quarter of 2026, and $68.3 million, or 2.14 per diluted share, in the second quarter of 2025.On a non-GAAP basis, the Company reported net income of $86.5 million, or $2.51 per diluted share, in the second quarter of 2026. This is compared with net income of $ 80.3 million, or $2.33 per diluted share, in the first quarter of 2026, and $70.4 million, or $2.20 per diluted share, in the second quarter of 2025.Conference Call InformationNova will host a conference call today, August 06, 2026, at 8:30 a.m. Eastern Time, to discuss the Company's second quarter of 2026 financial results and outlook. To attend the conference call, please dial one of the following teleconference numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.U.S. TOLL-FREE Dial-in Number: 1-833-816-1427ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284INTERNATIONAL Dial-in Number: 1-412-317-0519At:8:30 a.m. Eastern Time5:30 a.m. Pacific TimeThe conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/. A replay of the conference call will be available from August 6, 2026, at 11:30 a.m. Eastern Time until August 13, 2026. To access the replay, please dial one of the following numbers:Replay Dial-in U.S. TOLL-FREE: 1-855-669-9658Replay Dial-in INTERNATIONAL: 1-412-317-0088Replay Pin Number: 2662167A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/. About NovaNova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.Use of Non-GAAP Adjusted Financial MeasuresThis press release provides financial measures that exclude amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of debt issuance costs, discrete tax reserve release, net and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: risks related to information technology security threats, sophisticated computer crime, and data privacy; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies and taxation; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure; risks related to the use of artificial intelligence technologies; challenges related to implementing our new ERP system; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including Israel's conflicts with certain parties in the region; risks related to our convertible senior notes and capped call transactions; currency fluctuations and quarterly fluctuations in our operating results; and risks related to additional costs and expenses if there is a change in our status as a foreign private issuer. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 17, 2026. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.(Tables to Follow)NOVA LTD.CONDENSED CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) - (Unaudited)As ofJune 30,December 31,ASSETS20262025Current assetsCash and cash equivalents124,846214,462Short-term interest-bearing bank deposits397,082512,250Marketable securities499,071321,798Trade accounts receivable, net210,279151,929Inventories185,273183,671Other current assets36,30926,692Total current assets1,452,8601,410,802Non-current assetsMarketable securities685,471584,731Interest-bearing bank deposits and restricted deposits11,74712,508Deferred tax assets36,77538,819Operating lease right-of-use assets56,70657,731Property plant and equipment, net98,753102,625Intangible assets, net39,97445,819Goodwill88,74390,807Other long-term assets18,35016,704Total non-current assets1,036,519949,744Total assets2,489,3792,360,546LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities Convertible senior notes, net733,588-Trade accounts payable66,78246,982Deferred revenues45,94567,163Operating lease current liabilities10,0678,204Other current liabilities80,183102,186Total current liabilities936,565224,535Non-current liabilitiesConvertible senior notes, net-731,680Operating lease long-term liabilities59,84359,271Long-term deferred tax liability8,67810,221Other long-term liabilities19,07416,591Total non-current liabilities87,595817,763Shareholders' equity 1,465,2191,318,248Total liabilities and shareholders' equity 2,489,3792,360,546NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except per share data) - (Unaudited)Three months ended June 30,Six months endedJune 30,2026202520262025Revenues:Products201,472177,829387,735351,771Services53,48642,160102,53181,574Total revenues254,958219,989490,266433,345Total cost of revenues110,79792,743210,417183,796Gross profit 144,161127,246279,849249,549Operating expenses:Research and development, net 39,25735,44676,34068,680Sales and marketing21,33319,86141,59739,649General and administrative7,3866,29614,89112,345Total operating expenses67,97661,603132,828120,674Operating income76,18565,643147,021128,875Financing income, net12,92015,17725,96828,114Income before taxes on income89,10580,820172,989156,989Income tax expenses 14,09512,52928,72023,875Net income for the period75,01068,291144,269133,114Earnings per share:Basic2.362.324.544.54Diluted2.202.144.244.17Shares used in calculation of earnings per share (in thousands):Basic31,80029,42231,81029,315Diluted34,45032,05334,46032,030NOVA LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in thousands) - (Unaudited)Three months ended June 30,Six months ended June 30,2026202520262025 Cash flows from operating activities: Net income75,01068,291144,269133,114Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment3,6883,2427,1846,328 Amortization of intangible assets2,2992,2284,6144,044 Amortization of premium and accretion of discount on marketable securities, net(1,410)(1,345)(2,667)(2,888) Amortization of debt issuance costs9582781,908568 Share-based compensation6,7646,25714,06912,633 Net effect of exchange rate fluctuation(807)(11,179)(752)(15,056)Changes in assets and liabilities: Trade accounts receivable, net(33,760)(8,995)(59,373)6,480 Inventories(7,159)(6,295)(3,073)(15,394) Other current and long-term assets (5,291)7,158(14,784)(5,930) Deferred tax, net1,575(3,508)954(6,144) Operating lease right-of-use assets53(2,359)1,009(1,881) Trade accounts payable 12,048(1,674)19,356(1,717) Deferred revenues (3,811)(4,992)(23,484)(12,431) Operating lease liabilities2,3745,2302,4514,368 Other current and long-term liabilities(11,878)(7,054)(10,960)7,761 Accrued severance pay, net265378274355Net cash provided by operating activities40,91845,66180,995114,210 Cash flows from investment activities: Acquisition of subsidiary, net of acquired cash-(4,658)-(56,355)Change in short-term and long-term interest-bearing bank deposits(63,987)2,157116,228(129)Investment in marketable securities(364,260)(74,529)(494,583)(156,799)Proceeds from maturity of marketable securities92,73551,092214,616130,160Purchase of property and equipment(2,494)(2,738)(6,543)(11,595)Net cash provided by (used in) investing activities(338,006)(28,676)(170,282)(94,718)Cash flows from financing activities:Purchases of treasury shares ---(20,002)Net cash used in financing activities---(20,002)Effect of exchange rate fluctuations on cash and cash equivalents1182,841(647)3,612Changes in cash and cash equivalents and restricted cash(296,970)19,826(89,934)3,102Cash and cash equivalents and restricted cash -beginning of period421,816141,055214,780157,779Cash and cash equivalents and restricted cash - end of period124,846160,881124,846160,881NOVA LTD.RECONCILIATION OF GAAP TO NON-GAAP RESULTS(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)Three months endedJune 30, 2026March 31, 2026June 30, 2025GAAP gross profit144,161135,688127,246Stock-based compensation*1,9232,0721,769Amortization of acquired intangible assets2,1052,1192,039 Acquisition related inventory step-up--910Non-GAAP gross profit148,189139,879131,964GAAP gross margin as a percentage of revenues57 %58 %58 %Non-GAAP gross margin as a percentage of revenues58 %59 %60 %GAAP operating income76,18570,83665,643Stock-based compensation*6,7647,3056,257Acquisition related inventory step-up--910Amortization of acquired intangible assets2,2992,3152,228Non-GAAP operating income85,24880,45675,038GAAP operating margin as a percentage of revenues30 %30 %30 %Non-GAAP operating margin as a percentage of revenues33 %34 %34 %GAAP net income75,01069,25968,291Stock-based compensation*6,7647,3056,257Acquisition related inventory step-up--910Amortization of acquired intangible assets2,2992,3152,228Amortization of debt issuance costs958950278Revaluation of operating lease and intercompany loans3,3982,540(6,955)Tax effect of non-GAAP adjustments(1,970)(2,104)(609)Non-GAAP net income86,45980,26570,400GAAP basic earnings per share 2.362.182.32Non-GAAP basic earnings per share2.722.522.39GAAP diluted earnings per share 2.202.042.14Non-GAAP diluted earnings per share2.512.332.20Shares used for calculation of earnings per share(in thousands):Basic31,80031,79029,422Diluted34,45034,43932,053* Stock-based compensation for the three months ended June 30, 2026, included in - Cost of revenues – 1,923; Research and development, net – 2,770; Sales and marketing - 1,525; General and administrative - 546.NOVA LTD.SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2026GAAP TO NON-GAAP GUIDANCE(U.S. dollars) (Unaudited)LowHighEstimated GAAP net income per diluted share2.462.61Estimated non-GAAP items:Stock-based compensation0.190.19Amortization of acquired intangible assets 0.070.07Amortization of debt issuance costs0.030.03Tax effect of non-GAAP adjustments(0.05)(0.05)Estimated non-GAAP net income per diluted share2.702.85Company Contact:Guy Kizner, Chief Financial OfficerTel: +972-73-229-5760E-mail - investors@novami.com Nova website link - https://www.novami.com/ Investor Relations Contact:Miri Segal MS-IR LLCE-mail - msegal@ms-ir.comLogo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg