Nova (NASDAQ:NVMI) Posts Earnings Results, Beats Estimates By $0.09 EPS

Nova (NASDAQ:NVMI) announced its quarterly earnings data on Thursday. The semiconductor company reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.77 by $0.09, FiscalAI reports. The company had revenue of $287.84 million during the quarter, compared to analysts’ expectations of $282.23 million. Nova had a net margin of 29.87% and a return on equity of 22.61%. The business’s revenue was up 28.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.16 EPS. Nova updated its Q4 2026 guidance to 3.030-3.180 EPS.

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

• Nova reported a third consecutive record quarter, with Q3 revenue of $287.8 million, up 28% year over year and above guidance. Non-GAAP operating margin was 35.5%, above the company’s target range, and non-GAAP EPS of $2.86 exceeded the high end of guidance.
• Management forecast Q4 revenue of $305 million to $315 million and expects 2026 revenue to exceed $1 billion, a year ahead of its strategic-plan milestone. It also raised its outlook for second-half 2026 growth to more than 33% year over year and cited momentum carrying into 2027.
• Memory and advanced packaging were record contributors, supported by DRAM demand, capacity expansion, and broader adoption of Nova’s metrology products. Management also pointed to favorable 2027 drivers, including gate-all-around investment, advanced DRAM nodes, and HBM-related applications.
• Nova generated $132 million in Q3 free cash flow and ended the quarter with $1.8 billion in cash, equivalents, and marketable securities. It repurchased approximately $38.5 million of shares during the quarter.
• Management said the industry ramp is stretching the supply chain and requires active mitigation, though it is working with suppliers and expanding manufacturing capacity. It also expects new competition in XPS materials metrology to emerge around the second half of 2027.

Nova Stock Performance

Shares of NASDAQ NVMI traded up $32.88 during midday trading on Friday, reaching $313.18. 463,560 shares of the company traded hands, compared to its average volume of 306,051. Nova has a 12 month low of $266.43 and a 12 month high of $615.99. The stock’s 50-day simple moving average is $346.38 and its 200-day simple moving average is $437.27. The firm has a market cap of $9.95 billion, a PE ratio of 34.00, a PEG ratio of 1.56 and a beta of 1.85.

Insider Activity

In other news, CEO Gabriel Waisman sold 1,500 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $342.27, for a total value of $513,405.00. Following the sale, the chief executive officer owned 27,214 shares of the company’s stock, valued at approximately $9,314,535.78. This represents a 5.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shay Wolfing sold 3,864 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $363.28, for a total transaction of $1,403,713.92. Following the sale, the insider owned 21,409 shares of the company’s stock, valued at $7,777,461.52. This trade represents a 15.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.00% of the stock is currently owned by corporate insiders.

Nova declared that its Board of Directors has initiated a share buyback plan on Wednesday, September 2nd that authorizes the company to repurchase $200 million in shares. This buyback authorization authorizes the semiconductor company to reacquire up to 1.9% of its shares through open market purchases. Share buyback plans are generally a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

NVMI has been the topic of a number of analyst reports. Evercore set a $475.00 target price on shares of Nova in a research note on Friday, August 7th. Citigroup lowered shares of Nova from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $550.00 to $415.00 in a research report on Thursday, October 8th. Needham & Company LLC decreased their price objective on Nova from $570.00 to $420.00 and set a “buy” rating on the stock in a report on Thursday. Wall Street Zen raised Nova from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Barclays lowered their price objective on Nova from $600.00 to $500.00 and set an “overweight” rating on the stock in a research note on Friday. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Nova presently has an average rating of “Moderate Buy” and an average price target of $470.00.

Key Headlines Impacting Nova

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Q3 revenue reached a record $287.8 million, up 28.2% year over year, while adjusted EPS of $2.86 topped the roughly $2.77 consensus. Nova reports record third-quarter results
• Positive Sentiment: Nova forecast Q4 revenue of $305 million–$315 million and EPS of $3.03–$3.18, with the EPS range just above analyst expectations. Management also pointed to strong memory and packaging demand and visibility into 2027 growth. Nova Q4 outlook
• Neutral Sentiment: Despite the earnings beat, one post-results report said the stock dropped, suggesting strong expectations may have limited the market’s initial response. Nova Q3 results and stock reaction
• Negative Sentiment: Barclays reduced its price target to $500 from $600, and Needham cut its target to $420 from $570. Both firms kept positive ratings—Overweight and Buy, respectively—but the lower targets could weigh on sentiment. Barclays rating

Nova Company Profile

Nova Ltd. (NASDAQ: NVMI) develops and supplies metrology and process-control solutions for the semiconductor manufacturing industry. Its systems help chipmakers measure and control critical dimensions, film thickness, material properties and other characteristics during the production of integrated circuits.

The company’s product portfolio includes optical and X-ray metrology systems, chemical metrology solutions, and related software and analytics tools. These technologies are used in multiple stages of semiconductor fabrication, including front-end wafer processing and advanced packaging, to support process development, yield improvement and manufacturing control.

Founded in 1993, Nova is headquartered in Rehovot, Israel, and serves semiconductor manufacturers and other industry customers through operations and support activities across North America, Europe and Asia.