Nova (NASDAQ:NVMI) Issues Earnings Results, Beats Expectations By $0.10 EPS

Nova (NASDAQ:NVMI) announced its quarterly earnings results on Thursday. The semiconductor company reported $2.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.41 by $0.10, FiscalAI reports. The firm had revenue of $254.96 million for the quarter, compared to the consensus estimate of $250.33 million. Nova had a net margin of 28.84% and a return on equity of 22.13%. The firm’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.20 earnings per share. Nova updated its Q3 2026 guidance to 2.700-2.850 EPS.

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

• Record results: Second-quarter revenue reached $255 million, up 8% sequentially and 16% year over year, while non-GAAP EPS of $2.51 exceeded the high end of guidance. Non-GAAP operating margin was 33%, at the upper end of the company’s target range.
• Management expects continued momentum, guiding third-quarter revenue to $277 million–$287 million and non-GAAP EPS to $2.70–$2.85. Executives cited strong customer visibility, capacity investments, market-share gains, and a path to reaching long-term organic growth objectives sooner than planned.
• Advanced logic revenue more than doubled sequentially, while advanced packaging generated record sales equal to nearly 25% of product revenue. Demand was supported by gate-all-around logic, high-bandwidth memory, hybrid bonding, chiplets, and panel-level packaging.
• Nova reported strong adoption of its portfolio, including the VeraFlex XPS, WMC, ancosys, Metrion, and ELIPSON platforms, with multiple products achieving record sales or expanding into high-volume manufacturing. The company also highlighted a tool-of-record win with a leading foundry for advanced-packaging measurements.
• Memory demand is growing but remains uneven, with DRAM stronger and 3D NAND relatively muted as investment is focused mainly on upgrades rather than capacity expansion. Supply-chain capacity is stretched, with product lead times ranging from roughly four to 12 months, although management said it is working to maintain customer lead times and expects full-year gross margin near 59%.

Nova Trading Up 3.1%

NVMI traded up $11.70 during midday trading on Friday, hitting $393.02. 461,150 shares of the company traded hands, compared to its average volume of 589,066. The company has a market capitalization of $12.49 billion, a price-to-earnings ratio of 48.64, a PEG ratio of 2.84 and a beta of 1.78. Nova has a 52-week low of $232.73 and a 52-week high of $615.99. The business has a 50 day simple moving average of $480.56 and a two-hundred day simple moving average of $475.70.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Zacks Research downgraded shares of Nova from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 14th. Jefferies Financial Group restated a “buy” rating and issued a $600.00 price target on shares of Nova in a research note on Thursday. Evercore set a $475.00 price target on Nova in a report on Friday. Needham & Company LLC lowered their price target on Nova from $640.00 to $570.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Barclays raised their price objective on Nova from $465.00 to $600.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Nova currently has a consensus rating of “Moderate Buy” and an average price target of $519.44.

Insider Activity at Nova

In other news, Director Yaniv Garty sold 366 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $581.20, for a total transaction of $212,719.20. Following the completion of the sale, the director owned 2,006 shares of the company’s stock, valued at $1,165,887.20. The trade was a 15.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarit Sagiv sold 454 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $536.52, for a total transaction of $243,580.08. Following the transaction, the director owned 1,951 shares of the company’s stock, valued at approximately $1,046,750.52. This trade represents a 18.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 7,798 shares of company stock worth $4,125,266 over the last three months. Company insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Nova

Hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC purchased a new position in shares of Nova in the fourth quarter valued at approximately $29,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Nova during the third quarter worth approximately $40,000. CIBC Private Wealth Group LLC raised its stake in Nova by 75.7% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 130 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 56 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in Nova by 2,042.9% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the semiconductor company’s stock valued at $48,000 after purchasing an additional 143 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in Nova by 62.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 260 shares of the semiconductor company’s stock valued at $72,000 after purchasing an additional 100 shares in the last quarter. Institutional investors and hedge funds own 82.99% of the company’s stock.

Nova News Roundup

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Nova reported record second-quarter revenue of approximately $255.0 million, up 8% sequentially and 16% year over year. Earnings were $2.51 per share, exceeding the $2.41 consensus estimate and rising from $2.20 a year earlier. Nova Reports Record Second Quarter 2026 Financial Results
• Positive Sentiment: Third-quarter guidance also surpassed expectations: Nova forecast EPS of $2.70–$2.85 versus the $2.64 analyst consensus, and revenue of $277 million–$287 million versus expectations of $276.7 million. This suggests continued demand for the company’s semiconductor measurement products. Nova Ltd. Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Needham lowered its price target to $570 from $640 but maintained a “Buy” rating, implying substantial upside from the current trading level. Benzinga
• Positive Sentiment: Cantor Fitzgerald reduced its target to $500 from $600 while retaining an “Overweight” rating, indicating analysts remain constructive despite more conservative valuations. Benzinga
• Neutral Sentiment: The target reductions may reflect valuation or broader semiconductor-sector caution. Nova trades at a relatively elevated earnings multiple, so further gains may depend on continued execution and delivery of its strong guidance.

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.