Nova (NASDAQ:NVMI) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Nova (NASDAQ:NVMI) released its earnings results on Thursday. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.13 by $0.01, FiscalAI reports. The firm had revenue of $222.62 million for the quarter, compared to analysts’ expectations of $220.43 million. Nova had a return on equity of 24.14% and a net margin of 29.44%.The business’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.94 earnings per share. Nova updated its Q1 2026 guidance to 2.130-2.250 EPS.

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

• Nova reported record 2025 results — $880.6M revenue (+31% YoY), Q4 revenue of $222.6M (above guidance), strong operating margins and >$1.6B in cash with $218M free cash flow.
• Product traction accelerated — a leading global logic customer selected Nova’s integrated metrology portfolio for CMP in Gate‑All‑Around, and Elipson/Metrion secured multiple strategic qualifications and repeat orders.
• Management expects continued momentum in 2026 driven by Gate‑All‑Around, DRAM/HBM recovery, and advanced packaging; Q1 guidance is $222–$232M revenue and non‑GAAP EPS $2.13–$2.25, and the company aims to outperform WFE.
• Visibility and lead‑time pressure remain a risk (notably in China, which represented ~33% of 2025 sales down from 39%), even as Nova invests in additional Asia production capacity and a new ERP to mitigate constraints.

Nova Trading Up 0.0%

NASDAQ NVMI opened at $443.76 on Friday. The firm has a market capitalization of $13.05 billion, a PE ratio of 55.40, a price-to-earnings-growth ratio of 2.67 and a beta of 1.84. The business’s 50-day moving average price is $395.15 and its two-hundred day moving average price is $331.57. The company has a current ratio of 4.58, a quick ratio of 4.00 and a debt-to-equity ratio of 0.62. Nova has a 12 month low of $153.99 and a 12 month high of $507.27.

Key Headlines Impacting Nova

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Q4 results modestly beat estimates — EPS $2.14 vs. $2.13 consensus and revenue $222.6M vs. $220.4M consensus; revenue was up ~14% YoY with a healthy net margin (~28.7%) and ROE (~24.1%). Nova Reports Fourth Quarter and Record Full Year 2025 Results
• Positive Sentiment: Management raised Q1 FY2026 guidance: EPS $2.13–$2.25 (vs. ~2.05 consensus) and revenue guidance $222M–$232M (slightly above consensus), signaling confidence in near‑term demand. Chip-gear maker Nova beats Q4 views, guides higher
• Positive Sentiment: Nova reported record full‑year results, reinforcing the company’s revenue momentum and strengthening the narrative of durable growth in its end markets. Nova Reports Fourth Quarter and Record Full Year 2025 Results
• Neutral Sentiment: Deep‑dive coverage notes that market‑share gains and a favorable product mix have helped offset recent margin pressures — a mixed signal that top‑line strength may be masking cost or pricing headwinds. NVMI Q4 Deep Dive: Market Share Gains and Product Mix Offset Margin Pressures
• Neutral Sentiment: Management commentary in the earnings‑call transcript provides color on demand trends and product roadmap; useful for parsing sustainability of the beat but contains no immediate surprises. Nova Ltd. (NASDAQ: NVMI) Q4 2025 earnings call transcript
• Negative Sentiment: Valuation and volatility are concerns: NVMI trades at a high P/E (~58) and elevated beta (~1.8), which can limit upside and increase share price sensitivity if margin pressures persist or guidance slips.

Institutional Trading of Nova

Several institutional investors have recently added to or reduced their stakes in NVMI. Orion Porfolio Solutions LLC bought a new stake in Nova in the second quarter worth approximately $244,000. IHT Wealth Management LLC bought a new position in shares of Nova during the 2nd quarter worth about $547,000. Great Valley Advisor Group Inc. bought a new position in shares of Nova during the 2nd quarter worth about $258,000. Ameriprise Financial Inc. grew its stake in shares of Nova by 8.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,070 shares of the semiconductor company’s stock valued at $570,000 after buying an additional 161 shares during the period. Finally, AXA S.A. bought a new stake in Nova in the 2nd quarter valued at about $453,000. 82.99% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

NVMI has been the topic of a number of research analyst reports. Evercore raised their target price on shares of Nova from $290.00 to $340.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Bank of America raised their price objective on Nova from $380.00 to $450.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Weiss Ratings restated a “hold (c)” rating on shares of Nova in a research report on Monday, December 22nd. Evercore ISI reaffirmed an “outperform” rating and issued a $485.00 target price on shares of Nova in a report on Friday. Finally, Benchmark lifted their price target on Nova from $280.00 to $345.00 and gave the company a “buy” rating in a research note on Friday, November 7th. Eight equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Nova currently has an average rating of “Moderate Buy” and an average price target of $426.63.

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.