Nova (NVMI) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $235.3 million in Q1 2026, up 6% sequentially and 10% year-over-year, surpassing guidance and driven by strong demand in advanced DRAM, logic, and advanced packaging segments.

• Multiple customer wins and record sales across product lines, including Nova Metrion and AncoScene platforms, with all-time high service revenue.

• EPS for Q1 2026 reached $2.33 non-GAAP, a 7% increase year-over-year, with GAAP EPS at $2.04, both exceeding guidance.

• Expanded global manufacturing footprint with a new facility in Asia, expected operational by end of 2026, to support increased demand and optimize costs.

• Recognized by Intel with the EPIC Supplier Award, highlighting deep engagement in the logic segment.

Financial highlights

• Fiscal year 2025 revenue was $881M, up 31% year-over-year; Q1 2026 revenue grew 6% sequentially and 10% year-over-year to $235.3M.

• Gross margin reached 57.7% GAAP and 59.4% non-GAAP, at the upper end of the target range.

• Operating margin was 30% GAAP and 34% non-GAAP, exceeding the target model.

• GAAP EPS was $2.04 and non-GAAP EPS was $2.33, both above guidance.

• Cash reserves stood at $1.6B as of December 31, 2025; cash and cash equivalents increased to $421.8M as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue expected between $245M–$255M; GAAP EPS $2.10–$2.24, non-GAAP EPS $2.34–$2.48.

• Gross margin guidance: ~57% GAAP, ~59% non-GAAP; operating expenses to rise to $72M GAAP, $66M non-GAAP.

• Effective tax rate expected at 15% for Q2.

• On track for $1B revenue target by 2027; memory expected to be more dominant in 2026.

• Positioned for continuous growth, supported by end-market demand and increasing process complexity.