Nova (NVMI) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $255 million, up 8% sequentially and 16% year-over-year, at the top end of guidance, with record profitability and non-GAAP EPS exceeding $2.50, reflecting strong execution and favorable industry conditions.

• Delivered record GAAP net income of $75.0 million and non-GAAP net income of $86.5 million, both up 8% sequentially.

• Broad-based demand across product lines, led by advanced logic, advanced packaging, and chemical metrology, with significant contributions from AI-driven semiconductor investments.

• Advanced packaging contributed nearly 25% of product revenue, and service revenue reached record levels, supported by tool upgrades and value-added services.

• Management highlighted broad-based customer demand, market share gains, and increased customer engagement.

Financial highlights

• Q2 2026 revenue reached $255 million, up 8% sequentially and 16% year-over-year.

• GAAP diluted EPS was $2.20; non-GAAP EPS was $2.51, both exceeding guidance and up from prior quarters.

• Blended gross margins were 57% GAAP and 58% non-GAAP; operating margins were 30% GAAP and 33% non-GAAP.

• Product revenue split: 73% logic/foundry, 27% memory/others; product revenues were $201.5 million and service revenues $53.5 million for Q2 2026.

• Cash and investments exceeded $1.7 billion, supporting flexibility for R&D and M&A.

Outlook and guidance

• Q3 2026 revenue expected between $277 million and $287 million.

• Q3 GAAP EPS guidance: $2.46–$2.61; non-GAAP EPS: $2.70–$2.85.

• Gross margin guidance: ~57% GAAP, ~59% non-GAAP; operating expenses to rise modestly.

• Full-year advanced packaging revenue expected to be near 25% of product revenue.

• Long-term growth outlook reinforced by durable demand drivers and customer investment visibility into 2027.