Nova (NVMI) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $880.6 million in 2025, up 31% year-over-year, with record GAAP and non-GAAP profitability and EPS growth of 29% year-over-year.

• Fourth quarter 2025 revenue reached $222.6 million, up 14% year-over-year, exceeding guidance midpoint, driven by strong customer demand and portfolio depth.

• Expanded production capacity in Asia and launched a new ERP system to enhance efficiency and support growth.

• Strategic wins include a major logic customer adopting the full CMP product suite and record service revenues, with multiple service excellence awards in Asia.

• Significant market share gains and record sales in Optical, Materials, and Chemical Metrology portfolios, driven by demand for AI and advanced semiconductor processes.

Financial highlights

• Q4 2025 revenues were $222.6 million, with 75% from logic/foundry and 25% from memory.

• Q4 GAAP gross margin was 57.6%, non-GAAP 59.6%; annual GAAP gross margin was 57.4%, non-GAAP 59%.

• Q4 GAAP operating margin was 27%, non-GAAP 32%; annual GAAP operating margin was 29%, non-GAAP 33%.

• Q4 GAAP EPS was $1.94, non-GAAP $2.14; annual GAAP EPS was $7.96, non-GAAP $8.62.

• Ended 2025 with over $1.6 billion in cash and equivalents; generated $218 million in free cash flow.

Outlook and guidance

• Q1 2026 revenue expected between $222 million and $232 million.

• Q1 2026 GAAP EPS guidance: $1.90–$2.02; non-GAAP EPS: $2.13–$2.25.

• Q1 2026 gross margin guidance: ~56% GAAP, ~58% non-GAAP; operating expenses expected to decrease.

• Company targets earnings of ~$10 per share and revenue exceeding $1B.

• Anticipates WFE market growth in low double digits for 2026, with company outperformance and acceleration in the second half.