Nova : Q1 2026

Published: 2026-05-14 07:46:22 ET NVMI

Published on 05/14/2026 at 07:46 am EDT

Guy Kizner, Chief Financial Officer Tel: +972-73-229-5760

E-mail - [email protected]

Nova website link - https://www.novami.com/

Miri Segal MS-IR LLC Tel: +917-607-8654

E-mail - [email protected]

first quarter, the three-month period ended March 31, 2026.

Record quarterly revenue of $235.3 million, a 6% increase QoQ, exceeding the Company guidance.

Record GAAP net income of $69.3 million, or $2.04 per diluted share, a 5% increase QoQ, exceeding the Company guidance.

Record non-GAAP net income of $80.3 million, or $2.33 per diluted share, a 9% increase QoQ, exceeding the Company guidance.

Record revenues from memory devices, fueled by robust demand for advanced DRAM

Record sales of Nova Metrion platform, driven by increased adoption in memory and logic advanced nodes manufacturing. .

Record sales of Nova AncoScene front-end chemical metrology solution, attributable to market share gains and new customer wins.

Q1 2026

Q4 2025

Q1 2025

Revenues

$235,308

$222,624

$213,356

Net Income

$69,259

$64,888

$64,823

Earnings per Diluted Share

$2.04

$1.94

$2.03

Q1 2026

Q4 2025

Q1 2025

Net Income

$80,265

$72,239

$69,958

Earnings per Diluted Share

$2.33

$2.14

$2.18

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.

This was a record quarter for Nova across every dimension." said Gaby Waisman, President and CEO. "We achieved record revenue and profitability, with service revenue and multiple product lines, spanning optical, materials, and chemical metrology, each reaching all-time high. These results reflect the strength of our portfolio and our continued focus on execution. We are solidifying our investments in technology and infrastructure, in anticipation of continued industry growth. With strong customer engagement, we are well positioned to capitalize on the market momentum ahead ."

Management provided an outlook for the second quarter, the period ending June 30, 2026. Based on current estimates, management expects:

$245 million to $255 million in revenue

$2.10 to $2.24 in diluted GAAP EPS

$2.34 to $2.48 in diluted non-GAAP EPS

Total revenues for the first quarter of 2026 were $235.3 million, an increase of 6% compared with the fourth of 2025 and an increase of 10% compared with the first quarter of 2025.

Gross margin in the first quarter of 2026 was 57.7%, compared with 57.6%, in the fourth quarter of 2025

and 57.3% in the first quarter of 2025.

Operating expenses in the first quarter of 2026 were $64.9 million, compared with $67.5 million in the fourth quarter of 2025 and $59.1 million in the first quarter of 2025.

On a GAAP basis, the Company reported net income of $69.3 million, or $2.04 per diluted share, in the first quarter of 2026. This is compared with net income of $64.7 million, or $1.94 per diluted share, in the fourth quarter of 2025, and $64.8 million, or 2.03 per diluted share, in the first quarter of 2025.

On a non-GAAP basis, the Company reported net income of $ 80.3 million, or $2.33 per diluted share, in the first quarter of 2026. This is compared with net income of $ 72.2 million, or $2.14 per diluted share, in the fourth quarter of 2025, and $70.0 million, or $2.18 per diluted share, in the first quarter of 2025.

Nova will host a conference call today, May 14, 2026, at 8:30 a.m. Eastern Time, to discuss the Company's first quarter of 2026 financial results and outlook. To attend the conference call, please dial one of the following teleconference numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. TOLL-FREE Dial-in Number: 1-833-816-1427 ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284 INTERNATIONAL Dial-in Number: 1-412-317-0519

At:

8:30 a.m. Eastern Time 5:30 a.m. Pacific Time 3:30 p.m. Israel Time

The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/.

A replay of the conference call will be available from May 14, 2026, at 11:30 a.m. Eastern Time until August 15, 2026, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529 Replay Dial-in INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 1869305

A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.

Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.

Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.

This press release provides financial measures that exclude amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of debt issuance costs, discrete tax reserve release, net and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ

materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: risks related to information technology security threats, sophisticated computer crime, and data privacy; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies and taxation; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure; risks related to the use of artificial intelligence technologies; challenges related to implementing our new ERP system; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including Israel's conflicts with certain parties in the region; risks related to our convertible senior notes and capped call transactions; currency fluctuations and quarterly fluctuations in our operating results; and risks related to additional costs and expenses if there is a change in our status as a foreign private issuer. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 17, 2026. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

(Tables to Follow)

(U.S. dollars in thousands) - (Unaudited)

March 31,

December 31,

ASSETS

2026

2025

Current assets

Cash and cash equivalents

421,816

214,462

Short-term interest-bearing bank deposits

333,296

512,250

Marketable securities

343,432

321,798

Trade accounts receivable, net

176,917

151,929

Inventories

178,850

183,671

Other current assets

35,605

26,692

Total current assets

1,489,916

1,410,802

Non-current assets

Marketable securities

567,850

584,731

Interest-bearing bank deposits and restricted deposits

11,020

12,508

Deferred tax assets

38,887

38,819

Operating lease right-of-use assets

56,764

57,731

Property plant and equipment, net

101,788

102,625

Intangible assets, net

42,559

45,819

Goodwill

89,283

90,807

Other long-term assets

17,624

16,704

Total non-current assets

925,775

949,744

Total assets

2,415,691

2,360,546

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Convertible senior notes, net

732,630

Trade accounts payable

54,102

46,982

Deferred revenues

49,092

67,163

Operating lease current liabilities

9,508

8,204

Other current liabilities

98,529

102,186

Total current liabilities

943,861

224,535

Non-current liabilities

Convertible senior notes, net

731,680

Operating lease long-term liabilities

58,033

59,271

Long-term deferred tax liability

9,330

10,221

Other long-term liabilities

16,881

16,591

Total non-current liabilities

84,244

817,763

Shareholders' equity

1,387,586

1,318,248

Total liabilities and shareholders' equity

2,415,691

2,360,546

(U.S. dollars in thousands, except per share data) - (Unaudited)

2026

2025

Revenues:

Products

186,263

173,942

Services

49,045

39,414

Total revenues

235,308

213,356

Total cost of revenues

99,620

91,053

Gross profit

135,688

122,303

Operating expenses:

Research and development, net

37,083

33,234

Sales and marketing

20,264

19,788

General and administrative

7,505

6,049

Total operating expenses

64,852

59,071

Operating income

70,836

63,232

Financing income, net

13,048

12,937

Income before taxes on income

83,884

76,169

Income tax expenses

14,625

11,346

Net income for the period

69,259

64,823

Earnings per share:

Basic

2.18

2.22

Diluted

2.04

2.03

Basic

31,790

29,262

Diluted

34,439

32,062

(U.S. dollars in thousands) - (Unaudited)

2026

2025

Cash flows from operating activities:

Net income

69,259

64,823

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation of property and equipment

3,496

3,086

Amortization of intangible assets

2,315

1,816

Amortization of premium and accretion of discount on marketable

securities, net

(1,257)

(1,543)

Amortization of debt issuance costs

950

290

Share-based compensation

7,305

6,376

Net effect of exchange rate fluctuation

(3,877)

Changes in assets and liabilities:

Trade accounts receivable, net

(25,613)

15,475

Inventories

4,086

(9,099)

Other current and long-term assets

(9,493)

(13,088)

Deferred tax, net

(621)

(2,636)

Operating lease right-of-use assets

956

478

Trade accounts payable

7,308

(43)

Deferred revenues

(19,673)

(7,439)

Operating lease liabilities

(862)

Other current and long-term liabilities

918

14,815

Accrued severance pay, net

(23)

Net cash provided by operating activities

40,077

68,549

Cash flows from investment activities:

Acquisition of subsidiary, net of acquired cash

(51,697)

Change in short-term and long-term interest-bearing bank deposits

180,215

(2,286)

Investment in marketable securities

(130,323)

(82,270)

Proceeds from maturity of marketable securities

121,881

79,068

Purchase of property and equipment

(4,049)

(8,857)

Net cash provided by (used in) investing activities

167,724

(66,042)

Cash flows from financing activities:

Purchases of treasury shares

(20,002)

Net cash used in financing activities

(20,002)

Effect of exchange rate fluctuations on cash and cash equivalents

(765)

771

Changes in cash and cash equivalents and restricted cash

207,036

(16,724)

Cash and cash equivalents and restricted cash -beginning of period

214,780

157,779

Cash and cash equivalents - end of period

421,816

141,055

(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

Three months ended

March 31,

December 31,

March 31,

2026

2025

GAAP gross profit

135,688

128,233

122,303

Stock-based compensation*

2,072

1,990

1,847

Amortization of acquired intangible assets

2,119

2,342

1,670

Acquisition related inventory step-up

1,348

Non-GAAP gross profit

139,879

132,565

127,168

GAAP gross margin as a percentage of revenues

58%

57%

Non-GAAP gross margin as a percentage of revenues

59%

60%

GAAP operating income

70,836

60,733

63,232

Stock-based compensation*

7,305

6,977

6,376

Acquisition related inventory step-up

1,348

Acquisition related expenses

859

Amortization of acquired intangible assets

2,315

2,544

1,816

Discrete tax reserve release, net

203

Non-GAAP operating income

80,456

70,457

73,631

GAAP operating margin as a percentage of revenues

30%

27%

30%

Non-GAAP operating margin as a percentage of revenues

34%

32%

35%

GAAP net income

69,259

64,688

64,823

Stock-based compensation*

7,305

6,977

6,376

Acquisition related inventory step-up

1,348

Acquisition related expenses

859

Amortization of acquired intangible assets

2,315

2,544

1,816

Amortization of debt issuance costs

950

980

290

Revaluation of operating lease and intercompany loans

2,540

1,642

(4,796)

Discrete tax reserve release, net

(4,229)

Tax effect of non-GAAP adjustments

(2,104)

(363)

(758)

Non-GAAP net income

80,265

72,239

69,958

GAAP basic earnings per share

2.18

2.09

2.22

Non-GAAP basic earnings per share

2.52

2.33

2.39

GAAP diluted earnings per share

2.04

1.94

2.03

Non-GAAP diluted earnings per share

2.33

2.14

2.18

Shares used for calculation of earnings per share

(in thousands): Basic

31,790

31,025

29,262

Diluted

34,439

33,830

32,062

* Stock-based compensation for the three months ended March 31, 2026, included in - Cost of revenues - 2,072; Research and development, net - 3,033; Sales and marketing - 1,551; General and administrative - 649.

(U.S. dollars) (Unaudited)

Low

High

Estimated GAAP net income per diluted share

2.10

2.24

Estimated non-GAAP items: Stock-based compensation

0.20

Amortization of acquired intangible assets

0.06

Amortization of debt issuance costs

0.03

Tax effect of non-GAAP adjustments

(0.05)

Estimated non-GAAP net income per diluted share

2.34

2.48

Disclaimer

Nova Ltd. published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 11:45 UTC.