Novanta’s first quarter saw a strong positive market reaction, reflecting confidence in management’s execution and commercial momentum. The company credited broad-based demand and robust bookings, particularly in the Robotics & Automation and Advanced Surgery businesses, as central to its performance. CEO Matthijs Glastra highlighted that every segment achieved double-digit bookings growth, with new product revenue rising sharply. Management specifically pointed to ongoing strength in medical consumables and accelerating opportunities in Generative AI (GenAI)-related manufacturing applications as key factors supporting both revenue and profit growth.
Is now the time to buy NOVT? Find out in our full research report (it’s free for active Edge members).
Novanta (NOVT) Q1 CY2026 Highlights:
- Revenue: $257.7 million vs analyst estimates of $253.4 million (10.4% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.81 vs analyst estimates of $0.78 (4.3% beat)
- Adjusted EBITDA: $57.08 million vs analyst estimates of $57.12 million (22.1% margin, in line)
- Revenue Guidance for the full year is $1.05 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the full year is $3.58 at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $247.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.7%, down from 12.8% in the same quarter last year
- Market Capitalization: $5.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Novanta’s Q1 Earnings Call
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Lee Jagoda (CJS Securities) asked how GenAI-driven applications are categorized and their future growth outlook. CEO Matthijs Glastra clarified these span both Precision Manufacturing and Robotics & Automation, collectively making up 15% of sales with anticipated acceleration.
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Jagoda (CJS Securities) followed up about the impact of Novanta’s selection for the NVIDIA AI Systems Inspection Lab. Glastra noted this validates Novanta’s servo drive technology, enhances credibility, and should result in meaningful prototype orders before broader adoption in 2027.
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Brian Drab (William Blair) questioned the disparity between strong bookings growth and organic revenue expectations. Glastra explained the lag effect, with most orders shipping within 12 months and some customers placing full-year bookings in Q1.
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Drab (William Blair) inquired about which industrial applications would most impact 2026 growth. Glastra emphasized that growth is broad-based across multiple applications—such as EUV, DUV, warehouse automation, and GPU drilling—rather than dominated by a single driver.
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Quinn Fredrickson (Baird) asked about the timing and regional impacts of tariff-related margin pressures. CFO Robert Buckley detailed that tariffs and freight costs escalated quickly, but repricing and surcharges should restore margins by Q3, with additional upside possible from tariff refunds.
Catalysts in Upcoming Quarters
In the upcoming quarters, our analysts will be watching (1) the pace of gross margin recovery as repricing and cost actions take effect, (2) continued double-digit growth in medical consumables and AI-driven automation segments, and (3) execution on the regional manufacturing consolidation initiative. Additionally, we will monitor the conversion of strong bookings into revenue and the progression of M&A activity as potential drivers of long-term growth.
Novanta currently trades at $152.90, up from $139.98 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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