Novanta's second quarter was marked by broad-based organic growth across all business units and a favorable response from the market. Management attributed the strong results to both an acceleration in new product revenue—up more than 50% year-over-year—and operational improvements, including factory consolidations. CEO Matthijs Glastra highlighted that all business units grew organically and pointed to increased customer demand in precision robotics, AI-driven manufacturing, and minimally invasive surgery as significant contributors to quarterly performance.
Is now the time to buy NOVT? Find out in our full research report (it’s free for active Edge members).
Novanta (NOVT) Q2 CY2026 Highlights:
- Revenue: $265.8 million vs analyst estimates of $262.3 million (10.3% year-on-year growth, 1.3% beat)
- Adjusted EPS: $0.89 vs analyst estimates of $0.83 (7.2% beat)
- Adjusted EBITDA: $60.73 million vs analyst estimates of $58.88 million (22.8% margin, 3.1% beat)
- The company lifted its revenue guidance for the full year to $1.14 billion at the midpoint from $1.05 billion, an 8.4% increase
- Management raised its full-year Adjusted EPS guidance to $3.71 at the midpoint, a 3.8% increase
- EBITDA guidance for the full year is $275.5 million at the midpoint, above analyst estimates of $249.4 million
- Operating Margin: 11.5%, in line with the same quarter last year
- Market Capitalization: $6.34 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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 Q2 Earnings Call
- Lee Jagoda (CJS Securities) asked how to break down organic growth and EBITDA improvements excluding Riverpoint. CFO Robert Buckley highlighted stronger Automation Enabling Technologies performance and benefits from factory closures.
- Jagoda (CJS Securities) sought quantification of humanoid robotics orders and their impact on margins. COO Charles Ravetto clarified these were early-stage training deployments with limited near-term impact on gross margin.
- Jagoda (CJS Securities) questioned how core gross margin could evolve, excluding Riverpoint. Buckley pointed to expected 100 basis point improvements in 2026 and 2027, with some risk from tariffs and manufacturing transitions.
- Quinn Fredrickson (Baird) asked about visibility into Gen AI data center exposure and its durability into 2027. CEO Matthijs Glastra described a positive outlook, supported by strong backlog in air bearing spindles and ongoing customer optimism.
- Fredrickson (Baird) probed the dip in R&D spending. Buckley explained that as new products scale, R&D as a percentage of sales is expected to modestly decrease but remain substantial, with some increase from the Riverpoint integration.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) the pace and financial impact of Riverpoint Medical integration, (2) the execution and cost savings from ongoing manufacturing site closures, and (3) continued momentum in AI-driven automation and robotics, especially as large orders transition from prototyping to broader deployment. The evolution of tariff-related headwinds and product mix changes will also be key indicators to watch.
Novanta currently trades at $167.68, up from $153.12 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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