Nova Reports Record Second Quarter 2026 Financial Results

Nova Reports Record Second Quarter 2026 Financial Results REHOVOT, Israel, Aug. 6, 2026 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the second quarter, the three-month period ended June 30, 2026.

Second Quarter 2026 Highlights:

GAAP Results (K)

Q2 2026

Q1 2026

Q2 2025

Revenues

$254,958

$235,308

$219,989

Net Income

$75,010

$69,259

$68,291

Earnings per Diluted Share

$2.20

$2.04

$2.14

Non-GAAP Results (K)

Q2 2026

Q1 2026

Q2 2025

Net Income

$86,459

$80,265

$70,400

Earnings per Diluted Share

$2.51

$2.33

$2.20

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.

Management Comments

"This quarter marks a significant milestone for Nova, surpassing $250 million in quarterly revenue and $2.50 in quarterly non-GAAP EPS, reflecting the run-rate envisioned in our long-term strategic plan," said Gaby Waisman, President and CEO. "We delivered record sales across several of our product lines, including our front-end chemical metrology solution and our Sentronics dimensional metrology solutions for advanced packaging. These results were supported by broad-based customer demand, continued market share gains, and deeper customer engagement across leading-edge device segments. As a result, we enter the coming quarters with increased visibility, a robust opportunity pipeline, and confidence in our ability to deliver another year of profitable growth".

2026 Third Quarter Financial Outlook

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

2026 Second Quarter Results

Total revenues for the second quarter of 2026 were $255.0 million, an increase of 8% compared with the first quarter of 2026 and an increase of 16% compared with the second quarter of 2025.

Gross margin in the second quarter of 2026 was 56.5%, compared with 57.7%, in the first quarter of 2026 and 57.8% in the second quarter of 2025.

Operating expenses in the second quarter of 2026 were $68.0 million, compared with $64.9 million in the first quarter of 2026 and $61.6 million in the second quarter of 2025.

On a GAAP basis, the Company reported net income of $75.0 million, or $2.20 per diluted share, in the second quarter of 2026. This is compared with net income of $69.3 million, or $2.04 per diluted share, in the first quarter of 2026, and $68.3 million, or 2.14 per diluted share, in the second quarter of 2025.

On a non-GAAP basis, the Company reported net income of $86.5 million, or $2.51 per diluted share, in the second quarter of 2026. This is compared with net income of $ 80.3 million, or $2.33 per diluted share, in the first quarter of 2026, and $70.4 million, or $2.20 per diluted share, in the second quarter of 2025.

Conference Call Information

Nova will host a conference call today, August 06, 2026, at 8:30 a.m. Eastern Time, to discuss the Company's second 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

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 August 6, 2026, at 11:30 a.m. Eastern Time until August 13, 2026. To access the replay, please dial one of the following numbers:

Replay Dial-in U.S. TOLL-FREE: 1-855-669-9658

Replay Dial-in INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 2662167

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

About Nova

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.

Use of Non-GAAP Adjusted Financial Measures

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.

Forward-Looking Statements

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)

NOVA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

As of

June 30,

December 31,

ASSETS

2026

2025

Current assets

Cash and cash equivalents

124,846

214,462

Short-term interest-bearing bank deposits

397,082

512,250

Marketable securities

499,071

321,798

Trade accounts receivable, net

210,279

151,929

Inventories

185,273

183,671

Other current assets

36,309

26,692

Total current assets

1,452,860

1,410,802

Non-current assets

Marketable securities

685,471

584,731

Interest-bearing bank deposits and restricted deposits

11,747

12,508

Deferred tax assets

36,775

38,819

Operating lease right-of-use assets

56,706

57,731

Property plant and equipment, net

98,753

102,625

Intangible assets, net

39,974

45,819

Goodwill

88,743

90,807

Other long-term assets

18,350

16,704

Total non-current assets

1,036,519

949,744

Total assets

2,489,379

2,360,546

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Convertible senior notes, net

733,588

Trade accounts payable

66,782

46,982

Deferred revenues

45,945

67,163

Operating lease current liabilities

10,067

8,204

Other current liabilities

80,183

102,186

Total current liabilities

936,565

224,535

Non-current liabilities

Convertible senior notes, net

731,680

Operating lease long-term liabilities

59,843

59,271

Long-term deferred tax liability

8,678

10,221

Other long-term liabilities

19,074

16,591

Total non-current liabilities

87,595

817,763

Shareholders' equity

1,465,219

1,318,248

Total liabilities and shareholders' equity

2,489,379

2,360,546

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Revenues:

Products

201,472

177,829

387,735

351,771

Services

53,486

42,160

102,531

81,574

Total revenues

254,958

219,989

490,266

433,345

Total cost of revenues

110,797

92,743

210,417

183,796

Gross profit

144,161

127,246

279,849

249,549

Operating expenses:

Research and development, net

39,257

35,446

76,340

68,680

Sales and marketing

21,333

19,861

41,597

39,649

General and administrative

7,386

6,296

14,891

12,345

Total operating expenses

67,976

61,603

132,828

120,674

Operating income

76,185

65,643

147,021

128,875

Financing income, net

12,920

15,177

25,968

28,114

Income before taxes on income

89,105

80,820

172,989

156,989

Income tax expenses

14,095

12,529

28,720

23,875

Net income for the period

75,010

68,291

144,269

133,114

Earnings per share:

Basic

2.36

2.32

4.54

Diluted

2.20

2.14

4.24

4.17

Shares used in calculation of earnings per share

(in thousands):

Basic

31,800

29,422

31,810

29,315

Diluted

34,450

32,053

34,460

32,030

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

75,010

68,291

144,269

133,114

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation of property and equipment

3,688

3,242

7,184

6,328

Amortization of intangible assets

2,299

2,228

4,614

4,044

Amortization of premium and accretion of discount on

marketable securities, net

(1,410)

(1,345)

(2,667)

(2,888)

Amortization of debt issuance costs

958

278

1,908

568

Share-based compensation

6,764

6,257

14,069

12,633

Net effect of exchange rate fluctuation

(807)

(11,179)

(752)

(15,056)

Changes in assets and liabilities:

Trade accounts receivable, net

(33,760)

(8,995)

(59,373)

6,480

Inventories

(7,159)

(6,295)

(3,073)

(15,394)

Other current and long-term assets

(5,291)

7,158

(14,784)

(5,930)

Deferred tax, net

1,575

(3,508)

954

(6,144)

Operating lease right-of-use assets

(2,359)

1,009

(1,881)

Trade accounts payable

12,048

(1,674)

19,356

(1,717)

Deferred revenues

(3,811)

(4,992)

(23,484)

(12,431)

Operating lease liabilities

2,374

5,230

2,451

4,368

Other current and long-term liabilities

(11,878)

(7,054)

(10,960)

7,761

Accrued severance pay, net

265

378

274

355

Net cash provided by operating activities

40,918

45,661

80,995

114,210

Cash flows from investment activities:

Acquisition of subsidiary, net of acquired cash

(4,658)

(56,355)

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

deposits

(63,987)

2,157

116,228

(129)

Investment in marketable securities

(364,260)

(74,529)

(494,583)

(156,799)

Proceeds from maturity of marketable securities

92,735

51,092

214,616

130,160

Purchase of property and equipment

(2,494)

(2,738)

(6,543)

(11,595)

Net cash provided by (used in) investing activities

(338,006)

(28,676)

(170,282)

(94,718)

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

118

2,841

(647)

3,612

Changes in cash and cash equivalents and restricted cash

(296,970)

19,826

(89,934)

3,102

Cash and cash equivalents and restricted cash -beginning

of period

421,816

141,055

214,780

157,779

Cash and cash equivalents and restricted cash - end of

period

124,846

160,881

124,846

160,881

NOVA LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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

Three months ended

June 30,

2026

March 31,

2026

June 30,

2025

GAAP gross profit

144,161

135,688

127,246

Stock-based compensation*

1,923

2,072

1,769

Amortization of acquired intangible assets

2,105

2,119

2,039

Acquisition related inventory step-up

910

Non-GAAP gross profit

148,189

139,879

131,964

GAAP gross margin as a percentage of revenues

57 %

58 %

Non-GAAP gross margin as a percentage of revenues

58 %

59 %

60 %

GAAP operating income

76,185

70,836

65,643

Stock-based compensation*

6,764

7,305

6,257

Acquisition related inventory step-up

910

Amortization of acquired intangible assets

2,299

2,315

2,228

Non-GAAP operating income

85,248

80,456

75,038

GAAP operating margin as a percentage of revenues

30 %

Non-GAAP operating margin as a percentage of revenues

33 %

34 %

GAAP net income

75,010

69,259

68,291

Stock-based compensation*

6,764

7,305

6,257

Acquisition related inventory step-up

910

Amortization of acquired intangible assets

2,299

2,315

2,228

Amortization of debt issuance costs

958

950

278

Revaluation of operating lease and intercompany loans

3,398

2,540

(6,955)

Tax effect of non-GAAP adjustments

(1,970)

(2,104)

(609)

Non-GAAP net income

86,459

80,265

70,400

GAAP basic earnings per share

2.36

2.18

2.32

Non-GAAP basic earnings per share

2.72

2.52

2.39

GAAP diluted earnings per share

2.20

2.04

2.14

Non-GAAP diluted earnings per share

2.51

2.33

2.20

Shares used for calculation of earnings per share

(in thousands):

Basic

31,800

31,790

29,422

Diluted

34,450

34,439

32,053

* Stock-based compensation for the three months ended June 30, 2026, included in - Cost of revenues – 1,923;

Research and development, net – 2,770; Sales and marketing - 1,525; General and administrative - 546.

NOVA LTD.

SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2026

GAAP TO NON-GAAP GUIDANCE

(U.S. dollars) (Unaudited)

Low

High

Estimated GAAP net income per diluted share

2.46

2.61

Estimated non-GAAP items:

Stock-based compensation

0.19

Amortization of acquired intangible assets

0.07

Amortization of debt issuance costs

0.03

Tax effect of non-GAAP adjustments

(0.05)

Estimated non-GAAP net income per diluted share

2.70

2.85

Company Contact:

Guy Kizner, Chief Financial Officer

Tel: +972-73-229-5760

E-mail - [email protected]

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

Investor Relations Contact:

Miri Segal MS-IR LLC

E-mail - [email protected]

Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg

SOURCE Nova