Zacks Investment Research·Jun 25, 2026
Novanta (NOVT) Upgraded to Buy: What Does It Mean for the Stock?Novanta (NOVT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Novanta Inc.(NOVT)Earnings, Financials & Key Ratios
NOVT•NASDAQ
$147.85
100.6× P/E·Price updated Jul 7, 2026
SectorTechnologyIndustryTech Hardware & EquipmentSub-IndustryPhotonics, Lasers and Optical Components
AboutNovanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company's Photonics segment offers photonics-based solutions, including laser scanning and beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products serving photonics-based applications for industrial processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. It's Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless technologies, video recorders, and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. In addition, its Precision Motion segment offers optical and inductive encoders, precision motors, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles. The company sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Synrad, Laser Quantum, ARGES, WOM, NDS, NDSsi, Med X Change, Reach Technology, JADAK, ThingMagic, Photo Research, Celera Motion, MicroE, Zettlex, Applimotion, Ingenia, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.Show more
- Revenue$981M+3.3%
- EBITDA$179M+7.5%
- Net Income$54M-16.0%
- EPS (Diluted)1.47-16.9%
- Gross Margin41.59%-6.4%
- EBITDA Margin18.21%+4.1%
- Operating Margin11.9%+2.1%
- Net Margin5.49%-18.7%
- ROE5.23%-42.1%
NOVT Price & Volume
Novanta Inc. (NOVT) stock price & volume — 10-year historical chart
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Cyclical Revenue Volatility Masks Strategic Deleveraging Progress
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Acquisition integration and valuation
Key Thesis Takeaways
- Novanta's reliance on a string-of-pearls acquisition strategy has created a complex cost structure, evidenced by operating margins that have remained stagnant between 10.9% and 13.3% despite top-line growth.
- While the company has successfully strengthened its balance sheet by reducing the debt-to-equity ratio from 0.84 in 2024Q1 to 0.22 in 2026Q1, investors should remain cautious regarding the high concentration of goodwill, which now accounts for $643.4M of the total asset base.
- Future performance hinges on the company's ability to improve operational leverage and mitigate the margin compression that saw gross margins decline from 45.6% in 2023Q4 to 41.8% in 2026Q1.
Verdict Logic
while the balance sheet is significantly healthier with a 0.22 debt-to-equity ratio, the current P/E of 107.18 appears difficult to justify given the inconsistent operating margin performance.
NOVT Growth Metrics
Novanta Inc. (NOVT) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years10.13%
5 Years10.67%
3 Years4.43%
TTM5.59%
Profit CAGR
10 Years4.22%
5 Years3.87%
3 Years-10.09%
TTM-23.93%
EPS CAGR
10 Years3.72%
5 Years3.3%
3 Years-10.64%
TTM-29.59%
Return on Capital
10 Years9.3%
5 Years8.99%
3 Years9.36%
Last Year8.29%
NOVT Recent Earnings
Novanta Inc. (NOVT) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
May 11, 2026Metric
Actual
Est
EPS
$0.81+3.8%
$0.78
Rev
$258M+1.7%
$253M
Q1 2026
Feb 23, 2026Metric
Actual
Est
EPS
$0.91+3.4%
$0.88
Rev
$258M+1.1%
$256M
Q4 2025
Nov 3, 2025Metric
Actual
Est
EPS
$0.87+7.4%
$0.81
Rev
$248M-3.0%
$256M
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$0.76+2.7%
$0.74
Rev
$241M-3.0%
$248M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 11, 2026 | $0.81vs $0.78+3.8% | $258Mvs $253M+1.7% |
| Q1 2026 | Feb 23, 2026 | $0.91vs $0.88+3.4% | $258Mvs $256M+1.1% |
| Q4 2025 | Nov 3, 2025 | $0.87vs $0.81+7.4% | $248Mvs $256M-3.0% |
| Q3 2025 | Aug 5, 2025 | $0.76vs $0.74+2.7% | $241Mvs $248M-3.0% |
Based on last 12 quarters of dataView full earnings history →
Latest NOVT News
Recent stock market news and headlines for Novanta Inc. (NOVT)
Business Wire·Jun 22, 2026
Novanta to Present at the CJS Securities 26th Annual New Ideas Summer Conference on Thursday, July 9, 2026BOSTON--(BUSINESS WIRE)--Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Robert Buckley, Chief Financial Officer, and Chuck Ravetto, Chief Operating Officer, are scheduled to present at the CJS Securities 26th Annual New Ideas Summer Conference on Thursday, July 9, 2026, in White Plains, NY. About Novanta Novanta is a leading global supplier of core technology solutions that give medical,.
Zacks Investment Research·Jun 17, 2026
Novanta (NOVT) is a Great Momentum Stock: Should You Buy?Does Novanta (NOVT) have what it takes to be a top stock pick for momentum investors? Let's find out.
Peers Comparison
Key metrics vs top competitors for Novanta Inc. (NOVT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $147.85 | $5.27B | 100.58 | 3.3% | 5.49% | 5.23% | — | |
| $349.57 | $23.53B | 79.99 | 9.62% | 8.03% | 12.24% | — | |
| $64.21 | $10.72B | 94.42 | 8.73% | 13.62% | 9.56% | — | |
| $314.13 | $49.81B | -604.10 | 23.42% | 10.59% | 6.94% | — | |
| $105.87 | $5.54B | 9999.00 | -7.38% | 0.4% | 0.37% | — | |
| $96.60 | $4.1B | 132.33 | 2.73% | 2.78% | 1.37% | — |
Compare NOVT vs Peers
Novanta Inc. (NOVT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
NOVT SEC Filings & Documents
Novanta Inc. (NOVT) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 15, 2026·SEC
Material company update
May 11, 2026·SEC
Material company update
Feb 23, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
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NOVT Frequently Asked Questions
Novanta Inc. (NOVT) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Novanta Inc.'s revenue?
Novanta Inc. (NOVT) reported $1.00B in revenue for fiscal year 2025. This represents a 597% increase from $144.2M in 1998.
How fast is Novanta Inc. growing?
Novanta Inc. (NOVT) grew revenue by 3.3% over the past year. Growth has been modest.
Is NOVT profitable?
Yes, Novanta Inc. (NOVT) is profitable, generating $53.7M in net income for fiscal year 2025 (5.5% net margin).
Dividend & Returns
What is NOVT's return on equity?
Novanta Inc. (NOVT) has a return on equity (ROE) of 5.2%. This is below average, suggesting room for improvement.
What is Novanta Inc.'s free cash flow?
Novanta Inc. (NOVT) generated $67.2M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.