Nova Ltd (NVMI) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Growth Initiatives

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Fri, February 13, 2026 at 6:06 AM GMT+9 4 min read

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**Annual Revenue:** $880.6 million, up 31% year over year.

**Fourth-Quarter Revenue:** $222.6 million, up 14% year over year.

**GAAP Earnings Per Share (Annual):** $7.96.

**Non-GAAP Earnings Per Share (Annual):** $8.62.

**GAAP Earnings Per Share (Q4):** $1.94 per diluted share.

**Non-GAAP Earnings Per Share (Q4):** $2.14 per diluted share.

**GAAP Gross Margin (Q4):** 57.6%.

**Non-GAAP Gross Margin (Q4):** 59.6%.

**GAAP Operating Margin (Q4):** 27%.

**Non-GAAP Operating Margin (Q4):** 32%.

**GAAP Operating Margin (Annual):** 29%.

**Non-GAAP Operating Margin (Annual):** 33%.

**Free Cash Flow (Annual):** $218 million.

**Cash and Equivalents (End of 2025):** Over $1.6 billion.

**R&D Investment:** More than 15% of revenues.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Nova Ltd (NASDAQ:NVMI) delivered record annual revenue of $880.6 million in 2025, marking a 31% increase year over year.

The company achieved record GAAP and non-GAAP profitability, with earnings per share growing 29% year over year.

Fourth-quarter revenue exceeded guidance, reaching $222.6 million, up 14% year over year.

Nova Ltd (NASDAQ:NVMI) is well-positioned in the rapidly expanding semiconductor landscape, with strong demand for its advanced metrology solutions.

The company is expanding its global manufacturing footprint and investing in a new ERP system to enhance operational efficiency and scalability.

Negative Points

Operating expenses increased in the fourth quarter, reaching $67.5 million on a GAAP basis.

The effective tax rate on a non-GAAP basis was approximately 16%, higher than the GAAP rate due to the release of uncertain tax positions.

Gross margins are expected to decrease slightly in Q1 2026 due to specific product mix.

There is pressure on lead times, impacting visibility and requiring improved operational agility.

China's revenue proportion decreased from 39% to 33% in 2025, with expectations of further normalization around 30%.

Q & A Highlights

Q: Can you discuss your outlook for the year and how you expect to outperform the WFE market? A: Gabriel Waisman, President and CEO, stated that Nova anticipates WFE to grow in the low-double digits. The company expects to outperform due to its strong growth engines and anticipates momentum to accelerate in the second half of the year, with the first half of 2026 already showing higher performance than 2025.

Story Continues  

Q: Are there any production bottlenecks if WFE demand accelerates? A: Gabriel Waisman explained that Nova has made significant investments to expand manufacturing capacity, including clean room capacity for advanced packaging. The company is also investing in infrastructure and IT systems to improve efficiency and scalability, ensuring they can manage higher volumes effectively.

Q: How have customer conversations evolved, and are they translating into orders? A: Gabriel Waisman noted that Nova sees 2026 as another growth year, driven by advanced logic, DRAM, and advanced packaging. Customer capital investments are encouraging, and while it takes time for these to translate into orders, the company is optimistic about the momentum building into 2026.

Q: Can you provide insights into your market share in dimensional metrology and the adoption of your systems? A: Gabriel Waisman highlighted that Nova has grown to become second in market share for CD and film metrology, with a 25% share. The company is seeing continued market share gains and significant adoption of its integrated metrology portfolio, particularly in gate-all-around processes.

Q: What is your view on the business dynamics between DRAM and foundry/logic for 2026? A: Gabriel Waisman indicated that Nova expects significant growth from advanced logic, DRAM, and advanced packaging. While NAND shows signs of improvement, the major growth vectors are advanced logic and DRAM, with advanced packaging also expected to see double-digit growth.

Q: How do you view the China market for 2026, given its contribution to sales in 2025? A: Gabriel Waisman stated that China remains a key territory, expected to represent around 30% of sales. While visibility is reduced, Nova sees steady investments in China, and the company is optimistic about maintaining its business level there.

Q: How should we think about your share position in leading-edge logic, especially with 3-nanometer wafer investments? A: Gabriel Waisman mentioned that Nova is well-positioned across all major players in gate-all-around and advanced nodes. Investments in advanced nodes, such as 3-nanometer, are beneficial, and the company expects increased momentum in 2026.

Q: What are the dynamics in advanced packaging that might lead to a moderation in growth from 60% to low double digits? A: Gabriel Waisman explained that advanced packaging is relatively new for Nova, and the company is gaining share with more product penetration. Despite a moderation in growth, Nova expects strong double-digit growth in advanced packaging for 2026.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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