Nova Ltd (FRA:NMR)

Q2 2026 Nova Ltd Earnings Call Transcript

Aug 6, 2026 / 12:30 PM GMT

Release Date Price: €345.1 (-4.98%)

Transcript

Key Points

Positve

Record quarterly revenue of $255 million, surpassing the $250 million milestone, with 16% year-over-year growth.
Record non-GAAP EPS of $2.51, exceeding the high end of guidance, demonstrating strong earning power.
Broad-based demand across product lines, with record sales in advanced logic, advanced packaging, and services.
Strong growth in advanced packaging, contributing nearly 25% of product revenue, driven by AI-related demand and HBM capacity.
Enhanced visibility into 2027 with customers providing longer-term planning, supporting confidence in future growth.
Strong financial position with over $1.7 billion in cash and investments, providing flexibility for R&D and M&A.
Continued innovation with new product launches (Prism, VeriFlex, Nova WMC, NovaHub) expanding the serviceable market.
Gross margins remain healthy at 58% non-GAAP, within the target model, with Q3 guidance of 59%.
Operating margins reached 33% non-GAAP, at the upper end of the target model, reflecting operational leverage.
Positive Q3 guidance with revenues expected between $277 million and $287 million, indicating continued momentum.

Negative

Memory revenue declined 14% quarter-over-quarter, with muted NAND demand due to upgrades rather than capacity expansion.
Supply chain is stretched, requiring significant effort to maintain lead times, which vary from 4 to 12 months.
Gross margin in Q2 was slightly below guidance by about 90 basis points due to product mix, though within the target range.
Operating expenses increased to $62.9 million non-GAAP, reflecting higher reinvestment in R&D and roadmap expansion.
Process control intensity is lower this year, particularly in memory, which could limit near-term growth relative to WFE.
Visibility into 2027 is still early, and it is too soon to confirm whether WFE growth of 40% is achievable.
NAND market remains muted, and recovery is uncertain, with potential benefits only expected when capacity returns, possibly next year.
The company faces potential BOM cost impacts from memory price increases, though currently not significant to margins.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NVMI.OQ - Nova Ltd.
Q2 2026 Nova Ltd Earnings Call
Aug 06, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Nova LTD second quarter 2026 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone telephone.

To withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to Ms. Miri Segal, CEO of MSIR. Please go ahead.

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Unidentified_2 [2]
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