Novanta Reports Strong First Quarter 2026 Results with Double-Digit Revenue Growth and Rising Bookings
Novanta a trusted technology partner for medical and advanced technology equipment manufacturers, announced its financial results for the first quarter of 2026, highlighting strong revenue growth, improved profitability metrics, and accelerating demand across several high-growth markets including artificial intelligence-driven industrial automation, robotics, semiconductors, and minimally invasive surgery.
The company reported first-quarter GAAP revenue of $257.7 million, representing a 10.4% increase compared with $233.4 million during the same period in 2025. Growth was supported by strong customer demand, new product momentum, acquisition contributions, and favorable foreign exchange impacts.
Novanta also delivered improved adjusted profitability during the quarter. Adjusted EBITDA rose 14.2% year-over-year to $57.1 million, while adjusted diluted earnings per share increased 9.5% to $0.81. Operating cash flow climbed significantly to $51.6 million, reflecting improved working capital management and healthy operational execution.
Strong Bookings and Commercial Momentum
Chair and Chief Executive Officer Matthijs Glastra said the company achieved another quarter of exceptional bookings performance, with bookings growing 37% year-over-year and producing a book-to-bill ratio of 1.10.
According to Glastra, the results reflect continued strength in Novanta’s commercial execution and growing demand for the company’s advanced technology solutions across key end markets.
“Novanta delivered another quarter of excellent bookings, driven by continued new product momentum and strong commercial execution by our business teams,” Glastra stated. “We exceeded expectations with revenue growth of more than 10% year-over-year on a reported basis and 3% organically.”
The company’s growing backlog and increasing order trends indicate sustained customer demand heading into the second quarter and the remainder of the year.
Revenue Growth Driven by Acquisitions and Organic Expansion
Novanta’s first-quarter revenue increase of $24.3 million was driven by a combination of organic growth, acquisitions, and favorable foreign currency exchange movements.
Acquisition activity contributed approximately $9 million in additional revenue, representing 3.8% growth. Changes in foreign exchange rates provided another $8.2 million benefit, equivalent to 3.5% growth.
Excluding the impacts of acquisitions and currency fluctuations, the company reported organic revenue growth of 3.1%, demonstrating continued expansion in its core operations despite a dynamic global economic environment.
The company’s advanced technology portfolio continues to benefit from demand trends in high-precision manufacturing, automation, robotics, medical technologies, and semiconductor applications.
Profitability and Earnings Performance
For the first quarter of 2026, Novanta reported GAAP operating income of $27.5 million, compared with $32.4 million during the prior-year period. GAAP net income remained relatively stable at $21.1 million versus $21.2 million a year earlier.
GAAP diluted earnings per share came in at $0.51, compared with $0.59 during the first quarter of 2025. Diluted weighted average shares outstanding totaled 41.2 million for the quarter.
While GAAP profitability experienced some pressure, the company’s adjusted results demonstrated continued operational strength. Adjusted operating income increased to $43.2 million from $39.1 million in the prior-year period.
Adjusted EBITDA rose to $57.1 million from $50 million last year, reflecting improved operating leverage and continued expense discipline.
Adjusted diluted EPS increased to $0.81 from $0.74, underscoring the company’s ability to generate earnings growth despite ongoing investments and macroeconomic uncertainty.
Operating Cash Flow Shows Significant Improvement
Novanta generated operating cash flow of $51.6 million during the quarter, a substantial increase from $31.7 million in the first quarter of 2025.
The improvement was primarily driven by stronger working capital management and operational efficiency initiatives. Higher cash generation provides the company with additional financial flexibility to support future acquisitions, internal investments, and shareholder value initiatives.
Strong cash flow also positions the company to continue investing in innovation and strategic growth areas.
Growth Opportunities Across AI, Robotics, and Medical Technology
Management highlighted growing momentum across several of Novanta’s key end markets, particularly those tied to artificial intelligence, advanced industrial automation, semiconductor technologies, robotics, and minimally invasive surgery.
Glastra noted that demand trends in these sectors are expected to strengthen further throughout 2026.
“We see building momentum across several of our end markets, especially in AI-driven advanced industrial and semiconductor markets, as well as advanced robotics, and minimally invasive and robotic surgery,” he said.
The company believes these technology trends will continue driving long-term growth opportunities as manufacturers increasingly adopt automation, intelligent systems, and precision technologies.
Novanta’s product portfolio includes advanced photonics, precision medicine technologies, robotics components, and motion control systems that support a broad range of industrial and healthcare applications.
Second Quarter 2026 Guidance
Looking ahead, Novanta expects continued growth momentum during the second quarter of 2026.
The company forecasts GAAP revenue in the range of $259 million to $264 million for the quarter. Management expects organic revenue growth between 6% and 8%, supported by strong bookings and an expanding backlog.
Adjusted EBITDA for the second quarter is projected to range from $58 million to $62 million, while adjusted diluted EPS is expected between $0.81 and $0.86.
The company stated that its outlook assumes no significant changes in foreign exchange rates.
Full-Year 2026 Outlook Remains Positive
Novanta also reaffirmed confidence in its broader 2026 growth strategy and issued full-year guidance reflecting continued expansion across its core businesses.
For the full year 2026, the company expects GAAP revenue between $1.04 billion and $1.055 billion.
Adjusted EBITDA is projected in the range of $245 million to $250 million, while adjusted diluted EPS is expected between $3.50 and $3.65.
Management emphasized that the company remains focused on delivering strong organic growth while carefully navigating evolving economic conditions and global trade dynamics.
The company also reiterated its commitment to driving long-term shareholder value through disciplined execution, innovation investments, and strategic acquisitions.
Focus on Non-GAAP Metrics
Novanta uses several non-GAAP financial measures to evaluate operational performance and provide additional insight to investors.
These metrics include Organic Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Free Cash Flow, and Net Debt.
Management believes these measures help investors better understand the company’s core operating trends by excluding items such as acquisition-related expenses, restructuring costs, foreign exchange impacts, tax adjustments, and other non-recurring items.
The company noted that these measures are widely used internally for performance evaluation, strategic planning, and executive compensation programs.
However, Novanta also emphasized that non-GAAP financial measures should not be considered substitutes for GAAP financial results and should instead be viewed alongside official accounting metrics.
Investor Conference Call
Novanta scheduled a conference call for Tuesday, May 12, 2026, at 8:00 a.m. ET to discuss first-quarter financial results and provide additional business updates.
The call will be accessible via webcast through the Investors section of the company’s website. A replay of the webcast will remain available through July 6, 2026.
Positive Outlook for the Remainder of 2026
With accelerating bookings, rising backlog levels, improving cash flow, and expanding opportunities in advanced industrial and medical technology markets, Novanta enters the remainder of 2026 with strong momentum.
The company’s leadership remains optimistic about demand trends tied to AI-enabled manufacturing, robotics adoption, minimally invasive surgical systems, and semiconductor investment cycles.
As industries continue prioritizing automation, precision engineering, and intelligent technologies, Novanta appears well-positioned to capitalize on long-term secular growth opportunities while continuing to deliver operational discipline and shareholder value.
About Net Income
Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, inventory fair value adjustments related to business acquisitions, inventory related charges associated with product line closures, operational transformation costs, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of a Financial and Operation system implementation, charges related to an insurance recovery, officer transition costs, EU medical device regulation charges, write-off of costs related to our debt refinancing, and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above.
