Novanta Inc

Novanta raised its full-year revenue guidance to $1.14 billion at the midpoint from $1.05 billion, an 8.4% increase, after reporting second-quarter results that beat analyst estimates. Revenue came in at $265.8 million versus estimates of $262.3 million, up 10.3% year over year, while adjusted EPS of $0.89 beat the $0.83 consensus. Management also lifted full-year adjusted EPS guidance to $3.71 at the midpoint, a 3.8% increase, and set EBITDA guidance at $275.5 million, above analyst estimates of $249.4 million. CEO Matthijs Glastra attributed the strong quarter to broad-based organic growth across all business units, with new product revenue up more than 50% year over year, driven by demand in precision robotics, AI-driven manufacturing, and minimally invasive surgery. During the earnings call, analysts pressed management on the impact of the Riverpoint Medical integration, humanoid robotics orders, and Gen AI data center exposure, with CFO Robert Buckley noting expected 100 basis point gross margin improvements in 2026 and 2027.

Novanta Inc. raised its revenue outlook after reporting a 37% year-over-year increase in bookings, reinforcing confidence that organic growth is broadening across its portfolio. The precision technology solutions provider saw improving demand across robotics, medical technologies, semiconductor equipment, and AI-related applications. Conestoga Capital Advisors highlighted Novanta as a notable performance contributor in its second-quarter 2026 investor letter. Novanta shares gained 34.63% over the past 52 weeks and closed at $153.12 on August 5, 2026, with a market capitalization of $5.45 billion.

Novanta has been upgraded to a Zacks Rank #2 (Buy) following an upward revision in earnings estimates, signaling stronger near-term profit expectations. The company recently issued full-year 2026 revenue guidance of US$1,040 million to US$1,055 million, while first-quarter 2026 results showed modest earnings and margin pressure. The improved outlook may depend on cost controls, a mix shift in Advanced Surgery, and acquisition-driven growth rather than a quick rebound in weaker segments. Key risks include muted organic growth and exposure to trade and tariff pressures.