Novanta beats Q2 revenue estimates on organic growth, raises 2026 guidance

Novanta

05/08/2026 22:00

Overview
US medical technology supplier's Q2 revenue rose 10%, beating analyst expectations
Adjusted diluted EPS for Q2 increased 17%, beating analyst expectations
Company closed Riverpoint Medical acquisition, expected to boost growth and profitability

Outlook
Novanta sees Q3 2026 GAAP revenue between $300 mln and $304 mln
Company expects Q3 2026 Adjusted EBITDA of $74 mln to $77 mln and Adjusted Diluted EPS of $0.95-$1.00
Novanta raises full-year 2026 guidance, sees GAAP revenue at $1.13 bln to $1.14 bln, Adjusted EBITDA at $273 mln to $278 mln, and Adjusted Diluted EPS at $3.68-$3.74

Result Drivers
ORGANIC REVENUE GROWTH - Co said Q2 revenue rose 9.3% organically, marking its strongest organic growth since Q1 2023
SEGMENT PERFORMANCE - Automation Enabling Technologies segment drove revenue growth, while Medical Solutions posted smaller gains

Company press release: ID:nBw3037Pna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$265.80 mln
$262.30 mln (3 Analysts)
Q2 Adjusted EPS
Beat
$0.89
$0.83 (3 Analysts)
Q2 Consolidated Net Income
 
$12.50 mln
 
Q2 Adjusted EBITDA
Miss
$60.70 mln
$61.41 mln (3 Analysts)
Q2 Adjusted Operating Income
Beat
$47.50 mln
$45.48 mln (3 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy."
Wall Street's median 12-month price target for Novanta Inc. is $175.00, about 9.7% above its August 4 closing price of $159.49
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 35 three months ago

Reuters Recommended Reads
Aug 5 - Allient Q2 revenue beats estimates on industrial automation, data center growth
Aug 4 - Emerson Electric beats quarterly estimates on robust automation demand
Aug 5 - Zimmer Biomet tops quarterly estimates, lifts profit forecast on strong implant demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)