Nova Ltd. (NVMI) posted record third‑quarter 2025 results, reporting total revenue of $224.6 million, up 2 % from the second quarter and 25 % from the same period a year earlier. Net income reached $61.4 million, translating to GAAP earnings per diluted share of $1.90 and non‑GAAP EPS of $2.16. The company’s gross margin settled at 56.7 %, slightly below the 57.8 % margin reported in Q2 2025 but above the 56.6 % margin in Q3 2024. The modest margin compression is attributed to a shift toward higher‑volume, lower‑margin memory metrology contracts and increased cost of goods sold, while pricing power in the advanced packaging segment helped offset the dip.
Operating expenses rose to $63.6 million, up from $61.6 million in Q2 2025, driven by higher research and development and sales‑marketing spend. Despite the expense increase, the company reported a non‑GAAP operating income of $63.9 million, a figure that reflects the company’s ability to maintain profitability through operational leverage and cost discipline. The non‑GAAP operating income is lower than the $72.85 million reported in some sources, indicating that the company’s GAAP operating income was closer to $63.9 million after adjusting for one‑time items.
Segment performance underscored the drivers of growth: advanced packaging and Gate‑All‑Around (GAA) tool sales accounted for a significant portion of revenue, while memory metrology solutions continued to expand. The company’s advanced packaging segment benefited from strong demand in AI‑driven semiconductor manufacturing, and GAA tool sales grew as customers accelerated adoption of next‑generation process nodes. The memory metrology segment, although experiencing a slight margin squeeze, contributed to the overall revenue increase through volume gains.
Guidance for the fourth quarter remains optimistic: revenue is projected between $215 million and $227 million, and non‑GAAP diluted EPS is expected to range from $2.02 to $2.22. The guidance reflects management’s confidence that demand for advanced packaging and GAA tools will continue to accelerate, while cost controls will keep margins stable. The company reiterated its expectation that 2025 will be a record year, citing sustained AI‑driven demand and the expansion of its product portfolio.
President and CEO Gaby Waisman highlighted the quarter as a “record performance” driven by “the highest ever sales in memory and advanced logic.” She added that the company’s Nova WMC platform is “a testament to our commitment to deliver cutting‑edge solutions that seamlessly adapt to evolving process demands.” Waisman also noted that the company’s focus on high‑margin segments and strategic investments in next‑generation technologies positions it well for long‑term growth.
Analysts noted that Nova’s non‑GAAP EPS of $2.16 beat consensus estimates of $2.12, a $0.04 or 19 % beat, while revenue of $224.6 million surpassed the $221.2 million to $222.2 million range forecast by analysts. The earnings beat was largely driven by strong demand in the advanced packaging and GAA tool markets, which offset the margin compression in the memory metrology segment.
The company faces headwinds from pricing pressure in the memory metrology segment and rising raw‑material costs, but tailwinds from AI‑driven semiconductor manufacturing and the rapid adoption of GAA technology provide a robust growth trajectory. Management’s guidance signals confidence in maintaining profitability while scaling its advanced metrology solutions, suggesting a resilient outlook for the remainder of 2025.
The results reinforce Nova’s strategic focus on high‑margin, high‑growth segments and demonstrate its ability to capture market share in the evolving AI and GAA semiconductor markets. The company’s continued investment in R&D and its expanding product portfolio position it for sustained profitability and shareholder value creation.
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