NOVT
Novanta Inc.

Novanta Inc.NOVT

Technology · Scientific & Technical Instruments
135.15USD
+2.53%
Nov 08, 2026
NOVT overview ready
Precision robotics components supplier for humanoid and advanced industrial robots
Novanta is a precision-robotics component supplier: through ATI and its broader motion-control portfolio, it supplies six-axis force/torque sensing, robotic end-of-arm tooling, encoders, servo drives and precision-motion technologies to robotics OEMs alongside its larger medical and advanced-industrial businesses.
Primary theme is lagging
Robotics / Automation is lagging (-6.7pp vs SPY over 21 sessions; 3 of 10 members ahead of SPY).
Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / ebitda is weak.
Primary risk
Execution risk related to Riverpoint integration.
Market Nov 6Filing Jul 3Price action Nov 7Research Oct 23

Conviction Level

PriceAction5.4BusinessPerformance5.0BusinessQuality8.0Valuation2.8ThemeMomentum1.0Mixed — Revenue is growing at a steady pace (+10% year over year). Reported earnings improved faster than operating income, so most of the improvement did not come from operations. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−6.7pp
Theme return
−11.7%
Beating SPY
3 of 10
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$5.1B
Avg Volume (60D)
406.8K
60 sessions
Revenue Growth YoY
+3.3%
FY2025 vs FY2024
Gross Margin
+44.5%
Trailing twelve months
Operating Margin
+9.0%
Trailing twelve months
Free Cash Flow Yield
+2.2%
Distance from 200DMA
-5.1%
Next Earnings
2026-11-09
P/E
82.8x
EV / EBITDA
30.0x
EV / Sales
4.5x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jul 3, 2026
Filed balance-sheet data as of Jul 3, 2026

Business Performance

Mixed

Revenue is growing at a steady pace (+10% year over year). Reported earnings improved faster than operating income, so most of the improvement did not come from operations.

Latest reported: Q2 FY2026, ended Jul 3
Revenue growthGrowing
+10%
$266M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +1.4%
  2. +8.5%
  3. +10%
  4. +10%
Earnings growthAccelerating
+150%
Diluted EPS $0.30 vs $0.12 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. -43%
  2. -2.2%
  3. -14%
  4. +150%
Operating marginStable
6.8%
+0.6 pp YoY · gross margin 45.5% (+1.2 pp)
Earnings improved more than operations did
The comparison is against a weak year-ago quarter
The share count is rising

Business Quality

8.0 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say expensive; own history is the dissenting view.
Novanta Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 2.2% free-cash-flow yield and 30.0x EBITDA, which require sustained delivery to be justified.

Company Research

Thesis
Novanta is a precision-robotics component supplier: through ATI and its broader motion-control portfolio, it supplies six-axis force/torque sensing, robotic end-of-arm tooling, encoders, servo drives and precision-motion technologies to robotics OEMs alongside its larger medical and advanced-industrial businesses.
Opportunity
High opportunity
Adoption of humanoid and other contact-capable robots drives demand for high-precision force/torque, tactile and related feedback sensing needed for dexterous manipulation, safe physical interaction and closed-loop motion control.
Key risk
Execution risk related to Riverpoint integration.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Scientific & Technical Instruments
What they do

Novanta Inc. designs, manufactures, and supplies precision components and systems for medical, industrial, and robotics applications through its Automation Enabling Technologies and Medical Solutions segments.

How it earns

The company generates revenue primarily through transactional sales of precision hardware and integrated solutions to OEMs and end customers.

Products & services
Laser beam steering and scanning solutions
Laser sources
Robotic and precision motion components
Robotic end-of-arm tooling
Six-axis force/torque sensors
Bearing spindles
Customers & end markets
Medical device manufacturers
Advanced industrial manufacturers
Robotics OEMs
Market position

Niche leader in precision robotics components and medical technology solutions.

Demand drivers
Medium cyclicality

Demand tied to capital spending cycles in medical and advanced industrial manufacturing sectors.