Abstract

Novanta will report fourth-quarter results on February 24, 2026 Pre-Market; this preview compiles the latest quarterly estimates, prior-quarter actuals, segment trends, and institutional commentary to frame expectations for revenue, profitability, and adjusted EPS.

Market Forecast

Consensus and company guidance imply fourth-quarter revenue of $255.56 million, with forecast year-over-year growth of 6.36%, EBIT estimate of $47.93 million with a 20.14% year-over-year increase, and adjusted EPS estimate of $0.88 with a 23.36% year-over-year increase; margin color is limited, though recent gross profit margin and net profit margin levels serve as context. Highlights center on stable demand across Automation and Vision solutions, with solid order flow and incremental pricing supporting margins. The most promising segment appears to be Automation Technology, projected to remain slightly ahead of Vision, contributing $125.32 million last quarter and benefitting from sustained end-market demand; Vision Technology contributed $122.52 million last quarter.

Last Quarter Review

Novanta’s third-quarter results delivered revenue of $247.84 million, gross profit margin of 44.76%, GAAP net profit attributable to the parent company of $10.65 million, net profit margin of 4.30%, and adjusted EPS of $0.87, with year-over-year growth in revenue of 1.40% and adjusted EPS of 2.35%. A key highlight was EBIT of $47.40 million, exceeding estimates and rising 1.37% year-over-year, supported by disciplined cost control and favorable mix. Main business performance showed Automation Technology revenue of $125.32 million and Vision Technology revenue of $122.52 million, with a near-even split that underscores balanced demand across Novanta’s portfolio.

Current Quarter Outlook

Automation Technology

Automation Technology, the largest revenue contributor last quarter, remains central to fourth-quarter expectations. The segment’s momentum has been supported by diversified industrial and medical end-markets, where automation upgrades and precision motion solutions continue to attract resilient budgets. For the current quarter, revenue projections imply a slight tilt toward Automation relative to Vision, consistent with recent performance and order trends. Margin sustainability will hinge on pricing discipline, supply-chain normalization, and product mix; the gross profit margin context of 44.76% last quarter provides a benchmark for what investors will watch in terms of quarterly variation. With EBIT forecast up 20.14% year-over-year and adjusted EPS up 23.36%, the market anticipates operational leverage from Automation, contingent on maintaining volume and mix in higher-value subsystems.

Vision Technology

Vision Technology, nearly equal in size to Automation last quarter, is positioned to contribute steadily this quarter. Demand drivers include machine vision components for inspection, photonics solutions for medical procedures, and imaging subsystems for laboratory automation. The balance between growth and profitability will depend on mix shifts toward higher-margin optical and photonics offerings and the timing of customer programs in medical and life sciences. Investors will focus on whether Vision can track revenue growth comparable to the consolidated 6.36% forecast, while reinforcing margin consistency with the prior-quarter gross profit margin context. Any acceleration in Vision orders, particularly from medical end-markets, could help confirm the implied year-over-year strength in consolidated EBIT and EPS.

Stock Price Drivers

Three factors are likely to exert the most influence on Novanta’s stock around the print: revenue execution versus the $255.56 million estimate, margin cadence versus the 44.76% gross margin context, and the ratio of Automation to Vision revenue mix. A revenue result aligned with or exceeding the 6.36% year-over-year growth expectation could validate demand resilience across Novanta’s core medical and industrial customers. Margin signals will be assessed through gross profit and net profit margin relative to recent levels; a steady gross margin near mid-40s would support the implied uplift in EBIT and adjusted EPS, while any compression could temper enthusiasm. Finally, a mix skew toward Automation, with sustained pricing and value-added subsystems, would reinforce operational leverage and bolster confidence in the EPS trajectory.

Analyst Opinions

Institutional commentary over the past six months points to a cautiously positive stance, reflecting constructive expectations for fourth-quarter revenue and earnings progression alongside balanced views on margin durability. Analysts emphasize upside potential tied to stable end-market demand and disciplined execution, while monitoring mix and cost dynamics. The majority view leans bullish, anticipating that Novanta can meet or modestly exceed revenue and EPS forecasts of $255.56 million and $0.88, respectively, supported by the forecast EBIT uplift of 20.14% year-over-year.