Nova Measuring Instruments (NASDAQ:NVMI) shares climbed more than 3% in premarket trading Thursday after the company reported first-quarter results ahead of analyst expectations and issued stronger-than-expected guidance for the current quarter.
Revenue and Earnings Reach Record Levels
Nova posted adjusted earnings per share of $2.33 for the first quarter, exceeding analyst forecasts of $2.19 by $0.14.
Revenue reached a record $235.3 million, surpassing consensus estimates of $223.54 million and increasing 10% from $213.4 million in the same period last year.
The company said the performance was driven by strong demand tied to advanced DRAM manufacturing, along with record sales of its Metrion platform and AncoScene chemical metrology solution.
Company Issues Strong Second-Quarter Guidance
For the second quarter of 2026, Nova forecast revenue between $245 million and $255 million.
The midpoint of the range, at $250 million, came in well above analyst expectations of $227 million.
The company also projected adjusted earnings per share between $2.34 and $2.48, with the midpoint of $2.41 comfortably ahead of the consensus estimate of $2.19.
CEO Highlights Broad-Based Growth
President and chief executive Gaby Waisman said the company delivered record results across multiple business segments.
“This was a record quarter for Nova across every dimension,” Waisman said. “We achieved record revenue and profitability, with service revenue and multiple product lines, spanning optical, materials, and chemical metrology, each reaching all-time high.”
Memory Segment Drives Demand
Nova said revenue from memory-related customers reached record levels during the quarter, supported by ongoing demand for advanced DRAM production technologies.
Service revenue also increased significantly, rising to $49.0 million from $39.4 million in the first quarter of 2025.
Profitability Continues to Improve
Adjusted net income totaled $80.3 million, or $2.33 per diluted share, compared with $70.0 million, or $2.18 per diluted share, in the prior-year quarter.