Novanta's Strong Bookings Signal Momentum in AI, Robotics Markets

BOSTON, MA – May 11, 2026 – Novanta Inc. (Nasdaq: NOVT) today announced first-quarter financial results that paint a picture of a company firing on all cylinders operationally, even as some headline GAAP figures showed a slight decline. While GAAP revenue grew a healthy 10.4% to $257.7 million, the standout figure was a massive 37% year-over-year surge in bookings, signaling powerful demand for its core technologies that power advancements in medicine, robotics, and advanced manufacturing.

The technology partner to global equipment manufacturers posted an adjusted diluted earnings per share (EPS) of $0.81, beating expectations and rising 9.5% from the previous year. This performance, coupled with a robust 63% increase in operating cash flow, underscores a deep financial strength that looks beyond surface-level accounting metrics and points toward a confident growth trajectory for the remainder of 2026.

“Novanta delivered another quarter of excellent bookings, growing 37% year-over-year and representing a 1.10 book-to-bill ratio, driven by continued new product momentum and strong commercial execution by our business teams,” said Matthijs Glastra, Chair and Chief Executive Officer, in the company's official release.

Decoding the Financials: A Tale of Two Metrics

For investors parsing Novanta’s Q1 2026 report, the story is one of divergence between standard accounting (GAAP) and adjusted (non-GAAP) results. While revenue saw a double-digit increase, GAAP operating income fell to $27.5 million from $32.4 million in the prior year, and GAAP diluted EPS slipped to $0.51 from $0.59.

This apparent contradiction is explained by several factors that adjusted, non-GAAP metrics are designed to clarify. The company’s GAAP results were impacted by a rise in operating expenses, including an $8.8 million increase in Selling, General, and Administrative costs and over $2.6 million in restructuring and acquisition-related charges. Furthermore, a slight compression in GAAP gross margin to 44.1% from 44.7% reflected higher material and freight costs, a persistent issue across the manufacturing sector.

However, when these items are excluded, the underlying operational health of the business becomes clearer. Non-GAAP adjusted operating income climbed to $43.2 million, and adjusted EBITDA grew a strong 14.2% to $57.1 million. Perhaps the most telling indicator of Novanta's efficiency is its cash generation. The company’s operating cash flow jumped to $51.6 million, a 63% increase from the $31.7 million generated in the same quarter of 2025. This surge, driven by improvements in working capital management, provides the firm with significant financial flexibility for investment and strategic initiatives.

Bookings Surge Points to Future Growth

The most significant forward-looking indicator in Novanta's report is the exceptional growth in customer orders. The 37% increase in bookings resulted in a book-to-bill ratio of 1.10. This ratio, where a figure above 1.0 indicates that more orders were received than were filled, means the company's backlog of future work is growing, providing strong revenue visibility for the upcoming quarters.

This demand is not isolated to a single area. The company reported growth across both of its major segments. The Automation Enabling Technologies segment, which serves industrial markets, saw revenue climb to $131.2 million. Meanwhile, the Medical Solutions segment posted even faster growth, with revenues increasing nearly 15% to $126.5 million, underscoring the company’s strengthening position in high-value medical applications.

This strong order book is the foundation for the company's optimistic forecast. It reflects not just a healthy market environment but also what management describes as successful commercial execution and the impact of new products gaining traction with customers.

Powering the Engines of Innovation

Novanta’s results are a direct reflection of its strategic position as a critical technology enabler for some of the world's most dynamic industries. The company doesn't make the end product that consumers see; it makes the high-precision components and subsystems that make those products possible. Its expertise lies in photonics, vision, and precision motion, which are fundamental to progress in its key end markets.

As highlighted by CEO Matthijs Glastra, Novanta is seeing building momentum in several high-growth areas:

• AI-Driven Industrial and Semiconductor Markets: As manufacturers increasingly adopt automation and AI to improve efficiency, demand for Novanta's laser processing, robotic components, and precision motion systems is rising. These technologies are essential for tasks like semiconductor wafer inspection, laser welding, and high-speed, automated quality control.

• Advanced Robotics: The robotics revolution extends beyond the factory floor into logistics, warehousing, and services. Novanta's motion control and automation technologies provide the accuracy and reliability required for these increasingly complex robotic systems to function.

• Minimally Invasive and Robotic Surgery: In the medical field, Novanta's components are integral to the surgical tools and robotic systems that are transforming healthcare. Its medical-grade insufflators, pumps, and visualization technologies enable surgeons to perform complex procedures with greater precision and less patient trauma. The strong growth in the Medical Solutions segment highlights the accelerating adoption of these advanced surgical techniques.

Strategic Execution and a Confident Outlook

Building on the first quarter's momentum, Novanta issued an optimistic forecast that anticipates an acceleration in its organic growth. The company is projecting organic revenue growth to step up to a range of 6% to 8% for the second quarter of 2026. For the full year, it expects GAAP revenue to land between $1.04 billion and $1.055 billion.

This confidence is also supported by the company's strategic initiatives, including its acquisition strategy. In the first quarter, recent acquisitions contributed $9.0 million in revenue, demonstrating that Novanta is successfully integrating new businesses to broaden its technology portfolio and market reach.

“We see building momentum across several of our end markets... all of which look set to compound as the year continues,” Glastra stated. “We remain confident in delivering strong organic revenue growth for the full year and rigorously executing in a dynamic trade and economic climate to drive meaningful shareholder value.” This forward-looking confidence, backed by a growing order book and strong positioning in secular growth markets, sets a positive tone for Novanta's performance through the rest of 2026.