Nova Ltd. (NVMI) Income Statement

The revenue trajectory shows a clear acceleration, with year-over-year growth climbing from 7.3% in 2024Q1 to 50.5% in 2025Q1 before settling at 15.9% in 2026Q2. This pattern suggests a surge in demand for materials metrology tied to Gate-All-Around (GAA) transitions, as reported in recent financial statements. The sequential growth in 2026Q2 (8.4% QoQ) indicates sustained momentum, though the deceleration from peak growth rates warrants monitoring for cyclicality.

Gross margin has been remarkably stable, ranging from 56.4% to 59.0%, with the latest quarter at 56.5%. This stability suggests that Nova's integrated metrology solutions command a premium, supported by high intellectual property content. The slight dip from the 59.0% peak in 2024Q2 may indicate a mix shift toward lower-margin integrated units, but the overall level remains well above peers like ONTO (49.7%) and CAMT (50.5%), underscoring structural margin advantages.

Operating income grew from $37.2M in 2024Q1 to $76.2M in 2026Q2, a 105% increase, while revenue grew 80% over the same period. This indicates that operating expenses are scaling slower than revenue, with R&D and SG&A growing at a combined rate of approximately 55% versus revenue growth of 80%. The operating margin expansion from 26.2% to 29.9% suggests efficient cost management, though investors should monitor whether this leverage persists as growth normalizes.

R&D expenses increased from $24.8M to $39.3M, reflecting continued investment in next-generation metrology, but as a percentage of revenue, R&D declined from 17.5% to 15.4%. SG&A grew from $21.3M to $28.7M, with SG&A as a percentage of revenue dropping from 15.0% to 11.3%. This suggests that Nova is achieving economies of scale, though the absolute increase in R&D is necessary to maintain technological leadership in materials metrology.