Novanta Inc. reported a significant increase in financial performance for the second quarter of 2026, with total revenue reaching $265.8 million, a 10.3% increase from $241.0 million in the same period last year. For the first half of 2026, revenue totaled $523.5 million, also reflecting a 10.3% rise compared to $474.4 million in the prior year. The company attributed this growth to increased sales in both its Automation Enabling Technologies and Medical Solutions segments, as well as favorable foreign currency exchange impacts.
Operating income for the second quarter was $18.1 million, up 21.1% from $14.9 million in the previous year, driven by a gross profit increase of $14.2 million. However, operating income for the first half of 2026 decreased slightly to $45.6 million from $47.3 million in the prior year, primarily due to higher selling, general, and administrative expenses. Net income for the quarter was $12.5 million, resulting in basic earnings per share of $0.31, compared to $0.12 in the same quarter last year.
In terms of strategic developments, Novanta completed a private placement of common shares in June 2026, raising approximately $300 million. This capital will support ongoing operations and future acquisitions, including the recent acquisition of Riverpoint Medical for $1.2 billion, which is expected to enhance Novanta's position in the medical solutions market. The company also reported an increase in its employee headcount, reflecting its growth strategy and expansion efforts.
Operationally, Novanta's Automation Enabling Technologies segment saw revenue increase by 12.0% to $136.2 million for the quarter, while the Medical Solutions segment grew by 8.6% to $129.6 million. The company reported a total of 37.8 million common shares outstanding as of July 3, 2026, following the issuance of new shares in the private placement. The company continues to focus on expanding its market share in both medical and advanced industrial sectors, with plans to invest in new product development and enhance its operational efficiencies.
Looking ahead, Novanta remains optimistic about its growth trajectory, despite potential challenges from macroeconomic conditions, including inflation and supply chain disruptions. The company plans to leverage its recent acquisitions and investments to drive future revenue growth and improve profitability. Management emphasized the importance of maintaining operational flexibility and adapting to changing market conditions to sustain its competitive advantage.
About NOVANTA INC
Novanta Inc. is a global provider of advanced technology solutions for medical and industrial OEMs. It designs and manufactures precision laser, motion control, imaging, and sensing components, serving markets like minimally invasive surgery, robotics, additive manufacturing, and life sciences. Its core value lies in proprietary innovations, high-performance products, and long-term customer relationships, supporting complex applications with a focus on quality, regulatory compliance, and technological leadership.
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