NVMI Q3 Deep Dive: AI Demand, Memory Recovery, and Advanced Packaging Shape Outlook

Core Insights - Nova (NASDAQ: NVMI) reported Q3 CY2025 results with revenue of $224.6 million, exceeding market expectations by 1.5% and showing a year-on-year growth of 25.5% [1][6] - The company provided optimistic guidance for Q4 CY2025, projecting revenue of $220 million, which is 2.4% above analysts' estimates [1][6] - Non-GAAP profit per share was $2.16, aligning with analysts' consensus [1][6] Revenue and Profit Performance - Revenue for Q3 CY2025 was $224.6 million, surpassing analyst estimates of $221.2 million [6] - Adjusted EPS was $2.16, in line with analyst expectations of $2.15 [6] - Adjusted EBITDA was $76.22 million, slightly below the expected $77.19 million, with a margin of 33.9% [6] Market and Demand Insights - The growth in revenue was attributed to strong demand in advanced nodes and packaging, particularly from memory devices like DRAM and high-bandwidth memory [3][5] - CEO Gabriel Waisman noted record service revenues and strong adoption of the ELIPSON and METRION platforms in materials metrology [3] - The company anticipates continued demand for advanced logic, packaging, and memory, driven by AI-related semiconductor manufacturing needs [4] Future Outlook - Management expects that large-scale AI investments will positively impact the semiconductor industry, creating unique process control challenges that Nova is prepared to address [4] - Advanced packaging and gate-all-around processes are projected to be key growth drivers into 2026 [4] Operational Metrics - Operating margin for the quarter was 28.4%, consistent with the same quarter last year [6] - Inventory Days Outstanding decreased to 171 from 180 in the previous quarter [6] - Market capitalization stands at $9.31 billion [6]