Nova Ltd. (NASDAQ: NVMI) reported record third-quarter results with a 25% revenue jump to $224.6 million, but the company cautioned that 2026 growth across the semiconductor industry is likely to be “mid-single-digit,” following a year of AI-driven expansion.

The metrology and process control company once again beat analyst estimates, posting non-GAAP earnings of $2.16 per share, a gross margin of 59%, and $67 million in free cash flow. It was Nova’s sixth consecutive record quarter, though the streak may plateau in Q4 2025, with revenue guidance of $215–225 million. The stock fell more than 8% on Nasdaq after the earnings release.

CEO Gaby Weissman attributed the strong results to a rebound in the memory and logic markets—particularly demand for DRAM and HBM chips—alongside growing adoption of Gate-All-Around transistors and advanced packaging technologies.

Nova also expanded its manufacturing footprint with a new facility in Mannheim, Germany, tripling its optical-metrology production capacity. “2025 will mark an all-time-high year for Nova,” Weissman told investors. “Looking ahead to 2026, we expect continued growth, fueled by advanced logic, packaging, and DRAM momentum.”

At the same time, Weissman tempered the market’s exuberance surrounding the global chip boom, noting that Nova anticipates “mid-single-digit” growth in wafer-fab equipment (WFE) spending next year—a more moderate pace than in 2025. “We see WFE growth in the mid-single-digit range,” he said, “with potential upside as AI-driven demand trickles down the supply chain and boosts fab utilization.”

Given Nova’s position at the heart of advanced semiconductor manufacturing, this outlook is viewed as a subtle warning signal for the broader sector. After months of excitement around AI-related investment and new fab construction, Nova suggests that the industry is stabilizing—and that 2025’s rapid acceleration may not repeat at the same clip next year.

The company added that activity in China “normalized” in the second half of the year, with nominal revenue slightly above last year’s level, though the region’s share of total sales declined from 39% to about 30%, reflecting volatility and ongoing export-control uncertainty.

Still, Weissman expressed confidence in Nova’s ability to outgrow the market: “We believe we have the right growth engines and the execution to outperform industry expansion,” he said, pointing to core segments such as advanced packaging, materials, and memory as strategic growth pillars for the coming years.

In sum, Nova continues to demonstrate operational strength and technological leadership—but its CEO’s remarks are a reminder that even in the AI era, the semiconductor market remains cyclical and sensitive. Nova’s report may serve not just as an earnings update, but as an early temperature check for the entire industry.

Photo above: Gaby Waisman (left) and Eitan Oppenhaim

Gaby Waisman, who has served as the Nova’s Chief Business Officer since 2016, has been appointed as CEO and President. Eitan Oppenhaim, Nova’s CEO and President since 2013, has been appointed as Executive Chairman of the Board, succeeding Micha Brunstein. The changes will be effective March 31, 2023. Waisman He oversaw the Company’s business units, global branches, sales, application and service teams. . He is a seasoned leader with more than 20 years of proven management roles in global public companies.

During Oppenhaim’s tenure as CEO, Nova accelerated its growth while strengthening the company’s position across industry segments, territories, and customers. He was also responsible for the successful acquisitions of ReVera and ancosys as part of the Nova’s long-term strategy to diversify its activities. “I am pleased to announce Gaby’s appointment as Nova’s CEO and President,” said Avi Cohen, Nova Interim Chairman of the Board. “Gaby’s appointment reflects the Board’s well-established and thoughtful succession plan.”

Rehovot (Israel) based Nova provides material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Its main competitors are Onto Innovation (formerly Nanometrics and Rudolph Technologies, who have merged in 2019), KLA which manufacture and sell process control systems and process equipment manufacturers such as ASML and Applied Materials. Nova’s total revenues for 2022 were $570.7 million, an increase of 37% compared to total revenues of $416.1 million for 2021.