Novanta is a high-quality scientific instruments company with a perfect Piotroski score, excellent free cash flow conversion of 162%, and four consecutive earnings beats, but negative price momentum with a falling on-balance volume and a price already above analyst consensus targets reduce near-term appeal.
Thesis pillars
- Exceptional Cash Conversion And Quality→Stable
- Consecutive Earnings Beat Streak↓Deteriorating
- Negative Price Momentum↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 23, 2026
Novanta Inc. (NOVT) Stock Analysis
Breakout setup · Catalyst-Driven edge
Technology · Scientific & Technical Instruments
Sell if holding. At $151.18, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.4%; Sector modifier (Technology): -0.8.
Novanta supplies precision motion, laser, and medical-grade component subsystems to OEMs in two segments: Automation Enabling Technologies ($500.8M in 2025 revenue) and Medical Solutions ($479.8M). Customers are predominantly medical, life science, and advanced industrial OEMs... Read more
Sell if holding. At $151.18, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.4%; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Score 5.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Novanta Inc.
About Novanta Inc.
Novanta reported 2025 segment revenue of $500.8 million in Automation Enabling Technologies (47.8% gross margin) and $479.8 million in Medical Solutions (41.6% gross margin), with the medical end market comprising 53% of consolidated revenue and advanced industrial 47%. Two unnamed OEM customers in the medical segment each represented approximately 12% and 11% of 2025 consolidated revenue. The company employs approximately 3,000 people globally — 36% in the U.S., 55% in Europe, 9% in Asia — including about 600 engineers.
Novanta generates revenue from OEM customers who integrate the company's proprietary components into their own systems, with products sold primarily through a direct technical sales force and supplemented by resellers and distributors. Once Novanta components are designed into an OEM platform, significant switching barriers typically persist through the end of the product lifecycle, especially in the medical market. Supply chain risk exists because certain principal products rely on a limited number of suppliers or, in some instances, a single source of supply; the company has also outsourced key subassembly manufacturing to suppliers in other countries, heightening geopolitical and tariff exposure. U.S. tariffs on Chinese exports increased manufacturing costs and Chinese retaliatory tariffs affected finished products sold into China, and the 10-K warns that further tariff escalation may weigh on results.
Show full overview
Two unnamed OEM customers each representing approximately 12% and 11% of 2025 consolidated revenue have been material to the medical segment for multiple years — one OEM in the medical market also accounted for roughly 10% of revenue in both 2024 and 2023. Medical OEM customer demand depends on hospital capital spending cycles, OEM product launch timing, and regulatory changes, all outside Novanta's direct control. Consolidated backlog was $481.2 million at December 31, 2025, up from $445.5 million at year-end 2024, providing partial forward visibility, though the 10-K notes backlog is not a complete revenue indicator because customers retain the ability to reschedule orders.
See also: Technology · Scientific & Technical Instruments
From Novanta Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-30Recent Developments — Novanta Inc.
Latest news
- NEWS Will Novanta (NOVT) Beat Estimates Again in Its Next Earnings Report? - Yahoo Finance — Yahoo Finance positive
- NEWS Will Novanta (NOVT) Beat Estimates Again in Its Next Earnings Report? - finance.yahoo.com — finance.yahoo.com positive
- NEWS Novanta (NOVT) Earnings Expected to Grow: What to Know Ahead of Next Week's Release - Yahoo Finance — Yahoo Finance neutral
- NEWS Novanta (NOVT) Earnings Expected to Grow: What to Know Ahead of Next Week's Release - finance.yahoo.com — finance.yahoo.com positive
- NEWS Is It Too Late to Buy Novanta Inc (NOVT) After 3.1% Rally? GF Va - GuruFocus — GuruFocus positive
Generated 2026-10-30T12:27:49Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $151.18, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 9.4%; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Prior stop was $140.60. Score 5.7/10, moderate confidence.
Analyst target: $165.32 (+9.4% upside). Prior stop was $140.60. Stop-loss: $140.60.
Thin upside margin: 9.4%; Sector modifier (Technology): -0.8.
Novanta Inc. trades at a P/E of 95.7 (forward 34.6). TrendMatrix value score: 4.8/10. Verdict: Sell.
9 analysts cover NOVT with a consensus score of 4.3/5. Average price target: $195.
What does Novanta Inc. do?Novanta supplies precision motion, laser, and medical-grade component subsystems to OEMs in two segments: Automation...
Novanta supplies precision motion, laser, and medical-grade component subsystems to OEMs in two segments: Automation Enabling Technologies ($500.8M in 2025 revenue) and Medical Solutions ($479.8M). Customers are predominantly medical, life science, and advanced industrial OEMs served through a direct technical sales force and select distributors.