Description

Novanta’s 1.10 Book-To-Bill Signal — Can New Product Momentum Keep Building?

Novanta Inc. reported first quarter 2026 results demonstrating revenue growth, solid profitability, and strong cash flow amid evolving macroeconomic and geopolitical conditions. The company recorded 10% reported revenue growth and 3% organic growth, marking an acceleration compared to the prior quarter. Bookings increased by 37% year-over-year with a book-to-bill ratio above parity (1.10), supported by sustained demand across all business segments and robust new product momentum. Adjusted EBITDA rose 14%, with margin expansion of approximately 70 basis points year-over-year, and adjusted diluted EPS increased 9%, despite temporary inflationary and tariff pressures. Segment performance showed broad-based strength. The Medical Solutions segment grew 15% year-over-year, driven by double-digit growth in Advanced Surgery, notably through next-generation insufflators and expanding medical consumables, which now represent around 15% of company revenue.