Description

Novanta: Why Warehouse Automation Revenue Could Be the Breakout Story in 2026!

Novanta Inc., a key player in the precision motion, vision, and photonics industries, highlighted a mixed yet cautiously optimistic picture in their third-quarter 2025 earnings call. The company reported a slight 1% increase in reported revenues reaching $248 million, despite a 4% decline in organic revenue. Noteworthy is the robust performance in new product revenue, which saw a near 60% increase year-over-year, and a 17% year-over-year growth in customer bookings, indicating a strengthening market outlook. Positive momentum was evident, particularly in Advanced Surgery and Robotics and Automation. The Advanced Surgery segment experienced significant growth, driven by novel product releases, particularly insufflators, which not only meet new safety standards but also promise strong revenue potential extending into 2026 and beyond. Robotics and Automation also demonstrated strong demand, particularly in physical AI applications such as warehouse automation, precision robotics, and humanoids.