Novanta Monthly Outlook (December 2025) | Price, Target Price & Growth

Novanta

NasdaqGS:NOVT

$ 122,63

$0,00 (0,00%)

122,63 $

$0,00 (0,00%)

End-of-day quote: 12/25/2025

Novanta Stock Value

Currently, analysts rate Novanta as Outperform.

Outperform

Novanta Company Info

EPS Growth 5Y

7,55%

Market Cap

$4,39 B

Long-Term Debt

$0,41 B

Short Interest

4,57%

Annual earnings

02/24/2026

Dividend

$0,00

Dividend Yield

0,00%

Founded

1968

Industry

Information Technology

Country

United States

ISIN Number

CA67000B1040

Website

http://www.novanta.com

Analyst Price Target

$154,00

25.58%

Last Update: 12/26/2025

Analysts: 2

Highest Price Target $170,00

Average Price Target $154,00

Lowest Price Target $138,00

In the last five quarters, Novanta’s Price Target has fallen from $186,75 to $161,11 - a -13,73% decrease. Three analysts predict that Novanta’s share price will increase in the coming year, reaching $154,00. This would represent an increase of 25,58%.

Top growth stocks in the information technology sector (5Y.)

What does Novanta do?

Novanta Inc. and its subsidiaries (Novanta) operate as a global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (OEMs). The company combines deep proprietary technology expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery, with a proven ability to solve complex technical challenges. This enables it to engineer core components and sub-systems that deliver extreme p...

Novanta Inc. and its subsidiaries (Novanta) operate as a global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (OEMs).

The company combines deep proprietary technology expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery, with a proven ability to solve complex technical challenges. This enables it to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the company's demanding applications.

Acquisitions

On January 2, 2024, the company completed the acquisition of Motion Solutions Parent Corp. (Motion Solutions), an Irvine, California based provider of highly engineered integrated solutions, specializing in proprietary precision motion and advanced motion control solutions. The addition of Motion Solutions enhances the company's product portfolio and further expands the company's presence in attractive medical and precision medicine applications. The Motion Solutions acquisition is included in the company's Medical Solutions reportable segment.

Strategy

The company's strategy is to drive sustainable, profitable growth through short-term and long-term initiatives, including:

a disciplined focus on the company's diversified business model of providing components and sub-systems to long life-cycle OEM customer platforms in attractive medical and advanced industrial niche markets;

improving the company's business mix to increase medical sales as a percentage of total revenue by:

introducing new products aimed at attractive medical applications, such as minimally invasive and robotic surgery, ophthalmology, patient monitoring, drug delivery, clinical laboratory testing, and life science equipment;

deepening the company's key account management relationships with, and driving cross-selling of the company's product offerings to, leading medical equipment manufacturers; and

pursuing complementary medical technology acquisitions;

increasing the company's penetration of high growth advanced industrial applications, such as laser materials processing, intelligent end-of-arm robotic technology solutions, robotics, laser additive manufacturing, automation, and metrology, by working closely with OEM customers to launch application-specific products that closely match the requirements of each application;

broadening the company's portfolio of enabling proprietary technologies and capabilities through increased investment in new product development, and investments in application development to further penetrate existing customers, while expanding the applicability of the company's solutions to new markets;

broadening the company's product and service offerings through the acquisition of innovative and complementary technologies and solutions in medical and advanced industrial technology applications;

expanding sales and marketing channels to reach new target customers; and

improving the company's existing operations to expand profit margins and improve customer satisfaction by implementing lean manufacturing principles, strategic sourcing across major production sites, and optimizing and limiting the growth of the company's fixed cost base.

Segments

The company operates through two segments: Automation Enabling Technologies and Medical Solutions.

Automation Enabling Technologies

The Automation Enabling Technologies segment designs, manufactures and markets laser beam delivery components, laser beam delivery solutions, CO2 lasers, solid state lasers, ultrafast lasers, optical and inductive encoders, precision motors, integrated stepper motors, servo drives, motion control solutions, intelligent robotic end-of-arm technology solutions, and air bearing spindles to customers worldwide. The segment serves highly demanding applications for advanced industrial processes, advanced industrial and medical robotics, other medical and life science automation applications, and medical laser procedures, such as ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

The Automation Enabling Technologies segment comprises the following eight product lines:

Laser Beam Delivery Components: Galvanometer and polygon optical scanning components that provide precise control and delivery of laser beams through motorized manipulation of mirrors and optical elements and are integrated by OEM manufacturers with their controlling hardware and software. Advanced industrial applications include additive manufacturing, packaging converting, laser marking, micromachining and metrology. Medical applications include optical coherence tomography imaging, microscopy, and laser-based vision correction.

Laser Beam Delivery Solutions: Galvanometer and polygon optical scan heads that provide precise control and delivery of laser beams through motorized manipulation of mirrors and optical elements in multi-axis scan heads, highly integrated scanning subsystems, and controlling hardware and software. Advanced industrial applications include additive manufacturing, packaging converting, laser marking, micromachining and metrology. Medical applications include optical coherence tomography imaging, microscopy, super-resolution imaging, and laser-based vision correction.

CO2, Solid State, and Ultrafast Lasers: Continuous and pulsed CO2 lasers with power ranges from 5 to 400 watts. Diode-pumped solid-state lasers and ultrafast lasers in the visible to near-infrared. Applications include coding, marking, engraving, cutting and trimming of non-metals, fine materials processing, additive manufacturing, packaging converting, microscopy, micromachining, super-resolution imaging and medical applications in dental and dermatology.

Optical and Inductive Encoders: Optical and inductive encoders for precision motion control and sensing in semiconductor and electronics manufacturing, industrial and medical robotics, metrology, satellite communications, autonomous vehicles, medical devices, and laboratory and diagnostics equipment.

Precision Motors and Integrated Stepper Motors: Direct drive motor components, integrated motion control solutions, and integrated motion sub-assemblies for precision motion control in semiconductor and electronics manufacturing, industrial and medical robotics, autonomous vehicles, automation equipment, metrology, satellite communications, agricultural robotics, medical devices, and laboratory and diagnostics equipment.

Servo Drives and Motion Control Solutions: Precision motion servo drives and control software used in industrial robotics, medical robotics, autonomous vehicles, satellite communications, and medical equipment.

Intelligent Robotic End-of-Arm Technology Solutions: Robotic accessories and end-of-arm tooling, including tool changers, multi-axis force torque sensors, utility couplers, material removal tools, collision sensors, and compliance devices. Applications include advanced industrial and medical robotics.

Air Bearing Spindles: High-speed and precision air bearings and air bearing spindles. Applications include printed circuit board (“PCB”) manufacturing, automotive coating, and semiconductor manufacturing equipment.

Medical Solutions

The Medical Solutions segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators and endoscopic pumps and related disposables, laser beam delivery solutions, video processing and streaming and capture, machine vision technologies, radio frequency identification (“RFID”) technologies, barcode identification technologies, thermal chart recorders, light and color measurement technologies, touch panel displays, and advanced motion control solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

The Medical Solutions segment comprises the following ten product lines:

Medical Insufflators, Endoscopic Pumps, and Related Disposables: Insufflators, endoscopic pumps, and related disposables, as well as other accessories for minimally invasive surgery.

Video Processing and Streaming and Capture: Imaging management, including real-time distribution, documentation, control, recording, and streaming for surgical applications. High definition wireless transmission of video in minimally invasive surgical equipment.

Touch Panel Displays: Embedded capacitive and resistive touch panel technology that delivers high-performance solutions.

Machine Vision: Camera-based machine vision products and solutions used for image analysis within medical devices and advanced industrial applications.

RFID Technologies: RFID technologies via High-Frequency (HF) and Ultra-High Frequency (UHF) readers, writers, and antennas for applications, such as surgical part tracking and counterfeit detection.

Barcode Identification: Embedded and handheld data collection products for barcode identification.

Thermal Chart Recorders: Rugged thermal chart recorders for patient monitoring, defibrillator equipment, blood gas analyzers, and pulse oximeters.

Light and Color Measurement: Light and color measurement devices, including spectroradiometers, photometers, and color characterization software, used in research and development, and quality control testing.

Laser Beam Delivery Solutions: Optical light engine products that integrate lasers into light engines with full beam parameter control. Applications include DNA sequencing.

Advanced Motion Control Solutions: High-precision, customized subsystems and components, specializing in proprietary precision motion and advanced motion control solutions.

End Markets

The company primarily operates in two end markets: the medical market, and the advanced industrial market.

Medical Market

For the year ended December 31, 2024, the medical market accounted for approximately 55% of the company's revenue. Revenue from the company's products sold to the medical market is generally affected by hospital, life science, and other healthcare provider capital spending, growth rates of surgical procedures, changes in regulatory requirements and laws, demand levels for life science automation technology, aggregation of purchasing by healthcare networks, changes in technology requirements, timing of OEM customers’ product development and new product launches, changes in customer or patient preferences, and general demographic trends.

Advanced Industrial Market

For the year ended December 31, 2024, the advanced industrial market accounted for approximately 45% of the company's revenue. Revenue from the company's products sold to the advanced industrial market is affected by a number of factors, including changing technology requirements and preferences of its customers, productivity or quality investments in a manufacturing environment, the financial condition of the company's customers, changes in regulatory requirements and laws, and general economic conditions.

Customers

The company has a diverse group of customers that includes companies that are global leaders in the medical and advanced industrial markets. Many of the company's customers participate in several market industries. During the year ended December 31, 2024, revenue from an OEM customer primarily in the medical end market accounted for approximately 10% of the company's consolidated revenue.

The company's customers include many OEMs who integrate its products into their systems for sale to end users. A typical OEM customer will usually evaluates the company's products and its ability to provide application knowledge and expertise, post-sales application support, supply chain management over long durations, manufacturing capabilities, product quality, global presence, and product customization before deciding to incorporate the company's products into their products or systems. Customers generally choose suppliers based on several factors, including product performance, reliability, application support, price, breadth of the supplier’s product offerings, the financial condition of the supplier, and the geographical coverage offered by the supplier.

Seasonality

While the company’s revenues are not highly seasonal on a consolidated basis, sales from some of its individual product lines are impacted in the first quarter (year ended December 31, 2024) by the lower seasonal spending patterns of its customers due to their annual capital budgeting cycles.

Marketing, Sales and Distribution

The company sells its products globally, primarily through its direct sales force. The company also uses distributors, including manufacturers’ representatives, to either augment its selling effort or serve a local market where it has no direct sales force. The company's local sales, applications, and service teams and its distributors work with its customers to ensure customer satisfaction with its products. The company has sales and service centers located in the United States, Europe, and Asia.

To support its sales efforts, the company maintains and continues to invest in a number of application centers around the world, where its application experts work closely with customers on integrating and using its solutions in their equipment. The company maintains service and application centers in the United States, Europe, and Asia.

Patents and Intellectual Property

The company holds many registered and pending patents in the United States and other countries. In addition, the company has trademarks registered in the United States and other countries.

Cambridge Technology, Synrad, Laser Quantum, ARGES, WOM, NDS, Med X Change, Reach Technology, JADAK, ThingMagic, Photo Research, Motion Solutions, General Scanning, ATI Industrial Automation, Celera Motion, IMS, MicroE, Applimotion, Zettlex, Ingenia and Westwind are the brand and trade names of the company.

Research and Development and Engineering Expenses

The company’s research and development and engineering expenses were $95.5 million, in 2024.

Government Regulation

Certain products manufactured by the company is integrated into systems by its customers that are subject to regulation by the Federal Food and Drug Administration (the FDA) and foreign regulatory authorities.

The company’s manufacturing processes are required to comply with the applicable portions of the Quality System Regulation (QSR), which cover the methods and the facilities and controls for the design, manufacture, testing, production, processes, controls, quality assurance, labeling, packaging, distribution, installation and servicing of finished devices intended for human use.

Until May 25, 2021, medical devices were regulated by the Council Directive 93/42/EEC (EU Medical Devices Directive) which has been repealed and replaced by Regulation (EU) No 2017/745 (EU Medical Devices Regulation). The company’s certificates have been granted and renewed under the EU Medical Devices Directive.

History

The company was founded in 1968. It was incorporated in Massachusetts in 1968. The company was formerly known as GSI Lumonics Inc. and changed its name to GSI Group Inc. in 2005. Further, the company changed its name to Novanta Inc. in 2016.

Novanta Questions and Answers

Which sectors generate sales and which are the top 3 markets?

Industry Revenues: Photonics: approx. 45% Precision Motion: approx. 35% Vision Technologies: approx. 20% TOP 3 Markets and their Percentage Shares: USA: 40% Europe: 30% Asia-Pacific: 25% Novanta Inc. generates the majority of its revenues from the photonics industry, followed by precision motion...

At which locations are the company’s products manufactured?

Production sites of Novanta Inc.: USA Germany China Novanta Inc. is a globally operating company specializing in the manufacturing of precision components and systems. The production facilities are located in several countries, including the USA, Germany, and China. This geographical diver...

What strategy does Novanta pursue for future growth?

Strategy for Future Growth: Novanta Inc. pursues a growth strategy based on innovation, strategic acquisitions, and market expansion. The company continuously invests in research and development to expand its product range in the field of high-precision technologies. This includes photonics, vision...

Which raw materials are imported and from which countries?

Main raw materials: Optical components, electronic components, metals Countries of origin: China, Germany, Japan, USA Novanta Inc. is a company specializing in the production of high-precision technologies, particularly in the fields of photonics and precision motion. The key raw materials and mater...

How strong is the company’s competitive advantage?

Market Share: Estimated 5-10% in specialized niches (2025) R&D Expenses: 8% of revenue (2024) EBITDA Margin: 20% (2024) Novanta Inc. has gained a significant competitive advantage through its specialization in high-precision technologies and solutions in the fields of photonics, vision, and prec...

What is the share of institutional investors and insider buying/selling?

Institutional Investor Share: 90% (estimated, based on historical data from 2023) Insider Buys/Sells: No significant transactions in the last 12 months (estimated, based on historical trends) Novanta Inc. has traditionally had a high institutional investor share, which has been around 90% in the pas...

What percentage market share does Novanta have?

Market share of Novanta Inc.: Estimate 3-5% (2025) Top Competitors and Market Shares: Danaher Corporation: Estimate 10-12% Thermo Fisher Scientific Inc.: Estimate 8-10% Agilent Technologies, Inc.: Estimate 6-8% Teledyne Technologies Incorporated: Estimate 5-7% MKS Instruments, Inc.: Estimate 4-6%...

Is Novanta stock currently a good investment?

Revenue Growth: 10% (2024) Profit Growth: 8% (2024) R&D Expenses: 7% of revenue (2024) Novanta Inc. recorded solid revenue growth of 10% in 2024, driven by strong demand for its technological solutions in the medical technology and industrial automation sectors. The 8% profit growth indicates th...

Does Novanta pay a dividend – and how reliable is the payout?

Dividend payment: No dividend (as of 2023) Novanta Inc. currently does not pay a dividend. The company has focused in the past on reinvesting profits into the growth and expansion of the business rather than distributing dividends to shareholders. This strategy may indicate that Novanta Inc. continu...

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Novanta Stock Value

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Top growth stocks in the information technology sector (5Y.)

What does Novanta do?

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