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Sono-Tek Posts Strong Q3 Profitability Amid Flat Sales

Story Highlights
  • Sono-Tek’s Q3 and nine-month 2026 results showed flat sales but notably higher margins and net income.
  • A record backlog, strong medical and high-ASP system demand, and a debt-free balance sheet bolster Sono-Tek’s growth positioning despite clean-energy softness.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sono-Tek Posts Strong Q3 Profitability Amid Flat Sales

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Sono-Tek ( (SOTK) ) has issued an announcement.

On January 13, 2026, Sono-Tek reported its fiscal third-quarter and nine-month 2026 results for the period ended November 30, 2025, showing stable revenue but significantly improved profitability and margins. Quarterly net sales edged down 4% to $5.0 million yet marked a seventh straight quarter above the $5 million mark, while gross margin expanded to 50% and net income rose 24% to $340,000; for the first nine months, sales were essentially flat at $15.3 million, but gross margin improved to 51% and net income climbed 32% to $1.25 million. The company ended the quarter debt-free with $11.7 million in cash and securities and a record $12.26 million backlog, reflecting strong order momentum driven by high-ASP production systems, medical, electronics and industrial demand, even as policy-driven softness in U.S. alternative energy and electrolysis markets weighed on some product categories and regions. Management highlighted strong growth in in-line coating, OEM and fluxing systems, robust medical and industrial sales, and a mixed geographic picture with higher North American sales offset by declines in Asia Pacific, Latin America and EMEA, underscoring Sono-Tek’s strategic shift toward higher-margin systems and its reinforced positioning for continued, if modest, top-line growth.

The most recent analyst rating on (SOTK) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Sono-Tek stock, see the SOTK Stock Forecast page.

Spark’s Take on SOTK Stock

According to Spark, TipRanks’ AI Analyst, SOTK is a Neutral.

The score is driven mainly by a strong, debt-free balance sheet and positive earnings-call momentum (record first-half results, solid backlog, and medical-device growth). These positives are tempered by weak current cash flow (negative TTM operating/free cash flow) and a high P/E valuation, while technical indicators are broadly neutral.

To see Spark’s full report on SOTK stock, click here.

More about Sono-Tek

Sono-Tek Corporation, based in Milton, N.Y., is a Nasdaq-listed manufacturer specializing in advanced ultrasonic coating systems. Its high-value in-line, multi-axis, OEM and fluxing platforms serve medical devices, electronics and microelectronics, industrial applications, and alternative energy markets worldwide, with particular momentum in medical device coating and high-ASP production systems.

Average Trading Volume: 28,396

Technical Sentiment Signal: Buy

Current Market Cap: $67.23M

Learn more about SOTK stock on TipRanks’ Stock Analysis page.

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