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NVE (NVEC) investor relations material
NVE Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for the quarter ended September 30, 2025, declined 6% year-over-year to $6.35 million, mainly due to a 68% drop in contract R&D revenue, partially offset by a 1% rise in product sales driven by non-defense sectors.
Net income for the quarter was $3.31 million ($0.68 per diluted share), down 18% from $4.03 million ($0.83 per share) a year ago, reflecting lower revenue, reduced gross margin, and a higher effective tax rate.
For the first six months of fiscal 2026, revenue decreased 8% to $12.5 million, and net income dropped 15% to $6.89 million, or $1.42 per diluted share.
Sequential revenue grew 4% from the previous quarter, led by strong distributor and non-defense sales, despite a decline in defense sales.
Three new products were launched, and new production equipment was installed to expand capacity and capabilities, with a focus on high-value markets such as medical devices, robotics, and industrial automation.
Financial highlights
Quarterly revenue was $6.3 million (down 6% year-over-year); six-month revenue was $12.5 million (down 8%).
Gross margin for the quarter was 78% (down from 86%); for six months, 79% (down from 86%).
Net income for the quarter was $3.31 million (down 18%); six-month net income was $6.9 million (down 15%).
EPS for the quarter was $0.68 (down from $0.83); for six months, $1.42 (down from $1.68).
Cash and cash equivalents at quarter-end were $5.1 million, down from $8.0 million at March 31, 2025.
Outlook and guidance
Full-year effective tax rate is expected to be 16%-17%, aided by advanced manufacturing investment tax credits.
Sequential growth is anticipated to continue, with optimism for the December quarter and long-term prospects.
Additional $1.0–$1.5 million in fixed asset purchases are anticipated in the second half of the fiscal year for production expansion.
New chip-scale packaging products are expected to drive growth, potentially as soon as the current quarter.
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