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NVE (NVEC) investor relations material
NVE Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for Q3 FY2026 increased 23% year-over-year to $6.22 million, driven by 16% growth in product sales and a 335% surge in contract R&D revenue, with broad-based growth across defense, non-defense, distributor, and direct channels.
Net income for Q3 FY2026 rose 11% year-over-year to $3.38 million, or $0.70 per diluted share, up from $3.05 million ($0.63 per share) in the prior-year quarter.
For the first nine months of FY2026, revenue grew 0.4% to $18.7 million, while net income declined 8% to $10.3 million ($2.12 per diluted share).
Operating margin for Q3 FY2026 was 60%, pre-tax margin 68%, and net margin 54%.
Financial highlights
Product sales increased 16% and contract R&D revenue surged 335% year-over-year in Q3 FY2026.
Gross margin declined to 79% from 84% due to less profitable product mix and higher distributor sales.
Operating expenses fell 12% year-over-year, with R&D down 9% and SG&A down 19%.
Interest income for the quarter was $462,000, slightly down from $474,000 year-over-year; other income dropped by $135,000.
Cash and cash equivalents at quarter-end were $3.41 million, down from $8.04 million at March 31, 2025.
Outlook and guidance
Full-year effective tax rate expected at 16%-17% for FY2026, aided by $700,000–$1 million in advanced manufacturing investment tax credits.
Accelerated R&D expense deductions expected to reduce cash taxes by $1.1 million for FY2026.
Optimism for a return to more normal flow in defense business and future sales from R&D investments.
Dividends to be funded through operating cash flow and maturing securities; future dividends subject to board approval and business conditions.
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