NVE (NVEC) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 revenue fell 8.1% YoY to $5.83M and net income fell 4.2% to $3.17M; H1 revenue rose 35.5% to $16.87M and net income rose 38.9% to $9.57M.

• Q2 product demand softened amid customer order rescheduling and lower defense sales; H1 growth spanned defense and non-defense sales across direct and distributor channels.

Financial highlights

• Q2 operating income was $3.21M versus $3.66M YoY; diluted EPS was $0.65 versus $0.68.

• H1 operating income rose 40.7% to $10.47M; diluted EPS was $1.97 versus $1.42.

• H1 operating cash flow was $11.13M; cash and cash equivalents increased to $3.97M from $1.71M at March 31, 2026.

Outlook and guidance

• FY2027 H2 revenue is expected to be consistent with H1; management expects medical-device and defense sales to recover in the current quarter.

• Management expects growth across products, including new products, and anticipates revenue increasingly coming from new customers as products gain acceptance.

• Strong order flow and inventory are expected to support anticipated orders; recent expansion capacity may shift further toward production as orders grow.

• FY2027 fixed-asset purchases are expected to be significantly below FY2026 following completion of the prior-year expansion.