NVE (NVEC) Q4 2026 earnings summary

Executive summary

• Net income for the quarter rose 27% year-over-year to $4.93 million ($1.02 per diluted share), driven by a 34% increase in non-defense product sales and offsetting a decline in defense and contract R&D sales.

• Total revenue for the quarter increased 5% year-over-year to $7.65 million, and 23% sequentially from the prior quarter.

• Fiscal year revenue grew 1.8% to $26.3 million, with net income up 1% to $15.2 million ($3.14 per diluted share).

• Major expansion completed, increasing capacity and capabilities, especially for wafer-level chip-scale packaging.

• Announced a quarterly cash dividend of $1.00 per share, payable May 29, 2026.

Financial highlights

• Gross margin for the quarter was 78%, slightly down from 79% in the prior year quarter.

• Operating expenses decreased 19% year-over-year, with R&D down 26% and SG&A down 5%.

• Operating income for Q4 was $4.73 million, up from $4.25 million year-over-year.

• Fiscal year gross profit was $20.73 million, down from $21.64 million in the prior year.

• Cash flow from operations for the year was $16.7 million, up 16% from the prior year.

Outlook and guidance

• Management expressed confidence in continued revenue and earnings growth, citing strong performance for the second consecutive quarter.

• Defense sales expected to increase significantly in fiscal 2027.

• Contract R&D revenue also expected to rise in the coming year.

• Optimism for continued product sales growth, supported by favorable semiconductor industry conditions and new products.

• No specific revenue guidance provided, but management expresses confidence in future growth due to increased capacity and inventory.