NVE Corporation Q4 2026 Earnings Recap

Shares rose 4.2% as the company delivered better-than-expected growth in nondefense product sales and improved profitability, overshadowing ongoing weakness in defense-related revenues and contract R&D.

Key Takeaways

• Total revenue increased 5% year-over-year to $7.65 million in Q4, driven by a 34% increase in nondefense product sales.
• Defense sales declined sharply by 79% year-over-year, consistent with volatile defense procurement cycles.
• Gross margin slightly compressed to 78% from 79%, but operating expenses fell 19%, aiding a 27% increase in net income to $4.9 million ($1.02/share).
• Contract R&D revenue decreased 19%, with expectations for recovery in the coming fiscal year.
• Fiscal 2026 capital expenditures peaked at $2.19 million as the company completed a multi-year expansion, with capex expected to decline significantly in fiscal 2027.