Nordic Semiconductor Revenue Rises 31.6% to $235.5 Million in Third Quarter
Key Facts
Nordic Semiconductor reported third-quarter 2026 revenue of $235.5 million, up 31.6% from $179.0 million a year earlier, according to its quarterly report. The results, announced on October 22, exceeded the revenue estimate of $232.52 million shown on Investing.com's earnings calendar. Actual revenue also fell within the company's previously indicated third-quarter range of $220 million to $240 million, according to its pre-close comments. That guidance included an expectation for gross margin to exceed 50%, alongside the company's sales target range for the period. The revenue increase was accompanied by improved profitability compared with the same quarter last year, as sales of connectivity solutions for Internet of Things devices grew.
Net profit rose to $26.9 million in the third quarter from $0.9 million in the corresponding period of 2025, according to the official report. Adjusted earnings before interest, taxes, depreciation and amortization reached $39.8 million, compared with $18.3 million a year earlier. Gross margin rose to 52.8% from 51.9% in the same quarter, supported by the customer and product mix and cloud services, according to the company's explanation. On a quarterly basis, the margin was below the 53.1% recorded in the second quarter, despite improving year on year. Meanwhile, cash flow from operating activities fell to $10.1 million from $20.2 million in the third quarter last year. The report attributed the decline to inventory buildup and increased working capital as sales expanded during the period. Higher net profit and adjusted operating profit thus coincided with a decline in cash generated from operating activities compared with the previous year.
By product, short-range connectivity remained the largest source of sales, generating third-quarter revenue of $215.9 million, according to Investing.com's coverage of the results. Revenue from the business grew 30% year on year and accounted for 92% of the company's sales during the period. In long-range connectivity, Nordic recorded revenue of $16.6 million, according to its quarterly report. The company attributed the business's performance to cellular and satellite sales, alongside an expanding customer base and cloud services. By end market, consumer-market revenue reached $145.9 million in the third quarter. The company said most consumer product categories recorded growth, with demand improving across a range of products within the market. This came alongside continued demand in the industrial and healthcare markets and increased sales of products and cloud services, which the company identified as drivers of its performance.
Nordic provides low-power wireless connectivity solutions for Internet of Things devices, serving consumer, healthcare and industrial markets, according to its investor relations page. Third-quarter growth followed an increase in second-quarter 2026 revenue to $218.6 million from $164.1 million in the corresponding period last year. The year-on-year growth rate then was 33.2%, according to the second-quarter report, compared with the third-quarter growth rate. Third-quarter sales increased from the previous quarter, while their year-on-year growth rate slowed. In pre-close comments published in September, the company reaffirmed its long-term ambition of achieving "average annual revenue growth above 20% from 2024 through the end of the decade."
Looking ahead, Chief Executive Vegard Wollan said during the earnings call that the company was implementing price adjustments across its product portfolio. He added, according to the call transcript published by Investing.com: "We are also implementing price adjustments across our portfolio to reflect the higher cost base." Nordic expects revenue of $215 million to $235 million in the fourth quarter of 2026, according to guidance in its quarterly report. The company said the range was based on customer orders and forecasts, with its upper end below the revenue achieved in the third quarter. The official investor relations calendar set February 5, 2027, as the date for the fourth-quarter results announcement, covering the period following the current results.