Nordic Semiconductor Posts Record Revenue of $235.5 Million in Third Quarter
Key Facts
Nordic Semiconductor reported revenue of $235.5 million in the third quarter of 2026, up 32% from the same period and 8% from the previous quarter, according to its official report. The company said the figure was its highest quarterly revenue and its highest on a rolling 12-month basis. The result was within its previous guidance range of $220 million to $240 million for the quarter, with gross margin expected to exceed 50%. Gross margin came in at 52.8%, compared with 51.9% a year earlier. Gross profit also rose 33.9% to $124.4 million from $92.9 million. The results reflect growth across multiple markets, while operating cash flow was affected by higher inventory and working capital.
The company attributed revenue growth to broad demand in the consumer market and continued demand from major customers in the industrial and healthcare sectors. It said in its report that this reflected "strong broad-based growth in consumer market demand, and continued healthy demand from major customers in industrial and healthcare." Consumer market revenue was $145.9 million, up 31% year over year and 16% from the previous quarter, accounting for 62% of the total. Industrial and healthcare revenue was $81.1 million, up 30% year over year but down 6% from the second quarter. The company linked the sector's year-over-year growth to continued demand from major customers and a broader customer base. The quarterly comparison shows a divergence between accelerating consumer demand and a decline in industrial and healthcare revenue from the previous quarter.
By product, short-range product revenue rose 30% year over year to $215.9 million and increased 8% from the previous quarter, accounting for 92% of total revenue. Long-range product revenue grew 70% year over year to $16.6 million and 14% from the previous quarter. The company attributed the expansion to higher sales of cellular products and satellite applications, a broader customer base, and growth in its "nRF Cloud" services portfolio. The report said revenue increased across all technologies, with particularly strong growth in long-range business. These activities add a source of growth alongside short-range products, which still account for most sales.
Profitability improved alongside sales growth. Adjusted earnings before interest, taxes, depreciation and amortization rose to $39.8 million from $18.3 million in the third quarter of 2025, while the margin increased to 16.9% from 10.2%. On a reported basis, EBITDA was about $38.5 million, compared with $15.7 million, and its margin rose to 16.4% from 8.8%. Net profit after tax reached $26.9 million, compared with $0.9 million a year earlier. The quarter included tax income of $1.7 million, which the company said resulted from a deferred tax reduction related to the internal transfer of technology it acquired from "Memfault." In the first nine months of 2026, reported net profit was $53.9 million, compared with $12.1 million in the corresponding period.
By contrast, inventory rose to $235.6 million at the end of the quarter, from $133.4 million at the end of the third quarter of the previous year. The company said the increase reflected an early, deliberate build-up of inventory to secure supplies and production capacity, with higher chip purchases to support increased production of next-generation products, particularly the "nRF 54" series. Cash flow from operations fell to $10.1 million from $20.2 million a year earlier, which the company attributed to the inventory build-up and higher net working capital. Cash and cash equivalents totaled $266.8 million at quarter-end, compared with $307.4 million at the end of 2025. Thus, improved earnings indicators coincided with greater use of cash to fund inventory and working capital.
Nordic expects fourth-quarter 2026 revenue of $215 million to $235 million and a gross margin above 50%, after posting a margin of 52.8% in the third quarter. At the midpoint of the guidance range, this would equate to full-year revenue growth of 31%, with gross margin at 52% or higher. The company says revenue and margin trends support its ambition to achieve average annual revenue growth of more than 20% from 2024 through the end of the decade, maintain gross margin above 50%, and progress toward a target EBITDA margin of 25%. The company set Feb. 5, 2027, as the date for announcing fourth-quarter results. Those results will provide the next reading on whether demand that lifted revenue to a record level is continuing, and on the effect of advance inventory spending on operating cash flow.