NVE Revenue Falls 8% to $5.83 Million in Second Quarter
Key Facts
NVE reported an 8% decline in revenue in the second quarter of its 2027 fiscal year, to $5.83 million from $6.35 million in the same period a year earlier. The quarter ended September 30, 2026, according to the company’s quarterly report filed with the U.S. Securities and Exchange Commission. Net income fell 4% to $3.17 million, or $0.65 per diluted share, from $3.31 million and $0.68 per share a year earlier. The company scheduled a results call for October 21. In the following session, shares closed at $68.36, down 33.68% from their October 21 close of $103.07, according to historical price data.
The decline in revenue reflected differing trends in its two main components: product sales fell 9% year over year, while contract research and development revenue rose 25%. NVE said in its report that lower product sales resulted from a customer rescheduling orders, along with lower sales of products in the defense segment. The company linked the rescheduling to a temporary change in the customer’s inventory requirements and did not describe medical product sales as experiencing a broad sector-wide decline. By contrast, management said on the results call that distributor sales jumped 67% from the same period a year earlier. It attributed the growth to improved industry conditions and demand for new and existing commercial products, a different trend from the decline in total sales during the quarter.
The quarterly results followed strong growth in the first half of the fiscal year, based on the comparison the company presented in discussing its outlook for the coming period. Management said it expects medical device and defense sales to recover in the current quarter. It also expects revenue in the second half of fiscal 2027 to be consistent with revenue in the first half. That outlook combines an expected recovery in sales in two categories during the current quarter with stable overall revenue in the second half compared with the first. Coverage of the results call did not provide revenue or earnings-per-share forecasts that could be used to compare directly with actual results. The clear comparison in the published figures therefore remains the year-over-year comparison with the corresponding quarter, which showed declines in revenue and net income.
On liquidity, cash and cash equivalents rose to $3,969,958 on September 30, 2026, from $1,714,040 on March 31, 2026. The increase totaled $2,255,918 during the first half of fiscal 2027. The company attributed the higher cash balance to flows from operating and investing activities, net of financing outflows. NVE declared a quarterly cash dividend of $1.00 per common share, payable on November 30, 2026, to shareholders of record on November 2. These figures provide a parallel view of the quarter’s results: lower revenue and income during the period, alongside a higher cash balance over the first half and a declared cash dividend.
The company says defense product sales may be affected by government purchasing cycles, placing the decline in that activity within a pattern tied to the timing of purchases. For the remaining quarters of fiscal 2027, NVE expects its tax rate to range between 13% and 15%. Management said on the results call that it expects medical device and defense sales to recover in the current quarter, with second-half revenue consistent with the first half. The declared cash dividend is payable on November 30 to shareholders of record on November 2. These upcoming milestones remain set out in the company’s disclosures and management comments, following a quarter that recorded year-over-year declines in revenue and earnings despite growth in distributor sales and contract research and development revenue.