Earnings call transcript: NVE Corp. sinks after Q2 2026 revenue decline

NVE Corporation reported a 8% decline in revenue for its fiscal second quarter of 2026, despite maintaining strong profitability. The company's net income fell slightly to $3.17 million, or $0.65 per diluted share, from $3.31 million, or $0.68 per share, a year earlier. Shares initially closed the regular session at $103.07, up 1%, before sliding 18.73% after hours to $83.76 in response to the weaker top line and a cautious outlook.

The decline in revenue was attributed to timing issues, such as a short-term inventory adjustment at a large medical-device customer and a drop in defense sales tied to government procurement cycles. However, management highlighted new products in robotics, automation, and power conversion as future growth drivers, with distributor sales jumping 67% in the quarter, indicating strong demand across a broad product base.

The company's margins remained high, with a gross margin of 78%, operating margin of 55%, and net margin of 54%.

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