NVEC · NVE Corporation

NVE Corporation delivered strong Q4 FY2026 results with total revenue of $7.65 million, up 5% year-over-year, driven by a 6% rise in product sales to $7.40 million that more than offset a 19% decline in contract research and development revenue to $0.26 million. Gross profit expanded to $5.95 million from $5.75 million, supported by controlled cost of sales at $1.71 million. Expenses fell sharply, with R&D down to $0.77 million from $1.04 million and SG&A to $0.44 million from $0.47 million, boosting operating income 11% to $4.73 million. Interest income of $0.45 million contributed to pre-tax income of $5.18 million, with a low tax provision of $0.25 million yielding net income of $4.93 million or $1.02 per diluted share, a 27% increase. For full FY2026, revenue edged up 1.8% to $26.3 million on 2.4% product sales growth to $25.2 million, tempered by an 11% drop in contract R&D to $1.1 million. Despite higher cost of sales at $5.6 million, lower expenses—R&D down to $3.2 million and SG&A to $1.7 million—kept operating income stable near $16 million. Net income rose modestly 1% to $15.2 million or $3.14 per share. Balance sheet remains fortress-like with $60.4 million total assets, $32.2 million current assets including $1.7 million cash and $18.1 million short-term marketable securities, minimal $2.1 million liabilities, and $58.2 million equity, down slightly from prior year due to dividends. The $1.00 quarterly dividend, payable May 29 to May 18 record holders, underscores robust cash generation and shareholder returns. Management expressed pleasure with 'strong revenue and earnings growth for the second consecutive quarter,' highlighting spintronics leadership amid customer concentration risks.