NVE reports 6% revenue decline in Q2 fiscal 2026

EDEN PRAIRIE, Minn. - NVE Corporation (NASDAQ:NVEC) reported a 6% decrease in total revenue to $6.35 million for the second quarter of fiscal 2026 ended September 30, 2025, compared to $6.76 million in the same period last year. According to InvestingPro data, the company maintains impressive gross profit margins of 82.37% despite the revenue decline, reflecting strong operational efficiency.

The spintronic technology company saw net income fall 18% to $3.31 million, or $0.68 per diluted share, down from $4.03 million, or $0.83 per share, in the prior-year quarter.

The revenue decline was primarily attributed to a 68% decrease in contract research and development revenue, which was partially offset by a 1% increase in product sales.

For the first six months of fiscal 2026, total revenue decreased 8% to $12.5 million, with net income dropping 15% to $6.89 million, or $1.42 per diluted share.

Despite the year-over-year decline, the company reported a 4% sequential revenue increase from the previous quarter, driven by stronger distributor and non-defense sales, according to Daniel A. Baker, NVE’s President and CEO.

The company’s board declared a quarterly cash dividend of $1.00 per share, payable November 28, 2025, to shareholders of record as of November 3, 2025. InvestingPro analysis shows NVE has maintained dividend payments for 11 consecutive years, with a current yield of 5.56%, making it an attractive option for income-focused investors.

NVE manufactures spintronic products including sensors and couplers used to acquire and transmit data. The technology relies on electron spin rather than electron charge to acquire, store, and transmit information.

The financial results were announced in a company press release.

In other recent news, NVE Corporation reported a 10% year-over-year decrease in total revenue for Q2 2025, with product sales experiencing an 11% decline. Despite the downturn in revenue, the company has been focusing on innovation, launching new sensor technologies targeted at the medical and industrial markets. This development reflects NVE Corporation’s efforts to diversify and strengthen its product offerings. While the earnings report highlighted a challenging quarter, the company’s strategic focus on innovation could be seen as a potential avenue for future growth. No analyst upgrades or downgrades were mentioned in recent reports. These developments provide insight into NVE Corporation’s current business trajectory and its ongoing efforts to adapt to market demands.

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