NVEC

NVE Corporation recently reported first-quarter 2026 results, with revenue rising to US$11.03 million and net income reaching US$6.39 million, and confirmed a quarterly cash dividend of US$1.00 per share payable on August 31, 2026. An interesting angle for investors is that NVE’s earnings growth came alongside the completion of a long-running share repurchase program, while the company continues to return cash through dividends. We’ll now look at how the combination of stronger earnings and the affirmed US$1.00 dividend shapes NVE’s investment narrative. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. To own NVE, you have to believe in a niche, highly profitable spintronics business that can keep monetizing its intellectual property in industrial, medical, and IIoT applications while running a tightly controlled balance sheet. The latest quarter’s jump in revenue and earnings, alongside another US$1.00 dividend, reinforces the near term story of strong margins and disciplined capital return, and the completion of the long-running buyback removes a small but lingering overhang about incremental repurchases. In the short term, the main catalysts now look more operational than financial: how new CEO Peter Eames steers product development, and whether distribution moves like the Semitech deal translate into sustained demand. Against a share price that has already moved sharply, the bigger risk is that expectations have simply run ahead of what NVE can consistently deliver. However, one key risk around sustainability of those generous dividends is easy to overlook. NVE's shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value. Only one Simply Wall St Community fair value estimate exists at about US$35, far below recent trading levels. Set against NVE’s rapid share price gains and leadership transition, it shows how sharply views can diverge and why it is worth weighing multiple perspectives. Explore another fair value estimate on NVE - why the stock might be worth less than half the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your NVE research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. Our free NVE research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NVE's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NVEC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. NVE (NVEC) is drawing attention after reporting first quarter revenue of US$11.03 million and net income of US$6.39 million, with earnings per share of US$1.32 from continuing operations. See our latest analysis for NVE. Following these results, NVE’s share price has been volatile, falling 12.41% in the last day but posting a 36.20% 7 day share price return and a 96.22% 1 year total shareholder return. This combination signals strong underlying momentum despite short term swings. If earnings driven moves in NVE have your attention, this could be a good time to scan other semiconductor related plays through our AI infrastructure stocks screener 55 AI infrastructure stocks After that sharp 7 day surge in NVE following its latest earnings, the real tension now is straightforward: pay up at today’s price, or wait and risk missing out if the valuation already reflects the good news? Valuation for NVE currently hinges on its P/E of 31.6x at a last close of $117.55. This sits below both direct peers and the wider US semiconductor group. The P/E ratio compares NVE's share price to its earnings per share and is a common way investors weigh what they are paying for each dollar of current profit. For a profitable semiconductor company like NVE, this gives a quick read on how the market is pricing its earnings today versus other listed options. According to the latest data, NVE trades on a P/E of 31.6x, which is slightly below the specific peer average of 33x and far below the broader US semiconductor industry average of 57.9x. That gap suggests the market is applying a more restrained earnings multiple to NVE than to many semiconductor stocks, even though the company reports high quality earnings and a return on equity of 30.1%, which is described as high in the dataset. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 31.6x (ABOUT RIGHT) However, NVE’s relatively small US$568.6m market cap and reliance on a single electronic components segment mean that any demand shock or product disruption could quickly challenge today’s valuation. Find out about the key risks to this NVE narrative. While NVE looks reasonably placed on a 31.6x P/E, our DCF model presents a different perspective, with an estimated value of $35.32 per share versus the current $117.55. That gap points to potential overvaluation based on cash flow assumptions, which raises the question of which analytical lens may be more relevant for your assessment. To see exactly how this cash flow based view is constructed, and what would need to change for the numbers to align more closely, take a closer look at the SWS DCF model output for NVE Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NVE for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With NVE showing both potential strengths and clear question marks, now is a good time to review the full picture yourself and decide what really matters. To balance the upside story with the concerns that have been flagged, take a close look at the 1 key reward and 3 important warning signs. If NVE has sharpened your focus, do not stop here. Use proven filters to surface other stocks that could fit your goals before the next move passes you by. Target potential value opportunities early by scanning companies that combine quality metrics with appealing valuations through the 49 high quality undervalued stocks. Strengthen your income focus by finding companies that offer substantial yields through the 9 dividend fortresses. Prioritize resilience by reviewing companies with steadier risk profiles using the 78 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NVEC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Shares of NVE Corporation NVEC have gained 21.5% since reporting results for the first quarter of fiscal 2027. This compares against the S&P 500 index’s 0.6% decline over the same time frame. Over the past month, the stock has gained 42.3% compared with the S&P 500’s 1.7% return. NVEC reported strong first-quarter fiscal 2027 results, with revenues surging 81% to $11.03 million from $6.10 million in the prior-year quarter. The rise was driven by an 82% increase in product sales and a 53% rise in contract research and development revenues. Net income climbed 79% to $6.39 million, or $1.32 per diluted share, from $3.58 million, or 74 cents per share, in the year-ago period. The company attributed the improvement primarily to higher revenues, partially offset by increased operating expenses and lower interest income. NVE Corporation price-consensus-eps-surprise-chart | NVE Corporation Quote NVEC delivered notable profitability gains during the quarter as higher sales volumes supported margin expansion. The gross margin improved to 81.3% of revenues from 80.6% in the prior-year quarter. The operating margin reached 66%, while the pretax and net margins stood at 78% and 58%, respectively. Total expenses increased 49% year over year, slower than revenue growth, resulting in expenses declining to 15% of revenues from 19% in the year-ago quarter. Research and development expenses increased 31% year over year due to higher staffing and product development activities, while selling, general and administrative expenses rose 81%, primarily reflecting increased performance-based compensation. Interest income declined 10% as the company’s marketable securities portfolio decreased after proceeds from bond maturities were used partly to fund dividends and fixed asset purchases in the prior fiscal year. The company’s balance sheet remained strong during the quarter. Cash and marketable securities totaled $43.9 million as of June 30, 2026, up from $43.5 million at the end of fiscal 2026. Inventories declined 6% during the first quarter due to higher product sales, while accounts receivable increased primarily because of stronger sales and payment timing. Management highlighted new product sales and improving semiconductor market conditions as the key drivers behind the quarter’s performance. CEO Daniel Baker said that the company’s growth was supported by new product sales and a strong semiconductor market. Product sales increased across defense and non-defense product lines, as well as through distributor and direct sales channels. NVEC continued to expand its product portfolio, including the launch of two wafer-level chip-scale sensors for implantable medical devices. The company said that these sensors are approximately one-third the size of conventionally packaged versions and include an MRI-safe feature, allowing stability in magnetic fields exceeding 9 Tesla. Management also noted ongoing development of more precise sensors for robotics and more power-efficient isolators for power conversion. Management emphasized opportunities in the emerging markets such as robotics, artificial intelligence of things (AIoT), data centers and highly automated factories. During the earnings call, vice president of Advanced Technology, Peter Eames, said that robotics represented one of the strongest growth opportunities for NVE Corp’s technology, citing the company’s low-power products and precision capabilities as competitive advantages in automation applications. The company also showcased its technologies at industry events, including Sensors Converge in Silicon Valley and Sensor+ Test in Germany. Management said that these events generated promising leads and could support future sales growth. NVE Corp highlighted its sensor technologies for robotics, AIoT and power conversion applications as areas with long-term growth potential. NVE Corp said its recently completed capacity expansion is beginning to contribute to growth opportunities. Management noted that the expanded capacity is currently being used primarily for research and development activities but is also supporting production, particularly for newer products. The company expects production to gradually shift as new products ramp up. Fixed asset purchases totaled $57,000 in the quarter compared with $1.06 million in the prior-year period, reflecting the completion of the company’s two-year multi-million-dollar expansion. Management expects fixed asset spending in fiscal 2027 to be significantly lower than the previous year following the completion of the expansion program. Management expressed confidence in its long-term growth prospects, citing new products, expanded capacity, customer relationships and exposure to high-growth markets. Executives said that the strong quarter validated the company’s strategy of targeting markets such as robotics and AIoT, while acknowledging that the company does not provide specific forward-looking revenue targets. Management also discussed customer adoption trends, noting that much of the recent new product volume came from existing customers, while new customers were also evaluating newer products. Executives said that new customer engagements typically develop more gradually but could provide growth opportunities. NVEC announced a planned leadership transition, with Daniel Baker retiring as president and CEO effective after the company’s annual meeting in August. The board appointed Peter Eames as his successor, subject to shareholder approval. Baker is expected to remain on the board as chairman, while the company also plans to expand its board from five to seven directors, pending shareholder approval. NVEC announced a quarterly cash dividend of $1 per share, payable Aug. 31, 2026, to shareholders of record as of Aug. 3, 2026. Management noted that earnings covered the dividend for the second consecutive quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVE Corporation (NVEC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Increased 81% to $11 million from $6.1 million in the prior year quarter. Product Sales: Increased 82% across defense and non-defense product lines. Contract R&D Revenue: Increased 53%. Gross Margin: Improved to 81.3% from 80.6% in the prior year quarter. Total Expenses: Increased 49%, with R&D expenses up 31% and SG&A expenses up 81%. Net Income: Increased 79% to $6.39 million, or $1.32 per diluted share, from $3.58 million, or $0.74 per share. Operating Margin: 66%. Pre-Tax Margin: 78%. Net Margin: 58%. Inventories: Decreased by 6% due to increased product sales. Fixed Asset Purchases: $57,000 for the quarter, down from $1.06 million in the same quarter last year. Cash and Marketable Securities: Increased by $391,000 to $43.9 million as of June 30. Warning! GuruFocus has detected 2 Warning Sign with NVEC. Is NVEC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NVE Corp (NASDAQ:NVEC) reported an 81% increase in revenue, reaching $11 million, driven by new product sales and a strong semiconductor market. Net income increased by 79% to $6.39 million, or $1.32 per diluted share, showcasing strong profitability. Gross margin improved to 81.3% of revenue, up from 80.6% in the prior year quarter, due to higher sales volumes. The company launched new wafer-level chip scale sensors for implantable medical devices, featuring MRI-safe technology. NVE Corp (NASDAQ:NVEC) strengthened its balance sheet, with cash plus marketable securities increasing to $43.9 million. Total expenses increased by 49%, driven by a 31% rise in research and development expenses and an 81% increase in selling, general, and administrative expenses. Interest income decreased by 10% due to a reduction in the marketable securities portfolio. Accounts receivable increased significantly, attributed to higher sales and timing of customer payments. The company remains reliant on several large customers for a significant percentage of its revenue, posing a risk. NVE Corp (NASDAQ:NVEC) did not provide forward-looking guidance, creating uncertainty about future performance. Q: Can you attribute the recent revenue increase to capacity expansion or market demand? A: Peter Eames, Vice President - Advanced Technology: Both factors contributed. The recent expansion is primarily used for R&D, but market conditions and new products also played significant roles in driving growth. Q: Are new products being adopted by existing or new customers? A: Daniel Baker, President, CEO: Most new product sales are to existing customers, but we are also gaining new customers. While new customers start slowly, they are promising for future growth. Q: Why did accounts receivable increase significantly? A: Daniel Nelson, Principal Financial Officer: The increase is mainly due to higher sales in the past quarter, with some sales occurring late in the quarter, leading to outstanding invoices at the end of the month. Q: Are there opportunities for NVE's technology in agriculture, particularly with AI and sensor infrastructures? A: Peter Eames, Vice President - Advanced Technology: Yes, our low-power sensors are ideal for unattended networks in agriculture, allowing for effective crop monitoring and data transmission. Q: Can you discuss the momentum in different end markets like robotics, industrial automation, and medical? A: Peter Eames, Vice President - Advanced Technology: Robotics is a particularly strong area for growth, with our products offering precision and low power advantages. This market shows the most promise for our technology. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 81% was primarily driven by a strong semiconductor market recovery and the successful launch of new products across defense and non-defense lines. The company achieved a significant gross margin expansion to 81.3%, attributed to higher production volumes following the completion of a two-year multimillion-dollar facility expansion. Management successfully leveraged operating expenses, which grew at a slower rate (49%) than revenue (81%), resulting in improved operational efficiency and a 66% operating margin. Strategic R&D is focused on transitioning spintronic technologies into high-value sectors including humanoid robotics, data centers, and AI-driven 'fourth wave' factories. The sales strategy emphasizes 'smart sensor edge computing' to provide easy integration for AI and robotics applications, which management identifies as the most promising growth area. A leadership transition is underway with Pete Eames set to succeed Daniel Baker as CEO, intended to maintain strategic continuity while expanding the Board to seven directors for enhanced governance. Management expects fixed asset purchases to be significantly lower in the current fiscal year following the completion of their major capacity expansion project. The company is transitioning its expanded capacity from initial R&D use toward volume production as new product lines ramp up. Future growth is predicated on the 'design-in' of new products by existing high-volume customers and the gradual scaling of new customer acquisitions. Guidance methodology remains conservative; while management declined to provide specific revenue plateaus, they expressed optimism based on improving semiconductor industry conditions. Product development is currently prioritized toward more precise sensors for robotics and power-efficient isolators for the power conversion market. Accounts receivable nearly doubled, which management attributed to the timing of sales concentrated in the third month of the quarter; most of these have since been collected. The company launched its first wafer-level chip scale sensors featuring an MRI-safe feature, capable of withstanding magnetic fields over 9 Tesla. Interest income decreased by 10% as the marketable securities portfolio was partially utilized to fund dividends and fixed asset purchases in the prior year. The Board of Directors is expanding from five to seven members to strengthen corporate governance, coinciding with the CEO succession plan. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the results to both factors, noting that while the expansion was initially used for R&D, it is now being phased into production for new products. The investment in capacity is viewed as a long-term play to support the ramp-up of new product lines. The majority of current volume is coming from existing customers adopting newer parts. New customers are entering the pipeline but typically start with smaller volumes that do not yet significantly impact the top line. Robotics and humanoid automation are identified as the strongest growing and most promising areas for NVE's technology. The company sees a distinct advantage in these markets due to the precision and low power requirements of their spintronic products. Management declined to provide specific forward-looking numbers or confirm a new permanent revenue floor. They characterized the quarter as validation of their strategy to target high-growth markets like robotics and the 'Artificial Intelligence of Things'.

Image source: The Motley Fool. Wednesday, July 22, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Daniel Baker Principal Financial Officer - Daniel Nelson Vice President of Advanced Technology - Peter Eames Daniel Baker: Good afternoon, and welcome to the MD Corporation conference call for the quarter ended June 30, 2026. I'm Dan Baker. The President and CEO. I'm joined by Daniel Nelson, our Principal Financial Officer; and Pete Eames, Vice President of Advanced Technology and This call is being webcast live by YouTube and Google Meet and being reported. A replay will be available for our website, nve.com and our [Operator Instructions] After my opening comment, Daniel Nelson will present our financial results. He will cover new products and R&D, and I'll cover sales mark. I'll also cover our oncoming leadership position and Board expansion. And then we'll open the call to questions. We include our press summary financial results and filed our quarterly report on Form 10-Q in the past hour following the close of Martin. Links to the press release and 10-Q are available through our website, the SEC's website and as formerly known as please refer to the safe harbor statement on your screen. Comments we may make that relate to future plans, events, financial results or performance are forward-looking statements subject to certain risks and uncertainties, including, among others, such factors as our reliance on several large customers significant uncertainties related to the economic environments in the industries we serve uncertainties related to future sales and revenue as well as the risk factors listed from time to time in our filings with the including our annual report on Form 10-K for the year ended March 31, 2026. Actual results could differ materially from the information provided, and we undertake no obligation to update forward-looking statements we may make. We're pleased to report exceptional results our growth accelerated with an 81% increase in revenue and a 79% increase in net income, driven by new product sales and a strong semiconductor market. Daniel Nelson will cover details of the financials. Daniel? Daniel Nelson: Thanks, Dan. As Dan said, first quarter total revenue increased 81% to $11 million from $6.1 million for the prior year quarter. The increase was due to an 82% increase in product sales and a 53% increase in contract R&D revenue. Product sales increased across defense and nondefense product lines, as well as distributor and direct channels. Higher volumes helped boost gross margin for the quarter to 81.3% of revenue compared to 8.6% in the prior year quarter. Total expenses increased 49% due to a 31% increase in research and development expense and an 81% increase in selling, general and administrative expense. The increase in research and development expense was due to increased staffing and new product development activities. The increase in selling, general and administrative expenses was primarily due to increased performance-based compensation. The increase in expenses was less than a revenue increase. So expenses as a percentage of revenue decreased from 19% to 15%. Interest income decreased 10% and due to decrease in our marketable securities portfolio as proceeds from bond maturities partially funded dividends and fixed asset purchases in the prior fiscal year. Net income for the quarter increased 79% to $6.39 million, or $1.32 per diluted share from $3.8 million or $0.74 per share. The increase was primarily due to increased revenue, partially offset by increased operating expenses and decreased interest income. Earnings more than cover above $1 for the quarter was strong. Operating margin was 66%, Pretax margin was 78% and net margin was 58%. Inventories decreased by 6% in the quarter due to increased product sales. Fixed asset purchases were $57,000 for the quarter compared to $106 million in the same quarter was due to the completion of our 2-year multimillion dollar expansion. We expect fixed asset purchases this fiscal year to be significantly less than the prior year with the completion of our expansion. Our balance sheet strengthened in the quarter, with earnings more than covering our dividend. Cash plus marketable securities increased $391,000 to $43.9 million as of June 30 compared to $43.5 million as of March 31. Now I'll turn the call over to Pete Eames to cover new products and research and development. Pete? Peter Eames: Thanks, Daniel. I'll cover new products and R&D. Our R&D strategy is to transition the world's best technologies into the world's best products for high-value markets such as advanced humanoid robotics, data centers and highly automated fourth wave factories using artificial intelligence of things. Just this week, we launched 2 new wafer-level chip scale sensors for implantable medical devices. The new parts are about 1/3 of the area of the conventionally packaged versions, which are already quite small. The even smaller sensors allow miniaturized implantable medical devices. These are our first wafer-level chip scale sensors with a unique and important MRI-safe feature. The sensor functions as a magnetic switch in a normal magnetic field and the sensors are stable to very high magnetic fields of over 9 Tesla, which is more than the fields produced by the strongest MRI machines. MRI safety ensures that the medical device that uses the sensor doesn't fail if the patient needs an MRI. We have a video on our website and YouTube channel showing how we verify this feature using ultra-high-field magnets. In addition to the new product launches, we're developing several new products, including more precise sensors for robotics and more power-efficient isolators for power conversion. Now I'll turn it back over to Dan Baker. Daniel Baker: Thanks, Pete. I'll cover sales and marketing and our upcoming leadership transition. In the past quarter, we exhibited at 2 trade shows focused on sensors. In May, we were at Sensors Converge in Silicon Valley -- which is North America's largest event of its type where we focused on robotics and the artificial intelligence of things or AIoT. We have a strong benefit proposition for those markets, including small size for precise motion and smart sensor edge computing for easy integration with AI. In June, we exhibited a sensor plus test in Germany, which is built as the leading international trade fair for sensors, measuring and testing technology. In addition to robotics and AIoT, the German show was a good opportunity for us to highlight our power conversion products. Videos of several new demos are on our website and our YouTube channel. The shows generated some good leads, and we believe our investments in shows will pay off in future sales. Last month, we announced that I'm retiring as President and CEO, effective as of our annual meeting in August. The Board appointed Pete to succeed me, subject to shareholder approval, I'll remain on the board as Chairman. Current Chairman, Terry Glarner, will remain on the Board, and Pete will join the Board. In addition to the incumbent directors in Pete, the Board has nominated a new Director, Carolyn Valentine, pending shareholder approval, the Board will expand from 5 to 7 directors. The larger Board will strengthen our corporate governance, and we already have the highest possible ISS governance score. Leading NVE has been a privilege. I'm proud of what our team has accomplished and confident the company is well positioned for continued success. The Board conducted a thoughtful succession planning process and unanimously chose Pete as the company's next CEO. He brings extraordinary experience. dedication and judgment, and I know our shareholders will be well served by his leadership in the years ahead. Peter Eames: Dan, on behalf of employees, customers and shareholders, I thank you for many dedicated years of service and pioneering leadership with [ Spintronics ] at NVE. We will continue to benefit from your guidance as Board Chairman. I'm honored to lead NVE as CEO. We have a talented team, strong customer relationships and many exciting opportunities ahead. . I look forward to building on our momentum, creating long-term value for our shareholders through profitable growth, strong shareholder returns and continued Spintronic product excellence. Daniel Baker: Thanks for the kind words, Pete. Now we'd like to open the call for questions via Google Meet. [Operator Instructions] Unknown Analyst: Dan, this from Principal Financial. Congrats on the latest results. I wanted to ask based on the sequential increase you saw in the past quarter, I'm curious if you could attribute or how much you could attribute to the capacity expansion versus market demand as possible. Peter Eames: This is Pete. Thanks for the question. We see both those factors. We've recently completed the expansion that you mentioned, and we started using that capacity primarily for R&D activities. But we also see the market conditions as important factors. We have excellent new products out there now in important new markets, and we're excited about the growth. . Unknown Analyst: Awesome. And just as a quick follow-up, if I may. So it sounds like volume production remains in the existing or the legacy manufacturing facility. And so is it the plan that eventually the expanded capacity will be used for volume production as well? Or is it the plan that it will stay for R&D use cases? Peter Eames: The existing capacity is used for R&D largely now, but it's also being used for production, especially for some of our new products. And it will be continued to phase over as production shifts and the new products ramp up. So we really do see the investment paying off for long term there. Unknown Analyst: This is Aran from Delta Research. I just want to say great work on the quarter. I did have one question. So the release sites new product sales. I was wondering if you could provide any color whether if these new products are going to new customers or are existing customers adopting the newer parts. Daniel Baker: The new products that most of the volume was in existing customers, but we also had new customers and they tend to start out a little bit more slowly. So they don't move the top line an awful lot, but they bode very well for the future. So we were very pleased with the results of having some of our existing customers, design in our newer products and new customers looking at newer products as well. Unknown Analyst: And just a quick question. I noticed your accounts receivable went up not quite double. Some color on that. Daniel Nelson: Mike, this is Daniel Nelson, thanks for the question. So you're right, accounts receivable did increase and most of that increase is driven by increased sales in the past quarter. Timing of customer payments as well contributed to some of that but mostly driven by increased sales in the past quarter. Unknown Analyst: Okay. So does that mean like I don't know what the terms are for payments and so forth. But it sounds like maybe a lot of your increase in sales came on the back end of the quarter versus the front end? Or how does that look? Daniel Nelson: Yes. Some of the sales did happen in the third month of the quarter. And most of those invoices are still outstanding as of the end of the month. But as we speak, most of those have already been collected on. Unknown Analyst: Hello. My name is Dell. I've got a question coming from the fact that I've worked with the insurance crop insurance industry for quite a number of years on metical support analysts and I was looking at some of the technology that topic you NVE, and I'm especially interested if there's any pursuing cases going using DRIP-free-TMIr sensor infrastructures on the field for enhancement of AI, which is only going to grow with agricultural exponentially as with everything else. What is your idea on that, sir? Peter Eames: Yes. Great question. So there are some opportunities there, and particularly the features of NVE products make that an interesting market. We have very low power sensors for unattended networks and unattended sensor nodes that's particularly powerful for crop insurance because we're able to monitor crop conditions directly and then respond quickly as well with our sensor technologies as well. So we're doing sensing and data transmission and both of those areas are important for monitoring the data of crops remotely and responding adequately. Unknown Analyst: If I have some of the ideas, I'm sorry, if I can to agreements -- if I have some other ideas because I've been in the industry for so long, I specialized with remote support. I was wondering could I send them to a place within NVE like for RS 48 wired edge frameworks and other things like that where your cross pattern, node displacements so that it doesn't follow within neighborhood line, so you don't lose whole patents of fields stuff like that. Is there any way of doing that? Daniel Nelson: Absolutely. We've got some of the best customer service in the industry, and we're ready to respond to your inquiries. If you go to our website, there's a sensor apps e-mail address available, and you can submit your questions directly to that. Unknown Analyst: I was wondering, understandably don't give customers by name, but if you could detail any incremental momentum you're seeing by end market, whether that be robotics and humanoids or industrial automation or data centers or medical. I would just be curious to hear maybe how you kind of rank the end markets and the change in momentum lately. Peter Eames: Sure. Thanks, Yes, there's important opportunities, particularly in robotics that we see -- we talked a lot about wafer level chip scale products, including the announcement on the call today. in the previous calls last quarter as well. And we do see some distinct advantages in both low power, but particularly the precision that our products offer in automation and robotics. We'd say that's probably the strongest growing area and the most promising for our technology. Unknown Analyst: Walter Morris, as you know we've been very long-term shareholders in your company. Congratulations on a great quarter. Certainly, the right kind of way to wrap up your long tenure at the company. So kudos. Would you talk about -- I mean, this was an explosive quarter. Now we've had over the years, breakout quarters where revenue run rate, which is consistently over many years, on a quarterly basis, we're on it $6 million to $7 million. And then periodically, we'll have a high single-digit, low double-digit revenue quarter. But at least up to now, there's been a reversion to the kind of $25 million annualized revenue run rate in your business? Very importantly, can you speak to the possibility or the likelihood that this represents a new higher, meaningfully higher plateau and over the next 3 to 5 years, a major increase, hopefully, in strong double digits in the company's secular revenue growth rate. Daniel Nelson: Absolutely, Walter. We see this as evidence and validation of the strategy that we put in place to target some of these very high-growth markets that we've been talking about. Pete mentioned the growth in robotics, which is a fast-growing market where we have a convincing benefit proposition. So while you're right, things might have taken a little longer than we had hoped, we're confident that we have the right strategy. We have products in place. We have a dedicated sales force and distribution network and we have unique products and capacity that we just added. So we're very bullish about the future. Unknown Analyst: So if I just might parities that to make sure I understand it, this current quarter's revenue run rate represents in general, give or take, million, let's say, a new and consistently higher revenue run rate off of which you hope top line grows at healthy double-digit rates going forward. Is that fair? Daniel Baker: Well, Walter, I think you know us well enough to know that we aren't able to give forward-looking guidance but I will -- and particularly with specific numbers that you just alluded to. But I will say we're very optimistic and extremely pleased with we have. Unknown Analyst: Final question, has the momentum of the June quarter continued at least so far into the September quarter? Peter Eames: Walter, it's hard to comment on the numbers for the current quarter. I think the primary factor among the others that Dan mentioned is the improvement in the semiconductor industry, and that's producing a lot of optimism in general. So I think for that reason alone, we're optimistic going forward. And also, as Dan said, we have great products excellent distribution and sales, and we're very excited. Daniel Baker: Well, there are no further questions. So I'd sum up with saying we were pleased to report a blowout quarter with an 81% increase in revenue, a 79% increase in net income and $1.32 earnings per share. We look forward to meeting some of you at our Annual Shareholders Meeting August 6 here at NVE. Our next earnings call will be in October. A replay of this call will be available on the investor events page of our website at nve.com and our YouTube channel that's youtube.com/nvecorporation. Before you buy stock in Nve, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nve wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. NVE (NVEC) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Interested in NVE Corporation? Here are five stocks we like better. NVE posted a strong Q1, with revenue rising 81% to $11 million and net income climbing 79% to $6.39 million, driven by higher product sales, new products, and improved semiconductor market conditions. Profitability remained very high even as expenses increased, with gross margin at 81.3%, operating margin at 66%, and net margin at 58%. Earnings also covered NVE’s $1-per-share dividend for a second straight quarter, while cash and marketable securities edged up to $43.9 million. Management highlighted growth opportunities in robotics, AIoT, and medical devices, including newly launched MRI-safe wafer-level sensors for implantable devices. The company also announced CEO Dan Baker will retire in August, with Peter Eames set to succeed him as part of a broader board expansion. Will Fed Rate-Hike Pause Lead To Small-Cap Outperformance? NVE (NASDAQ:NVEC) reported a sharp increase in revenue and earnings for the quarter ended June 30, 2026, with management citing higher product sales, new products and a stronger semiconductor market as key drivers. President and CEO Dan Baker said the company delivered “exceptional results,” including an 81% increase in revenue and a 79% increase in net income. The results were released shortly before the company’s earnings call, along with NVE’s quarterly report on Form 10-Q. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Principal Financial Officer Daniel Nelson said total revenue rose to $11 million from $6.1 million in the prior-year quarter. Product sales increased 82%, while contract research and development revenue rose 53%. Nelson said product sales increased across defense and non-defense product lines and through both distributor and direct channels. Net income rose to $6.39 million, or $1.32 per diluted share, from $3.58 million, or $0.74 per share, a year earlier. Nelson said the increase was primarily due to higher revenue, partly offset by increased operating expenses and lower interest income. → 3 Photonics Companies Making Quantum Tech Possible NVE’s gross margin increased to 81.3% of revenue from 80.6% in the prior-year quarter, helped by higher volumes, Nelson said. Total expenses rose 49%, including a 31% increase in research and development expense and an 81% increase in selling, general and administrative expense. Nelson attributed the higher R&D expense to increased staffing and new product development activity. The increase in SG&A expense was primarily due to higher performance-based compensation. Even with the expense growth, total expenses as a percentage of revenue declined to 15% from 19% because revenue grew faster than costs. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Nelson said NVE’s profitability metrics remained strong during the quarter: Operating margin was 66%. Pre-tax margin was 78%. Net margin was 58%. Interest income declined 10%, which Nelson said reflected a decrease in the company’s marketable securities portfolio after proceeds from bond maturities partially funded dividends and fixed asset purchases in the prior fiscal year. NVE’s quarterly earnings more than covered its $1-per-share dividend for the second consecutive quarter. Cash plus marketable securities increased to $43.9 million as of June 30 from $43.5 million as of March 31. Inventories declined 6% during the quarter due to increased product sales. Fixed asset purchases were $57,000, down from $1.06 million in the year-earlier quarter. Nelson said the decline followed the completion of NVE’s two-year, multimillion-dollar expansion and said fixed asset purchases are expected to be “significantly less” this fiscal year than in the prior year. Peter Eames, NVE’s vice president of advanced technology and successor CEO, said the company’s R&D strategy is focused on turning its technologies into products for high-value markets such as advanced humanoid robotics, data centers and highly automated factories using what the company calls the Artificial Intelligence of Things. Eames said NVE launched two new wafer-level chip scale sensors for implantable medical devices during the week of the call. He said the new parts are about one-third the area of conventionally packaged versions and are designed to support miniaturized implantable medical devices. The new sensors are NVE’s first wafer-level chip scale sensors with what Eames described as an MRI-safe feature. He said the sensors function as magnetic switches in normal magnetic fields and remain stable in very high magnetic fields of more than 9 tesla, above the fields produced by the strongest MRI machines. Eames said MRI safety helps ensure a medical device using the sensor does not fail if a patient needs an MRI. Eames also said NVE is developing more precise sensors for robotics and more power-efficient isolators for power conversion. Baker said NVE exhibited at two sensor-focused trade shows during the quarter: Sensors Converge in Silicon Valley in May and Sensor+Test in Germany in June. At Sensors Converge, the company focused on robotics and AIoT, while the German event also gave NVE an opportunity to highlight its power conversion products. Baker said the shows generated “some good leads” and that management believes the company’s investments in trade shows will contribute to future sales. During the question-and-answer portion of the call, Eames said both recent capacity expansion and market demand contributed to the company’s sequential increase. He said the recently completed expansion is being used primarily for R&D, but also for production, especially for some newer products. He added that production is expected to continue shifting as new products ramp. Asked about demand by end market, Eames said robotics represents one of the most promising areas for NVE’s technology. He cited advantages in low power and precision for automation and robotics, calling that area “probably the strongest growing” and most promising for the company’s products. In response to a question about new product sales, Baker said most of the volume came from existing customers adopting newer products, while new customers were also evaluating newer products. He said new customers tend to start more slowly but “bode very well for the future.” Baker also discussed NVE’s previously announced leadership transition. He said he will retire as president and CEO effective as of the company’s annual meeting in August, and the board has appointed Eames to succeed him. Subject to shareholder approval, Baker will remain on the board as chairman, current Chairman Terry Glarner will remain on the board, and Eames will join the board. The board has also nominated Carolyn Valentine as a new director. If shareholders approve the nominees, the board will expand from five to seven directors. Baker said the larger board would strengthen corporate governance and noted that NVE already has the highest possible ISS governance score. He said the board conducted a thoughtful succession planning process and unanimously chose Eames as the company’s next CEO. Eames thanked Baker for his service and said he looked forward to building on NVE’s momentum through “profitable growth, strong shareholder returns” and continued spintronic product excellence. Management did not provide specific forward-looking revenue guidance. In response to a shareholder question about whether the quarter represented a new higher revenue base, Baker said NVE could not provide guidance with specific numbers but described the company as “very optimistic” and said the quarter validated its growth strategy. NVE Corporation (NASDAQ:NVEC) is a technology company specializing in the development, manufacturing, and marketing of spintronic products. The company's core expertise lies in magnetoresistive sensing and magnetic-field-based digital isolation, leveraging patented spin-valve and tunneling magnetoresistance technologies to deliver high-performance, low-power solutions. NVE's product portfolio includes magnetic sensors for current, position, and angle sensing applications, as well as micro-isolators and digital isolators that provide galvanic isolation in industrial, automotive, medical, instrumentation, and consumer electronics systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NVE Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

NVE Corporation has reported past full-year results to March 31, 2026, with revenue of US$26.33 million and net income of US$15.2 million, and affirmed a quarterly dividend of US$1.0000 per share payable on May 29, 2026. The combination of steady earnings per share of US$3.14 and a sustained cash dividend underlines NVE’s focus on consistent shareholder returns. We’ll now examine how NVE’s steady full-year earnings and maintained quarterly dividend shape the company’s broader investment narrative. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. To own NVE, you really need to buy into the idea of a mature, cash-generative niche semiconductor business where stability matters more than rapid expansion. The latest full-year numbers reinforce that picture: revenue and earnings edged up only slightly, but the board still signed off on another US$1.00 quarterly dividend, extending a long pattern of unchanged payouts. That mix of modest growth and firm capital returns tends to keep the near term story focused on two things: how durable current demand is for NVE’s products and how comfortably ongoing dividends are covered. Given the incremental nature of this result, it probably does not reset the main catalysts or risks, but it does keep questions around dividend sustainability and valuation front and center for the next leg of the share price move. However, there is an important question around how comfortably that dividend is covered by cash flows that investors should be aware of. NVE's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price. Investors in the Simply Wall St Community have one fair value estimate at US$38.33 per share, far below recent trading levels. Set against NVE’s steady but modest earnings progression and rich recent share price gains, that gap underlines why it helps to review several viewpoints before deciding how the current risk reward balance looks. Explore another fair value estimate on NVE - why the stock might be worth as much as $38.33! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your NVE research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free NVE research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NVE's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: We've uncovered the 13 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Uncover the next big thing with 27 elite penny stocks that balance risk and reward. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 30 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NVEC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]