NVE Corporation Reports Second-Quarter Fiscal 2027 Results and Declares $1.00 Quarterly Dividend
NVE Corporation, a technology company specializing in spintronics, has announced its financial results for the second quarter and first six months of fiscal year 2027, ended September 30, 2026. The company reported a decline in quarterly revenue and net income compared with the same period last year, while delivering substantial growth in revenue and profitability for the first half of the fiscal year.
Alongside its financial results, NVE announced a quarterly cash dividend of $1.00 per share of common stock. The dividend is scheduled to be paid on November 30, 2026, to shareholders of record as of November 2, 2026.
Second-Quarter Revenue and Earnings
NVE Corporation reported total revenue of approximately $5.83 million for the second quarter of fiscal 2027, representing an 8% decrease from approximately $6.35 million in the corresponding quarter of fiscal 2026. The decline was primarily driven by lower product sales, which were partially offset by growth in contract research and development revenue.
Product sales totaled approximately $5.58 million during the quarter, down from $6.14 million in the prior-year period. This represented a decrease of around 9%, reflecting the main pressure on the company’s quarterly revenue performance.
In contrast, contract research and development revenue increased 25% to approximately $259,420, compared with $208,220 in the second quarter of the previous fiscal year. Although the increase provided some support, it was not sufficient to offset the reduction in product sales.
Gross profit for the quarter reached approximately $4.56 million, compared with $4.97 million a year earlier. Cost of sales declined to approximately $1.27 million from $1.38 million, partially cushioning the impact of lower revenue.
The company recorded total operating expenses of approximately $1.36 million, compared with $1.31 million in the prior-year quarter. Research and development expenses decreased to approximately $727,345 from $873,470, while selling, general, and administrative expenses increased to approximately $630,314 from $436,919.
Income from operations amounted to approximately $3.21 million, down from $3.66 million in the same quarter last year. After accounting for interest income, other income, and income taxes, NVE reported net income of approximately $3.17 million, compared with $3.31 million in the prior-year period.
Diluted earnings per share were $0.65, compared with $0.68 a year earlier. Basic earnings per share stood at $0.66 for the quarter.
First-Half Fiscal 2027 Performance Shows Strong Growth
Despite the decline in second-quarter revenue, NVE delivered a stronger overall performance during the first six months of fiscal 2027.
Total revenue for the six-month period increased 36% to approximately $16.87 million, compared with $12.45 million during the first half of fiscal 2026. Growth was supported by higher product sales and increased contract research and development revenue.
Product sales rose approximately 35% to $16.31 million, compared with $12.05 million in the corresponding prior-year period. Contract research and development revenue increased approximately 38% to $558,742, up from $404,294.
The increase in revenue contributed to a substantial improvement in gross profit, which reached approximately $13.53 million for the first six months of fiscal 2027, compared with $9.89 million a year earlier.
Total operating expenses increased to approximately $3.06 million from $2.45 million. Research and development expenses rose to approximately $1.67 million, compared with $1.59 million, while selling, general, and administrative expenses increased to approximately $1.39 million from $855,559.
Despite higher operating expenses, income from operations increased to approximately $10.47 million, up from $7.44 million in the first half of fiscal 2026.
Net income for the six-month period climbed 39% to approximately $9.57 million, compared with $6.89 million in the prior-year period. Diluted earnings per share increased to $1.97 from $1.42, while basic earnings per share rose to $1.98 from $1.42.
These results indicate that the company’s first-half growth was supported by stronger demand for its products and increased contract research and development activity, even as quarterly performance weakened toward the end of the reporting period.
Management Comments on Financial Results
Peter G. Eames, Ph.D., President and Chief Executive Officer of NVE Corporation, expressed satisfaction with the company’s first-half revenue growth while acknowledging the decline in second-quarter revenue.
He highlighted the 36% increase in revenue for the six months ended September 30, 2026, compared with the same period in the previous fiscal year, despite an 8% year-over-year decrease in revenue during the second quarter.
The results reflect differing trends across the company’s reporting periods, with strong cumulative growth during the first half alongside more challenging quarterly comparisons. Future performance will depend on product sales, contract research and development activity, customer demand, and broader conditions in the industries the company serves.
Balance Sheet and Financial Position
As of September 30, 2026, NVE reported total assets of approximately $59.86 million, compared with $60.38 million as of March 31, 2026.
Current assets increased to approximately $35.06 million from $32.19 million at the end of the previous fiscal year. Cash and cash equivalents rose to approximately $3.97 million from $1.71 million, while short-term marketable securities increased to approximately $19.68 million from $18.13 million.
Long-term marketable securities totaled approximately $20.74 million, compared with $23.68 million at the end of March. Accounts receivable declined to approximately $3.01 million from $3.41 million, while inventories decreased to approximately $6.86 million from $7.08 million.
Total liabilities stood at approximately $1.89 million as of September 30, 2026, down from $2.13 million at the end of the previous fiscal year. Shareholders’ equity totaled approximately $57.98 million, compared with $58.25 million on March 31, 2026.
The balance sheet reflects a relatively low level of reported liabilities and a substantial portfolio of cash and marketable securities. These financial resources provide context for evaluating the company’s financial position, although future results remain dependent on operating performance and market conditions.
Quarterly Dividend Announcement
NVE’s board announced a quarterly cash dividend of $1.00 per share of common stock. Shareholders recorded as of November 2, 2026, are eligible to receive the payment, which is scheduled for November 30, 2026.
The dividend announcement represents an important component of the company’s shareholder return policy. Investors evaluating the dividend should also consider future earnings, cash flows, capital requirements, and the company’s ability to maintain distributions over time.
About NVE Corporation
NVE Corporation is a leader in the practical commercialization of spintronics, a nanotechnology that uses electron spin rather than electron charge to acquire, store, and transmit information.
The company develops and manufactures high-performance spintronic products, including sensors and couplers used in data acquisition and transmission. These technologies support applications that require efficient information transfer and precise sensing capabilities.
Forward-Looking Statements and Business Risks
NVE’s forward-looking statements are subject to risks and uncertainties that could cause actual financial results to differ from expectations. These risks include reliance on several large customers for a significant share of revenue, economic conditions in the industries it serves, uncertainty surrounding future sales, and potential effects from tariffs, customs duties, and other trade barriers.
Investors should also review the risk factors described in the company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
Overall, NVE Corporation’s fiscal 2027 second-quarter results show a modest decline in revenue and earnings, while its first-half performance demonstrates significant year-over-year growth. The declared $1.00 quarterly dividend adds another important development for shareholders as the company continues to navigate changing product sales and research and development demand.
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