Shares of **Frequency Electronics, Inc.** (FEIM) fell 11.4% following their earnings report for the quarter ending January 31, 2026, while the S&P 500 index decreased by 2.1%. The company’s net income declined sharply to **$1.6 million**, or **16 cents per share**, compared to **$15.4 million** and **$1.60 per share** in the same period last year. Revenues totaled **$16.9 million**, down **10.8%** from **$18.9 million** in the prior-year quarter.
Despite the drop in earnings, Frequency Electronics reported a record backlog of **$83 million**, up from **$70 million** at the beginning of the fiscal year, primarily driven by an increase in revenue from U.S. government contracts. Approximately **74%** of quarterly revenues stemmed from these contracts, totaling about **$12.5 million** compared to **$7.4 million** the previous year. Operating income plummeted to **$1.3 million**, reflecting a **63%** decline due to rising costs and a shift in program mix.
The company ended the quarter with a cash balance of **$0.1 million**, a significant drop from **$4.7 million** at the previous fiscal year’s end. Management has expressed confidence in long-term growth prospects, citing recent contract wins amounting to **$45 million** and ongoing investments in emerging technologies.
