NVE Corporation (NVEC) experienced a 20.4% stock decline since its fiscal Q1 2026 earnings report on June 30, 2025, contrasting with a 0.9% increase in the S&P 500 during the same period. The company reported total revenues of $6.10 million, down 10% from $6.78 million year-over-year, attributed mainly to an 11% decrease in product sales.
Net income fell 13% to $3.58 million, or 74 cents per diluted share, compared to $4.10 million or 85 cents per share in the prior year. Gross profit dropped to $4.92 million, reflecting an 81% gross margin, down from 86% the previous year. Operating income was $3.78 million, with a 62% operating margin, while total operating expenses decreased by 20% year-over-year to $1.14 million.
Looking ahead, management expects quarter-over-quarter growth in defense product sales and positive trends in distributor sales. NVE also declared a quarterly dividend of $1.00 per share, payable August 29, 2025, while continuing to strategically invest in wafer-level packaging technology aimed at medical and industrial markets.
