NVE's Q4 2025 Earnings Call: Key Contradictions on Revenue Growth, Medical Devices, and CapEx Impact

Revenue growth and inventory liquidation, medical device sales and market outlook, CapEx investment and revenue improvement, customer commitments and market demand, and spintronic magnetometers and opportunity in electric vehicles are the key contradictions discussed in NVE's latest 2025Q4 earnings call. These contradictions could lead to different expectations about the company's future performance, impacting investor decisions or market confidence.



Revenue and Earnings Growth:
- NVE Corporation reported a 3% year-over-year increase in revenue and a 44% sequential revenue growth for the quarter, with a 2% increase in earnings.
- The growth was driven by a 558% increase in contract R&D revenue and interest in new products, despite a 1% decrease in product sales.

Investments in R&D and CapEx:
- The company increased its R&D spending to 14% of revenue in the past year and planned $2 million to $3 million in capital investments for fiscal 2026.
- These investments were primarily for new product development and expanding manufacturing capacity, aimed at future growth and competitive positioning.

Expansion in Medical and Industrial Markets:
- New product introductions focused on medical devices and industrial controls, including advanced magnetic sensors and wafer-level chip scale sensors.
- These products aim to enhance performance, accuracy, and efficiency, meeting customer demands and expanding the total addressable market (TAM).

Tariff and Trade Barrier Management:
- NVE positioned itself to mitigate tariff risks, with ample inventories and strategically sourced raw materials, limiting exposure to tariffs and retaliatory measures.
- The company leveraged exceptions for semiconductors and country of origin classifications to minimize the impact of tariffs on its operations and profitability.