Frequency Electronics 2026 Q2 Earnings Revenue Grows 8.3% as Net Income Falls 32.1%

Frequency Electronics (FEIM) reported mixed results for Q2 2026, with revenue rising 8.3% year-over-year but net income declining. The company slightly exceeded revenue estimates and provided raised guidance for Q3, though EPS missed expectations by $0.12. Analysts remain split, with recent downgrades offset by "Buy" ratings from key firms.

Revenue

Revenue for Frequency Electronics increased to $17.13 million in Q2 2026, driven by robust performance across its segments. FEI-NY led the growth with $10.79 million in revenue, while FEI-Zyfer contributed $7.07 million. Intersegment revenues reduced consolidated totals by $732,000, and corporate expenses remained neutral. The company’s diversified product portfolio in aerospace and defense underpinned the overall revenue expansion.

Earnings/Net Income

Earnings per share (EPS) fell 35.7% to $0.18 in Q2 2026, compared to $0.28 in the prior-year period, while net income declined to $1.80 million, a 32.1% drop from $2.65 million. The EPS shortfall reflects operational challenges, including supply chain pressures, despite revenue growth.

Price Action

The stock price of Frequency Electronics edged down 0.94% on the latest trading day but surged 36.35% over the past week and 53.08% month-to-date, reflecting investor optimism amid post-earnings volatility.

Post-Earnings Price Action Review

The strategy of buying Frequency Electronics (FEIM) shares on the date of its revenue raise and holding for 30 days yielded moderate returns over the past three years, with a cumulative profit of $1,467 and a 12.46% annualized ROI based on a $7,200 investment. This approach demonstrated consistent returns by leveraging FEIM’s post-revenue momentum, though investors are cautioned that past performance does not guarantee future results.

CEO Commentary

CEO John R. Krenicki highlighted strong demand in aerospace and defense markets, particularly for timing and synchronization solutions, while acknowledging supply chain challenges. Strategic priorities include accelerating R&D in RF technologies and expanding partnerships in critical infrastructure sectors.

Guidance

For Q3 2026, Frequency Electronics guided to revenue growth of 8–10% year-over-year, with adjusted EPS expected between $0.19 and $0.21. Capital expenditures will rise by 5% to support new product launches, and the company aims to maintain cash flow positivity while managing debt discipline.

Additional News

Wall Street Zen downgraded Frequency Electronics to "Sell" on Dec 14, 2025, citing underperformance, though two analysts maintain "Buy" ratings. Institutional investors, including Millennium Management LLC, increased stakes in Q3 2026, with the latter boosting its position by 403.6%. The stock’s 52-week range of $13.69–$48.35 reflects market volatility, and the MarketBeat consensus price target remains $44.50.