Jerash Holdings 2026 Q2 Earnings Revenue Beats Estimates, EPS Misses by $0.06

Jerash Holdings (JRSH) reported fiscal 2026 Q2 earnings on Nov 13, 2025, with revenue rising 4.3% to $41.97 million (beating estimates) and EPS declining 20% to $0.04 (missing estimates by $0.06). The company guided to 19–21% Q3 revenue growth, signaling optimism despite near-term margin pressures from diversification.

Revenue

Total revenue increased by 4.3% year-over-year to $41.97 million, driven by higher U.S. shipments and a diversified customer base. This growth outpaced the $41 million consensus estimate, reflecting strong demand from both long-standing and new clients.

Earnings/Net Income

Net income fell to $479,303 in Q2 2026, a 27.9% decline from $664,549 in Q2 2025. The EPS drop of 20% to $0.04 underscores margin pressures from product mix diversification and customer expansion, despite robust revenue performance.

Price Action

JRSH’s stock edged up 0.62% in the latest trading day but declined 0.61% over the past week. Month-to-date, the stock gained 1.24%, reflecting mixed short-term market sentiment.

Post-Earnings Price Action Review

The strategy of buying JRSH when revenue beats and holding for 30 days appears promising, supported by the company’s 19–21% Q3 revenue growth target, 15% manufacturing capacity expansion, and a 36.78% analyst price target upside. While near-term gross margins may dip due to diversification, long-term automation and scale improvements are expected to restore profitability. Historical outperformance, such as the 0.07% Q1 revenue beat, further bolsters confidence. However, market volatility and geopolitical risks necessitate a diversified approach.

CEO Commentary

Chairman and CEO Lin Choi highlighted Jordan’s strategic advantage as a manufacturing hub, noting, “Apparel exports to the U.S. remain significantly more favorable than other sourcing countries.” He emphasized capacity expansion, diversification, and long-term growth through automation and strategic acquisitions. CFO Gilbert Lee outlined Q3 guidance: 19–21% revenue growth and 13–15% gross margin, with a $0.05 quarterly dividend.

Guidance

Jerash anticipates Q3 2026 revenue to rise 19–21% year-over-year, with gross margin targeting 13–15%. Operating expenses are expected to remain stable, and the company plans to maintain its $0.05 dividend per share.

Additional News

Jerash declared a $0.05 quarterly dividend, payable Nov 26, 2025, signaling financial stability. The company expanded Jordanian facilities by 15% in June and plans further capacity additions, including a 5–10% boost from the Al-Hasa facility. A strategic partnership with Hansoll Textile, involving 3 million girl’s shorts, underscores diversification efforts. Management also noted increased order projections from major customers like The North Face and New Balance.