NVE 2025 Q4 Earnings Modest Growth as Net Income Rises 2%

NVE Corporation (NASDAQ: NVEC) announced its fiscal 2025 Q4 earnings on May 7, 2025, highlighting a 2% increase in net income to $3.89 million. The company's earnings per share (EPS) slightly surpassed the previous year's, rising from $0.79 to $0.80. Despite challenges, the company maintained stable profitability. NVE's strategic investments in research and development are expected to bolster future growth.

Revenue
NVE's total revenue for Q4 2025 increased by 2.6% to $7.27 million, compared to $7.08 million in the same quarter last year. This growth was primarily driven by a substantial increase in contract research and development revenue, offsetting a marginal decline in product sales.

Earnings/Net Income
The company's EPS grew by 2.0% to $0.80, reflecting continued earnings growth. NVE's net income for Q4 2025 rose to $3.89 million, a 2.1% increase from the previous year's $3.81 million. This consistent performance demonstrates the company's solid financial health.

Post-Earnings Price Action Review
Following its earnings report, NVE's stock showed resilience, reflecting investor confidence in its strategic direction. Over the past five years, a strategy of purchasing shares after a revenue drop and holding for 30 days yielded a 12.08% return. This suggests that investors can benefit from market overreactions to NVE's revenue fluctuations, backed by strong fundamentals and a high return on equity of 24%. The company's strategic investments in research and development, amid favorable market conditions, further support its positive stock performance.

CEO Commentary
Dan Baker, President and CEO of NVE Corporation, expressed optimism about the company's performance, attributing the revenue growth to inventory replenishment and interest in new products. Baker emphasized the importance of ongoing investments in R&D and capital expenditures, which he believes will lead to higher future revenues.

Guidance
NVE anticipates capital expenditures of $2 million to $3 million for fiscal 2026, signaling a significant increase from the previous year. The company remains confident in achieving returns on these investments, supported by positive customer feedback and the expectation of entering new markets.

Additional News
In recent weeks, NVE Corporation announced a quarterly cash dividend of $1.00 per share of common stock, payable on May 30, 2025, to shareholders of record as of May 19, 2025. This move underscores the company's commitment to returning value to its shareholders. Additionally, NVE's strategic focus on contract research and development has continued to yield positive results, with a substantial increase in revenue from this segment reported in the latest quarter. These developments highlight NVE's strategic direction and efforts to enhance shareholder value.