Richardson Electronics 2026 Q1 Earnings Strong Performance as Net Income Surges 224%

Richardson Electronics (NASDAQ: RELL) reported its fiscal 2026 Q1 earnings on October 9, 2025, showing robust performance across key metrics. The company exceeded expectations with a significant rise in net income and earnings per share (EPS), driven by strong sales growth in key segments and improved operational efficiency.

Richardson Electronics reported total revenue of $54.61 million for fiscal 2026 Q1, representing a 1.6% increase from $53.73 million in the same period of the previous year. The growth was primarily driven by the Power and Microwave Technologies (PMT) and Canvys segments, with PMT benefiting from increased demand for semiconductor wafer fab products and distributed electron tube products. Canvys saw an 8.3% rise in sales due to improved market conditions in Europe. The GES segment, however, experienced a $0.8 million decline, mainly due to the absence of a large EV locomotive order that occurred in the prior year.

Richardson Electronics's EPS rose 225.0% to $0.13 in 2026 Q1 from $0.04 in 2025 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $1.91 million in 2026 Q1, marking 223.6% growth from $590,000 in 2025 Q1. The significant EPS increase reflects the company’s improved gross margin and cost controls, which contributed to a more profitable sales mix.

Price Action

The stock price of Richardson Electronics has dropped 3.58% during the latest trading day, has surged 24.58% during the most recent full trading week, and has surged 24.58% month-to-date.

Post-Earnings Price Action Review

Edward Richardson, Chairman, CEO & President, highlighted Q1 2026 sales of $54.6 million, up from $53.7 million in Q1 2025, driven by growth in PMT and Canvys. He emphasized PMT’s strength in semiconductor and RF power segments and noted the impact of the healthcare business sale on year-over-year comparisons. Richardson praised GES’s wind segment growth, attributing it to favorable policies and global expansion, while acknowledging lower EV rail sales due to nonrecurring orders. He underscored the company’s focus on engineered solutions and manufacturing efficiency, contributing to a 31.0% gross margin. Richardson expressed optimism about FY 2026, citing strong cash flow, strategic investments in global expansion, and confidence in PMT and GES growth.

CEO Commentary

In the press release, Edward J. Richardson, Chairman, CEO, and President, stated, “We are pleased with our solid first quarter fiscal 2026 results, reflecting the value we provide our global customers, the diversity of our end markets, and the hard work and commitment of our associates. Excluding Healthcare, which the majority of assets were sold in January 2025, net sales grew by 6.8%, led by strong year-over-year growth in our semiconductor wafer fab business. A more profitable sales mix, combined with our continued focus on controlling fixed costs, drove a significant improvement in operating income, that more than tripled from the prior year’s first quarter. We also generated positive operating cash flow for the sixth consecutive quarter.”

Guidance

Richardson Electronics expects continued growth in PMT and GES, with Greg Peloquin noting Q2 momentum in GES’s wind business and Wendy Diddell projecting double-digit GES growth in FY 2026. Capital expenditures for FY 2026 are anticipated to range between $4 million and $5 million, slightly higher than FY 2025, to support expansion in La Fox and Texas. While operating expenses are expected to increase modestly, the company aims to maintain disciplined cost management. EBITDA and cash flow are forecasted to remain strong, supporting strategic growth initiatives and shareholder returns.

Additional News

Richardson Electronics announced a $0.06 per share quarterly cash dividend, reflecting confidence in its financial stability and performance. This follows a strong Q1 FY2026, where the company recorded a 1.6% revenue increase to $54.6 million and a 223.6% surge in net income to $1.91 million. Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share for common stockholders and $0.054 per share for Class B common stock. The dividend is payable on November 26, 2025, to stockholders of record as of November 7, 2025, signaling the company’s commitment to returning value to shareholders. The announcement also highlighted the company’s extension of its credit agreement with PNC Bank through October 6, 2028, with a $20 million borrowing limit, reinforcing its financial flexibility and stability.