Oct 21, 2026 earnings call — New tiny sensors and board expansion
Distributor sales grew 67% in the quarter, boosting revenue and earnings despite an 8% overall revenue decline.
Revenue $0.0B · EPS $0.65
Key quotes
"The new sensor provides analog information such as position, from the motion or changes of external magnetic fields."
"We provide the highest isolation in the industry. As voltages increase in power supplies and power conversion applications, that continues to favor NVE's products and we are we are continually optimistic for that reason."
"We also elected a new director, Carolyn Valentine, expanding the board from 5 to 7 directors."
Analyst Q&A 14
permission to ask question
Q (Kaden): Kaden asked if he could ask a question on the call.
A: No management spoke in this exchange. The operator later invited him to unmute in the next exchange.
rescheduled orders timing
Q (Kaden): Kaden asked whether rescheduled orders were pushed into H2 or into next fiscal year, and whether they matched the quarter shortfall.
A: Management said the variability came from orders moved between quarters and that they see no further disruptions. They described the effect as relatively short term and noted revenue rose at the end of the quarter.
"The order variability was primarily from orders being pulled in to quarter 1 from quarter 2." — Peter G. Eames (CEO)
growth in automation and power markets
Q (Kaden): Kaden wanted color on growth in automation and power-conversion versus core medical in H1 and how that looks into H2.
A: Management said they see strong growth in both power conversion and robotics and highlighted new sensors with unmatched spatial sensitivity. They also said wafer level chip scale parts have small early design wins and they expect long-term growth as those sample programs scale.
"We are definitely seeing strong growth in both power conversion and in robotics applications." — Peter G. Eames (CEO)
sensors for humanoid robots
Q (Pete): Pete asked whether NVE sensors apply to gears in humanoid robots and if they are talking to such customers.
A: Management said yes. The new gear sensors are intended for both industrial and humanoid robotics, for advanced encoders and servo systems, and they are already seeing strong interest.
"The new gear sensors that I talked about on the call are especially intended towards robotics both industrial and humanoid robotics." — Peter G. Eames (CEO)
introduction by analyst
Q (Ittai Eden · Principal): Ittai Eden introduced himself and prepared to ask questions.
A: No management spoke in this exchange. His questions were handled in the next exchange.
second half revenue outlook
Q (Ittai Eden · Principal): Ittai asked if the second half revenue should be similar to the first half and how new products factor into that.
A: Management confirmed the second half outlook is similar to the first half and called the order disruption temporary, expecting growth to return next quarter. They said growth is across legacy and new products, including distributors, and that some production capacity from the expansion is already being used for wafer level chip scale design wins.
"that is what we said in the prepared remarks" — Peter G. Eames (CEO)
growth of new customers
Q: An analyst asked whether the new customers mentioned last quarter showed growth.
A: Management said trends are moving in the right direction and that new customers commonly start with small orders and then grow over time. They noted the increases are happening in the wafer level chip scale products and other products highlighted in the prepared remarks.
"And as I described earlier, it is common for some of those new customers to start with relatively small orders and grow over time." — Peter G. Eames (CEO)
company vision and medical mix
Q: A new investor asked how the new CEO's vision differs and whether medical revenue will be diversified away from Abbott.
A: Management said the focus is continuing the prior trajectory while leveraging the recent expansion to grow new products in fast-growing markets. They also said they are expanding beyond Abbott into other implantable medical devices like neurostimulators, given advantages of small size and low power.
"I would say, the main focus for me is taking advantage of the recent expansion and leveraging that towards new products and new products in fast growing markets." — Peter G. Eames (CEO)
humanoid production timing and dollar content
Q (Kaden): Kaden asked whether humanoid customers plan production volumes in 2026–2027, whether customers are Western, and for expected dollar content per robot.
A: Management said it is hard to state customers' exact plans but they see increasing production and are aligned with industry needs. They said they serve global and Western customers and stated a typical NV product ASP is maybe $1 to $2 per sensor, with several sensors per robot—likely tens of sensors per robot.
"For a typical NV product, the ASP is perhaps $1 to $2 per sensor." — Peter G. Eames (CEO)
quarterly normalization view
Q: An analyst asked if the second half guidance implies normalizing the first two quarters to a midpoint going forward.
A: Management said that is one reasonable way to view it and that the year-to-date numbers are appropriate for the estimates. They reiterated their guidance is based on the YTD results.
"I think the year to date numbers are appropriate and that is kind of where the estimates came from." — Peter G. Eames (CEO)
facility expansion and board support
Q (Pete): Pete asked about further expansion plans, moving admin off-site, and board involvement; Kaden asked about distributor sales mix and margins.
A: Management said they have not planned additional expansion beyond the space previously shown but will expand as needed and may move admin off-site to free production space. They also said distributor sales vary quarter to quarter and increased distributor mix can reflect lower direct sales, noting distributor sales often sit between about 1/3 and 2/3 of revenue.
"We have not discussed further expansion plans beyond the space that you saw when you visited." — Peter G. Eames (CEO)
distributor sales and nonmedical growth
Q: An analyst asked for color on distributor sales trends year over year and for nonmedical growth stripping out Abbott.
A: Management said distributor sales are a broad reflection of the product portfolio and that growth there is a good sign of market acceptance. They confirmed distributor sales grew 67% year over year in Q2 and said H1 distributor growth is somewhat lower, around the 40% range.
"As I mentioned, distributor sales is a pretty broad representation of NVE's product portfolio and when we see growth there, that is a good sign because it is sort of a more general reflection of products and sales, and we see that as a very good sign." — Peter G. Eames (CEO)
spencer intro to ask question
Q (Spencer): Spencer said he had one more question and prepared to ask it.
A: No management spoke in this short turn; his question was asked and answered in the next exchange.
customer mix and competitive advantage
Q (Spencer): Spencer asked whether future growth will come from the same big customers or new customers, and what the biggest barriers to entry are for competitors.
A: Management said revenue should increasingly come from new customers as new products gain acceptance, and they expect wafer level chip scale products and new gear sensors to grow as part of total revenue. They also pointed to NVE's patent portfolio, trade secrets, and internal expertise as barriers that make the technology hard to copy.
"We certainly expect revenue to increasingly come from new customers." — Peter G. Eames (CEO)