Norway's Nordic Semiconductor Q2 revenue beats on long-range, cloud services demand
Norway's Nordic Semiconductor Q2 revenue beats on long-range, cloud services demand
Overview
Norway IoT chipmaker's Q2 revenue rose 33% yr/yr, beating analyst expectations
Q2 reported EBITDA increased and beat analyst expectations
Gross margin improved to 53% from 51% a year ago
Outlook
Nordic expects Q3 2026 revenue of $220 mln to $240 mln
Company expects Q3 2026 gross margin above 50%
Nordic reiterates long-term goal of average annual revenue growth above 20% from 2024
Result Drivers
SHORT-RANGE DEMAND - Co said short-range revenue rose 29% on continued solid demand from key customers and the broad market
LONG-RANGE AND CLOUD SERVICES - Co said long-range revenue nearly doubled due to increased product sales from a broader portfolio and higher revenue from nRF Cloud Services
PRODUCT RENEWAL PROGRAM - CEO said product renewal program led to particularly strong growth in the broad market and higher activity among existing and new customers
Company press release: ID:nObiH8V9Ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $219 mln | $208.74 mln (9 Analysts) |
Q2 Gross Margin |
| 53.00% |
|
Q2 EBITDA | Beat | $34 mln | $30.24 mln (9 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Nordic Semiconductor ASA is NOK219.50, about 34.6% above its August 5 closing price of NOK163.10
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 61 three months ago
Reuters Recommended Reads
Aug 4 - Austria's ams OSRAM flags milestone on AR smart-glasses chips as Q2 revenue rises
Aug 5 - Germany's Infineon Q3 revenue rises on strong AI data center demand
Aug 5 - Diodes Q2 sales rise as semiconductor demand strengthens
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)