Frequency Electronics

Q4 FY2026 EarningsFY26 Q4 results significantly missed consensus across all key profitability metrics, despite relative top-line stability. Revenue of $63.2M was 4.83% below expectations, while a sharp decline in gross margin to 29.1% (vs. 38.4% expected) and an operating loss of $3.0M drove a GAAP EPS miss of -$0.09 vs. $0.645 expected. The performance was severely impacted by a $3.8M inventory write-down following the FEI-Elcom restructuring and strategic hiring of engineering talent ahead of a production ramp-up. While near-term margins suffered, a record backlog of $111M (+58% YoY) provides strong forward visibility into FY27 growth.