NVE falls 33.7% after quarterly results and investor probes

What happened

NVE (NVEC) fell 33.7% on October 22, 2026, after the company released quarterly results and law firms announced investor investigations following the sharp share decline. The stock opened 29.0% below the previous close and closed at $68.36 on trading volume 4.9 times its 20-day average. Several law firms said they were probing possible securities-law violations and inviting affected investors to contact them. The company also held its Q2 2027 earnings call during the same session.

How big was the move

The decline was large relative to both the market and the stock’s recent behavior. The move equaled 5.7 times a typical daily move for this stock and was 32.2 percentage points worse than the technology sector median, which fell 1.5% on the day. The S&P 500 fell 1.2% on the session and fell 1.0% over five sessions, while the stock itself fell 34.1% over the last five sessions. Market value stood at $479.5 million on the session, highlighting the potential impact of heavy selling in a comparatively small market-cap stock.

The technical picture

Technically, the stock traded well below its key moving averages. The stock was 35.9% below its 20-day moving average, 35.3% below its 50-day moving average and 24.2% below its 200-day moving average. The 50-day average remained above the 200-day average, a sign of an established uptrend prior to the drop. The relative strength index was 20, below 30, a level often called oversold. The share price was 49.4% below the 52-week high. The stock’s three-month change fell 41.8% and its one-month change fell 37.2%, reflecting a sustained downtrend into the earnings release. Volatility was 94% annualized over 60 days, higher than 95% of its own readings over five years, underscoring elevated swings that likely amplified the move.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $30.7 million, which grew 24.1% from a year earlier and matched the growth of one quarter earlier. Diluted earnings per share for that period were $3.69, which rose 29.5% year over year. Gross margin stood at 79.3%, down from 80.3% a year earlier, while operating margin was 61.6% compared with 59.1% a year earlier. Free-cash-flow margin was 60.7% and return on invested capital was 27.1%. The balance sheet showed net cash of $3.1 million and share count increased by 0.2% over one year.

Those results point to strong profitability even as the stock traded sharply lower. Valuation measures placed the stock at 18.5 times trailing earnings and a free-cash-flow yield of 3.9%. That price-to-earnings reading was lower than 71% of its own readings over the past five years, where the five-year median is 22.8 times earnings. PromtFinance scores ranked the company Strong on Quality at 83, Neutral on Value at 62, and Weak on Momentum at 38. The mix contrasts solid underlying profitability with weak recent price performance.

Earnings and analyst expectations

NVE reported earnings per share of $0.65 on October 21, 2026, and held its Q2 2027 earnings call the following day. Management said second-quarter revenue declined 8% year over year because lower product sales outweighed growth in contract research and development. Commentary on the call also highlighted first-half revenue of $16.9 million, up 36% year over year, and distributor sales up 67% in the second quarter. Recent reports typically produced a two-day reaction of a fall of 0.2%, but the October 22 move was far larger and coincided with the disclosure of investigator notices.

The company’s market sensitivity has a beta of 1.16, indicating it tends to move more than the market, which would amplify the effect of a sharp earnings shock in a thinly traded stock. Investors and analysts will likely parse the call details and the divergence between strong first-half growth and second-quarter weakness as they reassess near-term prospects.

What to watch

• Next report due January 20, 2027.
• Law-firm investigations reported by Business Wire and GlobeNewsWire following the share-price decline (one filing noted a 30.62% drop).
• Q2 2027 call details: second-quarter revenue decline of 8% year over year and first-half revenue of $16.9 million, up 36% year over year.
• Trading volume at 4.9 times its 20-day average on October 22, 2026.
• Market value at $479.5 million and closing price of $68.36 on October 22, 2026.