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Navitas Semiconductor Q3 Earnings Beat Estimates on High-Power Demand
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Key Takeaways
NVTS posted Q3 revenues of $14 million, up 38% year over year, while its 3-cent loss beat estimates.
High-power revenues surged over 50% sequentially, with AI infrastructure set to exceed 40% of sales by 2026.
NVTS expects Q4 revenues of $15.5-$16.5M, while its Claros acquisition expands its 2030 market to over $8B.
Navitas Semiconductor Corporation (NVTS - Free Report) reported third-quarter 2026 non-GAAP loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. The figure was narrower than the year-ago quarter’s loss of 5 cents.
Navitas Semiconductor’s third-quarter revenues of $14 million increased 38% year over year and beat the consensus estimate by 3.8%. The top line grew 33% sequentially, driven by more than 50% growth in high-power markets. Management highlighted a book-to-bill ratio of 2 and a solid backlog extending into mid-2027.
NVTS Gains Traction in High-Power Markets
High-power revenues increased more than 50% sequentially and grew by triple digits year over year, reflecting accelerating demand across AI data centers, grid and energy infrastructure, and other high-power applications.
Mobile and low-end consumer contributions continued to decline as NVTS advanced its strategic transition. Management expects these businesses to become insignificant by end of 2026, with high-power products accounting for essentially all fourth-quarter revenues. AI infrastructure is projected to represent more than 40% of sales exiting 2026.
Navitas Semiconductor Corporation Price, Consensus and EPS Surprise
NVTS is benefiting from increasing power requirements in AI data centers as customers transition toward higher-density power architectures. Silicon carbide, or SiC, products are gaining traction in high-power AC/DC supplies, while gallium nitride, or GaN, opportunities are expanding across next-generation power conversion systems.
The company reported accelerating adoption of 800-volt architectures, particularly in sidecar power racks and battery backup units. Orders are already supporting expected 2027 production ramps. Management expects AI infrastructure revenues to roughly triple in 2027, supported by growing design wins and customer programs.
NVTS Expands Technology Portfolio With Claros
NVTS completed its acquisition of Claros on Oct. 6, adding integrated voltage regulator, or IVR, technology to its existing GaN and SiC portfolio. The acquisition expands its capabilities to deliver power directly to high-performance processors, addressing growing requirements for efficiency and power density.
The combined portfolio expands the company's estimated 2030 serviceable addressable market to more than $8 billion. NVTS is also collaborating with NVIDIA on 800-volt power delivery solutions and advancing U.S.-manufactured GaN products through its GlobalFoundries partnership.
NVTS' Gross Margin Rises on High-Power Product Mix
Non-GAAP gross margin expanded 50 basis points sequentially and 130 basis points year over year to 40%. This marked the third consecutive quarter of sequential margin improvement, supported by favorable revenue mix and increasing contributions from higher-value high-power products.
Non-GAAP operating expenses increased to $16.5 million from $15.5 million in the preceding quarter and $15.4 million a year earlier. Higher spending primarily reflected investments in research and development. Non-GAAP operating loss narrowed to $10.9 million from $11.4 million sequentially and $11.5 million in the year-ago quarter.
NVTS Maintains Strong Liquidity to Support Expansion
NVTS ended the third quarter with $531.5 million in cash and cash equivalents compared with $557.4 million at the end of the second quarter.
The company remained debt-free and did not utilize its at-the-market financing facility during the quarter. Adjusting for the approximately $126 million cash payment associated with the subsequent Claros acquisition, pro forma cash stood at approximately $405 million.
NVTS Expects Continued Growth in Q4
For the fourth quarter of 2026, Navitas expects revenues of $15.5 million to $16.5 million. The $16 million midpoint implies approximately 14% sequential growth and 119% year-over-year growth. Management anticipates 2026 revenues of approximately $49.1 million, representing 7% annual growth, with high-power revenues expected to increase 125%.
Non-GAAP gross margin is projected at 39.5% to 41.5%, with the 40.5% midpoint indicating further sequential expansion. Non-GAAP operating expenses are expected between $24 million and $26 million, reflecting the addition of Claros and increased investments in product development and operational readiness.
Zacks Rank & Stocks to Consider
Navitas Semiconductor currently carries a Zacks Rank #3 (Hold).
Advanced Energy Industries shares have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 75%. Estimates have remained unchanged for the past 30 days.
Shares of AMETEK have jumped 21.1% year to date. The Zacks Consensus Estimate for AMETEK’s 2026 earnings suggests a year-over-year rise of 13.2%. Estimates have been revised upward in the past 30 days.
ASE Technology’s shares have surged 147.7% year to date. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings indicates year-over-year growth of 129.8%. Estimates have been revised upward in the past seven days.
View the Zacks #1 Rank List
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Navitas Semiconductor Q3 Earnings Beat Estimates on High-Power Demand
Key Takeaways
Navitas Semiconductor Corporation (NVTS - Free Report) reported third-quarter 2026 non-GAAP loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. The figure was narrower than the year-ago quarter’s loss of 5 cents.
Navitas Semiconductor’s third-quarter revenues of $14 million increased 38% year over year and beat the consensus estimate by 3.8%. The top line grew 33% sequentially, driven by more than 50% growth in high-power markets. Management highlighted a book-to-bill ratio of 2 and a solid backlog extending into mid-2027.
NVTS Gains Traction in High-Power Markets
High-power revenues increased more than 50% sequentially and grew by triple digits year over year, reflecting accelerating demand across AI data centers, grid and energy infrastructure, and other high-power applications.
Mobile and low-end consumer contributions continued to decline as NVTS advanced its strategic transition. Management expects these businesses to become insignificant by end of 2026, with high-power products accounting for essentially all fourth-quarter revenues. AI infrastructure is projected to represent more than 40% of sales exiting 2026.
Navitas Semiconductor Corporation Price, Consensus and EPS Surprise
Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote
NVTS Sees Accelerating AI Infrastructure Demand
NVTS is benefiting from increasing power requirements in AI data centers as customers transition toward higher-density power architectures. Silicon carbide, or SiC, products are gaining traction in high-power AC/DC supplies, while gallium nitride, or GaN, opportunities are expanding across next-generation power conversion systems.
The company reported accelerating adoption of 800-volt architectures, particularly in sidecar power racks and battery backup units. Orders are already supporting expected 2027 production ramps. Management expects AI infrastructure revenues to roughly triple in 2027, supported by growing design wins and customer programs.
NVTS Expands Technology Portfolio With Claros
NVTS completed its acquisition of Claros on Oct. 6, adding integrated voltage regulator, or IVR, technology to its existing GaN and SiC portfolio. The acquisition expands its capabilities to deliver power directly to high-performance processors, addressing growing requirements for efficiency and power density.
The combined portfolio expands the company's estimated 2030 serviceable addressable market to more than $8 billion. NVTS is also collaborating with NVIDIA on 800-volt power delivery solutions and advancing U.S.-manufactured GaN products through its GlobalFoundries partnership.
NVTS' Gross Margin Rises on High-Power Product Mix
Non-GAAP gross margin expanded 50 basis points sequentially and 130 basis points year over year to 40%. This marked the third consecutive quarter of sequential margin improvement, supported by favorable revenue mix and increasing contributions from higher-value high-power products.
Non-GAAP operating expenses increased to $16.5 million from $15.5 million in the preceding quarter and $15.4 million a year earlier. Higher spending primarily reflected investments in research and development. Non-GAAP operating loss narrowed to $10.9 million from $11.4 million sequentially and $11.5 million in the year-ago quarter.
NVTS Maintains Strong Liquidity to Support Expansion
NVTS ended the third quarter with $531.5 million in cash and cash equivalents compared with $557.4 million at the end of the second quarter.
The company remained debt-free and did not utilize its at-the-market financing facility during the quarter. Adjusting for the approximately $126 million cash payment associated with the subsequent Claros acquisition, pro forma cash stood at approximately $405 million.
NVTS Expects Continued Growth in Q4
For the fourth quarter of 2026, Navitas expects revenues of $15.5 million to $16.5 million. The $16 million midpoint implies approximately 14% sequential growth and 119% year-over-year growth. Management anticipates 2026 revenues of approximately $49.1 million, representing 7% annual growth, with high-power revenues expected to increase 125%.
Non-GAAP gross margin is projected at 39.5% to 41.5%, with the 40.5% midpoint indicating further sequential expansion. Non-GAAP operating expenses are expected between $24 million and $26 million, reflecting the addition of Claros and increased investments in product development and operational readiness.
Zacks Rank & Stocks to Consider
Navitas Semiconductor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Advanced Energy Industries (AEIS - Free Report) , AMETEK (AME - Free Report) and ASE Technology (ASX - Free Report) . Advanced Energy Industries, AMETEK and ASE Technology sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 75%. Estimates have remained unchanged for the past 30 days.
Shares of AMETEK have jumped 21.1% year to date. The Zacks Consensus Estimate for AMETEK’s 2026 earnings suggests a year-over-year rise of 13.2%. Estimates have been revised upward in the past 30 days.
ASE Technology’s shares have surged 147.7% year to date. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings indicates year-over-year growth of 129.8%. Estimates have been revised upward in the past seven days.