Nordic Semiconductor Q3 revenue beats estimates 

Overview

• Norway IoT chipmaker's Q3 revenue rose 32% yr/yr, beating analyst expectations

• Q3 reported EBITDA more than doubled but slightly missed analyst consensus

• Company attributes growth to strong demand in both key and broad markets

Outlook

• Nordic expects Q4 2026 revenue between $215 mln and $235 mln

• Company expects Q4 gross margin to remain above 50%

• Nordic aims for average annual revenue growth above 20% through 2030

Result Drivers

• BROAD MARKET DEMAND - Co said revenue growth was driven by continued solid demand from both key customers and the broad market in all main end-user markets

• PRODUCT PORTFOLIO EXPANSION - Co said long-range revenue increased 70% due to broader product portfolio and growth in nRF Cloud Services

• AI TOOL ADOPTION - Co said rapid adoption of AI-assisted development tools has helped customers become more productive, per CEO Vegard Wollan

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 NOK185.00, about 5% above its October 21 closing price of NOK176.20

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 48 three months ago

Reuters Recommended Reads

• Oct 21 - Texas Instruments Q3 revenue beats on growth in industrial, automotive, data center markets

• Oct 21 - Germany's Jenoptik raises FY EBITDA margin outlook on strong semiconductor equipment demand

• Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand

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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.)