Nordic Semiconductor reported quarterly results that topped analysts' forecasts, driven by continued demand across its product range and improving profitability.
The Norway-based Internet of Things chipmaker recorded revenue of $219 million in the second quarter, outperforming the consensus expectation of $208.74 million and representing a 33% increase from the same period a year earlier.
On an adjusted basis, the company reported EBITDA of $34 million for the quarter, ahead of the $30.24 million estimate derived from nine analysts following the company. Gross margin expanded to 53% in the quarter, up from 51% in the year-ago period.
Product and segment performance
Short-range products contributed to a 29% increase in short-range revenue as the company cited sustained demand from both key customers and the broader market. The long-range segment saw revenue nearly double, the company said, attributing that gain to higher product sales across a broader portfolio and increased revenue from nRF Cloud Services.
Management highlighted the impact of a product renewal program, saying it spurred pronounced growth in the broad market and stimulated greater activity among both existing and new customers.
Outlook
For the third quarter of 2026, Nordic Semiconductor expects revenue in the range of $220 million to $240 million and anticipates a gross margin above 50% for the period. The company also reiterated its long-term target of achieving average annual revenue growth above 20% beginning from 2024.
Context for investors and markets
The results reflect continued commercial traction for Nordic's short-range and long-range product lines and expanding contribution from cloud-related services. The beats on both revenue and adjusted EBITDA, paired with margin improvement, were material to consensus expectations for the quarter.
While the company provided a revenue range and margin outlook for the coming quarter, it maintained the previously stated multi-year growth objective without providing additional numerical adjustments to that long-term target.