Frequency Electronics (FEIM) Q2 2026: 30% TTM Net Margin Reinforces Bullish Profitability Narrative

Frequency Electronics (FEIM) just posted Q2 2026 results with revenue of about $17.1 million and basic EPS of roughly $0.18, putting fresh numbers on the board for both the top and bottom line. The company has seen quarterly revenue move from around $15.8 million in Q2 2025 to $17.1 million this quarter, while basic EPS has shifted from approximately $0.28 to $0.18 over the same period, against a trailing-12-month net income backdrop of about $21.0 million. Taken together, the latest print keeps the story centered on how sustainably the company can convert that revenue base into durable margins.

See our full analysis for Frequency Electronics.

With the headline figures in place, the next step is to see how they stack up against the competing narratives around Frequency Electronics, highlighting where the numbers support the story and where they start to push back.

Curious how numbers become stories that shape markets? Explore Community Narratives

30.1 percent net margin reshapes the story

• Trailing 12 month net income of about 21.0 million on roughly 69.9 million in revenue works out to a 30.1 percent net margin, compared with 13 percent a year earlier.
• What stands out for a bullish view is how that 30.1 percent margin lines up with earnings growth of 168.4 percent over the past year and 65.7 percent per year over five years, yet
  • the latest single quarter net income of 1.8 million on 17.1 million of revenue is much thinner than the trailing average, reminding you that margins can move around from period to period.
  • the fact that the trailing margin is based on 69.9 million of revenue suggests recent strength is spread over multiple quarters, which supports bulls who focus on the longer trend rather than one softer quarter.

Revenue growth pacing above the market

• Revenue is forecast to grow around 17.2 percent per year, ahead of the broader US market forecast of 10.7 percent, and recent quarterly revenue stepped from 13.8 million in Q1 2026 to 17.1 million in Q2 2026.
• For a bullish narrative that sees FEIM as a structural grower, the combination of that 17.2 percent forecast and the move from 60.2 million to 69.9 million in trailing 12 month revenue over the past year
  • leans on the idea that demand is expanding faster than the market, which, if maintained, can keep supporting that 30.1 percent net margin.
  • but it also has to reckon with lumpy quarter to quarter figures, like the drop from 20.0 million in Q4 2025 revenue to 13.8 million in Q1 2026, which shows that even within an uptrend, timing of contracts still matters.

To see how this growth path could play out if revenue surprises either way, investors are asking whether today’s print is the start of a new run or just another step in a choppy climb. 📊 Read the full Frequency Electronics Consensus Narrative.

P E of 21.5x with price above DCF value

• The stock trades at 21.5 times trailing earnings versus a DCF fair value of about 42.81 dollars per share and a current share price of 46.45 dollars, while the P E sits below the US Electronic industry at 25.8 times and well below the peer average of 56.8 times.
• From a more cautious, bearish angle, critics focus on the share price sitting above the 42.81 dollar DCF fair value even though the P E looks cheaper than peers,
  • arguing that recent share price volatility in the last three months shows how quickly sentiment can swing when expectations for that 17.2 percent revenue growth or 30.1 percent margin are challenged.
  • yet the fact that earnings have grown 168.4 percent over the last year and the company is profitable over a five year stretch gives bears a higher bar to claim that the stock is outright expensive on fundamentals alone.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Frequency Electronics's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Despite strong trailing margins, Frequency Electronics shows lumpy quarter to quarter revenue and earnings, with the latest net income and sales trailing recent peaks.

If that choppiness makes you uneasy, use our stable growth stocks screener (2103 results) to quickly shift focus toward companies delivering steadier revenue and earnings momentum through different market environments.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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