InTest Corporation reported record orders for the third quarter of fiscal year 2026, driven by robust demand in the back-end semiconductor sector. The company expects revenue to land at the high end of its guidance range, signaling strong momentum heading into the final quarter.

Record order inflow and backlog expansion

Orders for the period ended September 30, 2026, are estimated between $48 million and $50 million. This represents a significant increase of 28% to 33% compared to the third quarter of 2025. The surge is primarily attributed to record back-end semiconductor orders, resulting in an estimated book-to-bill ratio exceeding 1.3x.

Consequently, the company’s backlog has expanded notably. Backlog at the end of Q3FY26 is projected to be $58 million to $60 million, up approximately 28% to 32% from $45.4 million recorded on June 30, 2026.

Revenue performance and market drivers

Revenue for Q3FY26 is anticipated to be at the high end of the company’s guidance range of $33 million to $35 million. This indicates growth of more than 30% compared to the $26.2 million reported in the third quarter of 2025. Management attributes this strength to customers’ capacity expansions fueled by AI-driven data center demand.

Rich Rogoff, President and CEO, noted that newer products, including high-powered chillers and advanced manipulators, are contributing substantially by addressing rising power conversion requirements and mixed-signal test needs.

What the numbers show

The divergence between order growth (28-33%) and revenue growth (>30%) suggests that while demand is accelerating, the company is efficiently converting its backlog into recognized sales. However, the backlog itself grew by 28-32% sequentially, indicating that new orders are outpacing the rate at which existing inventory is being shipped. This accumulation of deferred revenue provides a visible cushion for future quarters, reducing reliance on immediate new bookings for near-term stability.

Upcoming events and reporting

Management plans to participate in the 18th Annual CEO Investor Summit on October 13, 2026, during SEMICON West in San Francisco. The company will report its full third-quarter results on November 6, 2026. These preliminary figures are subject to completion of financial closing procedures and may vary materially.

InTest Corporation reported second-quarter 2026 earnings per share (EPS) of $0.09, significantly beating the analyst consensus estimate of $0.05 by 80 percent. The global test and process technology supplier also delivered revenue of $35.3 million, a 25.5% year-over-year increase that surpassed the $34.968 million estimate. This performance marks a turnaround for net earnings, which turned positive to $474 thousand from a loss in the prior-year period, driven primarily by surging demand in the Auto/EV sector.

The beat on both top-line and bottom-line metrics underscores strong operational execution despite margin compression. Management affirmed its full-year 2026 revenue guidance of $135.0 million to $140.0 million, aligning with the midpoint estimate of approximately $138.9 million. The company’s ability to exceed expectations while maintaining this guidance suggests robust underlying demand and effective cost management.

Financial Performance

Revenue growth was broad-based but led by Auto/EV, which contributed 38.1% of total revenue in Q2 2026, up from 20.8% in Q2 2025. This shift in product mix toward higher-volume, lower-margin Auto/EV solutions caused gross margin to decline by 210 basis points year-over-year to 40.5%. Despite the margin compression, operating income improved significantly to $363 thousand from a loss of $927 thousand in the prior-year quarter, aided by disciplined expense management.

All figures in thousands except percentages.

Segment Highlights

The Auto/EV segment saw revenue jump 129.3% to $13.4 million, reflecting strong order intake earlier in the cycle. In contrast, Semiconductor revenue declined 11.1% to $9.1 million, though orders for this segment increased 56% sequentially, marking the strongest Semi order intake in six quarters. Defense/Aerospace and Industrial segments posted modest gains of 5.2% and 15.1%, respectively. Non-semiconductor markets now account for approximately 74% of total revenue, reducing dependency on the cyclical Semi market.

Orders and Backlog

Total orders for the quarter were $28.9 million, down 9.2% sequentially but up 4.0% year-over-year. The backlog stood at $45.4 million at June 30, 2026, a 19.8% increase compared to the same period last year. Approximately 45% of the backlog is expected to ship beyond the third quarter of 2026, providing visibility into future revenue streams.

Balance Sheet and Guidance

Cash and cash equivalents increased to $22.1 million from $14.2 million at the end of fiscal 2025, supported by $6.3 million in operating cash flow. The company reduced term debt by $1.0 million during the quarter and remains compliant with all loan covenants. For the third quarter of 2026, InTest projects revenue between $33.0 million and $35.0 million with gross margins around 44%. Full-year 2026 guidance includes operating expenses of $55.0 million to $57.0 million and an effective tax rate of approximately 18%.