Navitas posts $14 million revenue, lifts gross margin to 21.5%

By Tom Whitfield

Navitas Semiconductor reported third-quarter 2026 revenue of $14 million, beating the $13.2 million analyst estimate, while gross margin rose to 21.5% from 0.4% in the second quarter. The company also posted an adjusted loss of $0.03 per share, compared with the $0.04 loss analysts expected.

Shares rose 6.8% at 2:24 p.m. ET, after gaining as much as 11.7%, following the release after the market close. The Nasdaq-listed shares trade as NVTS, and the market snapshot was dated November 5, 2026.

How much did Navitas improve?

The financial comparison contains two separate beats. Revenue came in above the analyst estimate, and the adjusted per-share loss was smaller than expected. The strongest operating measure was gross margin, which measures the share of revenue remaining after the cost of goods sold.

• Q3 2026 revenue reached $14 million, against a $13.2 million analyst estimate.
• Adjusted loss was $0.03 per share, versus an expected loss of $0.04.
• Gross margin reached 21.5%, compared with 0.4% in Q2 2026 and 2% in Q3 2025.
• Navitas still reported a net loss, but did not disclose its amount.

The disclosed results did not provide a cost breakdown or attribute the margin increase to pricing, product mix, factory efficiency or any named customer. Investors therefore saw two different signals: revenue exceeded expectations and gross margin improved sharply, while the company remained unprofitable. The adjusted per-share loss also does not state the size of the net loss.

The quarter shows measurable improvement, not a return to profit.

What does fourth-quarter guidance mean?

Navitas set fourth-quarter 2026 revenue guidance at $15.5 million to $16.5 million. The $16 million midpoint would represent a 119% year-over-year increase if achieved.

That range places the forecast above the $14 million generated in the just-completed quarter. However, guidance is a forward estimate rather than reported revenue, and the 119% figure applies only to the midpoint.

Navitas did not disclose the capacity, pricing, backlog or customer assumptions behind the forecast. The range therefore establishes the company's expectation, not contracted shipments or a guaranteed commercial outcome. Reaching the midpoint would still require the company to sustain its higher gross margin while revenue scales.

The forecast creates a demanding comparison, not proof of delivered growth.

Did Wall Street change its valuation?

Two firms changed their ratings after the results and guidance. Neither firm moved its price target.

• Rosenblatt upgraded Navitas from neutral to buy and kept its $13 target.
• Craig-Hallum upgraded Navitas from hold to buy and also kept its $13 target.

The upgrade decisions express greater confidence in Navitas's operating direction. They do not show that the analysts expected immediate profitability or changed the valuation they assigned to the shares. The disclosed information also did not include the assumptions behind either target, so the targets cannot serve as independent forecasts of revenue or earnings.

The ratings became more bullish, but the dollar targets did not.

Where does the risk remain?

Navitas designs advanced power semiconductors and power delivery solutions for AI infrastructure, including data centers and grid systems. That business gives the company exposure to spending across computing facilities and the power networks that support them.

The disclosed figures did not identify individual product families, process nodes, wafer sizes, shipment volumes or installed capacity. Without those details, revenue growth cannot be tied to a specific platform, customer or manufacturing step. Navitas also did not provide a revenue split between data centers and grid systems, so the relative contribution of its two named markets remains unclear.

Rising community resistance to new data-center development creates a separate risk. Navitas described that pushback as a possible headwind, not as a quantified reduction in demand or guidance. The company remains unprofitable, and the investment case presented alongside the results remains more appropriate for investors who can accept a higher risk of loss.

Navitas has better margins with which to absorb risk, but still needs sustained growth and profit to remove it.

The next test is whether the company can convert the $16 million guidance midpoint and 21.5% gross margin into lower losses while data-center opposition tempers deployment; the two $13 targets frame, rather than settle, that competitive risk.