RELL Stock Shoots Up 20% Following Strong Q3: CEO Highlights Strict Cost Control, PMT Segment Strength

• Third-quarter revenue and EPS surpassed the analysts’ consensus estimates.
• Total net sales for Q3 reached $55.5 million, up 3% year-over-year, with PMT sales increasing 14.5% excluding healthcare
• The company’s total backlog climbed 11.4% YoY to $151.2 million at the end of February 2026.

Richardson Electronics (RELL) CEO Edward Richardson said that the company’s third-quarter performance was bolstered by strong momentum in its Power & Microwave Technologies (PMT) segment. 

During the third-quarter (Q3) earnings call on Thursday, Richardson noted that the company achieved disciplined cost management and improved operating income.

“I'm pleased to report that Richardson Electronics has now delivered seven consecutive quarters of year-over-year sales growth, reflecting continued progress in executing our multiyear strategy.”

-Edward Richardson, CEO, Richardson Electronics

Cost Discipline And Technical Growth In Focus 

Richardson also emphasized the company’s focus on strengthening technical expertise and operational performance. “We also remain focused on expense discipline, working capital management, and improving inventory turns,” he said. 

The quarter marked the final impact from last year’s sale of much of the healthcare business, which had previously influenced sales and profit comparisons.

Richardson Electronics’ stock traded over 21% on Thursday afternoon. 

Q3 Financial Performance

Total net sales for Q3 reached $55.5 million, up 3% year-on-year. When excluding healthcare, revenue increased 6% YoY. PMT sales benefited from strong demand in semiconductor wafer fabrication and RF/microwave products, with sales up 14.5% YoY excluding healthcare contributions. Earnings per share (EPS) were $0.06.

Both revenue and EPS surpassed the analysts’ consensus estimates of $53.13 and $0.04, according to Fiscal AI data. Green Energy Solutions (GES) revenue dipped 5.4% YoY due to project timing, while Canvys sales in North America fell 13.5% for similar timing-related reasons.

The company’s total backlog climbed 11.4% YoY to $151.2 million at the end of February 2026, driven primarily by PMT orders. GES backlog improved slightly, reflecting steady demand for new and existing projects. Gross margin expanded 90 basis points YoY to 31.9%. 

What Are Retail Traders Saying? 

On Stocktwits, retail sentiment around the stock shifted to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume flipped to ‘extremely high’ from ‘normal’ levels in 24 hours. 

RELL stock has gained over 30% year-to-date. 

Also See: Citron Sees Amazon’s Trillion-Dollar AI Chip Potential Challenging Nvidia’s Dominance

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