Navitas Semiconductor (NASDAQ:NVTS) Q2 Revenue Rises 22% Sequentially as AI Infrastructure Pivot Gains Traction

Navitas Semiconductor (NASDAQ: NVTS) reported Q2 2026 revenue of $10.5 million, up 22% sequentially from $8.6 million in Q1 2026, while year-over-year revenue declined 27.6% from $14.5 million in Q2 2025 as the company continued exiting lower-margin mobile markets. Adjusted EPS of -$0.04 matched the consensus estimate of -$0.04. Shares fell -14.64% on Tuesday, July 28, while the S&P 500 lost 0.33%.

Q2 2026 Results

• Revenue: $10.5 million, up 22% sequentially from Q1 2026's $8.6 million; down 27.6% year-over-year from Q2 2025's $14.5 million
• Non-GAAP gross margin: 39.5%, up 50 basis points sequentially from 39.0% in Q1 2026 and up 100 basis points from 38.5% in Q2 2025
• GAAP operating loss: $27.2 million, compared to a loss of $21.7 million in Q2 2025
• Non-GAAP net loss: $9.3 million, improved from $9.8 million in both Q1 2026 and Q2 2025
• Cash: $557.4 million as of June 30, 2026, up from $236.9 million at December 31, 2025

What Drove the Results

Adjusted EPS of -$0.04 matched the -$0.04 consensus estimate precisely. On the revenue line, the year-over-year decline of 27.6% reflects the deliberate exit from mobile and low-end consumer markets, while sequential growth of 22% points to accelerating demand in high-power segments. The company said high-power markets grew more than 50% year-over-year, driving the non-GAAP gross margin improvement to 39.5%.

The GAAP net loss of $228.2 million diverged sharply from the non-GAAP net loss of $9.3 million. The primary driver was a non-cash charge of $203.1 million from the final remeasurement of earnout liabilities, a discrete item that does not affect operating cash generation. The non-GAAP figure, which excludes that charge, improved modestly year-over-year from a loss of $9.8 million in Q2 2025.

The company highlighted an expanding backlog and a record book-to-bill ratio, and reported shipping volume production samples of both GaN and SiC-based solutions to customers targeting next-generation AI data center architectures at 800-volt specifications. New product introductions included an Isolated TO family for 1.2 kV to 3.3 kV SiC MOSFETs and a 1.2 kV JFET product line targeting AI data centers and energy grid infrastructure, with the latter representing an incremental $1 billion serviceable addressable market according to the company.

Q3 2026 Outlook and Full-Year Trajectory

For Q3 2026, Navitas guided revenue to $13.5 million, plus or minus $0.5 million. At the midpoint, that represents 28% sequential growth and would mark a return to year-over-year revenue growth. Non-GAAP gross margin for Q3 is expected at 39.7%, plus or minus 100 basis points, a 20-basis-point sequential increase. Non-GAAP operating expenses are guided to a range of $15.5 million to $17.5 million.

For the full year, management said mid-single-digit revenue growth is anticipated, alongside an expectation that AI Infrastructure markets, including AI data centers and grid and energy infrastructure, will represent more than one-third of total sales by year-end.

Wall Street View

Analyst consensus ahead of the print leaned constructive, with the majority of covering analysts at Buy or Strong Buy. The guidance midpoint of $13.5 million for Q3 came in above prior analyst revenue expectations of approximately $9.97 million, per pre-earnings coverage, though the AI infrastructure pivot timeline and pace of hyperscaler ramp remain the central debate among analysts.

Investor Takeaway

The Q2 results confirm that Navitas is advancing its transition away from mobile toward higher-margin high-power markets, with the non-GAAP gross margin improvement to 39.5% and sequential revenue acceleration providing tangible evidence of that shift. The more consequential forward signal is the Q3 guidance implying a return to year-over-year growth, combined with the company's projection that AI infrastructure will exceed one-third of total revenue by year-end. The $557.4 million cash position gives management significant capacity to fund capacity expansion and customer program ramps without near-term financing pressure, a meaningful cushion as hyperscaler and XPU platform ramps targeting 2027 approach.