inTEST (NYSE American: INTT) reported third quarter 2026 results on November 6, and the headline number is orders. The company booked a record 49.4 million dollars, up 31.3 percent from a year ago and 71.2 percent from the second quarter. For a company with quarterly revenue of 35 million dollars, that is a big jump.
The quarter in numbers
Revenue was 35.1 million dollars, up 33.7 percent year over year and flat against the second quarter. Gross margin rose to 47.7 percent from 41.9 percent. Net earnings were 1.9 million dollars, or 15 cents a share, against a loss of 0.9 million a year earlier. Adjusted EPS was 18 cents and adjusted EBITDA 4.4 million dollars, a 12.6 percent margin.
Backlog closed at 59.7 million dollars, up 21.2 percent. About 60 percent of it is expected to ship after the fourth quarter. Cash was 20.9 million dollars, term debt fell by 1 million in the quarter, and the 10 million dollar revolver is undrawn, with 30 million available on a delayed draw term loan.
Fourth quarter guidance calls for revenue of 34 to 36 million dollars and gross margin around 45 percent.
Where the orders came from
Semiconductor orders were 25.1 million dollars, about half the total and more than three times the year-ago level. CEO Richard Rogoff tied the strength to back-end test, with customers adding capacity for power, analog and mixed-signal chips. He also pointed to interest in high-powered chillers and other advanced test products.
The other end markets were mixed. Auto and EV orders were 9.4 million dollars, down 35.8 percent year over year but up sharply from the second quarter. Defense and aerospace came in at 6.1 million, down 5.3 percent but up 43.1 percent sequentially. Industrial rose 8.1 percent to 5.1 million.
Reading it
The quarter says something about the chip cycle beyond AI accelerators. Power, analog and mixed-signal parts went through a long inventory correction tied to autos and industrial demand. Test capacity orders for those chips suggest customers now expect volumes to rise again. inTEST is small enough that one or two large customers can move the whole number, so a single quarter is not a trend.
Two things support the bull case. Lead times are getting longer and customers are ordering earlier, which is how the backlog got built. Management also expects much of the semiconductor intake to turn into revenue in the first half of 2027. The weak spot is flat revenue and the guide. Q4 revenue at the midpoint is slightly below Q3, and gross margin is guided down about 2.7 points. Investors are being asked to wait for the order book to convert.
If it does, first-half 2027 revenue should step up meaningfully from the 35 million dollar run rate. If customers push deliveries out, the record backlog will look less impressive. The next order print will tell which.