Netlist, Inc. NLST will release results for the second quarter of 2026 on July 30.
The Zacks Consensus Estimate for second-quarter earnings is set at breakeven, unchanged in the past 60 days. The company has reported a loss of 2 cents in the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $90 million, indicating a nearly 116% increase from the year-ago actual.
Netlist’s earnings beat the Zacks Consensus Estimate in one quarter and missed in another while matching the same in the remaining quarters, with a negative average surprise of 33.3%.
Price Performance
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NLST stock has gained 110% over the past six months, while the Computer-Storage Devices industry is up 102.8%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 5.3% and 6.2%, respectively, in the same time frame.
Factors Shaping NLST’s Q2 Results
The second quarter is likely to have built upon the momentum seen in the first quarter of 2026. First quarter revenues surged 262% to $104.9 million, driven by memory supply issues and surging AI-driven demand, creating strong pricing tailwinds.
On the last earnings call, management noted that the memory market remains structurally undersupplied while demand remains steady across key end markets. Moreover, supply constraints across the memory industry are expected to continue until new capacity comes online next year, delaying meaningful respite until 2029.
Management also added that though the company expects price increases throughout the year, it will not be as sharp as seen in recent quarters.
Beyond this, investors will be focused on the company’s portfolio updates. NLST has been ramping up its Lightning portfolio (low-latency DDR5 RDIMM and UDIMM solutions). At the same time, DDR4-based custom solutions — primarily catering to industrial and networking customers — remain a key revenue contributor and should provide stability in the near term.
Netlist, Inc. Price and Consensus
Netlist, Inc. price-consensus-chart | Netlist, Inc. Quote
The company continues to advance CXL NVDIMM and low-power MRDIMM solutions, both aimed at addressing AI-driven workload requirements around memory performance and capacity.
From a mix standpoint, Netlist’s business remains tilted toward resale products, which accounted for roughly 80% of revenues in the first quarter.
Also, NLST’s patent litigation remains in focus. With multiple appellate decisions pending in 2026 and potential exclusion/cease & desist orders in play, the IP story is increasingly becoming important for the company. It recently announced that the ITC has launched a second investigation into Samsung’s HBM products and DDR5 RDIMMs and MRDIMMs — with heavyweights like NVIDIA, Google and Broadcom, along with Supermicro, pulled into the fray.
ITC will determine whether Samsung memory products are to be banned for import within the United States for patent infringement. The hearing is scheduled for November 2026.
Earnings Whispers for NLST
Our proven model does not predict an earnings beat for Netlist this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
NLST currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Monolithic Power Systems MPWR currently has an Earnings ESP of +1.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Monolithic is scheduled to report quarterly earnings on July 30. The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues stands at $5.88 per share and $903.97 million, respectively. Shares of Monolithic have gained 80.5% in the past year.
Seagate Technology Holdings plc STX has an Earnings ESP of +0.47% and a Zacks Rank #1 at present. STX is scheduled to report quarterly figures on July 28. The Zacks Consensus Estimate for Seagate Technology’s to-be-reported quarter’s earnings and revenues is pinned at $5.10 per share and $3.49 billion, respectively. Shares of Seagate Technology are up 466% in the past year.
Woodward WWD has an Earnings ESP of +5.10% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on July 29. The Zacks Consensus Estimate for Teradyne’s to-be-reported quarter’s earnings and revenues is pinned at $2.39 per share and $1.11 billion, respectively. Shares of WWD are up 62% in the past year.
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Netlist, Inc. (NLST): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).