# Frequency Electronics jumps on a record quarter

> A little-known space parts maker just posted its biggest quarter ever, and the stock ripped 42%.
- Title: Frequency Electronics jumps on a record quarter | Shortify
- Summary: A little-known space parts maker just posted its biggest quarter ever, and the stock ripped 42%. Record revenue and an $129 million backlog give Frequency…
- Keywords: stocks, earnings, space, defense, small caps, business, finance, Frequency, Electronics, jumps, record, quarter
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/frequency-electronics-feim-soars-record-133402974.html
- Published: 2026-09-12T13:34:02+00:00
- Read time: 1 min
- Topics: stocks, earnings, space, defense, small caps, business, finance
## A record quarter out of nowhere
Frequency Electronics reported $23.5 million in revenue for the first quarter of fiscal 2027, an all-time high. That is up 70% from a year ago and 52% from the prior quarter.

> Revenue reached an all-time record of $23.5 million
## Management called it
Back in July, the company told investors fiscal 2027 would be a return to growth. This quarter makes that look conservative, and it raised confidence in hitting at least $150 million a year by fiscal 2029.
## The backlog is the real story
Funded backlog hit a record $129 million, up 82% year-over-year. Revenue is one quarter, backlog is the pipeline, and it points at bigger end markets than the company used to serve.
## Margins followed revenue up
Gross margin expanded to about 46% and operating margin cleared 22%. The company was cash-generative in the quarter and expects to stay that way annually.
## Too much demand is a problem too
Ramping production to meet customer schedules is the bottleneck. Management hinted it may have to ration orders and turn some business away, and traction with new defense startups has been thin so far.

> it may need to carefully allocate orders and potentially turn down some business
## Bulls in, bears still short
Hedge fund holders rose to 16 in the second quarter of 2026 from 13. But short interest sat at 11.39% of float as of August 31, and there is no dividend to draw in income investors.
## Key takeaway

Record revenue and an $129 million backlog give Frequency Electronics real momentum, but production limits and heavy short interest are the open questions.