Key Highlights

  • Third-quarter 2026 Revenue reached USD 8,900,433, a company record, compared with USD 8,803,695 a year earlier.
  • Gross Margin climbed to 20.9% from 17.1%, a level management said had not been seen in more than three years.
  • Net income came in at USD 346,757, or USD 0.02 per share, up from USD 207,964.
  • Cash and marketable securities totaled about USD 18.4 million (calculated) at September 26, 2026.
  • The company signed a Lease for an 80,000 square foot Facility in Attleboro, Massachusetts.

What Drove CPS Technologies Before the Open (up USD 0.5249, 15.06%)

CPS Technologies (NASDAQ:CPSH) gained USD 0.5249, or 15.06%, to USD 4.01 in pre-market trading on November 4, 2026. The catalyst is the company's third-quarter 2026 Earnings release dated November 3, 2026, which showed record quarterly sales and the strongest gross margin in more than three years. Management is set to discuss the results on a call on November 4.

The implied Tuesday close was near USD 3.49 (calculated from the screen figures). Revenue growth was modest at about 1%, so the market seems to be focused on margin improvement, new orders and the facility expansion.

The Earnings Breakdown

Revenue of USD 8,900,433 compared with USD 8,803,695 in the third quarter of 2025. Gross Profit rose to USD 1,856,485 from USD 1,502,566. Selling, general and administrative expense increased to USD 1,498,738 from USD 1,226,484, and Operating Income came in at USD 357,747 versus USD 276,082.

Net income was USD 346,757, up from USD 207,964, helped by other income of USD 163,349. Earnings were USD 0.02 per share on 19,757,374 diluted weighted shares. For the nine months, revenue was USD 24,238,504 against USD 24,388,272, and Net Income was USD 90,324 against USD 407,759.

The chief executive said detailed planning for the Attleboro site is underway with a construction manager. A partial move could begin earlier in 2027, with the full buildout likely stretching into the second half of 2027.

Background and Orders

CPS is an advanced materials company. Its products include proprietary metal matrix composites, hermetic packaging for high-reliability modules and armor protection, serving the transportation, energy, automotive, electronics, telecom, aerospace and defense markets.

The company reported its first order from a defense contractor for tungsten alloy components made with its QuickSet Injection Molding process. It also received new Volume orders from its largest customer, a semiconductor manufacturer, at levels consistent with the prior-year period, with deliveries continuing into fiscal 2027. The company gave no numerical guidance and no Backlog figure, saying it is in excellent shape for continued growth heading into fiscal 2027.

Balance Sheet and Risks

At September 26, 2026, cash stood at USD 2,791,195 and marketable securities at USD 15,612,554, compared with USD 4,466,198 and USD 8,769,363 at December 27, 2025. Restricted cash was USD 510,154. Inventories rose to USD 10,320,406 from USD 5,598,407. Total Assets were USD 47,931,674 and stockholders' Equity was USD 34,120,312.

Long-term lease liabilities jumped to USD 8,503,691 from USD 174,000 because of the new Attleboro lease. In May 2026 the company sold 1,200,000 shares at USD 8.00 each in a registered direct offering, and shares outstanding reached 19,387,942 by July 26, 2026. The stock now trades well below that offering price. As a stock under USD 5, CPSH can be volatile, thinly traded and exposed to dilution risk. The company also depends on a limited number of customers.

What to Watch Next

Watch for commentary on the earnings call, the third-quarter Form 10-Q, order flow from the semiconductor and defense customers, and the build schedule for the Attleboro facility. Pre-market gains can narrow once regular trading opens.