InTest Corporation Issues Preliminary Q2 2026 Results and Revises FY26 Guidance Amid Inventory Accounting Error
MT. LAUREL, NJ – July 31, 2026 – InTest Corporation (NYSE American: INTT), a global provider of innovative test and process technology solutions for key markets including Semiconductor, Automotive/EV, Defense/Aerospace, Industrial, Life Sciences, and Safety/Security, released a significant update for investors regarding its preliminary second quarter 2026 results and revised full-year guidance.
Key Highlights and Shareholder-Relevant Developments
- Q2 2026 Revenue Estimate: Approximately \$35 million.
- Q2 2026 Gross Margin Estimate: Approximately 40%.
- Q2 2026 Operating Expenses: Estimated at \$13.9 million.
- Downward Revision to Q1 2026 Gross Margin: First quarter gross margin to be revised down by 220 basis points due to an inventory accounting error, equating to an overstatement of gross profit by approximately \$750,000.
- FY26 Revenue Outlook Raised: Revised guidance now calls for \$135 million to \$140 million in revenue for full year 2026, up from the previous \$130 million to \$135 million range.
- FY26 Gross Margin Outlook Reduced: Full-year gross margin now expected to be approximately 43% (from prior 45% guidance), reflecting corrections related to Alfamation’s gross margins and an anticipated improved revenue mix in the second half.
- Material Weakness in Internal Controls: Company expects to report a material weakness in internal control over financial reporting due to the aforementioned error, but states the weakness has now been remediated.
- No Restatement Required: Management determined that the Q1 error is not material enough to require an amendment to previously filed reports, but will revise results in the current period.
- Conference Call Scheduled: Management will report full Q2 results and host a conference call and webcast on Monday, August 10, 2026, at 8:30 a.m. ET.
Details of the Accounting Error and Its Impact
The company discovered an inventory accounting error related to its Alfamation subsidiary during the implementation of a new ERP system. As a result, first quarter 2026 consolidated gross profit was overstated by approximately \$750,000. This results in a 220 basis point reduction in previously reported Q1 gross margin. While management does not consider this error material for Q1 on a standalone basis, correcting the cumulative effect in the current period would have been material. Therefore, the company will revise Q1 results to reflect the proper gross margin and inventory levels.
The company further announced that it expects to report a material weakness in its internal control over financial reporting as a result of this error. Management asserts, however, that the weakness has now been remediated and the company expects to demonstrate effective controls by fiscal year-end.
Updated Full Year 2026 Outlook
- Revenue: \$135 million to \$140 million (previously \$130 million to \$135 million).
- Gross Margin: Approximately 43% (previously 45%), reflecting corrections for Alfamation’s gross margin for the first and second quarters, partially offset by an improved mix of higher-margin revenue expected in the second half.
Management attributed the improved revenue outlook to strengthening demand and anticipated order activity across several end markets. The reduction in gross margin guidance is primarily due to revised estimates for Alfamation orders to be delivered in the second half of the year.
Management Commentary
Duncan Gilmour, CFO, acknowledged the disappointment in not catching the overstatement of Alfamation’s gross margin sooner, noting the challenges inherent in implementing a new ERP system. “While the implementation of a new ERP system is generally understood to be challenging, it is nevertheless disappointing that we didn’t realize sooner that Alfamation’s gross margin was overstated,” Gilmour said. He added that the company is also making downward adjustments to gross margin estimates on Alfamation orders for the remainder of the year.
CEO Rich Rogoff emphasized operational discipline as a priority, stating, “Addressing the reporting issue at Alfamation sits squarely within that mandate, and it has my full attention. Looking ahead, strengthening demand in our sales funnel across our end markets has led us to raise our full-year 2026 revenue outlook. End markets demand remains strong, and driving operating leverage and adjusted EBITDA expansion continues to be my focus.”
Conference Call and Access Information
InTest will host a conference call and webcast to discuss Q2 results and corporate strategy on Monday, August 10, 2026, at 8:30 a.m. ET. Investors can access the live call at (877) 407-0792 (U.S.) or (201) 689-8263 (International). A replay will be available via (844) 512-2921 or (412) 317-6671 using pin number 13760855. The webcast and transcript will be available at www.intest.com/investor-relations.
Potential Share Price Impact and Investment Considerations
- Positive: Raised revenue guidance for FY26 on strengthening demand may bolster investor confidence and support the share price.
- Negative: The downward revision in Q1 gross margin, reporting of a material weakness in internal controls, and reduced full-year gross margin guidance may raise concerns over operational reliability and cost management, potentially exerting pressure on the share price in the short term.
- Operational Discipline: Management’s swift remediation of the control weakness and reaffirmed commitment to operational improvements could mitigate longer-term negative sentiment if successfully executed.
About InTest Corporation
InTest Corporation (NYSEAMER: INTT) is a global supplier of test and process technology solutions, serving the semiconductor, automotive/EV, aerospace/defense, industrial, life sciences, and safety/security markets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Investors should review all available filings and disclosures and consult with their financial advisor before making investment decisions.
