At this time, I would like to welcome everyone to this Nordic Semiconductor Q1 2026 presentation. For the first part of this call, all participants will be in a listen-only mode. Afterwards, there'll be a question and answer session. To ask a question during the Q&A, please press five star on your telephone keypad. This call is being recorded. I would now like to hand the call over to Head of Investor Relations, Ståle. Please begin.
Thank you, Rasmus, and good morning, everyone. Please note that this presentation is being recorded and will be accessible on the Nordic website in the Investor Relations section. Additionally, for those of you missing this release, you can find the earnings press release, quarterly report, and presentation materials also on our IR website. With me today, we have our CEO, Vegard Wollan, and our CFO, Pål Elstad. They will share details about our recent financial performance and updates on key business development. Following the presentation, we will move on to the Q&A session. During this time, live questions can be submitted through the Q&A dial-in feature. For instructions on how to do dial-in, please refer to the earnings call invitation available under stock exchange notices on our IR website. Please keep in mind that the dial-in is required only if you like to ask questions.
As a reminder, this presentation includes forward-looking statements that come with inherent risk and uncertainties. Actual outcome may differ materially from those statements expressed or implied. We highly recommend reviewing our detailed Q1 quarterly report and the 2025 annual report for deeper understanding of the risk and uncertainties that could impact our business operation. With that, I will now hand the microphone to our CEO, Vegard Wollan.
Thank you, Ståle, and good morning. We continue our progress according to plan, financially, operationally, and strategically. I look forward to present the highlights of the quarter before handing over to Pål to take you through the financials in more detail. Revenue in first quarter increased by 24% to $192 million, continuing the solid growth trend we saw through 2025. This was in the high end of our guiding range and brings revenue for the last twelve months to $705 million, up 19% from the first quarter last year. We continue to see growth in both short range and long range and among both large key customers and in the broad market. We see year-on-year growth across both the consumer and the industrial and healthcare segments.
Gross margin was 52.1% in the first quarter, up from 49.5% in the first quarter last year, and this was roughly on par with the underlying margin level in Q4 2025. This generated an EBITDA of $24 million when adjusted for non-cash cost effects related to the Memfault acquisition, up from $15 million in the first quarter last year. As I mentioned, we continue to see growth both among our key customers and in the broad market. The top 10 share of revenue has stabilized and actually declined somewhat. Revenue from the top 10 customers are at all-time high on a rolling 12 months basis. With a high level of ongoing design activity, we continue to see upside potential with these customers.
It has been a clear priority for us to regain traction in the broad market, and it is encouraging to see that growth is now picking up in this segment. We see an increasing number of customers, former customers returning, new products entering the market, and the overall design activity remains solid. Broad market revenue is now more than 40% up from the 2024 lows on a rolling 12 months basis, but remains approximately 25% below peak levels from 2022. That means that we also continue to see significant upside potential in the broad market going forward. Looking at end customer certifications, we continue to maintain a share of in excess of 30%. The overall number of designs certified in Q1 was 133, up from 103 in the fourth quarter of 2025.
Designs based on the nRF54 series accounted for a little over 15% this time with the certifications in Q1, and this will increase over time. Please note this counting of certifications does not distinguish between high and low volume products, and hence, this cannot be translated directly into volume or revenue market shares. Q1 reflects strong execution towards an ambitious plan, and I'm proud of what our new business unit teams and our extremely dedicated employees are delivering. This quarter, we continued to deliver on our promises. We are expanding into new addressable markets. We are enabling improved intelligence at the edge, and we are strengthening the chip to cloud life cycle value as we evolve to a complete wireless solutions provider. Let me highlight some of our Q1 launches.
Starting with short range, Q1 was about continued product expansion and continued differentiation of the nRF54L Series, fully in line with our promises and product roadmap. At the entry level, we recently announced the nRF54LS05 variants, expanding our reach into more cost- and power-sensitive applications, broadening the addressable market while supporting volume growth. At the high end, we reinforce our differentiation with ultra-low-power Edge AI by launching the large-memory nRF54LM20B SoC. Together, these additions strengthen the nRF54L Series offering across both market reach and capability, supported by the market-leading and trusted Nordic developer experience. We are also expanding the addressable markets in our long-range offerings. Here, Q1 was about scaling the product portfolio with a clear, credible, and market-leading roadmap. Product manufacturers need future-ready roadmaps and solutions as networks and satellite connectivity evolve. This is exactly what we are delivering here.
With the new nRF92 Series, we introduce our next generation low-power cellular platform with substantially higher compute performance and integrated Edge Intelligence, b uilt on the more cost-efficient 22-nanometer platform, enabling more adaptive pricing strategies. With the nRF93 Series, we expand into higher bandwidth Cat 1 bis applications, addressing new markets while maintaining Nordic's focus on low power and ease of integration. At the same time, we continue to strengthen the proven nRF91 Series, including satellite connectivity, support and sub-gigahertz fallback, ensuring a simple, consistent developer experience across product generations. Now, more on Edge AI, Nordic moves far beyond connectivity in this area. We deliver real on-device intelligence by running AI algorithms and neural networks directly on our ultra-low-power wireless SoCs and modules, bringing far more intelligence to the edge node.
This matters because processing and decisions increasingly need to be made locally, both reliably and efficiently without cloud dependency. This is where our differentiation is clear. With the integrated Axon NPUs on our hardware, Nordic delivers industry-leading energy efficiency across a broad range of Edge AI applications, setting a new standard for ultra-low power Edge AI. Equally important is the ease of use. The Nordic Edge AI Lab makes the developer experience effortless, significantly reducing design complexity and accelerating time to market for our customers. Edge AI is an important structural growth driver, and Nordic is positioned to lead it. Our complete ultra-low power Edge AI and chip to cloud solutions create compounding advantages that are designed to scale and hard to replicate. We are also strengthening life cycle value with our chip to cloud solutions offering nRF Cloud.
There is a structural shift in the market towards stronger security, life cycle management, and long-term maintainability of the fleets of connected products, both driven by the EU Cyber Resilience Act and how customers want to build and operate products over time. This is an area where Nordic is deliberately investing in and executing on. With our newly launched Lifetime License for firmware updates and device management, customers get a predictable and scalable way to keep products secure and maintained throughout their entire lifetime. This goes beyond regulatory compliance, it reduces complexity and cost for our customers while improving long-term reliability and trust in the products they bring to market. Through nRF Cloud, we continuously manage and improve the security, software, battery health, and intelligence across fleets over the full product lifetime. That is a core part of Nordic's complete chip to cloud offering.
With that, over to you, Pål, for more details on the financials.
Thank you, Vegard. Now we'll go into details on Q1 results. As Vegard mentioned, revenue amounted to $292 million in the first quarter of 2026, a 24% increase from the same quarter in 2025, and a 14% increase from the previous quarter. On a rolling 12 months basis, revenue increased by 19% to $705 million. The revenue growth reflects Nordic's strong competitive position in a growing short-range market, a growing long-range business with higher product sales and cloud services revenue after the acquisition of Memfault. The short-range business remains the main revenue driver, growing by 22% year-over-year, $278 million or 92% of revenue. Compared to last quarter, revenue was up 12%.
Long-range revenue amounted to $ 12.5 million in Q1, representing an increase of 66% compared to the first quarter of 2025, and an increase of 43% compared to the previous quarter. The growth reflects both increasing product sales after a slightly weaker Q4 and higher cloud services revenue. The other category includes the early-stage businesses in PMIC and Wi-Fi, ASIC components, and development tool sales. Other revenue amounted to $ 2.4 million, up from $ 1.5 million last year. Turning to the end user markets, we see a broad growth in the quarter. Consumer is now 60% of total revenue and increased 30% compared to the same period last year and 15% compared to last quarter. Consumer sales are back to growth after a few quarters with low year-over-year growth due to strong comparables.
While industrial and healthcare is 38% of total, c onsumer growth is relatively broad-based across several verticals, with particular strength in PC accessories and gaming, driving the year-on-year and quarter-on-quarter increase. Industrial and healthcare also contributes meaningfully to the quarter's growth. Continued strong healthcare numbers, strong long range, which for the most part goes to the industrial customers, but also in an improvement in the broad market contributes to the growth. However, as we have said before, revenue in industrial and healthcare still depends on a relatively small number of customers, and the quarterly revenue level reflects high sales to individual key customers also in this quarter. Gross profit was just over $100 million in Q1, up from $77 million a year ago. The reported gross margin increased to 52.1% from 49.5% last year.
The year-on-year improvement of 2.6 percentage points was primarily driven by changes in customer and product mix, higher sales in the broad market, and positive contribution from cloud services revenue. Compared to adjusted numbers for Q4 2025, Q1 gross margin was up 0.1 percentage points, i.e., broadly stable sequentially, on an adjusted basis. We expect the gross margin to remain above 50% also in Q2, and we reiterate our long-term ambition to keep gross margins above 50%. Looking at the operating model, we have already talked about the 24% revenue increase and the strengthening gross margins. R&D has increased in absolute terms, but declined as a percentage of revenue, and it's worth looking a bit closer at where we spend our investments.
We're still investing in our short-range business, but although short-range accounts for more than 90% of revenue, it now accounts for less than 60% of R&D, and the R&D to revenue ratio in this area has dropped to around 15%. We also have significant R&D investments in our long-range business and early-stage businesses. These remain very high compared to revenue as they currently account for more than 40% of R&D, but less than 10% of revenue. These are investments for the future. Longer term, we expect significantly higher revenue in these areas and to see R&D to revenue decline sharply. Selling and general expenses is up year-on-year because of acquisitions, generally higher activity, and the weaker U.S. dollar.
Summing up, adjusted EBITDA increased by more than 60% year-over-year, with the EBITDA margin improving from 9.5% to 12.4% this quarter. Now I'm going to talk about the cash cost development. As we know, we continue to invest in future growth, for example, the increase in OpEx as a result of acquired businesses. Total cash operating expenses was $78 million in Q1, compared to $62 million in Q1 2025. The increase in cash operating expenses mainly reflect payroll expenses, which increased to $54 million from $42 million last year. Of the increase, approximately $2 million relates to net salary adjustments and around $4 million relates to acquired businesses. The remaining increase is driven by organic workforce growth of $1.3 million. Nordic is exposed to currency fluctuations, mainly NOK, Euro, and US dollars.
Compared to Q1, changes in these exchange rates increased quarterly operating expenses by approximately $5 million, mainly reflected in salary. The total number of Nordic employees at the end of Q1 was 1,433, including 59 employees that joined through the acquisitions last year. This corresponds to an organic increase of 4% and a total increase of 8% compared to a year ago. If we compare to last quarter, number of employees is fairly stable or is pretty stable. Other cash operating expenses amounted to $24 million in Q1, up from $20 million a year ago, driven by higher hardware and software spend, along with increased sales activity. There are some moving parts here, especially continued weakening of the US dollar, but overall, we expect a similar cash cost level going into Q2.
CapEx this quarter was $ 9.2 million, up from $ 1.8 million in the same quarter last year and up from $ 6.6 million last quarter. The step-up reflects planned investments phasing rather than a change in underlying run rate. We are planning for growth and currently investing in added manufacturing capacity. The increase this quarter is mainly driven by purchase of additional testers in supply chain to expand back-end production test capacity and support the ramp of new products, including the nRF54 Series. CapEx intensity over the last 12 months is approximately 4.2% of revenue, with the most recent quarter at 4.8%. Historically, CapEx intensity has generally ranged from around 3%-4%, with temporary increases during periods of elevated investments.
The current level reflects ongoing product ramp activities, and we expect CapEx intensity to remain around last twelve months levels in the near term. Turning to cash flow, operating cash flow was close to breakeven. This compares to EBITDA adjusted for capitalized development expenses of $18 million, with the difference mainly driven by a build in net working capital. Looking at that in more detail, the increase in working capital was mainly driven by higher receivables and inventory, partly offset by higher payables. Inventory ended the quarter at $284 million, up from Q1 last year and year-end, t his reflects higher activity levels and the ramp-up of new products. Importantly, this is not an unhealthy buildup, n et working capital as a percentage of last 12 months revenue was 24%, down from 26% last year, indicating improved efficiency despite the increase in absolute levels.
On financing, we had outflow of $19 million, broadly in line with last year, mainly related to the share buyback program. Finally, cash and cash equivalents ended at $ 280 million at the end of the quarter. Finally, before handing the word back to Vegard, we can have a look at our near-term outlook. Based on current customer orders and forecasts, we're guiding for revenue of $ 200 million-$ 220 million in the second quarter, corresponding to a year-on-year growth between 22% and 34%, with a midpoint of 28%. We reported a gross margin of 52% in Q1 and expect the gross margin to remain above 50% also in the second quarter. With that, I'll hand over to Vegard for his final remarks.
Thank you, Pål. Our strategy is fully aligned with these four strong growth drivers for Nordic Semiconductor. Firstly, we continue to benefit from sustained market growth driven by the long-term wireless connectivity mega trend and the increasing number of connected IoT devices. Secondly, we are strengthening our competitive position through our renewed world-class product portfolio, enabling us to take market share in the markets we participate in. Thirdly, we are expanding our addressable markets through a broader product portfolio for Nordic to participate in new market segments we haven't previously participated in. Finally, throughout our complete wireless solution, spanning hardware, software, and cloud services, we are increasing life cycle value per end product. These four growth drivers give us confidence in our long-term growth ambitions. Summing up, we are progressing to plan financially, operationally, and strategically.
Financially, we deliver solid year-on-year growth in first quarter with improving gross margins and profitability, keeping us on track for our long-term growth plan. Operationally, execution remains strong, w e continue to move at high speed on our extensive product renewal program with multiple launches and announcement across both short range and long range. Strategically, we are clearly evolving from a hardware supplier to a complete chip to cloud wireless solution partner. With that, we are happy to take your questions, and I'll hand over to Ståle.
Thank you, Vegard. We will now open up the line for questions. For instruction on how to join the Q&A, please refer to the earnings call invitation posted on our IR website under Stock Exchange Notice section. To allow as many participants as possible to ask questions before the market opens, we kindly ask you to limit yourself to one question following our initial response. You will have the opportunity to ask a follow-up question. With that, I will hand over to Rasmus, the operator, to begin the Q&A session.
Thank you. We'll now start the Q&A session. If you wish to ask a question, please press five star on your telephone keypad. To withdraw your question, you may do so by pressing five star again. There'll be a brief pause while questions are being registered. The first question will be from the line of Christoffer from DNB Carnegie. Please go ahead. Your line will now be unmuted.
Good morning, guys. Thanks for taking my question. Just wanted to cover a bit the dynamics you're seeing in customer behavior and so on. I think on the Q4 call and talking about Q4 and Q1, Vegard, you mentioned that the strength you were seeing, you wouldn't rule out somewhat of an impact on that from customers kind of restocking, not really pre-stocking, but maybe restocking. Can you talk a bit about, like, how customers have behaved during the quarter and what you're seeing thus far? Is the strength, you know, it's a lot better than typical seasonality, so are we seeing any pull forward as people are positioning ahead of a tightening market because they're worried about shortages in the second half? Talk a bit about the downstream dynamics, that would be super helpful. Thank you.
Thank you, Christoffer. The main thing which we clearly see is that the market is continuing improving, and we do see our customers selling more end products. That's clearly the. It's important to say that that's truly what we see a lot of, and we see increases and increasing forecasts because of that. I think the Q2 guide, of course, is based on current customer orders and the forecasts we have at the moment. Having said that, I think we cannot rule out the option that some customers are advancing orders because they are afraid of future capacity constraints elsewhere. As we know that there are some constraints elsewhere in the semiconductor market and supply chain at the moment.
I think the main thing for us is clearly to say that we see the market improving, and we see our customers being selling more of their end products. To some degree, we see some customers launching new products.
Okay. Super helpful. Then just a quick follow-up, more forward-looking. I think over the last couple of weeks, we've seen reports noting that not only like AI data center related stuff is tight, but even like basic NOR flash typically used in IoT devices is entering into allocation. Have you kind of seen any demand destruction or lowered forecast for the second half from customers struggling with getting components sitting next to your components on the PCB for the second half? Do you see any signs that we will see demand destruction at all at this point?
Yeah. I think just as a first, thanks for the question. I appreciate the interest for second half also, Christoffer. As our guiding principles are fairly clear on not moving beyond the quarter we are talking, that would restrict me from saying much on that. I think on a general view, we can say that we currently don't see direct impact from memory shortages or memory constraints at our customers. On a general basis, we have relatively few customers with larger memories sitting aside a Nordic SoC or a Nordic product. There are obviously some, and I do think it's hard for us to measure accurately potential impacts there.
Again, I don't think we can completely rule out the fact that that could give some indirect effects later on, but at the moment, we haven't seen any impact of that either.
Awesome. Thank you.
Thank you.
Thank you, Christoffer. The next question will be from the line of Harry Blaiklock from UBS. Please go ahead. Your line will now be unmuted.
Good morning, guys. Thanks for taking my questions. The first is just around your expectations on pricing this year. I know we've heard about some manufacturers putting through pricing increases at the back end of last year, and then also April this year. Is that something you're doing at all, or is the expectation still that pricing will be kind of down low single-digit percentage?
Yeah. Thanks, Harry. Appreciate the question and the interest in our pricing strategies and policies. I have to say, we also keep our pricing and the cost strategies confidential and cannot comment specifically on that. Pricing to our customers is generally managed in very close dialogue with our customers, and we remain confident that we are delivering competitive prices and very good value for money. But there is always a certain dynamic in both the pricing and the cost picture. We don't comment specifically on that. Hope you can appreciate that, Harry. Thanks.
Got it. Makes sense. I guess my follow-up is kind of related to that, but on the cost side, kind of how are you expecting cost to progress through the year, both OpEx and CapEx, especially within the context of the disruption in the Middle East. Also we're obviously hearing about foundry price increases, and I know you can't comment kind of specifically about what your foundry pricing, what you're seeing specifically, but I guess high level, kind of how you're thinking about those kind of puts and takes and OpEx and CapEx for you.
Yeah, I can comment. Thanks, Harry. I can comment on the COGS side first. I think at the moment, it's an area we are working extremely hard, a lot of attention on this as capacity is becoming slightly tighter in all kinds of manufacturing. That's also why I think you heard Pål say we are investing quite a lot in capacity now to support our planned growth. We are working extremely closely with our key foundry and OSAT partners, getting very solid support, as we are. We have loyalty both ways, which goes way back in time with our key foundry partners. Again, we cannot comment specifically on that , should constraints and other materials prices continue to increase, of course, that may impact everyone in this industry. At the moment, it is manageable. As I said, we are very well supported by our manufacturing partners overall.
Harry, on OpEx, I mentioned two items before. First of all, our cost is mainly driven by the number of employees we have, and quarter-over-quarter, it's been pretty stable. We only added three people during the quarter, and then we are trying to improve efficiency, et cetera so, I wouldn't expect a large increase in number of employees going forward. On the opposite side, FX is a negative drag, the weak U.S. dollar this quarter compared to a year ago cost us around $5 million in increased OpEx for the quarter. Overall, as I mentioned, we expect Q2 to be broadly in line with Q1 on OpEx levels.
Great. Thanks, Pål. Thanks, Vegard.
Thank you.
Thank you, Harry. The next question will be from the line of Oliver Wong from Bank of America. Please go ahead, your line will now be unmuted.
Hey, guys. Thanks for taking my question. I wanted to ask about Long Range, s o now that R&D for Long Range was about 31% of the total is that kind of what you see going forward? Are you seeing specific opportunities that are kind of, you know, perhaps better than what you expected at your last CMD? Any color on what kind of opportunities and can we think about kind of potential revenue ramps making?
Yeah. Thanks, Oliver. I think Long Range is a segment progressing very well for us, and I would say broadly progressing in line with our ambitious plans. We are expecting this to be growing gradually and continue to be growing gradually from here on. The premise for that is, of course, the basis of launching new products, which we have talked about and is part of that key plan. Our current plan is to keep our R&D investments relatively flat, as we have communicated in this area. You should see that 31% go down as revenues are increasing but o verall, I think we are very pleased with our performance in Long Range.
We're happy that we're now announcing the very important nRF92 Series as our main next generation platform in long range based on 22-nanometer with a lot more compute intensity and Edge AI, much lower power, which is a very natural extension from all of the nRF91 Series business, while we also actually make complements to our nRF91 Series, while we also expand into Cat 1 bis, which is a new market for us and kind of the other part of the LTE market. I think overall, happy, very happy and pleased with our position there. I think we are really taking a leadership position, product-wise, technically in the market at the moment. The team is extremely energized and executing well. We are optimistic for the coming time in long range.
All right. Thank you very much.
Thank you.
Thanks, Oliver. The next question will be from the line of Craig McDowell from JP Morgan. Please go ahead, your line will now be unmuted.
Hi. Good morning. Thanks for taking my question. The first one I had was on the nRF54 launch. You talked about growing proportion of design certifications from that product launch. Wondering whether you can comment on sort of revenue contribution at this point. Then linked to this, can you remind us how we should think about the gross margin impact of this launch? I've got a follow-up as well. Thank you.
Yes. Thanks. That's a great question. I think also the nRF54 launch and the nRF54 rollout is executing very well. Just to say that proud of the team executing extremely fast and focused and keeping a lot of attention on renewing us in the short range space. It is now, s o if you've got certifications first, I think last time we said we were slightly short of 15% of the Bluetooth SIG certification. This time we are just about, so it's growing, and we expect that to continue growing very clearly in the coming time. On the revenue side, it is starting to now begin to generate some meaningful revenues for us.
The design activity and the way we measure design-ins is still continuing very strongly with both key customers and the broad market. Within key customers and the broad market. It is very clearly supporting our expectations for the nRF54 Series, that with these very leading market-leading products, that will be a very key long-term growth driver for Nordic Semiconductor.
When it comes to gross margin, Vegard, I think we can say it's a very competitive product, and then we're now able to sell the right product to the right customer at the right price. It should be positive on the gross margins.
Yeah. Yeah.
Yeah.
Yeah, thanks for reminding me, Pål. I think overall.
Mm.
Having the breadth of the product portfolio allows us to tailor more the product to the right solution, as Pål says and t he 22-nanometer production platform is a very solid foundation for us, without being specific on the margins being changed.
Yeah.
Yeah.
Thank you.
Thank you. Just as a follow-up, pointing to the Memfault acquisition, and obviously a few months into integration now, just wondering whether you'd give us any sort of data points on maybe cross-sell or revenue synergies. Have you seen some revenue growth accelerate from the, I think, 40% growth it used to post? Any color would be great. Thank you.
Yeah, appreciate the interest there. I think on a general basis, we don't provide standalone breakdown on our cloud revenue at the moment. I think we can clearly confirm that cloud revenue is growing according to our plan, and it is contributing positively to our gross margin. I think software-based cloud services carry gross margins in line with more general software gross margins, which are somewhat higher than generally on the hardware side. That's positive. I think the traction is positive on the cross-selling, w e do see high interest, and I think particularly as we are now approaching the requirements of being Cyber Resilience ready in Europe and also similar situation with regulatories in the United States.
C ustomers are becoming more and more aware of that, and of course, allowing us from a strong product offering side to be serving a large range of customers, instead of each and one of these customers having a small R&D team resolving this by themselves makes a lot of sense. We do see that traction growing and the premise that we made the acquisition on is absolutely valid and I think we are pleased with the current progress we are having in the nRF Cloud space.
Thanks very much.
Yeah.
Appreciate the answers.
Thank you, Craig. The next question will be from the line of Om Bakhda from Jefferies. Please go ahead, your line will now be unmuted.
Hi. Thanks for letting me on. I had two questions. Firstly, on the presentation deck, we can see that your broad market share has been increasing nicely year to date. I was wondering, is this sort of nRF54 related? I f there's any other sort of end markets or applications that you could flag as to be driving the sequential growth within the broad market.
Yes. I think we are pleased to see the broad market gaining traction. As we said, it's now about 40% above the low levels, s till 25% below the peak but w e are seeing this and expecting this to be continuing to strengthening for us as we see the pipeline developing very positively there. I think there is still a blend of wins with old and new products. Of course, every month that we are executing at the moment, we see that percentage of wins based on the nRF54 Series becoming higher and higher. I think overall, we are extremely pleased with the competitiveness of the nRF54 Series broadly in all geographies, as well as both with the key customers and within the broad market. Overall strong design activity on that without being specific on the numbers between old and new products.
No, that's really helpful. My follow-up is just on sort of the dynamics into the second quarter. Back at fourth quarter results and also on the guidance, if given, you've mentioned sort of an uptick in customer orders is driving this sequential strength. My question is based on these engagements that you're getting, do you feel as though you're getting increased visibility from your customers given the pickup in market conditions?
Yeah. I'm a bit uncertain if I really captured the question clearly. I think the main thing for us at the moment on that side is that we do see the underlying market is improving and our visibility though is still in line with recent quarters. Market improving customers are selling more of their products and that's of course encouraging to us. Currently the Q2 guide is based on that current customer order and forecasting engine, which is always updated within the company.
Great. Thank you.
Thank you.
Thanks, Om. The next question will be from the line of Øystein Lodgaard from ABG. Please go ahead. Your line will now be unmuted.
I have a question on the long range segment. You had very strong growth there this quarter. Just, is this kind of the more quarterly variations, or should we see this as the start of a new trend where growth is accelerating in this segment? The second is this driven by new product launches like the nRF9151 or the satellite, or is this still more on the old nRF9160 model where you're seeing growth?
Yeah. It was indeed a strong and a record quarter for long range. We are very pleased with the trajectory there. The growth reflects both higher product sales and to some degree increasing revenue contributions from nRF Cloud services as well. We don't break out the nRF9160 versus nRF9151 revenues. nRF9151 is, as the nRF54 Series in short range is starting to meaningfully contribute, the nRF9151 now meaningfully contributing, definitely meaningfully contributing in long range. I think to some degree it's relatively early days on NTN and satellite connectivity enablements. We do see that being designed in and certifications are happening in that area.
We're still at relatively low levels in long range, so we should though expect some variability, somewhat less stability in the revenues compared to short range. We are clearly also expecting this to continue to grow as we have previously communicated. Very pleased with the current quarter for long range.
Thank you very much.
Yeah.
To follow up on kind of your other product areas, PMIC and Wi-Fi. When should we kind of start to see more meaningful revenue contribution from these? Can you say something about the momentum that you're seeing there?
Yeah. That's great questions. Both those businesses, so Wi-Fi and PMIC, are still in early commercial phase, which means we report them under the other segment. PMIC continues to gain very solid design traction on the back of a broader portfolio now. We also have key customers starting to evaluate our PMIC offering. The pipeline is growing well in that segment. Again, that will gradually improve and grow that revenue quarter by quarter in the coming year is our expectations. In Wi-Fi, there is design activity ongoing. As we have communicated also our nRF70 Wi-Fi companion chip has some limitations in its reach, so we are only utilizing that in certain use cases.
While the next generation nRF7001 is assumed and expected to be a leading Wi-Fi asset with Nordic's ultra-low power leadership built on the same 22 nanometer platform as the nRF54 Series and the nRF92 Series. We have very high expectations for that, and launch is expected towards the end of the year on the nRF7001 Series, and then you have to allow for design-in time and the natural development of that product beyond that.
Thank you very much.
Thank you.
Thank you, Øystein . We have one follow-up from Christoffer from DNB Carnegie. Please go ahead. Your line will now be unmuted.
Yeah. Just on the prepayments to GlobalFoundries, can you talk a bit about?
Whether that is linked to a particular product or, is it nRF54H only or is that also going to be utilized against nRF54Ls if they are manufactured at GlobalFoundries as well? Since that isn't moving down yet, is that all an indication that nRF54H isn't ramping? Yeah, just anything you could read out of that number in the balance sheet.
Yeah, no. It's related to GlobalFoundries and L is another technology. It's all related to the GF part of the business.
Right. It's probably important to say that the GF part of the business is more than the 54H-
Yeah, correct.
at the moment. Without being specific on where we manufacture.
Mm.
On a general note, just mentioning that.
Okay.
All right. Thank you.
Yeah. Thanks, Christoffer.
Thanks, Christoffer. As we have no more questions in the queue, I'll hand it back to Ståle for any closing remarks.
Thank you. Before we close today's session, I have one brief announcement. Nordic will conduct two post Q1 2026 result and Q&A group calls with analysts and investors. The first group call for European investors will be hosted by Barclays, and is scheduled for tomorrow, Wednesday, 29th of April, 2:00 P.M . Central European Summer Time. The second group call will be for U.S. investors hosted by ABG Sundal Collier, and is also scheduled for Wednesday at 5:00 P.M . Central European Summer Time. Both calls will be attended by CEO Vegard Wollan, CFO Pål Elstad, and IR team, and will be moderated by covering analysts at each representative brokerage. For registration, please visit the IR calendar on our website. With that, I will now hand over to Vegard Wollan for his closing remarks.
Thanks a lot, everyone. Thanks for joining us. This concludes today's call. Thank you.
Thank you.