Jerash Holdings (JRSH) Q2 2026 Earnings: EPS Misses, Revenue Beats Estimates

Jerash Holdings (US), Inc. (NASDAQ:JRSH) has announced its financial results for the second quarter of fiscal year 2026, concluding September 30, 2025. The report presents a mixed financial picture, with revenue meeting expectations but earnings per share falling significantly short of analyst forecasts, a dynamic that appears to be influencing early market sentiment.

Earnings and Revenue Versus Estimates

The company’s performance against Wall Street expectations reveals a clear divergence between its top and bottom lines.

• Revenue: Jerash reported quarterly revenue of $42.0 million. This figure narrowly surpassed the analyst consensus estimate of $41.82 million.
• Earnings Per Share (EPS): The company reported a non-GAAP EPS of $0.04 for the quarter. This fell well below the analyst estimate of $0.0969, representing a significant miss on profitability.

The immediate market reaction has been negative, with the stock trading down approximately 3.7% in pre-market activity following the earnings release. This suggests investor focus is centered on the earnings miss and compressed margins rather than the slight revenue beat.

Quarterly Performance Summary

The fiscal Q2 results show a company experiencing modest sales growth but facing pressure on its profitability. Revenue increased by 4.3% compared to the $40.2 million reported in the same quarter last year. However, this growth did not translate to the bottom line, as net income for the quarter was $479,000, or $0.04 per diluted share, down from $665,000, or $0.05 per share, in the prior year period.

Key factors influencing these results include:

• Gross Margin Contraction: The gross profit margin declined to 15.0% from 17.5% in the previous year. Management attributed this to a less favorable product mix as the company diversifies its customer base, as well as an unusually high margin in the year-ago quarter that benefited from catch-up production of higher-margin outerwear.
• Operational Control: A positive note was the reduction in operating expenses, which decreased to $5.2 million from $5.9 million a year ago, aided by better control of export costs and lower stock-based compensation.

Management Outlook and Forward Estimates

Looking ahead, Jerash Holdings has provided an optimistic outlook for the next quarter, which contrasts with the recent earnings performance.

The company expects revenue for the fiscal 2026 third quarter to increase by 19% to 21% over the same quarter last year. Based on the prior year's Q3 revenue, this implies a forecast of approximately $47.5 million to $48.3 million, which would significantly exceed the current analyst sales estimate of $40.09 million for Q3/2026.

However, the company anticipates continued pressure on margins, with a gross margin goal of approximately 13% to 15% for the coming quarter. Chairman and CEO Sam Choi cited "growing demand from our customers" and noted that Jordan is becoming a "preferred destination" for global brands seeking to diversify manufacturing beyond Asia. To support this anticipated growth, the company has completed a facility expansion and is initiating a long-term expansion plan.

Broader Financial Health

Beyond the quarterly earnings, the company's balance sheet remains solid. As of September 30, 2025, Jerash held $13.7 million in cash and restricted cash, with net working capital of $35.2 million. Demonstrating a commitment to shareholder returns, the board of directors has approved a regular quarterly dividend of $0.05 per share.

For a more detailed look at historical earnings and future analyst estimates for Jerash Holdings, you can review the data here.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.