Littelfuse surges 5.6% on Q4 earnings beat, strong 2026 outlook
Circuit protection specialist exceeds analyst expectations with 12.2% sales growth and robust guidance for first quarter
Littelfuse shares jumped 5.6% on Wednesday after the circuit protection specialist reported fourth-quarter earnings that comfortably exceeded Wall Street expectations, signaling renewed momentum in the electronics components sector.
The Chicago-based company reported adjusted earnings per share of $2.69 for the quarter, surpassing analyst estimates that ranged from $2.52 to $2.58. Revenue of $593.9 million marked a 12.2% year-over-year increase and topped analyst projections, driven by strength across high-growth end markets including automotive and industrial applications.
The earnings performance represents a notable turnaround for the company, which has faced demand headwinds over the past two years. Littelfuse's sales had been flat during that period, with annual earnings per share declining 4.7% as broader electronics markets softened. The fourth-quarter results, with adjusted EBITDA margins improving to 20.5% (up 480 basis points), suggest that operational discipline and strategic positioning are beginning to pay dividends.
Greg Henderson, Littelfuse's president and chief executive officer, highlighted the company's progress in a statement accompanying the results. "I am proud of our teams as we finished the year with significant momentum, delivering fourth quarter results above our guidance range and successfully closing the acquisition of Basler Electric," Henderson said.
The Basler Electric acquisition, completed in December, is expected to enhance Littelfuse's capabilities in high-power markets and strengthen its competitive position in electrical energy transfer applications—a key area of focus as global electrification trends accelerate.
Looking ahead, management provided first-quarter 2026 revenue guidance of $625 million to $645 million, with a midpoint of $635 million representing 3.5% above analyst expectations. The guidance implies 14.6% year-over-year sales growth, suggesting continued demand recovery. Adjusted earnings per share for the quarter are projected to range from $2.70 to $2.90, roughly in line with analyst forecasts.
The strong guidance reflects confidence in the company's ability to leverage its leadership position in circuit protection, power control, and sensing solutions. Littelfuse serves some of the most dynamic sectors of the global economy, including automotive, industrial, and consumer electronics—all of which are experiencing increased demand for electronic content and safety systems.
Analysts responded positively to the results, noting that the company's execution has improved despite challenging market conditions. Among the five analysts covering the stock, two rate it a buy while three recommend hold, with an average target price of $321.25, suggesting modest upside from current levels near $313.
The stock's performance on Wednesday marked a significant move for a company that has traded in a 52-week range of $140.76 to $307.99. The shares remain well above their 200-day moving average of $239.64, though they carry a premium valuation with a trailing price-to-earnings ratio of 61 times—reflecting investor expectations for continued growth acceleration.
Littelfuse's long-term track record remains solid, with five-year compounded annual sales growth of 10.5% and annual EPS growth of 10.8%. However, operating margins have compressed by 17 percentage points over the same period, underscoring the competitive pressure in the electronics components market and the importance of the company's recent focus on operational efficiency.
The company's diverse business segments, with electronics accounting for 58.1% of revenue and automotive representing 27.6%, provide exposure to multiple secular growth themes. However, both segments have shown flat revenue performance over the past two years, making the recent quarter's 12.2% growth particularly meaningful for investors seeking evidence of a sustainable turnaround.
As the global economy continues its transition toward greater electrification and automation, Littelfuse's products are increasingly critical for vehicle safety systems, industrial equipment protection, and consumer electronics reliability. The company's success in executing on its strategic priorities—including the integration of Basler Electric—will be key to sustaining the momentum that drove Wednesday's market reaction.