Immersion Corporation (IMMR) announced fiscal year 2026 revenue of $1.73 billion, an 11.3% increase from the previous year's $1.56 billion. However, the company's profitability saw a steep decline, with net income falling approximately 93% to $4.5 million from $64.3 million in fiscal 2025. Diluted earnings per share correspondingly dropped to $0.14 from $1.90 a year earlier.
The revenue growth was primarily driven by the consolidation of Barnes & Noble Education, which contributed over $1.71 billion. This masked a significant downturn in Immersion's core haptic technology licensing business, where royalty and license revenue decreased sharply. The drop in net income was attributed to this decline in high-margin licensing fees and higher operating costs.