Frequency Electronics (FEIM) delivered a solid QQ2 2026 performance characterized by a sequential revenue uptrend and a historically high funded backlog, underscoring a shift toward non-space U.S. DoD programs while maintaining exposure to space/defense growth initiatives. Revenue reached $17.1 million for the quarter, up 24% sequentially, with funded backlog at $82 million at quarter‑end—the highest in company history and implying favorable visibility into the mid‑term. Management emphasized a multi‑year growth trajectory supported by expanding opportunities in quantum sensing, alt‑PNT, proliferated satellites, and defense modernization. While gross margin remained healthy at approximately 38%, mix shifts toward higher engineering content non‑recurring work offered some margin variability. The company cautioned that near‑term results can be non‑linear as funding cycles and program start timelines evolve, but signaled that the current backlog and funded awards point to a continuing up‑tempo trajectory. FEIM also highlighted strategic investments (e.g., Colorado magnetometer/quantum tech efforts) and large anticipated programs (Golden Dome, SHIELD, NTS‑3) that could materially elevate future revenue contribution and market position over the coming years.