Macom Technology Exceeds Q1 Earnings Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy MTSI?
Source: seekingalpha
- Significant Earnings Growth: Macom Technology reported a 29% year-over-year increase in adjusted EPS to $1.02 and a 24.5% rise in revenue to $271.6 million for the first quarter ended January 2, exceeding analyst expectations and demonstrating strong performance in the semiconductor market.
- Improved Gross Margin: The company's gross margin for the first quarter was 55.9%, up from 53.7% in the same quarter last year and 54.5% in the previous quarter, indicating effective cost control and pricing strategies that enhance profitability.
- Optimistic Q2 Outlook: Macom expects revenue for the second quarter to range between $281 million and $289 million (midpoint at $285 million), surpassing the consensus estimate of $275.73 million, reflecting confidence in future growth.
- Adjusted EPS Forecast: The company anticipates adjusted EPS for the second quarter to be between $1.05 and $1.09 (midpoint at $1.07), also above the consensus estimate of $1.03, further showcasing its ongoing profitability and competitive position.
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Analyst Views on MTSI
Wall Street analysts forecast MTSI stock price to fall
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 238.990
Low
165.00
Averages
193.50
High
220.00
Current: 238.990
Low
165.00
Averages
193.50
High
220.00
About MTSI
MACOM Technology Solutions Holdings, Inc. designs and manufactures high-performance semiconductor products for the industrial and defense, data center and telecommunications industries. It services over 6,000 customers annually with a product portfolio that incorporates radio frequency (RF), microwave, analog and mixed signal and optical semiconductor technologies. The Company is specialized in application, analog and mixed signal circuit design, compound semiconductor fabrication (including gallium arsenide (GaAs), gallium nitride (GaN), indium phosphide (InP) and specialized silicon), advanced packaging and back-end assembly and test. It offers a broad portfolio of standard and custom devices, which include integrated circuits (IC), multi-chip modules (MCM), diodes, amplifiers, switches and switch limiters, passive and active components and RF and optical subsystems. Its products are electronic components that its customers generally incorporate into larger electronic systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- MACOM's Strong Performance: The Aristotle Small Cap Fund highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as a key contributor, benefiting from robust quarterly results that exceeded analyst expectations, showcasing its growth potential in the data center and 5G markets.
- Significant Revenue Growth: MACOM reported $271.6 million in revenue for Q1 FY2026, reflecting a 24.5% year-over-year increase, indicating strong performance and sustained demand in the semiconductor sector.
- Confidence in Future Prospects: While the Aristotle Fund acknowledges that some AI stocks may offer greater upside potential, it remains optimistic about MACOM, believing that its acquisition integration and domestic manufacturing capabilities will continue to enhance shareholder value.
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Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 600,000 shares since December 2, 2025, with a total value of approximately $126.67 million.
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Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 557.83K shares since December 2, 2025, with a total value of approximately $116.53 million.
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- Small Cap Market Recovery: In Q4 2025, U.S. small-cap equities returned 1.96%, trailing the Russell 2000 Index's 2.19%, yet the positive macroeconomic backdrop fostered a risk-on environment that attracted investor interest.
- MACOM's Strong Performance: The Aristotle Small Cap Fund highlighted MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) as a key contributor, benefiting from robust quarterly results that exceeded analyst expectations, showcasing its growth potential in the data center and 5G markets.
- Significant Revenue Growth: MACOM reported $271.6 million in revenue for Q1 FY2026, reflecting a 24.5% year-over-year increase, indicating strong performance and sustained demand in the semiconductor sector.
- Confidence in Future Prospects: While the Aristotle Fund acknowledges that some AI stocks may offer greater upside potential, it remains optimistic about MACOM, believing that its acquisition integration and domestic manufacturing capabilities will continue to enhance shareholder value.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $4.87 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 19,877 shares of its common stock on February 13, with a total market value of approximately $4.87 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 600,000 shares since December 2, 2025, with a total value of approximately $126.67 million.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $10.14 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 42,173 shares of its common stock on February 13, with a total market value of approximately $10.14 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 557.83K shares since December 2, 2025, with a total value of approximately $116.53 million.
See More
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives on their future performance, which could influence investor decisions and market sentiment.
- AMZN Stock Outlook: Analysts' opinions on Amazon (AMZN) stock indicate mixed views on its future growth potential, prompting investors to pay close attention to the latest ratings and recommendations when considering purchases.
- Impact of Rating Changes: Upgrades and downgrades from analysts can lead to stock price volatility, necessitating that investors closely monitor these changes to timely adjust their investment strategies and optimize their portfolios.
- Market Sentiment Reflection: Changes in analyst ratings not only affect individual stock performance but can also impact overall market sentiment, urging investors to consider these factors comprehensively for informed investment decisions.
See More
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Company Overview: MACOM Technology Solutions Holdings Inc. is a technology company focused on providing semiconductor solutions.
Stock Price Update: The company has raised its target price to $265 from a previous $245.
See More
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- Strong Performance: MACOM Technology achieved revenue of $271.6 million in Q1 2026, reflecting a 4% sequential increase and a 24.5% year-over-year growth, indicating robust market demand and record backlog, showcasing the company's solid performance across all markets.
- Data Center Growth: CEO Stephen Daly noted that Data Center revenue is projected to achieve a year-over-year growth rate of 35% to 40%, driven by robust capital investments from hyperscalers, which is boosting demand for the company's 800 and 1.6T optical and high-speed analog products, thereby strengthening its market position.
- Margin Improvement: The adjusted gross profit for Q1 was $156.5 million, representing 57.6% of revenue, while adjusted operating income reached $74 million, demonstrating the company's ongoing improvements in cost control and operational efficiency, which enhances confidence in future profitability.
- Outlook: Daly expects Q2 revenue to range between $281 million and $289 million, with adjusted gross margins projected between 57% and 59%, indicating a positive outlook for future growth, particularly in the expanding Data Center and Telecom markets.
See More
