MACOM Reports Strong Q2 Earnings and Upgraded Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 03 2025
0mins
Source: TipRanks
MACOM Technology Solutions Holdings Inc. shares fell 5.45% as the stock crossed below its 5-day SMA amid a broader market decline, with the Nasdaq-100 down 1.57% and the S&P 500 down 0.77%.
Despite the stock's decline, MACOM reported strong Q2 earnings with a revenue of $289 million, reflecting a 22.5% year-over-year increase. The company also raised its FY26 revenue growth forecast for Data Centers from 35% to over 60%, driven by robust demand for optical modules. This positive outlook indicates strong market demand and a competitive position in the semiconductor industry.
The implications of MACOM's strong performance and optimistic guidance suggest that the company is well-positioned for future growth, despite the current market conditions. Investors may view this as an opportunity, given the company's record backlog and improved margins.
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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: 391.090
Low
165.00
Averages
193.50
High
220.00
Current: 391.090
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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- Market Value Decline: This reduction resulted in a $9.56 million decrease in ACI Worldwide's quarter-end market value, reflecting the negative impact of stock price fluctuations on the investment portfolio, which may affect investor confidence.
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Hot CPI Drives Treasury Yields Higher, Impacting Growth Stocks
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- Semiconductor Stock Performance: Stocks of companies like MACOM, Marvell, Applied Materials, KLA, and Lam Research fell by 4.5%, 6%, 4.7%, 4.5%, and 4.1% respectively, indicating a compression in market expectations for future earnings.
- Market Overreaction: Despite the market's sharp reaction to the news, significant price drops may present good buying opportunities for investors looking for high-quality stocks, especially in the current economic climate.
- Marvell Technology Dynamics: Marvell's shares have been extremely volatile, rising 80.3% year-to-date and trading close to their 52-week high, with investors remaining cautiously optimistic about its future performance despite recent uncertainties.
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Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $8.83 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 24,530 shares of its common stock on May 8, with a total market value of approximately $8.83 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 2.2 million shares since February 12, 2026.
Total Value of Reduced Shares: The total value of the shares reduced by Ocampo Susan is approximately $605 million.
Market Impact: The sale and reduction in shareholding may impact the market perception and valuation of MACOM Technology Solutions.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $132.66 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susana intends to sell 400,000 shares of its common stock on May 7, with a total market value of approximately $132.66 million.
Reduction in Holdings: Ocampo Susana has reduced its shareholding in MACOM Technology Solutions by 1.8 million shares since February 12, 2026, valued at approximately $472.34 million.
See More
MACOM Technology Reports Strong Q2 Earnings and Optimistic Guidance
- Significant Revenue Growth: MACOM reported $289 million in revenue for Q2 fiscal 2026, reflecting a 6.4% sequential increase and over 22% year-on-year growth, indicating strong market demand and the company's competitive position in the industry.
- Record Backlog: The company achieved a book-to-bill ratio of 1.5:1 in Q2, with backlog at an all-time high, suggesting substantial future growth potential, particularly in the industrial and defense sectors.
- Upgraded Data Center Growth Outlook: MACOM raised its FY26 revenue growth forecast for Data Centers from 35% to over 60%, driven by robust demand for pluggable optical modules and optical cable production, further solidifying its market position.
- Strong Financial Performance: Adjusted gross profit for Q2 was $169 million, with a gross margin of 58.5%, and the company expects gross margins to reach approximately 60% next quarter, demonstrating ongoing improvements in cost control and profitability.
See More
MACOM Technology Reports Strong Q2 Earnings and Guidance
- Significant Earnings Growth: MACOM Technology reported an adjusted EPS of $1.09 for Q2 ending April 3, with revenue rising 22.5% year-over-year to $289 million, demonstrating strong performance in the semiconductor market and solidifying its market position.
- Margin Improvement: The adjusted gross margin for the quarter was 58.5%, with adjusted operating income at $80.5 million, indicating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Optimistic Future Outlook: MACOM expects Q3 revenue to range between $331 million and $339 million, with adjusted gross margin projected between 59% and 60%, and adjusted EPS anticipated between $1.31 and $1.37, reflecting the company's confidence in future growth.
- Strong Stock Performance: MACOM's shares have surged over 77% year-to-date and 173% over the past 12 months, indicating high market recognition of its performance and outlook, potentially attracting more investor interest.
See More
Aristotle Capital Reduces Stake in ACI Worldwide by $4.44 Million
- Stake Reduction Details: Aristotle Capital sold 105,810 shares of ACI Worldwide in Q1 2026, with an estimated trade value of $4.44 million, indicating a cautious outlook on the company's future performance.
- Market Value Decline: This reduction resulted in a $9.56 million decrease in ACI Worldwide's quarter-end market value, reflecting the negative impact of stock price fluctuations on the investment portfolio, which may affect investor confidence.
- Financial Performance Analysis: Despite ACI's Q1 revenue rising 8% to $426 million and adjusted EBITDA climbing 12% to $105 million, its stock price fell 15%, underperforming the S&P 500, which raises concerns about its market competitiveness.
- Uncertain Future Outlook: Although ACI's underlying business improved and management raised full-year guidance, investors remain cautious about its ability to sustain earnings growth, particularly in the rapidly evolving fintech sector.
See More
Hot CPI Drives Treasury Yields Higher, Impacting Growth Stocks
- Rising Treasury Yields: April's hotter-than-expected CPI data has led to an increase in Treasury yields, creating direct headwinds for high-multiple growth stocks, particularly in the semiconductor sector, which saw widespread declines.
- Semiconductor Stock Performance: Stocks of companies like MACOM, Marvell, Applied Materials, KLA, and Lam Research fell by 4.5%, 6%, 4.7%, 4.5%, and 4.1% respectively, indicating a compression in market expectations for future earnings.
- Market Overreaction: Despite the market's sharp reaction to the news, significant price drops may present good buying opportunities for investors looking for high-quality stocks, especially in the current economic climate.
- Marvell Technology Dynamics: Marvell's shares have been extremely volatile, rising 80.3% year-to-date and trading close to their 52-week high, with investors remaining cautiously optimistic about its future performance despite recent uncertainties.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $8.83 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 24,530 shares of its common stock on May 8, with a total market value of approximately $8.83 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions by 2.2 million shares since February 12, 2026.
Total Value of Reduced Shares: The total value of the shares reduced by Ocampo Susan is approximately $605 million.
Market Impact: The sale and reduction in shareholding may impact the market perception and valuation of MACOM Technology Solutions.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $132.66 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susana intends to sell 400,000 shares of its common stock on May 7, with a total market value of approximately $132.66 million.
Reduction in Holdings: Ocampo Susana has reduced its shareholding in MACOM Technology Solutions by 1.8 million shares since February 12, 2026, valued at approximately $472.34 million.
See More
MACOM Technology Reports Strong Q2 Earnings and Optimistic Guidance
- Significant Revenue Growth: MACOM reported $289 million in revenue for Q2 fiscal 2026, reflecting a 6.4% sequential increase and over 22% year-on-year growth, indicating strong market demand and the company's competitive position in the industry.
- Record Backlog: The company achieved a book-to-bill ratio of 1.5:1 in Q2, with backlog at an all-time high, suggesting substantial future growth potential, particularly in the industrial and defense sectors.
- Upgraded Data Center Growth Outlook: MACOM raised its FY26 revenue growth forecast for Data Centers from 35% to over 60%, driven by robust demand for pluggable optical modules and optical cable production, further solidifying its market position.
- Strong Financial Performance: Adjusted gross profit for Q2 was $169 million, with a gross margin of 58.5%, and the company expects gross margins to reach approximately 60% next quarter, demonstrating ongoing improvements in cost control and profitability.
See More
MACOM Technology Reports Strong Q2 Earnings and Guidance
- Significant Earnings Growth: MACOM Technology reported an adjusted EPS of $1.09 for Q2 ending April 3, with revenue rising 22.5% year-over-year to $289 million, demonstrating strong performance in the semiconductor market and solidifying its market position.
- Margin Improvement: The adjusted gross margin for the quarter was 58.5%, with adjusted operating income at $80.5 million, indicating substantial progress in cost control and operational efficiency, thereby enhancing profitability.
- Optimistic Future Outlook: MACOM expects Q3 revenue to range between $331 million and $339 million, with adjusted gross margin projected between 59% and 60%, and adjusted EPS anticipated between $1.31 and $1.37, reflecting the company's confidence in future growth.
- Strong Stock Performance: MACOM's shares have surged over 77% year-to-date and 173% over the past 12 months, indicating high market recognition of its performance and outlook, potentially attracting more investor interest.
See More
