MACOM Technology Reports Strong Q2 Earnings and Optimistic Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 56 minutes ago
0mins
Should l Buy MTSI?
Source: seekingalpha
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MTSI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 309.810
Low
165.00
Averages
193.50
High
220.00
Current: 309.810
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.
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
MACOM Q2 Earnings Exceed Expectations
- Strong Earnings Performance: MACOM reported a Q2 non-GAAP EPS of $1.09, beating expectations by $0.02, indicating a sustained enhancement in profitability and reflecting its competitive position in the market.
- Significant Revenue Growth: The company achieved revenue of $289 million, a 22.5% year-over-year increase, surpassing expectations by $4.41 million, demonstrating robust demand for its products, particularly in the data center components sector.
- Margin Improvement: The adjusted gross margin rose to 58.5%, up from 57.5% in the same quarter last year and 57.6% in the previous quarter, showcasing improvements in cost control and operational efficiency.
- Optimistic Future Outlook: MACOM expects Q3 revenue to range between $331 million and $339 million, with adjusted gross margins projected between 59.0% and 60.0%, indicating confidence in future growth and anticipated market demand.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $54.53 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 176,666 shares of its common stock on May 6, with a total market value of approximately $54.53 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions (MTSI.U.S) by 1.73 million shares since February 6, 2026, valued at approximately $441.4 million.
See More
MACOM Technology Set to Announce Q1 Earnings on May 7
- Earnings Announcement: MACOM Technology is set to release its Q1 2023 earnings report on May 7 before market open, with a consensus EPS estimate of $1.07, reflecting a robust 35.4% year-over-year growth that underscores the company's strong profitability and growth potential.
- Strong Revenue Expectations: The revenue estimate for Q1 stands at $284.59 million, representing a 30.5% year-over-year increase, indicating sustained demand in the data center components market, particularly for memory and optical products.
- Performance Beat Record: Over the past two years, MACOM has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing the company's financial stability and reliability, which bolsters investor confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 14 upward revisions and 1 downward revision, while revenue estimates have experienced 14 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
See More
US-China Tensions Escalate Over AI Technology
- Geopolitical Tensions: The escalating competition between the US and China over AI technology has led China to order Meta to unwind its $2 billion acquisition of AI startup Manus, directly intervening in foreign access to its advanced tech sector, which has diminished market confidence in related companies.
- Theft Allegations: The White House accused China of stealing American AI technology on an 'industrial scale' and warned of intensified crackdowns, creating significant uncertainty in the global AI market and impacting corporate operational strategies.
- Supply Chain Concerns: Ongoing disruptions in global supply chains due to the conflict involving the US, Israel, and Iran have led to rising raw material costs across various industries, heightening investor concerns about potential production delays and increased operational costs.
- Market Overreaction: Despite the stock price declines of semiconductor companies like Amtech (ASYS), the market's reaction indicates the significance of the news without fundamentally altering perceptions of the business, presenting buying opportunities for high-quality stocks.
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
MACOM Q2 Earnings Exceed Expectations
- Strong Earnings Performance: MACOM reported a Q2 non-GAAP EPS of $1.09, beating expectations by $0.02, indicating a sustained enhancement in profitability and reflecting its competitive position in the market.
- Significant Revenue Growth: The company achieved revenue of $289 million, a 22.5% year-over-year increase, surpassing expectations by $4.41 million, demonstrating robust demand for its products, particularly in the data center components sector.
- Margin Improvement: The adjusted gross margin rose to 58.5%, up from 57.5% in the same quarter last year and 57.6% in the previous quarter, showcasing improvements in cost control and operational efficiency.
- Optimistic Future Outlook: MACOM expects Q3 revenue to range between $331 million and $339 million, with adjusted gross margins projected between 59.0% and 60.0%, indicating confidence in future growth and anticipated market demand.
See More
Insider at MACOM Technology Solutions (MTSI.US) Plans to Sell $54.53 Million in Common Stock via Form 144
Share Sale Announcement: Ocampo Susan intends to sell 176,666 shares of its common stock on May 6, with a total market value of approximately $54.53 million.
Reduction in Shareholding: Ocampo Susan has reduced its shareholding in MACOM Technology Solutions (MTSI.U.S) by 1.73 million shares since February 6, 2026, valued at approximately $441.4 million.
See More
MACOM Technology Set to Announce Q1 Earnings on May 7
- Earnings Announcement: MACOM Technology is set to release its Q1 2023 earnings report on May 7 before market open, with a consensus EPS estimate of $1.07, reflecting a robust 35.4% year-over-year growth that underscores the company's strong profitability and growth potential.
- Strong Revenue Expectations: The revenue estimate for Q1 stands at $284.59 million, representing a 30.5% year-over-year increase, indicating sustained demand in the data center components market, particularly for memory and optical products.
- Performance Beat Record: Over the past two years, MACOM has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing the company's financial stability and reliability, which bolsters investor confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 14 upward revisions and 1 downward revision, while revenue estimates have experienced 14 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
See More
US-China Tensions Escalate Over AI Technology
- Geopolitical Tensions: The escalating competition between the US and China over AI technology has led China to order Meta to unwind its $2 billion acquisition of AI startup Manus, directly intervening in foreign access to its advanced tech sector, which has diminished market confidence in related companies.
- Theft Allegations: The White House accused China of stealing American AI technology on an 'industrial scale' and warned of intensified crackdowns, creating significant uncertainty in the global AI market and impacting corporate operational strategies.
- Supply Chain Concerns: Ongoing disruptions in global supply chains due to the conflict involving the US, Israel, and Iran have led to rising raw material costs across various industries, heightening investor concerns about potential production delays and increased operational costs.
- Market Overreaction: Despite the stock price declines of semiconductor companies like Amtech (ASYS), the market's reaction indicates the significance of the news without fundamentally altering perceptions of the business, presenting buying opportunities for high-quality stocks.
See More
