MACOM Technology Solutions Holdings (MTSI) Earnings Date & Reports
MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors... Show more
MTSI is expected to report earnings to rise 23.85% to $1.35 per share on July 30
MACOM Technology Solutions (MTSI) Fiscal Second Quarter 2026 Earnings Recap: Beats Estimates on Revenue and EPS
Key Takeaways
- MACOM reported Q2 FY2026 revenue of $289 million, beating Zacks Consensus Estimate of $285 million by 1.4% and up 22.5% year-over-year.
- Adjusted EPS came in at $1.09, surpassing the $1.07 consensus by 1.9% and rising 28.2% from $0.85 a year ago.
- GAAP net income reached $46.3 million or $0.60 per diluted share, up 46.2% YoY; adjusted gross margin expanded to 58.5%.
- Q3 guidance signals acceleration: revenue $331-339 million, adjusted EPS $1.31-1.37, well above prior analyst views around $300 million revenue.
- Shares surged over 15% in premarket trading post-release, reflecting strong investor approval of results and outlook.
- Inventory at $252.2 million; cash and equivalents plus short-term investments totaled $664.9 million.
Earnings Context and Why It Matters
MACOM Technology Solutions (MTSI), a provider of analog semiconductors for networks, aerospace, defense, and industrial markets, released fiscal second quarter 2026 results on May 7, 2026, for the period ended April 3, 2026. This report is pivotal amid booming demand for high-speed connectivity in data centers, telecom infrastructure, and defense applications. Coming off 24.5% YoY revenue growth in Q1 FY2026, Q2's beat underscores MACOM's execution in key growth areas like optical and RF solutions. For investors, it validates the company's positioning in AI-driven data center expansion and multi-year defense contracts, while margin gains signal operational leverage. Broader semiconductor industry dynamics, including supply chain resilience, heighten focus on MACOM's ability to sustain momentum against peers.
MACOM delivered robust fiscal Q2 2026 results, with revenue of $288.96 million, up 22.5% from $235.89 million in Q2 FY2025 and 6.4% sequentially from Q1 FY2026's $271.61 million. This topped the Zacks Consensus Estimate of $285 million.
GAAP gross margin expanded to 56.9% from 55.2% YoY, while adjusted gross margin hit 58.5%, up 100 basis points YoY. GAAP operating margin improved to 17.6% (from 14.8%), and adjusted reached 27.8% (up 240 bps YoY). GAAP net income was $46.33 million or $0.60 per diluted share, beating prior year $0.42. Adjusted non-GAAP EPS of $1.09 exceeded the $1.07 Zacks estimate and Q1's $1.02.
Guidance for Q3 ending July 3, 2026, projects revenue of $331-339 million and adjusted EPS of $1.31-1.37 (3% tax rate, 78.5 million shares), implying strong sequential growth. Balance sheet remains solid with $664.9 million in cash/short-term investments (net cash ~$325 million after notes) and inventories at $252.2 million, up to support demand.
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Market Reaction and Investor Sentiment
MACOM shares rocketed over 15% in premarket trading on May 7, 2026, following the earnings release, with reports of up to 18% gains after hours, pushing toward 52-week highs around $355. By May 8 premarket, the stock traded around $348, reflecting sustained enthusiasm. Investors cheered the earnings beat, margin expansion, and Q3 guidance far exceeding expectations (~$300 million consensus revenue), signaling accelerating growth in data centers and networks. Sentiment turned bullish, with focus on MACOM's AI photonics and defense exposure amid positive sector tailwinds.
Forward Outlook and Key Factors to Monitor
MACOM's Q3 guidance points to revenue growth of 14-17% sequentially at the midpoint, driven by demand across telecom, data center, and defense end-markets. Adjusted gross margins are expected at 59-60%, with EPS implying continued profitability leverage.
Investors should watch execution on guidance amid strong backlog and 1.5:1 book-to-bill ratio noted in the call. Key catalysts include ramp in optical products for 800G/1.6T data center connectivity and GaN (gallium nitride) solutions for defense/aerospace. Management highlighted robust demand, with Q2 orders supporting H2 acceleration.
Monitor supply chain dynamics, as inventories rose to support growth; days sales outstanding held steady at ~50 days. Broader factors like U.S. tax changes could aid low-single-digit tax rates. Industry trends in AI infrastructure and satellite/low-earth orbit (LEO) applications remain supportive. Upcoming Q3 results in August will test sustainability.
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General Information
a holding company whose subsidiaries provides high-performance analog semiconductor solutions
Industry Semiconductors