MACOM Technology Solutions (NASDAQ:MTSI) Issues Earnings Results

Key Points

• MACOM exceeded quarterly expectations: Adjusted EPS was $1.40 versus the $1.35 consensus, while revenue rose 35.8% year over year to $342.24 million, driven by record demand and bookings.
• Management issued strong Q4 guidance: The company forecast revenue of $415 million–$425 million and adjusted EPS of $1.97–$2.03, supported by continued growth in data-center and Industrial & Defense markets.
• Shares gained 14.3%, but valuation is elevated: Analysts generally maintain a positive outlook, with a consensus “Moderate Buy” rating and $331.36 average price target, although the stock’s P/E above 130 leaves it vulnerable to weaker AI infrastructure demand or execution.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) posted its earnings results on Thursday. The semiconductor company reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.35 by $0.05, FiscalAI reports. MACOM Technology Solutions had a return on equity of 16.01% and a net margin of 16.46%.The company had revenue of $342.24 million for the quarter, compared to the consensus estimate of $335.53 million. During the same quarter in the previous year, the business earned $0.90 earnings per share. The company's revenue for the quarter was up 35.8% on a year-over-year basis. MACOM Technology Solutions updated its Q4 2026 guidance to 1.970-2.030 EPS.

Here are the key takeaways from MACOM Technology Solutions' conference call:

• Record demand and bookings drove Q3 revenue of $342.2 million, up 35.8% year over year, with a record 1.6-to-1 book-to-bill ratio and growth across all three end markets.
• Data center revenue rose approximately 40% sequentially to $137.6 million, led by 800G and 1.6T PAM4 platforms, while 200G photodetectors ramped into volume production and 400G products received positive customer feedback.
• Management guided to Q4 revenue of $415 million-$425 million, adjusted gross margin of 60%-61%, and adjusted EPS of $1.97-$2.03; data center and Industrial & Defense revenue are expected to grow approximately 35% and 20% sequentially, respectively.
• Profitability continued to improve, with Q3 adjusted gross margin reaching 59.7% and operating margin 31.5%; management expects operating margin near 37% in Q4 and cited potential for further quarterly gross-margin gains.
• MACOM plans continued investment in manufacturing capacity, R&D, and potential late-2027 production of its 75 mW CW laser, while its adjusted tax rate is expected to rise from 3% toward the mid-single digits during fiscal 2027.

MACOM Technology Solutions Stock Up 14.3%

Shares of MTSI stock traded up $37.69 during trading on Thursday, reaching $301.15. The company's stock had a trading volume of 2,930,684 shares, compared to its average volume of 1,481,930. MACOM Technology Solutions has a 1-year low of $118.16 and a 1-year high of $418.90. The stock's 50-day moving average price is $328.14 and its 200 day moving average price is $286.07. The company has a market capitalization of $22.98 billion, a price-to-earnings ratio of 130.37, a P/E/G ratio of 2.24 and a beta of 1.70. The company has a debt-to-equity ratio of 0.29, a current ratio of 7.52 and a quick ratio of 5.84.

More MACOM Technology Solutions News

Here are the key news stories impacting MACOM Technology Solutions this week:

• Positive Sentiment: Strong quarterly results: MACOM reported fiscal Q3 adjusted earnings of $1.40 per share, exceeding the $1.35 consensus estimate, while revenue rose 35.8% year over year to $342.24 million, above expectations of $335.53 million. Earnings increased from $0.90 per share in the year-ago quarter. MACOM Reports Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: Significantly stronger outlook: Management forecast fiscal Q4 EPS of $1.97–$2.03, well above the $1.49 analyst consensus, and revenue of $415 million–$425 million versus expectations of $364.1 million. The guidance implies continued momentum and was likely the primary catalyst for the stock’s increase. M/A-Com Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Analyst endorsement: Needham raised its MTSI price target from $400 to $410 and maintained a “buy” rating, implying substantial upside from the referenced share price. Needham Raises MACOM Price Target
• Positive Sentiment: MACOM’s growth story remains supported by rising demand for AI data-center optical infrastructure and defense electronics. Recent commentary cited 36% year-over-year data-center growth, 22% growth in Industrial & Defense, improving gross margins and adjusted EBITDA margins above 31%. MACOM’s AI Data Center and Defense Growth
• Negative Sentiment: Valuation remains a risk: At a reported price-to-earnings ratio above 130, MTSI is priced for strong execution. Any slowdown in AI infrastructure demand or weaker-than-expected future guidance could produce heightened volatility.

Analysts Set New Price Targets

Several analysts recently issued reports on MTSI shares. Zacks Research lowered shares of MACOM Technology Solutions from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Loop Capital started coverage on shares of MACOM Technology Solutions in a research note on Friday, April 10th. They set a "buy" rating and a $300.00 target price for the company. Barclays lifted their price target on shares of MACOM Technology Solutions from $400.00 to $450.00 and gave the company an "overweight" rating in a research report on Friday, May 22nd. JPMorgan Chase & Co. upped their price objective on shares of MACOM Technology Solutions from $240.00 to $345.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Finally, Susquehanna lowered their price objective on shares of MACOM Technology Solutions from $350.00 to $300.00 and set a "neutral" rating for the company in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, MACOM Technology Solutions currently has a consensus rating of "Moderate Buy" and an average price target of $331.36.

Insiders Place Their Bets

In other news, Director Geoffrey G. Ribar sold 1,623 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $361.84, for a total transaction of $587,266.32. Following the sale, the director owned 12,563 shares of the company's stock, valued at approximately $4,545,795.92. This represents a 11.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO John Kober sold 7,644 shares of MACOM Technology Solutions stock in a transaction on Monday, May 18th. The shares were sold at an average price of $359.25, for a total value of $2,746,107.00. Following the completion of the transaction, the chief financial officer owned 40,972 shares of the company's stock, valued at approximately $14,719,191. This trade represents a 15.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 74,378 shares of company stock valued at $27,732,022. Corporate insiders own 0.36% of the company's stock.

Hedge Funds Weigh In On MACOM Technology Solutions

Institutional investors and hedge funds have recently made changes to their positions in the stock. Pacer Advisors Inc. increased its position in shares of MACOM Technology Solutions by 6.2% in the 4th quarter. Pacer Advisors Inc. now owns 11,984 shares of the semiconductor company's stock valued at $2,053,000 after purchasing an additional 698 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in MACOM Technology Solutions by 83.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,058 shares of the semiconductor company's stock valued at $524,000 after buying an additional 1,388 shares in the last quarter. Raymond James Financial Inc. lifted its holdings in MACOM Technology Solutions by 122.1% during the 4th quarter. Raymond James Financial Inc. now owns 602,450 shares of the semiconductor company's stock worth $104,440,000 after buying an additional 331,206 shares during the last quarter. EP Wealth Advisors LLC purchased a new stake in MACOM Technology Solutions during the 4th quarter worth about $324,000. Finally, NewEdge Advisors LLC increased its holdings in shares of MACOM Technology Solutions by 1,731.2% in the 4th quarter. NewEdge Advisors LLC now owns 1,410 shares of the semiconductor company's stock valued at $242,000 after acquiring an additional 1,333 shares during the last quarter. 76.14% of the stock is owned by institutional investors and hedge funds.

MACOM Technology Solutions Company Profile

MACOM Technology Solutions is a semiconductor company specializing in high-performance analog, microwave, millimeter-wave and photonic semiconductor solutions. Its product portfolio includes amplifiers, switches, modulators, detectors and integrated circuits designed to optimize signal integrity, power management and data transmission. MACOM's offerings address both digital and optical domains, providing critical building blocks for next-generation communications infrastructure.

The company's solutions serve a diverse set of end markets, including wireless and wireline telecom, data centers, satellite communications, aerospace and defense, industrial and automotive applications.

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