MACOM Technology Solutions (NASDAQ:MTSI) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• MACOM Technology Solutions beat quarterly expectations, reporting adjusted EPS of $1.09 on revenue of $288.96 million, both above analyst estimates. Revenue rose 22.5% year over year from the same quarter last year.
• Management issued a stronger outlook for Q3 2026, guiding for EPS of $1.31 to $1.37 and revenue of $331 million to $339 million. The company also said its data center growth outlook has improved materially, now expected to exceed 60% for FY2026.
• Operational momentum and demand remained strong, with record book-to-bill and backlog, plus improving margins and a net cash position of about $325 million. Key growth drivers include data center optical ramps, Industrial & Defense demand, and SatCom/LEO opportunities.

MACOM Technology Solutions (NASDAQ:MTSI - Get Free Report) released its quarterly earnings results on Thursday. The semiconductor company reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.07 by $0.02, FiscalAI reports. The firm had revenue of $288.96 million during the quarter, compared to analysts' expectations of $285.20 million. MACOM Technology Solutions had a net margin of 16.46% and a return on equity of 16.01%. The firm's revenue for the quarter was up 22.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.85 EPS. MACOM Technology Solutions updated its Q3 2026 guidance to 1.310-1.370 EPS.

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

• Q2 results beat expectations with $289M revenue, $1.09 adjusted EPS, a record book-to-bill of 1.5 and a record backlog, indicating strong demand across all end markets.
• Management raised its data center FY2026 base-case growth from 35%–40% to over 60% and guided Q3 revenue of $331M–$339M with 59%–60% adjusted gross margin and $1.31–$1.37 adj. EPS.
• Operational execution is driving margin expansion (Q2 adj. gross margin 58.5%, adj. operating margin 27.8%) with improving fab yields and utilization, modest FY2026 CapEx of $55M–$65M and a net cash position of about $325M.
• Multiple secular growth drivers — notably data center optical ramps, accelerating Industrial & Defense (22% H1 YoY, management expects >20% FY26) and SatCom/LEO opportunities plus new Gen4 GaN and process IP — are expanding MACOM’s SAM; the IQE investment secures key epitaxy supply.
• Some upside remains uncertain: CW laser ramps are still in qual and management does not expect material contribution until FY2027–FY2028, and timing/commodity or supply-chain risks and multi-quarter delivery of backlog could limit near-term upside.

MACOM Technology Solutions Trading Up 4.5%

Shares of MACOM Technology Solutions stock traded up $15.41 on Friday, hitting $359.88. 1,768,850 shares of the company traded hands, compared to its average volume of 1,120,190. The company has a current ratio of 7.52, a quick ratio of 3.18 and a debt-to-equity ratio of 0.29. The company has a market cap of $26.99 billion, a PE ratio of 155.79, a PEG ratio of 5.98 and a beta of 1.60. The stock's 50 day moving average price is $249.02 and its 200-day moving average price is $209.70. MACOM Technology Solutions has a 52 week low of $117.17 and a 52 week high of $364.00.

Insider Activity at MACOM Technology Solutions

In other news, CFO John Kober sold 7,196 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $243.07, for a total transaction of $1,749,131.72. Following the transaction, the chief financial officer owned 48,508 shares of the company's stock, valued at approximately $11,790,839.56. This represents a 12.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Donghyun Thomas Hwang sold 3,718 shares of the firm's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $276.74, for a total value of $1,028,919.32. Following the transaction, the senior vice president owned 34,886 shares in the company, valued at approximately $9,654,351.64. This represents a 9.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 551,557 shares of company stock worth $137,590,774 over the last three months. Corporate insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD lifted its position in shares of MACOM Technology Solutions by 7.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,934,684 shares of the semiconductor company's stock worth $331,374,000 after purchasing an additional 136,262 shares during the period. Wellington Management Group LLP raised its stake in MACOM Technology Solutions by 3.0% in the fourth quarter. Wellington Management Group LLP now owns 1,015,569 shares of the semiconductor company's stock worth $173,947,000 after buying an additional 29,131 shares in the last quarter. Whale Rock Capital Management LLC bought a new position in MACOM Technology Solutions in the fourth quarter worth approximately $134,164,000. UBS Group AG lifted its holdings in MACOM Technology Solutions by 30.6% during the third quarter. UBS Group AG now owns 689,950 shares of the semiconductor company's stock worth $85,892,000 after buying an additional 161,859 shares during the period. Finally, Janus Henderson Group PLC boosted its position in MACOM Technology Solutions by 49.3% during the 4th quarter. Janus Henderson Group PLC now owns 679,086 shares of the semiconductor company's stock valued at $116,316,000 after acquiring an additional 224,306 shares in the last quarter. Hedge funds and other institutional investors own 76.14% of the company's stock.

Analyst Ratings Changes

Several brokerages have issued reports on MTSI. Bank of America raised their price objective on shares of MACOM Technology Solutions from $260.00 to $305.00 and gave the stock a "buy" rating in a research note on Monday, April 13th. Weiss Ratings upgraded MACOM Technology Solutions from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, January 26th. Wall Street Zen lowered MACOM Technology Solutions from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Susquehanna boosted their price objective on MACOM Technology Solutions from $300.00 to $350.00 and gave the company a "neutral" rating in a report on Friday. Finally, Barclays upped their price objective on MACOM Technology Solutions from $265.00 to $400.00 and gave the company an "overweight" rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, MACOM Technology Solutions currently has an average rating of "Moderate Buy" and an average target price of $316.82.

Trending Headlines about MACOM Technology Solutions

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

• Positive Sentiment: MACOM reported fiscal Q2 revenue of about $289 million, up 22.5% year over year, and adjusted EPS of $1.09, both ahead of estimates. MACOM Reports Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s fiscal Q3 outlook was notably stronger than expected, with revenue guidance of $331 million to $339 million and adjusted EPS guidance of $1.31 to $1.37, reinforcing optimism about accelerating growth. MACOM Reports Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: Several brokerages boosted price targets, including Barclays to $400, Needham to $400, and Truist to $375, which suggests analysts see more upside despite the recent run-up in the stock. Analyst price target updates via Benzinga
• Neutral Sentiment: JPMorgan and Susquehanna also raised targets, but kept neutral ratings, indicating they see fair value near current levels rather than a clear bearish case. Analyst price target updates via Benzinga

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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