MACOM Posts $424.8 Million In Sales — And A 31.6% Operating Margin
The semiconductor supplier forecasts another increase in quarterly revenue, while its annual profit comparison includes a refinancing charge.
MACOM Technology, which designs and manufactures semiconductor components, reported fourth-quarter revenue of $424.8 million Thursday, up 62.7% from a year earlier, with operating profit reaching 31.6% of sales. The results, announced with an SEC filing, put quarterly operating profit at $134.2 million, compared with $39.6 million a year earlier.
More Sales, Wider Margins
MACOM's growth also accelerated compared with the preceding quarter: revenue rose 24.1% from $342.2 million. A year earlier, quarterly sales were $261.2 million, according to its earnings statement.
Gross margin—the share of revenue left after product costs—reached 59.9%, against 58.3% in the preceding quarter and 54.5% a year earlier. Operating margin compared with 22.5% in the preceding quarter and 15.2% a year earlier; preceding-quarter operating profit was $77.1 million.
Quarterly net profit totaled $139.4 million, or $1.78 per diluted share. That compared with $45.1 million, or $0.59 per share, a year earlier and $100.7 million, or $1.28 per share, in the preceding quarter.
On MACOM's adjusted measure, quarterly profit reached $163.3 million, or $2.09 per diluted share, versus $71.4 million, or $0.94 per share, a year earlier. Adjusted gross margin rose to 61.3% from 57.1%, while adjusted operating profit reached $162.3 million from $67.0 million.
MTSI shares soared about 9% to $206.75 in Friday trading.
The Refinancing Charge Behind The Comparison
Fiscal 2026 revenue reached $1,327.6 million, up 37.3% from $967.3 million in fiscal 2025. Annual operating profit increased to $305.5 million from $129.7 million.
The annual bottom-line comparison needs a separate distinction. Fiscal 2025's $54.2 million net loss included a primarily non-cash charge of $193.1 million from refinancing part of MACOM's convertible notes—debt that can convert into shares. Fiscal 2026 net profit was $335.3 million, or $4.31 per diluted share.
Adjusted annual profit, which excludes that charge and other adjustments, increased to $435.7 million, or $5.60 per diluted share, from $263.4 million, or $3.47 per share. Cash generated by operations also rose, reaching $357.086 million for fiscal 2026 versus $235.368 million in fiscal 2025.
MACOM supplies components used in radar, data-center networks, wireless base stations and high-capacity optical networks. The Lowell, Massachusetts-based company serves industrial and defense, data-center and telecommunications customers; distributors accounted for 32.3% of fiscal 2025 revenue.
A Higher Sales Range For 2027
MACOM forecasts first-quarter revenue of $450 million to $460 million for the period ending January 1, 2027, above its fourth-quarter result. Management expects adjusted earnings of $2.21 to $2.29 per diluted share and an adjusted gross margin of 62% to 63%.
Stephen G. Daly, MACOM's president and chief executive officer, said: “We had a strong fiscal year 2026 and look forward to continued growth in fiscal 2027.”
The outlook assumes a 6% adjusted income-tax rate. MACOM expects that rate to rise from the 3% used in fiscal 2026 and fiscal 2025, primarily because of higher profitability and the use of its remaining historical deferred tax assets.
Sources
- 8-K Filing — MACOM Technology Solutions Holdings, Inc. (MTSI) — SEC EDGAR
- Exhibit ex99_1earningsreleaseq4fy26.htm — MACOM Technology Solutions Holdings, Inc. 8-K exhibit — SEC EDGAR
- MTSI Q4 Earnings Surpass Estimates on Data Center Strength — Yahoo Finance
- MACOM Technology Solutions Holdings Inc (MTSI) Q4 2026 Earnings Call Highlights: Record $1. ... — Yahoo Finance
- MACOM Reports Fiscal Fourth Quarter and Fiscal Year 2026 — globenewswire.com
