MACOM TECHNOLOGY SOLUTIONS H (NASDAQ:MTSI) reported fiscal third quarter results that came in essentially in line with analyst expectations, with revenue of $342.2 million and adjusted earnings of $1.40 per share, while guiding fiscal fourth quarter revenue well above the current consensus, a combination that left shares trading lower on Thursday.
Revenue and EPS in line with consensus
For the fiscal third quarter ended July 3, 2026, the semiconductor supplier generated revenue of $342.2 million, up 35.8% from $252.1 million a year earlier and up 18.4% from the prior quarter. Analysts had modeled revenue of approximately $342.1 million, making the top-line result a near match with expectations. Adjusted earnings per diluted share of $1.40 compared with the $1.37 consensus and $0.90 in the year-ago period, coming in a shade above the sell-side view.
Other highlights from the quarter:
- GAAP gross margin was 58.3%, up from 55.3% a year earlier
- GAAP income from operations was $77.1 million, or 22.5% of revenue, up from $37.7 million in the prior-year quarter
- GAAP net income was $100.7 million, or $1.28 per diluted share, including a $41.5 million non-cash gain on the fair value of an investment
- Adjusted gross margin was 59.7%, up from 57.6% a year earlier
- Adjusted income from operations was $107.7 million, or 31.5% of revenue, up from $63.5 million a year ago
The GAAP net income figure was lifted by the investment gain, which helped narrow the gap between reported and adjusted results; adjusted net income came in at $109.8 million, or $1.40 per diluted share.
Outlook points to an acceleration
MACOM said it expects fiscal fourth quarter revenue of $415 million to $425 million, a midpoint of $420 million that is comfortably above the analyst consensus of approximately $376 million. The company also guided:
- Adjusted gross margin in the range of 60.0% to 61.0%
- Adjusted earnings per diluted share of $1.97 to $2.03, based on roughly 78.9 million diluted shares and an anticipated non-GAAP tax rate of 3%
At the midpoint, the revenue guide implies sequential growth of more than 22% from the fiscal third quarter. It also points to full-year revenue of roughly $1.32 billion, above the $1.29 billion consensus for fiscal 2026.
Market reaction
Despite the in-line quarter and above-consensus outlook, shares were down approximately 3.6% in trading following the release. The pullback came after a soft stretch for the stock, which had declined about 6.8% over the prior two weeks and 13.7% over the past month, leaving sentiment cautious even before the report landed. The muted response also serves as a reminder that expectations for the company's AI-driven growth trajectory were already elevated heading into the print.
Management struck a confident tone in the release, with President and Chief Executive Officer Stephen G. Daly saying the team "continues to make excellent progress executing our growth strategy."
Financial position
MACOM ended the quarter with $89.6 million in cash and cash equivalents and $573.4 million in short-term investments. The company generated $201.6 million in operating cash flow during the first nine months of fiscal 2026 and reported stockholders' equity of $1.54 billion at quarter-end.
Investors seeking more detail on MACOM's past quarterly performance can review historical earnings information. To see how sell-side estimates for the coming quarters may evolve, future projections and consensus data are available.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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MACOM (NASDAQ:MTSI) Falls Despite Strong Q4 Guidance
MACOM TECHNOLOGY SOLUTIONS H (NASDAQ:MTSI) reported fiscal third quarter results that came in essentially in line with analyst expectations, with revenue of $342.2 million and adjusted earnings of $1.40 per share, while guiding fiscal fourth quarter revenue well above the current consensus, a combination that left shares trading lower on Thursday.
Revenue and EPS in line with consensus
For the fiscal third quarter ended July 3, 2026, the semiconductor supplier generated revenue of $342.2 million, up 35.8% from $252.1 million a year earlier and up 18.4% from the prior quarter. Analysts had modeled revenue of approximately $342.1 million, making the top-line result a near match with expectations. Adjusted earnings per diluted share of $1.40 compared with the $1.37 consensus and $0.90 in the year-ago period, coming in a shade above the sell-side view.
Other highlights from the quarter:
The GAAP net income figure was lifted by the investment gain, which helped narrow the gap between reported and adjusted results; adjusted net income came in at $109.8 million, or $1.40 per diluted share.
Outlook points to an acceleration
MACOM said it expects fiscal fourth quarter revenue of $415 million to $425 million, a midpoint of $420 million that is comfortably above the analyst consensus of approximately $376 million. The company also guided:
At the midpoint, the revenue guide implies sequential growth of more than 22% from the fiscal third quarter. It also points to full-year revenue of roughly $1.32 billion, above the $1.29 billion consensus for fiscal 2026.
Market reaction
Despite the in-line quarter and above-consensus outlook, shares were down approximately 3.6% in trading following the release. The pullback came after a soft stretch for the stock, which had declined about 6.8% over the prior two weeks and 13.7% over the past month, leaving sentiment cautious even before the report landed. The muted response also serves as a reminder that expectations for the company's AI-driven growth trajectory were already elevated heading into the print.
Management struck a confident tone in the release, with President and Chief Executive Officer Stephen G. Daly saying the team "continues to make excellent progress executing our growth strategy."
Financial position
MACOM ended the quarter with $89.6 million in cash and cash equivalents and $573.4 million in short-term investments. The company generated $201.6 million in operating cash flow during the first nine months of fiscal 2026 and reported stockholders' equity of $1.54 billion at quarter-end.
Investors seeking more detail on MACOM's past quarterly performance can review historical earnings information. To see how sell-side estimates for the coming quarters may evolve, future projections and consensus data are available.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »