Vicor (NASDAQ:VICR) Releases Earnings Results, Beats Estimates By $0.01 EPS

Vicor (NASDAQ:VICR) posted its quarterly earnings results on Tuesday. The electronics maker reported $1.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.01, FiscalAI reports. Vicor had a net margin of 30.65% and a return on equity of 19.83%. The company had revenue of $197.11 million for the quarter, compared to the consensus estimate of $187.03 million. During the same period last year, the firm posted $0.63 EPS. The company’s revenue for the quarter was up 78.5% on a year-over-year basis.

Here are the key takeaways from Vicor’s conference call:

• Q3 revenue rose sharply to $197.1 million, up 37.5% sequentially and 78.5% year over year, while gross margin expanded to 68.3% and diluted EPS reached $1.33.
• Management expects approximately 10% sequential product-revenue growth in Q4 and at least $43 million in royalty revenue, excluding new license agreements; bookings exceeded $100 million in the first two weeks of Q4 and the one-year backlog ended at roughly $406 million.
• Demand for Vicor’s second-generation VPD and factorized-power technology is strengthening among AI customers, with management citing rising current requirements and customer interest following Open Compute meetings. The company is also pursuing additional VPD licenses at escalating royalty rates.
• Vicor purchased sites for Fab 2 and Fab 3 to address capacity constraints, with initial Fab 2 equipment deployment expected in Q2 2027 and potential capacity expansion of more than five times Fab 1; management said the projects can be funded without raising capital.
• Royalty revenue remains potentially lumpy despite management’s view that it is becoming recurring, while legal expense rose to $16.1 million and is expected to average about 20% of royalty revenue in the near term. Near-term capacity limitations may also restrict how quickly Vicor can serve additional hyperscaler and OEM demand.

Vicor Trading Up 7.1%

Shares of NASDAQ VICR opened at $204.14 on Wednesday. Vicor has a 12-month low of $60.95 and a 12-month high of $382.65. The company has a market cap of $9.41 billion, a PE ratio of 65.43 and a beta of 2.37. The stock has a 50 day simple moving average of $228.76 and a 200-day simple moving average of $250.57.

Analyst Ratings Changes

Several brokerages have weighed in on VICR. Needham & Company LLC reaffirmed a “buy” rating and issued a $350.00 target price on shares of Vicor in a research report on Tuesday. Wall Street Zen upgraded Vicor from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Zacks Research raised shares of Vicor from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 1st. Weiss Ratings lowered shares of Vicor from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Finally, Roth Capital restated a “buy” rating and set a $375.00 price target on shares of Vicor in a research report on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $391.67.

Vicor News Roundup

Here are the key news stories impacting Vicor this week:

• Positive Sentiment: Revenue and earnings grew sharply. Third-quarter revenue rose 78.5% year over year to $197.1 million, exceeding the roughly $187 million consensus cited in company coverage. Diluted EPS was $1.33, more than double the $0.63 reported a year earlier and slightly above some estimates, although other services characterized the result as below their higher forecasts. Vicor Corporation Reports Third-Quarter Results
• Positive Sentiment: AI-related royalty revenue is becoming a major catalyst. Product revenue reached $130.5 million, while royalty revenue nearly tripled year over year to $66.6 million. Vicor granted its first VPD license to an AI OEM at Stage-2 unit royalty rates, reinforcing investor expectations that licensing could generate high-margin growth. Vicor Q4 Outlook and Royalty Revenue
• Positive Sentiment: Management issued constructive forward guidance. Vicor expects fourth-quarter product revenue to increase about 10% and royalty revenue to be at least $43 million. The company also plans to deploy equipment for Fab-2 by the second quarter of 2027 and purchased two nearby sites intended to expand manufacturing capacity nearly fivefold relative to Fab-1. Why Vicor Shares Are Rising
• Positive Sentiment: Profitability and demand indicators improved. Gross margin expanded to 68.3%, operating cash flow reached $69.7 million, cash totaled approximately $513.1 million, and backlog climbed 166% year over year to $406 million. Needham reaffirmed its buy rating and set a $350 price target. Vicor Earnings Call Highlights
• Neutral Sentiment: Investors are weighing the potentially significant royalty opportunity against execution risks, including capacity expansion, adoption of Vicor’s second-generation VPD technology and the timing of OEM and hyperscaler licensing agreements.
• Negative Sentiment: Operating expenses increased to $62.5 million, partly due to intellectual-property enforcement costs. Ongoing patent litigation and an ITC investigation could create additional expenses or uncertainty. Separately, reported insider activity showed substantial selling and no purchases during the past six months.

Insider Activity at Vicor

In other Vicor news, VP Philip D. Davies sold 3,073 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $177.70, for a total transaction of $546,072.10. Following the completion of the transaction, the vice president owned 1,920 shares in the company, valued at approximately $341,184. The trade was a 61.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Patrizio Vinciarelli sold 20,000 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $316.13, for a total value of $6,322,600.00. Following the completion of the transaction, the chief executive officer directly owned 8,307,390 shares of the company’s stock, valued at approximately $2,626,215,200.70. The trade was a 0.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 27,053 shares of company stock worth $7,745,984 in the last three months. 28.30% of the stock is owned by company insiders.

Vicor Company Profile

Vicor Corporation (NASDAQ: VICR) designs, develops, manufactures and markets modular power components and systems. The company’s products convert, regulate and distribute electrical power for electronic equipment, with an emphasis on high-performance, compact and efficient power solutions.

Its portfolio includes AC-to-DC and DC-to-DC converters, regulators, power modules, power distribution components and complete power systems. Vicor’s technologies include its Factorized Power Architecture and high-density ChiP packaging, which are designed to help engineers manage power more efficiently while reducing the size and complexity of electronic systems.

Vicor serves customers in industries such as data centers and computing, telecommunications, automotive, aerospace and defense, industrial equipment, and consumer electronics.