MACOM Technology Solutions (NASDAQ:MTSI) Posts Earnings Results, Beats Expectations By $0.05 EPS

MACOM Technology Solutions (NASDAQ:MTSI) announced its earnings results on Thursday. The semiconductor company reported $1.40 earnings per share for the quarter, topping analysts’ consensus estimates of $1.35 by $0.05, FiscalAI reports. The company had revenue of $342.24 million during the quarter, compared to the consensus estimate of $335.53 million. MACOM Technology Solutions had a net margin of 16.46% and a return on equity of 16.01%. The company’s revenue was up 35.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.90 earnings per share. 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 Price Performance

Shares of NASDAQ:MTSI traded up $9.85 during trading on Friday, hitting $311.49. 604,975 shares of the company were exchanged, compared to its average volume of 1,476,147. The business’s 50 day moving average is $326.34 and its 200-day moving average is $286.63. MACOM Technology Solutions has a 1-year low of $118.16 and a 1-year high of $418.90. The company has a quick ratio of 5.84, a current ratio of 7.52 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $23.77 billion, a P/E ratio of 134.53, a price-to-earnings-growth ratio of 2.16 and a beta of 1.70.

Key MACOM Technology Solutions News

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

• Positive Sentiment: Quarterly results beat estimates: Fiscal Q3 2026 revenue rose 35.8% year over year to $342.24 million, surpassing the $335.53 million consensus estimate. Adjusted earnings of $1.40 per share also exceeded expectations of approximately $1.34-$1.35, compared with $0.90 a year earlier. MTSI Q3 Earnings Surpass Expectations, Revenues Rise Year Over Year
• Positive Sentiment: Strong fiscal Q4 guidance: MACOM forecast fourth-quarter revenue of $415 million-$425 million and EPS of $1.97-$2.03, well above analyst estimates of $364.1 million and $1.49, respectively. The outlook suggests continued momentum and operating leverage. MTSI Q3 Earnings Call Highlights Data Center Growth Outlook
• Positive Sentiment: Data-center demand is accelerating: Management cited record orders, broad-based growth and rising data-center demand as key drivers, with manufacturing leverage expected to support future margins and earnings.
• Positive Sentiment: Analyst support strengthened: Needham raised its price target from $400 to $410 and maintained a Buy rating. The broader analyst consensus is Moderate Buy, providing additional support for the shares.
• Neutral Sentiment: Valuation and technical context: MTSI trades at a high price-to-earnings multiple, while its shares remain below the 50-day moving average but above the 200-day average. This may encourage profit-taking despite the strong fundamental outlook.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on MTSI. Truist Financial boosted their target price on MACOM Technology Solutions from $261.00 to $375.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Susquehanna cut their price target on shares of MACOM Technology Solutions from $350.00 to $300.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 21st. HC Wainwright reissued a “buy” rating on shares of MACOM Technology Solutions in a research note on Wednesday, June 3rd. JPMorgan Chase & Co. raised their price target on shares of MACOM Technology Solutions from $240.00 to $345.00 and gave the stock a “neutral” rating in a research note on Friday, May 8th. Finally, Bank of America raised their price objective on MACOM Technology Solutions from $260.00 to $305.00 and gave the company a “buy” rating in a report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, MACOM Technology Solutions has a consensus rating of “Moderate Buy” and an average target price of $331.36.

Insider Buying and Selling at MACOM Technology Solutions

In other MACOM Technology Solutions news, CEO Stephen G. Daly sold 15,828 shares of the company’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $365.75, for a total value of $5,789,091.00. Following the sale, the chief executive officer owned 38,389 shares in the company, valued at approximately $14,040,776.75. The trade was a 29.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter Y. Chung sold 43,268 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $378.20, for a total transaction of $16,363,957.60. Following the completion of the transaction, the director owned 6,781 shares in the company, valued at approximately $2,564,574.20. The trade was a 86.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 74,378 shares of company stock worth $27,732,022 over the last 90 days. Company insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MTSI. O Shaughnessy Asset Management LLC lifted its position in MACOM Technology Solutions by 2.4% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 2,725 shares of the semiconductor company’s stock valued at $467,000 after purchasing an additional 63 shares during the period. Meeder Advisory Services Inc. boosted its holdings in shares of MACOM Technology Solutions by 3.5% in the 4th quarter. Meeder Advisory Services Inc. now owns 1,889 shares of the semiconductor company’s stock valued at $324,000 after acquiring an additional 63 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of MACOM Technology Solutions by 19.4% during the 3rd quarter. Larson Financial Group LLC now owns 418 shares of the semiconductor company’s stock worth $52,000 after buying an additional 68 shares during the period. UMB Bank n.a. raised its stake in shares of MACOM Technology Solutions by 14.5% during the 4th quarter. UMB Bank n.a. now owns 718 shares of the semiconductor company’s stock worth $123,000 after buying an additional 91 shares during the period. Finally, Vise Technologies Inc. grew its stake in MACOM Technology Solutions by 5.3% in the 3rd quarter. Vise Technologies Inc. now owns 2,014 shares of the semiconductor company’s stock valued at $251,000 after acquiring an additional 102 shares during the period. 76.14% of the stock is currently owned by hedge funds and other institutional investors.

About MACOM Technology Solutions

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.