MACOM (MTSI) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue reached $289 million, up 22.5% year-over-year and 6.4% sequentially, with strong growth across data center, industrial & defense, and telecom markets.

• Adjusted net income was $84.3 million ($1.09 per diluted share), while GAAP net income was $46.3 million ($0.60 per share), both up year-over-year.

• Gross margin improved to 56.9% from 55.2% year-over-year; adjusted gross margin was 58.5%.

• Operational improvements in manufacturing and supply chain led to higher yields, lower cycle times, and increased customer satisfaction.

• Operating expenses increased due to higher headcount, R&D material costs, and share-based compensation.

Financial highlights

• Adjusted operating income was $80.5 million (27.8% margin), up 8.8% sequentially and 34.5% year-over-year.

• Cash flow from operations was $78.7 million for the quarter and $121.6 million for the first six months; cash and short-term investments totaled $664.9 million.

• Capital expenditures for Q2 were $13.2 million; FY26 CapEx expected at $55–$65 million.

• Diluted EPS was $1.09 adjusted and $0.60 GAAP for the quarter.

• Book-to-bill ratio was 1.5, reflecting robust demand and a record backlog.

Outlook and guidance

• Q3 revenue expected between $331–$339 million, with adjusted gross margin of 59–60% and adjusted EPS of $1.31–$1.37.

• Sequential revenue growth anticipated in all end markets: data center (~35%), I&D (~10%), telecom (low single digits).

• FY26 data center revenue growth base case raised from 35–40% to over 60%.

• I&D expected to grow above 20% for FY26; telecom targeted for low double-digit growth.

• FY26 cash flow from operations projected to exceed $300 million.