MACOM Technology Solutions reported sharply higher revenue and earnings for fiscal 2026, with growth continuing in its fourth quarter. The semiconductor supplier also forecast first-quarter fiscal 2027 revenue above its latest quarterly level.
Fourth-quarter results
- Revenue was $424.8 million, up 62.7% from the year-earlier quarter and 24.1% from the previous quarter.
- GAAP gross margin rose to 59.9%, from 54.5% a year earlier and 58.3% in the prior quarter.
- GAAP operating income increased to $134.2 million, or 31.6% of revenue. That compared with $39.6 million, or 15.2% of revenue, a year earlier and $77.1 million, or 22.5%, in the prior quarter.
- GAAP net income was $139.4 million, or $1.78 per diluted share, versus $45.1 million, or $0.59 per share, a year earlier. In the prior quarter, net income was $100.7 million, or $1.28 per share.
- On an adjusted, non-GAAP basis, gross margin was 61.3%. Adjusted operating income reached $162.3 million, or 38.2% of revenue, and adjusted net income was $163.3 million, or $2.09 per diluted share. The year-earlier figures were 57.1% adjusted gross margin, $67.0 million in adjusted operating income and $71.4 million in adjusted net income, or $0.94 per share.
Full-year results
- Fiscal 2026 revenue was $1.33 billion, up 37.3% from $967.3 million in fiscal 2025. GAAP gross margin increased to 58.0% from 54.7%, while operating income rose to $305.5 million from $129.7 million.
- GAAP net income was $335.3 million, or $4.31 per diluted share, compared with a $54.2 million net loss, or $0.73 per share, in fiscal 2025. The prior year included a primarily non-cash $193.1 million charge tied to extinguishing debt during a refinancing of some convertible notes due in 2026.
- Adjusted results also improved: fiscal 2026 adjusted gross margin was 59.5%, up from 57.4%; adjusted operating income was $424.4 million, or 32.0% of revenue, versus $245.7 million, or 25.4%; and adjusted net income was $435.7 million, or $5.60 per diluted share, compared with $263.4 million, or $3.47 per share.
Outlook and implications
For the fiscal first quarter ending January 1, 2027, MACOM expects revenue of $450 million to $460 million—about 6% to 8% above fourth-quarter revenue at the midpoint of the comparison. The company’s reported figures show both substantial year-over-year revenue growth and wider margins; the fiscal 2025 GAAP net-loss comparison, however, is affected by the large debt-extinguishment charge.