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

MACOM Technology Solutions (NASDAQ:MTSI) released its quarterly earnings results on Thursday. The semiconductor company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.35 by $0.05, FiscalAI reports. The company had revenue of $342.24 million for the quarter, compared to analyst estimates of $336.08 million. MACOM Technology Solutions had a return on equity of 17.82% and a net margin of 20.70%.The firm’s revenue was up 35.8% on a year-over-year basis. During the same period in the previous year, the company 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 Stock Performance

MTSI stock traded up $9.18 on Friday, hitting $310.82. The company had a trading volume of 1,976,965 shares, compared to its average volume of 1,507,222. The company has a current ratio of 2.34, a quick ratio of 5.84 and a debt-to-equity ratio of 0.04. MACOM Technology Solutions has a 12-month low of $118.16 and a 12-month high of $418.90. The stock has a market cap of $23.72 billion, a price-to-earnings ratio of 99.94, a P/E/G ratio of 2.47 and a beta of 1.70. The stock’s 50-day simple moving average is $325.26 and its 200 day simple moving average is $286.80.

Insider Transactions at MACOM Technology Solutions

In related news, Director Peter Y. Chung sold 43,268 shares of MACOM Technology Solutions stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $378.20, for a total value of $16,363,957.60. Following the completion of the sale, the director owned 6,781 shares of the company’s stock, valued at $2,564,574.20. The trade was a 86.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Stephen G. Daly sold 15,828 shares of the company’s stock in a transaction on Friday, May 29th. The shares were 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 of the company’s stock, valued at approximately $14,040,776.75. This trade represents a 29.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 74,378 shares of company stock worth $27,732,022. Company insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On MACOM Technology Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Advisors Asset Management Inc. grew its position in MACOM Technology Solutions by 49.7% during the first quarter. Advisors Asset Management Inc. now owns 485 shares of the semiconductor company’s stock valued at $49,000 after buying an additional 161 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in MACOM Technology Solutions by 9.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,182 shares of the semiconductor company’s stock worth $15,778,000 after acquiring an additional 13,215 shares during the period. Focus Partners Wealth boosted its stake in shares of MACOM Technology Solutions by 121.3% during the 1st quarter. Focus Partners Wealth now owns 6,739 shares of the semiconductor company’s stock worth $676,000 after acquiring an additional 3,694 shares during the last quarter. Cetera Investment Advisers purchased a new position in shares of MACOM Technology Solutions during the 2nd quarter worth $372,000. Finally, Marshall Wace LLP bought a new stake in shares of MACOM Technology Solutions during the 2nd quarter valued at $544,000. Hedge funds and other institutional investors own 76.14% of the company’s stock.

Analyst Ratings Changes

MTSI has been the subject of a number of recent research reports. Loop Capital started coverage on shares of MACOM Technology Solutions in a research report on Friday, April 10th. They set a “buy” rating and a $300.00 price target for the company. Susquehanna cut their target price on 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. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of MACOM Technology Solutions in a research report on Wednesday. Needham & Company LLC increased their price objective on shares of MACOM Technology Solutions from $400.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. raised their price objective on shares of MACOM Technology Solutions from $240.00 to $345.00 and gave the company a “neutral” rating in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, MACOM Technology Solutions presently has a consensus rating of “Moderate Buy” and an average target price of $331.36.

Key MACOM Technology Solutions News

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

• Positive Sentiment: Fiscal Q3 2026 earnings per share rose to $1.40 from $0.90 a year earlier, beating the $1.34–$1.35 analyst consensus. Revenue increased 35.8% year over year to $342.24 million, also exceeding expectations of approximately $335.5 million. MTSI Q3 Earnings Surpass Expectations, Revenues Rise Y/Y
• Positive Sentiment: MACOM issued fiscal Q4 EPS guidance of $1.97–$2.03 and revenue guidance of $415 million–$425 million, far above consensus estimates of $1.49 and $364.1 million, respectively. MTSI Q3 Earnings Call Highlights Data Center Growth Outlook
• Positive Sentiment: Management highlighted accelerating data-center demand, record bookings and greater operating leverage, suggesting that growth may continue beyond the latest quarter. MACOM Reports Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: Needham raised its price target from $400 to $410 and maintained a Buy rating. Analysts overall maintain a “Moderate Buy” consensus, reinforcing bullish sentiment. MACOM Receives Moderate Buy Consensus
• Neutral Sentiment: At approximately $310.82, MTSI remains well below its 52-week high of $418.90 but trades at a lofty trailing P/E ratio of about 135, leaving the shares sensitive to any slowdown in data-center growth or guidance.

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.