MaxLinear (NASDAQ:MXL) Issues Earnings Results

MaxLinear (NASDAQ:MXL) released its earnings results on Thursday. The semiconductor company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.56 by $0.06, FiscalAI reports. MaxLinear had a positive return on equity of 2.24% and a negative net margin of 18.24%. The business had revenue of $218.06 million for the quarter, compared to the consensus estimate of $214.95 million.

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

• Q3 revenue rose 72% year over year to $218.1 million, with infrastructure revenue up 210% to approximately $125 million and non-GAAP operating margin reaching 29.5%.
• MaxLinear raised its 2026 optical data center revenue outlook to $250 million–$270 million and expects Q4 revenue of $240 million–$260 million, driven by accelerating 800G PAM4 deployments.
• Management cited strong bookings extending through 2027 and into 2028, with initial 1.6T Rushmore revenue expected in the first half of 2027 and a stronger ramp in the second half; Washington and Annapurna products are expected to contribute beginning in 2027.
• Foundry capacity remains a significant constraint for optical DSP supply, while the company expects to increase wafer prepayments and has expanded its revolving credit facility by $70 million to support demand and capacity commitments.
• Broadband and connectivity revenue grew sequentially in Q3 but are expected to decline seasonally in Q4; management nevertheless expects broadband growth to resume in 2027.

MaxLinear Stock Down 13.9%

MXL stock traded down $10.51 during midday trading on Thursday, hitting $65.28. The company’s stock had a trading volume of 5,199,832 shares, compared to its average volume of 3,133,658. The firm’s 50-day moving average is $77.78 and its 200-day moving average is $75.70. The company has a current ratio of 1.78, a quick ratio of 1.15 and a debt-to-equity ratio of 0.26. MaxLinear has a 12 month low of $12.77 and a 12 month high of $128.30. The company has a market cap of $5.92 billion, a PE ratio of -54.86 and a beta of 3.93.

Insider Activity at MaxLinear

In other MaxLinear news, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction on Monday, August 17th. The stock was sold at an average price of $85.95, for a total value of $30,207,471.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 7.70% of the company’s stock.

Wall Street Analyst Weigh In

MXL has been the subject of several analyst reports. Stifel Nicolaus raised their price target on MaxLinear from $110.00 to $120.00 and gave the company a “buy” rating in a report on Friday, July 24th. Morgan Stanley set a $125.00 price target on shares of MaxLinear in a research note on Monday, September 14th. Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a research note on Thursday, October 15th. Roth Capital raised their price objective on shares of MaxLinear from $60.00 to $100.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Finally, Needham & Company LLC lifted their target price on shares of MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Five analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $88.91.

About MaxLinear

MaxLinear, Inc is a fabless semiconductor company that designs, develops and sells integrated circuits and related solutions for broadband communications, wired and wireless infrastructure, data centers, industrial applications and consumer electronics. Its products are used by equipment manufacturers and service providers to support the transmission, processing and management of voice, video and data.

The company’s portfolio includes broadband access system-on-chip products, Ethernet transceivers and controllers, high-speed interconnect and communications devices, radio-frequency and analog products, optical and copper connectivity solutions, and power-management components.