MACOM Technology Solutions (NASDAQ:MTSI) Posts Quarterly Earnings Results

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

MTSI stock traded up $37.69 on Thursday, hitting $301.15. 2,930,684 shares of the company’s stock traded hands, compared to its average volume of 1,440,173. The stock has a market cap of $22.98 billion, a price-to-earnings ratio of 130.37, a P/E/G ratio of 2.16 and a beta of 1.70. MACOM Technology Solutions has a 1-year low of $118.16 and a 1-year high of $418.90. The company has a current ratio of 7.52, a quick ratio of 5.84 and a debt-to-equity ratio of 0.29. The stock has a fifty day moving average of $326.34 and a 200-day moving average of $286.63.

Key Headlines Impacting MACOM Technology Solutions

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

• Positive Sentiment: MACOM reported fiscal third-quarter earnings of $1.40 per share, exceeding the $1.34–$1.35 analyst consensus. Revenue reached $342.24 million, above expectations of approximately $335.5 million and up 35.8% year over year; EPS also rose from $0.90 in the prior-year quarter. MACOM Reports Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: The company issued substantially stronger fiscal fourth-quarter guidance, calling for EPS of $1.97 to $2.03 versus the $1.49 consensus estimate. Revenue guidance of $415 million to $425 million also significantly exceeds analysts’ forecast of $364.1 million, providing a major catalyst for investor optimism. M/A-Com Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Needham raised its price target for MTSI from $400 to $410 and reiterated a “buy” rating, implying substantial potential upside from the referenced market price. The revision reinforces the view that MACOM’s earnings momentum and outlook justify a higher valuation. Needham Raises MACOM Price Target
• Neutral Sentiment: The earnings release and related coverage identify the report as fiscal third-quarter results, while some headlines refer to Q2, creating a minor labeling inconsistency. The underlying financial figures and guidance remain the key market-moving information. MACOM Q3 2026 Earnings
• Negative Sentiment: Despite the favorable results, MACOM trades at a high valuation, with a reported P/E ratio above 130. This could increase volatility or limit further gains if future results fail to sustain the company’s elevated growth expectations.

Insider Transactions at MACOM Technology Solutions

In other MACOM Technology Solutions news, Director Geoffrey G. Ribar sold 1,623 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $361.84, for a total value of $587,266.32. Following the transaction, the director owned 12,563 shares of the company’s stock, valued at approximately $4,545,795.92. This represents a 11.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Stephen G. Daly sold 15,828 shares of the 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 $14,040,776.75. This trade represents a 29.19% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 74,378 shares of company stock valued at $27,732,022 in the last 90 days. 0.36% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On MACOM Technology Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC acquired a new stake in MACOM Technology Solutions during the 3rd quarter worth about $25,000. Los Angeles Capital Management LLC acquired a new position in shares of MACOM Technology Solutions in the fourth quarter worth about $46,000. Advisors Asset Management Inc. boosted its holdings in shares of MACOM Technology Solutions by 49.7% in the first quarter. Advisors Asset Management Inc. now owns 485 shares of the semiconductor company’s stock worth $49,000 after buying an additional 161 shares during the period. Larson Financial Group LLC boosted its holdings in shares of MACOM Technology Solutions by 19.4% in the third 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. Finally, Quarry LP increased its position in shares of MACOM Technology Solutions by 548.5% in the third quarter. Quarry LP now owns 428 shares of the semiconductor company’s stock worth $53,000 after acquiring an additional 362 shares in the last quarter. Institutional investors and hedge funds own 76.14% of the company’s stock.

Analyst Ratings Changes

Several analysts have weighed in on the company. JPMorgan Chase & Co. lifted their target price on MACOM Technology Solutions from $240.00 to $345.00 and gave the company a “neutral” rating in a research note on Friday, May 8th. Barclays increased their price target on MACOM Technology Solutions from $400.00 to $450.00 and gave the stock an “overweight” rating in a research note on Friday, May 22nd. Susquehanna lowered their price target on MACOM Technology Solutions from $350.00 to $300.00 and set a “neutral” rating on the stock in a report on Tuesday, July 21st. Bank of America lifted their price objective on shares of MACOM Technology Solutions from $260.00 to $305.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Finally, Loop Capital started coverage on shares of MACOM Technology Solutions in a report on Friday, April 10th. They issued a “buy” rating and a $300.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $331.36.

MACOM Technology Solutions Company Profile

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.