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

MACOM Technology Solutions (NASDAQ:MTSI) posted its earnings results on Thursday. The semiconductor company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.35 by $0.05, FiscalAI reports. MACOM Technology Solutions had a net margin of 16.46% and a return on equity of 16.01%. The firm had revenue of $342.24 million for the quarter, compared to the consensus estimate of $335.53 million. During the same period last year, the firm posted $0.90 EPS. The company’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 Stock Performance

MTSI traded up $37.69 on Thursday, hitting $301.15. 2,930,684 shares of the company traded hands, compared to its average volume of 1,481,930. The company has a 50 day moving average of $328.14 and a 200-day moving average of $286.07. The company has a quick ratio of 5.84, a current ratio of 7.52 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $22.98 billion, a PE ratio of 130.37, a PEG ratio of 2.24 and a beta of 1.70. MACOM Technology Solutions has a 12-month low of $118.16 and a 12-month high of $418.90.

Analyst Ratings Changes

Several equities analysts have issued reports on MTSI shares. Bank of America upped 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. Stifel Nicolaus boosted their target price on MACOM Technology Solutions from $385.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Loop Capital started coverage on MACOM Technology Solutions in a research report on Friday, April 10th. They issued a “buy” rating and a $300.00 target price for the company. Truist Financial lifted their price target on MACOM Technology Solutions from $261.00 to $375.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Finally, Zacks Research downgraded MACOM Technology Solutions from a “strong-buy” rating to a “hold” rating in a report on Friday, July 24th. 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 stock. According to MarketBeat, MACOM Technology Solutions presently has a consensus rating of “Moderate Buy” and a consensus price target of $331.36.

More MACOM Technology Solutions News

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

• Positive Sentiment: Strong quarterly results: MACOM reported fiscal Q3 adjusted earnings of $1.40 per share, exceeding the $1.35 consensus estimate, while revenue rose 35.8% year over year to $342.24 million, above expectations of $335.53 million. Earnings increased from $0.90 per share in the year-ago quarter. MACOM Reports Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: Significantly stronger outlook: Management forecast fiscal Q4 EPS of $1.97–$2.03, well above the $1.49 analyst consensus, and revenue of $415 million–$425 million versus expectations of $364.1 million. The guidance implies continued momentum and was likely the primary catalyst for the stock’s increase. M/A-Com Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Analyst endorsement: Needham raised its MTSI price target from $400 to $410 and maintained a “buy” rating, implying substantial upside from the referenced share price. Needham Raises MACOM Price Target
• Positive Sentiment: MACOM’s growth story remains supported by rising demand for AI data-center optical infrastructure and defense electronics. Recent commentary cited 36% year-over-year data-center growth, 22% growth in Industrial & Defense, improving gross margins and adjusted EBITDA margins above 31%. MACOM’s AI Data Center and Defense Growth
• Negative Sentiment: Valuation remains a risk: At a reported price-to-earnings ratio above 130, MTSI is priced for strong execution. Any slowdown in AI infrastructure demand or weaker-than-expected future guidance could produce heightened volatility.

Insider Buying and Selling

In other news, Director Geoffrey G. Ribar sold 1,623 shares of the business’s stock in a transaction that occurred 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. The trade was a 11.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO John Kober sold 7,644 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $359.25, for a total value of $2,746,107.00. Following the sale, the chief financial officer directly owned 40,972 shares of the company’s stock, valued at approximately $14,719,191. This represents a 15.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 74,378 shares of company stock worth $27,732,022. 0.36% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MACOM Technology Solutions

Large investors have recently modified their holdings of the business. O Shaughnessy Asset Management LLC lifted its stake in MACOM Technology Solutions by 2.4% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 2,725 shares of the semiconductor company’s stock valued at $467,000 after buying an additional 63 shares during the last quarter. Meeder Advisory Services Inc. grew its holdings in MACOM Technology Solutions by 3.5% in the 4th quarter. Meeder Advisory Services Inc. now owns 1,889 shares of the semiconductor company’s stock worth $324,000 after buying an additional 63 shares in the last quarter. Larson Financial Group LLC raised its stake in shares of MACOM Technology Solutions by 19.4% during the third quarter. Larson Financial Group LLC now owns 418 shares of the semiconductor company’s stock valued at $52,000 after purchasing an additional 68 shares in the last quarter. UMB Bank n.a. increased its stake in MACOM Technology Solutions by 14.5% during the 4th quarter. UMB Bank n.a. now owns 718 shares of the semiconductor company’s stock valued at $123,000 after buying an additional 91 shares during the period. Finally, Vise Technologies Inc. raised its holdings in MACOM Technology Solutions by 5.3% during the third quarter. Vise Technologies Inc. now owns 2,014 shares of the semiconductor company’s stock worth $251,000 after purchasing an additional 102 shares in the last quarter. 76.14% of the stock is owned by hedge funds and other institutional investors.

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.