Vicor (NASDAQ: VICR) revenue jumps 37.5% and margins widen

What happened

Vicor Corporation (NASDAQ: VICR) reported third-quarter 2026 product and royalty revenues of $197.1 million on October 20, 2026. That was up 37.5% from $143.4 million in the second quarter of 2026 and 78.5% from $110.4 million a year earlier. Gross margin rose to $134.7 million, or 68.3% of revenue, from $83.1 million and 58.0% in the second quarter.

Net income was $63.3 million, or $1.33 a diluted share, compared with $49.8 million in the second quarter and $28.3 million a year earlier. Cash flow from operations was $69.7 million, up from $34.0 million in the second quarter and $38.5 million a year earlier. Capital expenditures were $16.1 million, cash and cash equivalents were about $513.1 million, and backlog was $406 million, up from $380 million and $153 million.

Management said it bought two additional sites within 30 miles of ChiP Fab-1 in Andover for nearly 5X capacity from 3 Fabs, relative to Fab-1. It also said it granted its first VPD license to an AI OEM at Stage-2 unit royalty rates.

Operating expenses, including contingency fees to law firms enforcing Vicor IP, rose to $62.5 million from $48.2 million in the second quarter and $42.6 million a year earlier. Income from operations was $72.1 million. For the first nine months of 2026, total net revenues were $453.4 million and net income attributable to Vicor Corporation was $133.8 million. Total assets were $981.6 million and total Vicor Corporation stockholders' equity was $906.3 million.

Key numbers

Metric	Latest	Change	Source
Product and royalty revenues	$197.1 million	from $110.4 million, +78.5%	Vicor Q3 2026 results press release
Gross margin as a percentage of revenue	68.3%	from 57.5%, +10.8 percentage points	Vicor Q3 2026 results press release
Net income	$63.3 million	from $28.3 million, +35.0 million	Vicor Q3 2026 results press release
Cash flow from operations	$69.7 million	from $38.5 million, +31.2 million	Vicor Q3 2026 results press release
Backlog	$406 million	from $153 million, +253 million	Vicor Q3 2026 results press release

Read more: Vicor (VICR) stock analysis and investment case

Why it matters

OptimistFi's case is that Vicor can compound if its modular, high-density power architecture keeps winning demanding OEM designs. This quarter supports that view because revenue rose $53.7 million and backlog rose $26 million sequentially. Gross margin held at 68.3%, and cash and cash equivalents were about $513.1 million.

The offset is that operating expenses, including contingency fees to law firms enforcing Vicor IP, increased to $62.5 million from $48.2 million.

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What's next

Vicor will discuss the results at 8:00 a.m. Eastern Time today, Tuesday, October 20, 2026. A call that confirms the higher backlog, cash flow and capacity plans would strengthen the case. Softer follow-through would weaken it.

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