MACOM Technology Solutions (NASDAQ:MTSI) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

MACOM Technology Solutions (NASDAQ:MTSI) issued its earnings results on Thursday. The semiconductor company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.00 by $0.09, FiscalAI reports. MACOM Technology Solutions had a net margin of 25.25% and a return on equity of 22.46%. The company had revenue of $424.82 million for the quarter, compared to the consensus estimate of $420.35 million. During the same quarter in the previous year, the company earned $0.94 EPS. The firm’s revenue for the quarter was up 62.6% compared to the same quarter last year. MACOM Technology Solutions updated its Q1 2027 guidance to 2.210-2.290 EPS.

Here are the key takeaways from MACOM Technology Solutions’ conference call:

• MACOM delivered record FY2026 revenue of $1.3 billion, up 37% year over year, and adjusted EPS of $5.60, up 61%. Q4 revenue rose 62.7% year over year to $424.8 million; the company also reported record backlog and a 1.4-to-1 quarterly book-to-bill ratio.
• For fiscal Q1 2027, MACOM guided to revenue of $450 million–$460 million and adjusted EPS of $2.21–$2.29, with adjusted operating margin expected around 40% at the midpoint. Management said it expects FY2027 to be a record year and is working toward approximately $2 billion in revenue, while noting execution and market risks.
• Data center is expected to remain the main growth driver: management expects FY2027 revenue growth to exceed FY2026’s 74% rate, citing 1.6T deployments, higher content opportunities, and potential near-packaged optics programs. It also highlighted developing products including 200G-per-lane components and continuous-wave lasers, though it expects the latter to be a more significant opportunity in 2028.
• Industrial and Defense revenue reached a record in Q4, and management is targeting FY2027 growth above FY2026’s 27.8%. Telecom is expected to grow at a similar pace to FY2026 for the full year, but management flagged near-term softness in PON and broadband and guided to flat-to-slightly-down Q1 telecom revenue.
• MACOM plans to increase FY2027 capital expenditures to $100 million–$110 million, mainly to expand manufacturing and R&D capacity, and expects its adjusted tax rate to rise from 3% to about 6%. The company said it has no current plans for buybacks or dividends, preferring to retain cash for investment and strategic opportunities.

MACOM Technology Solutions Price Performance

Shares of NASDAQ MTSI traded up $20.63 during trading on Friday, reaching $210.98. The company had a trading volume of 2,854,240 shares, compared to its average volume of 1,963,088. MACOM Technology Solutions has a 52 week low of $150.80 and a 52 week high of $418.90. The stock has a market cap of $16.11 billion, a PE ratio of 49.07, a PEG ratio of 0.69 and a beta of 1.82. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.78 and a current ratio of 2.53. The business’s 50 day moving average price is $270.93 and its 200-day moving average price is $282.81.

Insider Transactions at MACOM Technology Solutions

In related news, COO Robert Dennehy sold 252 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $275.20, for a total value of $69,350.40. Following the completion of the sale, the chief operating officer owned 12,758 shares of the company’s stock, valued at $3,511,001.60. This trade represents a 1.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John Kober sold 7,389 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $326.08, for a total transaction of $2,409,405.12. Following the completion of the transaction, the chief financial officer owned 33,583 shares of the company’s stock, valued at $10,950,744.64. This trade represents a 18.03% 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. Over the last three months, insiders have sold 9,321 shares of company stock worth $2,917,644. Corporate insiders own 0.36% of the company’s stock.

MACOM Technology Solutions News Roundup

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

• Positive Sentiment: Fiscal Q4 adjusted EPS of $2.09 topped the $2.00 consensus, while revenue of $424.82 million exceeded the $420.35 million estimate and rose 62.6% year over year. MACOM fiscal Q4 and FY2026 results
• Positive Sentiment: Q1 fiscal 2027 guidance came in above expectations: EPS of $2.21–$2.29 versus the $1.96 consensus and revenue of $450–$460 million versus $431.1 million. The company cited data-center demand, including growing interest in 1.6T products, and expects further growth and margin gains. Q4 earnings and data-center outlook
• Neutral Sentiment: A valuation analysis argued MTSI could be substantially undervalued following its Q4 results, though this is an analytical estimate rather than a company announcement. Valuation analysis
• Negative Sentiment: Despite maintaining a Buy rating, Truist cut its price target to $310 from $375. Needham also lowered its target, to $300 from $410. The reductions may weigh on sentiment even as both firms remain positive on the shares. Truist price-target report
• Negative Sentiment: Market skepticism around supply-chain constraints and shifts in end-market demand appears to have tempered the reaction to strong results, with coverage noting that the stock fell after the sales beat. Market skepticism and supply-chain concerns

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on MTSI shares. Raymond James Financial upgraded MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $300.00 price target on the stock in a research report on Tuesday, October 27th. Benchmark began coverage on MACOM Technology Solutions in a research report on Thursday, August 13th. They issued a “buy” rating and a $375.00 price objective for the company. Wall Street Zen upgraded MACOM Technology Solutions from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Truist Financial reduced their price objective on MACOM Technology Solutions from $375.00 to $310.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Weiss Ratings cut MACOM Technology Solutions from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $321.67.

About MACOM Technology Solutions

MACOM Technology Solutions designs and supplies semiconductor products for applications that use radio frequency, microwave, millimeter-wave and optical signals. Its products include amplifiers, switches, diodes, mixers, attenuators and other components used in communications and electronic systems.

The company serves customers in markets including telecommunications, data centers, aerospace and defense, and industrial applications. Its components are used in equipment such as wireless infrastructure, high-speed optical networks, radar and test systems.

Headquartered in Lowell, Massachusetts, MACOM traces its history to Microwave Associates, founded in 1950.