Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 was $271.6 million, up 4% sequentially and up 24.5% year-over-year, driven by growth across all three end markets [22][5] - Adjusted EPS was $1.02, exceeding $1 per share for the first time, compared to $0.94 in fiscal Q4 2025 [26] - Adjusted gross profit was $156.5 million, or 57.6% of revenue, with expectations for sequential quarterly gross margin improvements of 25-50 basis points throughout fiscal 2026 [23][22] - The book-to-bill ratio was 1.3-to-1, indicating strong demand and bookings [22][5] Business Line Data and Key Metrics Changes - Revenue by end market: Industrial and Defense (I&D) was $117.7 million, Data Center was $85.8 million, and Telecom was $68.1 million, with all segments showing sequential growth [6][5] - Data Center revenue was up approximately 8% sequentially, Telecom was up 3%, and I&D was up 2% [6] - The company anticipates Data Center revenue could achieve 35%-40% year-over-year growth due to robust capital investments from hyperscalers [6][5] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 45.6% of fiscal Q1 revenue, a slight increase from previous quarters [22] - The company is seeing strong demand in the telecom market, particularly in satellite-based broadband access and direct-to-cell opportunities [15][12] Company Strategy and Development Direction - The company aims to expand its semiconductor portfolio to capture a larger share of the data center, telecom, and industrial and defense markets [20] - MACOM is focusing on enhancing its design teams and expanding its presence in the data center market, raising its revenue growth base case from 20% to 35%-40% [19][18] - The company is also investing in advanced GaN semiconductor technologies and expanding its photonics portfolio with higher-speed photodetectors and new CW lasers [19][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across all end markets and a healthy backlog, expecting Q2 revenue to be in the range of $281-$289 million [30][5] - The company anticipates incremental progress in profitability and financial performance in Q2, with adjusted gross margins expected to be between 57%-59% [30][22] - Management highlighted the importance of maintaining strong customer relationships and adapting to market changes, particularly in the defense sector [12][19] Other Important Information - The company plans to retire its 2021 convertible notes by paying out $161 million in cash and settling any conversion premium with shares [28] - MACOM is in a net cash position of more than $268 million as of January 2, 2026 [28] Q&A Session Summary Question: What gives confidence to raise the data center growth outlook? - Management indicated that the key driver is the 1.6T market, with strong activity and design wins transitioning into production runs, supported by a healthy backlog [34] Question: How could MACOM benefit from the shift towards Near-Packaged or Co-Packaged Optics? - The product set for CPO or NPO platforms is similar to existing offerings, with a strong design capability in coherent modulation and photodetectors [37] Question: What is the growth potential in telecom, especially after NXP's exit from the RF Power market? - Management noted that it may take 1-2 years to see market share gains, focusing on strengthening the design team and accelerating product development [41] Question: What are the growth prospects for the industrial and defense segment this year? - Management expects I&D growth to be between 15%-20%, driven by increased demand for GaN on silicon carbide modules and subsystems [47] Question: Can you provide insights on the SATCOM and ACC markets? - Management indicated that SATCOM is a growth market with multiple LEO programs in design phase, while ACC revenue was not included in Q1 results but is expected to grow [57][56]

Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was $271.6 million, up 4% sequentially and up 24.5% year-over-year, driven by growth across all three end markets [20][4] - Adjusted EPS was $1.02, exceeding $1 per share for the first time, compared to $0.94 in Q4 2025 [25] - Adjusted operating income was a record $74 million, up 10.4% sequentially and up 33.5% year-over-year [23] - Cash, cash equivalents, and short-term investments totaled $768 million, with a net cash position of over $268 million [27] Business Line Data and Key Metrics Changes - Revenue by end market: Industrial and Defense (I&D) at $117.7 million, Data Center at $85.8 million, and Telecom at $68.1 million [5] - Data Center revenue grew approximately 8% sequentially, Telecom grew 3%, and I&D grew 2% sequentially [5] - Both I&D and Data Center revenues reached record levels, with confidence in achieving 35%-40% year-over-year growth in Data Center revenue [5][4] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 45.6% of fiscal Q1 revenue, a slight increase from previous quarters [20] - The company is seeing strong demand in the defense segment, particularly in advanced radars and electronic warfare systems [10] - The telecom market is experiencing growth opportunities from satellite-based broadband access and direct-to-cell applications [13] Company Strategy and Development Direction - The company aims to expand its data center product portfolio and enhance its presence in the 5G market, particularly following a competitor's exit from the RF power GaN market [18][42] - MACOM is focused on developing advanced GaN semiconductor technologies and increasing manufacturing capacity to meet customer demand [18][8] - The strategy includes building a diversified semiconductor portfolio to capture a larger market share across its three focus areas [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the data center business, citing a healthy backlog and strong demand for 1.6T products [34] - The company anticipates continued strong bookings and expects revenue growth in each of its three end markets for Q2 fiscal 2026 [29] - Management noted that the overall market for 5G is flat, but they expect to grow through share gains and new opportunities in SATCOM and cable markets [42][46] Other Important Information - The company plans to retire its 2021 convertible notes by paying out $161 million in cash [27] - Capital expenditures for fiscal Q1 were $12.9 million, with an estimated range of $50-$55 million for the full fiscal year [26] - The company is engaged with multiple LEO satellite programs, indicating a strategic focus on satellite communications [62] Q&A Session Summary Question: What gives confidence to raise the data center growth outlook? - Management indicated that the key driver is the strong activity in 1.6T products, with a healthy backlog and ramping programs supporting the outlook [34] Question: How will MACOM benefit from the shift towards CPO and NPO? - The product set for CPO and NPO is similar to existing offerings, with a focus on silicon photonics-based solutions and a strong design capability [36] Question: What is the growth potential in telecom following NXP's exit from RF Power? - Management expects it will take 1-2 years to see market share gains, focusing on strengthening the design team and accelerating product development [41] Question: What are the growth prospects for I&D and telecom segments this year? - I&D is expected to grow between 15%-20%, while telecom growth is anticipated to be high single-digit to low double-digit [46] Question: How is the RTP fab performing and its impact on gross margins? - The RTP fab has shown incremental improvements in profitability, with ongoing efforts to increase output and efficiency [52]

Macom Stock Rises After Beat-And-Raise Report | Investor's Business DailyBREAKING: [Futures Fall, Bitcoin Dives; Google Tumbles]---Chipmaker Macom Technology Solutions (MTSI) on Thursday beat analyst estimates for its fiscal first quarter and with its guidance. Macom stock rose on the news. The Lowell, Mass.- based company earned an adjusted $1.02 a share on sales of $271.6 million in the quarter ended Jan. 2. Analysts polled by FactSet had expected Macom earnings of $1 a share on sales…## Related news## Ma ...

MACOM Reports Fiscal First Quarter 2026 Financial Results LOWELL, MA, February 5, 2026 – MACOM Technology Solutions Holdings, Inc. ("MACOM") (Nasdaq: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal first quarter ended January 2, 2026. First Quarter Fiscal Year 2026 GAAP Results First Quarter Fiscal Year 2026 Adjusted Non-GAAP Results Management Commentary "We delivered a solid start to fiscal year 2026," said Stephen G. Daly, President and Chief Exec ...

LOWELL, Mass., Feb. 05, 2026 (GLOBE NEWSWIRE) -- MACOM Technology Solutions Holdings, Inc. (“MACOM”) (Nasdaq: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal first quarter ended January 2, 2026. First Quarter Fiscal Year 2026 GAAP Results Revenue was $271.6 million, an increase of 24.5%, compared to $218.1 million in the previous year fiscal first quarter and an increase of 4.0% compared to $261.2 million in the prior fiscal quarter;Gross margin was ...

Wall Street analysts forecast that M/A-Com (MTSI) will report quarterly earnings of $0.99 per share in its upcoming release, pointing to a year-over-year increase of 25.3%. It is anticipated that revenues will amount to $268.91 million, exhibiting an increase of 23.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timef ...

Core Insights - The semiconductor industry is experiencing strong performance, with global sales increasing by 29.8% year over year to $75.3 billion in November 2025, driven by solid demand across various sectors [1][10] Industry Performance - Semiconductor companies are benefiting from robust sales growth across a wide range of products, including microprocessors, memory chips, and advanced driver assistance systems [3] - Demand from hyperscalers, cloud service providers, and AI companies is driving the rise in microchip sales, leading to increased capital expenditure on more powerful chips [4] - Inventory normalization among industrial and automotive customers is contributing to improved sales and margins, aided by easing inflation [5] Upcoming Earnings Reports - Microchip Technology, Monolithic Power Systems, and MACOM Technology Solutions are set to report their financial results on February 5, 2026 [2][10] - Microchip Technology is expected to report revenues of $1.19 billion for Q3 fiscal 2026, reflecting a 15.5% increase year over year, with earnings estimated at 43 cents per share, a 115% increase [8] - Monolithic Power Systems anticipates revenues of $740.72 million for Q4 2025, a 19.2% increase year over year, with earnings estimated at $4.73 per share, a 15.6% increase [13] - MACOM Technology Solutions expects revenues of $268.91 million for Q1 fiscal 2026, a 23.3% increase year over year, with earnings estimated at 99 cents per share, a 25.3% increase [17] Company-Specific Insights - Microchip Technology's performance is likely supported by improving inventory levels, with inventory days decreasing from 266 days to 199 days [9] - Monolithic Power Systems is benefiting from steady demand in enterprise data and automotive markets, particularly from AI server applications [14] - MACOM Technology Solutions is experiencing strong demand in the Data Center business, with expectations of sequential revenue growth supported by strong bookings [18] - The Industrial & Defense markets are also expected to positively impact MACOM's performance, with revenues in this segment rising by 7% sequentially [19]

Core Insights - The article highlights the growing importance of connectivity and networking solutions in the AI infrastructure, emphasizing companies like Credo Technology Group that provide essential products for high-speed data transmission [1][4][5]. Company Overview: Credo Technology Group - Credo specializes in networking and connectivity solutions that are critical for data infrastructure, enabling AI capabilities [1]. - The company offers products such as AECs, PCIe retimers, ethernet retimers, and optical solutions, which facilitate high-capacity connections essential for AI operations [6][7]. - Credo reported a significant 272% year-over-year revenue increase in its latest quarterly results, reaching $268 million, surpassing forecasts by $33 million [8]. Market Position and Competitive Landscape - Credo has maintained a strong market presence, holding nearly 90% market share in AEC technology until 2024, with expectations of a decline to 70-75% due to emerging competition from companies like Marvell and Astera [9]. - Despite competition, Credo is viewed as a leader in technology, reliability, and customer engagement within the AEC sector [9]. Future Outlook - Analysts project that if Credo can maintain a 50% market share through 2030, AEC sales could increase to approximately $3.5 billion from around $900 million by 2025, indicating substantial growth potential [9][10]. - The overall market for AI connectivity is expected to reach around $60 billion, with Credo potentially capturing 8-10% of this market [10]. Company Overview: MACOM Technology Solutions - MACOM, based in Lowell, Massachusetts, operates in the high-end networking field with a market cap of $16.4 billion [11]. - The company reported a revenue of $261.2 million in its last quarter, reflecting a 30% year-over-year growth [13]. Market Position and Competitive Landscape - MACOM is benefiting from the transition to higher data rates, with demand for 200G/lane components expected to increase significantly [14]. - The company has a strong backlog and visibility for future demand, indicating a robust growth trajectory [14]. Future Outlook - Analysts have rated MACOM as a Buy, with a price target of $260, suggesting a potential 12-month gain of 19% [14][15]. - The stock has seen substantial gains, up 79% over the past year, but is currently trading above the average price target, indicating potential for future adjustments [15].

Core Insights - MACOM Technology Solutions Holdings, Inc. has announced the promotions of two senior leaders to the Senior Vice President level, aimed at strengthening its management team and enhancing strategic corporate initiatives for growth and customer service [1] Group 1: Promotions and Leadership - Stephen Ferranti has been promoted to Senior Vice President of Corporate Development and Investor Relations, bringing extensive experience in corporate development, marketing, and investor relations since joining MACOM in 2016 [2] - Dr. Gregg Jessen has been promoted to Senior Vice President of Advanced GaN Technology, with a strong background in R&D leadership in microelectronics and significant contributions to RF GaN technology since joining MACOM in 2022 [3] Group 2: Company Overview - MACOM designs and manufactures semiconductor products for various applications, including telecommunications, industrial, defense, and data centers, with headquarters in Lowell, Massachusetts [4]

Core Viewpoint - MACOM Technology Solutions Holdings, Inc. is set to announce its financial results for the first quarter ending January 2, 2026, on February 5, 2026, before market opening [1]. Group 1: Financial Results Announcement - The financial results will be released before market open on February 5, 2026 [1]. - A conference call will be held at 8:30 a.m. Eastern Time on the same day, hosted by the President and CEO, Stephen G. Daly, and the Senior Vice President and CFO, John F. Kober [1]. Group 2: Investor Relations - Interested parties can register for a user-specific access code for the live call or access the live webcast through MACOM's Investor Relations Website [2]. - A replay of the call will be available within 24 hours and will remain accessible for approximately 90 days [2]. Group 3: Company Overview - MACOM designs and manufactures semiconductor products for telecommunications, industrial, defense, and data center applications [3]. - The company is headquartered in Lowell, Massachusetts, with design centers and sales offices across North America, Europe, and Asia [3]. - MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard [3].