fiscal third quarter 2026
Filed Aug 6, 2026MACOM Reports Fiscal Third Quarter 2026 Financial Results
Revenue grew 35.8% year over year and 18.4% sequentially, while GAAP and adjusted profitability margins expanded versus both comparison periods. Fourth-quarter revenue guidance of $415 million to $425 million is above reported third-quarter revenue of $342.2 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $342.2 million | 18.4% | 35.8% |
| Gross marginGAAP | 58.3% | – | – |
| Income from operationsGAAP | $77.1 million | – | – |
| Operating marginGAAP | 22.5% of revenue | – | – |
| Net incomeGAAP | $100.7 million | – | – |
| Diluted earnings per shareGAAP | $1.28 per diluted share | – | – |
| Adjusted gross marginnon-GAAP | 59.7% | – | – |
| Adjusted income from operationsnon-GAAP | $107.7 million | – | – |
| Adjusted operating marginnon-GAAP | 31.5% of revenue | – | – |
| Adjusted net incomenon-GAAP | $109.8 million | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $1.40 per diluted share | – | – |
fiscal fourth quarter ending October 2, 2026 outlook
- Revenue$415 million to $425 million
- Gross margin60.0% to 61.0%
- Tax rate3%
- NoteAdjusted earnings per diluted share is expected to be between $1.97 and $2.03
- Note78.9 million fully diluted shares outstanding
What drove it
- MACOM designs and manufactures high-performance semiconductor products for the Industrial and Defense, Data Center and Telecommunications industries.
- Management cited continued execution of its growth strategy.
Concerns
- The release provides forward-looking non-GAAP adjusted gross margin and adjusted earnings per diluted share guidance without a reconciliation to the most comparable GAAP financial data.
- The release identifies risks related to anticipated demand, backlog levels, book-to-bill trends, fabrication facility execution, new product introductions, supply-chain investments and economic conditions.
What to watch
- Fiscal fourth-quarter revenue guidance of $415 million to $425 million.
- Fiscal fourth-quarter adjusted gross margin guidance of 60.0% to 61.0%.
- Fiscal fourth-quarter adjusted earnings per diluted share guidance of $1.97 to $2.03.
- The anticipated non-GAAP income tax rate of 3% and 78.9 million fully diluted shares outstanding used for adjusted diluted earnings per share guidance.
Analysis
MACOM reported a strong fiscal third quarter, with GAAP revenue of $342.2 million, up 35.8% from the previous year fiscal third quarter and 18.4% from the prior fiscal quarter. The release does not provide reported revenue by end market or segment, but identifies Industrial and Defense, Data Center and Telecommunications as the company’s primary industries.
Profitability improved on both a GAAP and adjusted basis. GAAP gross margin was 58.3%, compared with 55.3% in the previous year fiscal third quarter and 56.9% in the prior fiscal quarter. GAAP income from operations was $77.1 million, or 22.5% of revenue, compared with $37.7 million, or 14.9% of revenue, a year earlier and $50.8 million, or 17.6% of revenue, in the prior quarter.
GAAP net income was $100.7 million, or $1.28 per diluted share, versus $36.5 million, or $0.48 per diluted share, in the prior-year quarter and $46.3 million, or $0.60 per diluted share, in the prior quarter. Adjusted net income was $109.8 million, or $1.40 per diluted share, compared with $68.2 million, or $0.90 per diluted share, a year earlier and $84.3 million, or $1.09 per diluted share, sequentially. Adjusted gross margin reached 59.7%, while adjusted operating margin was 31.5% of revenue.
For the fiscal fourth quarter ending October 2, 2026, MACOM expects revenue of $415 million to $425 million, adjusted gross margin of 60.0% to 61.0%, and adjusted diluted earnings per share of $1.97 to $2.03. The EPS outlook uses an anticipated non-GAAP income tax rate of 3% and 78.9 million fully diluted shares outstanding. Management did not provide GAAP equivalents for this forward-looking non-GAAP guidance because it said it cannot reliably estimate certain required inputs.
The filing presents a combination of accelerating reported revenue and broad margin expansion versus both comparable periods, followed by a higher fourth-quarter revenue range and further adjusted gross-margin expansion. The principal items to monitor are execution against the fourth-quarter outlook, demand and backlog trends referenced in the forward-looking disclosures, and the factors excluded from non-GAAP measures, including intangible amortization, share-based compensation, non-cash interest, acquisition and integration-related costs, loss on debt extinguishment and related tax effects.
Management, verbatim
The MACOM team continues to make excellent progress executing our growth strategy,
Stephen G. Daly, President and Chief Executive Officer, MACOM
Not in the filing
stated, not guessed- Revenue by segment or end market
- Segment year-over-year and sequential revenue comparisons
- GAAP operating expenses
- Non-GAAP operating expenses
- GAAP effective tax rate
- Operating cash flow
- Free cash flow
- Capital expenditures
- Cash and cash equivalents
- Short-term investments balance
- Debt balance
- Share repurchases
- Dividends
- Prior-period guidance, so comparison with prior guidance is unavailable
- GAAP reconciliation for forward-looking non-GAAP guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.