MACOM’s second quarter results for 2026 were met with a notably positive market response, reflecting ongoing strength across its core end markets. Management emphasized robust customer demand in Data Center, Industrial, and Defense, all of which contributed to significant year-over-year growth. CEO Stephen Daly credited increased bookings—particularly in Data Center, where both revenue and backlog reached new highs—and pointed to operational improvements that enhanced gross and operating margins. Daly explained, “Our strategy of strengthening core technologies and expanding our product portfolio is working, allowing us to capture new opportunities as demand accelerates.”
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MACOM (MTSI) Q1 CY2026 Highlights:
- Revenue: $289 million vs analyst estimates of $285.4 million (22.5% year-on-year growth, 1.2% beat)
- Adjusted EPS: $1.09 vs analyst estimates of $1.07 (1.6% beat)
- Adjusted EBITDA: $89.47 million vs analyst estimates of $93.59 million (31% margin, 4.4% miss)
- Revenue Guidance for Q2 CY2026 is $335 million at the midpoint, above analyst estimates of $300.1 million
- Adjusted EPS guidance for Q2 CY2026 is $1.34 at the midpoint, above analyst estimates of $1.15
- Operating Margin: 17.6%, up from 14.8% in the same quarter last year
- Inventory Days Outstanding: 184, up from 181 in the previous quarter
- Market Capitalization: $29.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MACOM’s Q1 Earnings Call
- Blayne Curtis (Jefferies) asked about the drivers behind gross margin improvement, particularly the impact of Data Center mix and volume. CEO Stephen Daly explained that higher fab output and yield enhancements were key contributors, and noted ongoing efforts to further improve margins throughout the year.
- Thomas O'Malley (Barclays) inquired about MACOM’s exposure to LEO satellite launches and the timing of revenue recognition in the Telecom segment. Daly responded that MACOM is engaged with major players across satellite payloads, gateways, and terminals, with revenue ramping up gradually as programs transition to full production.
- Tore Svanberg (Stifel) questioned what is driving Data Center growth above customer CapEx trends and whether operational execution is helping MACOM gain share. Daly attributed the growth to product portfolio expansion, especially in optical components, and acknowledged that operational capacity and collaboration have enabled the company to capture new opportunities as some competitors face constraints.
- William Stein (Truist Securities) asked about the company’s entry into user terminal markets for LEO satellites, which represents a new strategy. Daly clarified that MACOM is pursuing selective opportunities in this area, focusing on control products rather than highly integrated chips, and will remain opportunistic.
- Karl Ackerman (BNP Paribas) queried whether the current backlog would require major capital investments in fabs. Daly and CFO John Kober emphasized that incremental capacity expansion within existing facilities is sufficient, and no large-scale new fab construction is planned.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will watch for (1) sustained growth in Data Center revenue driven by adoption of new optical and photonic products, (2) evidence that MACOM can maintain sequential margin improvement as factory utilization rises, and (3) continued momentum in defense order flow, especially as recent design wins move into production. The successful execution of the IQE supply agreement and incremental capacity expansion will also be important indicators of MACOM’s ability to capitalize on rising demand.
MACOM currently trades at $391.06, up from $309.81 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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