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

MACOM Technology Solutions (NASDAQ:MTSI) posted its quarterly earnings data on Thursday. The semiconductor company reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $2.00 by $0.09, FiscalAI reports. MACOM Technology Solutions had a return on equity of 22.46% and a net margin of 25.25%. The firm had revenue of $424.82 million during the quarter, compared to analysts’ expectations of $420.35 million. During the same quarter last year, the business posted $0.94 EPS. The firm’s quarterly revenue 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 Trading Up 10.8%

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

Key Headlines Impacting MACOM Technology Solutions

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 Analyst Weigh In

MTSI has been the subject of a number of analyst reports. Wall Street Zen raised shares of MACOM Technology Solutions from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. BMO Capital Markets upgraded shares of MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $335.00 target price on the stock in a research report on Friday, September 18th. Weiss Ratings cut shares of MACOM Technology Solutions from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, August 21st. Raymond James Financial upgraded MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $300.00 price target for the company in a report on Tuesday, October 27th. Finally, Zacks Research raised MACOM Technology Solutions from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 24th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $321.67.

Insider Activity

In other news, CFO John Kober sold 1,027 shares of the company’s stock in a transaction on Monday, October 26th. The stock was sold at an average price of $236.60, for a total transaction of $242,988.20. Following the completion of the sale, the chief financial officer directly owned 34,405 shares in the company, valued at $8,140,223. This represents a 2.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Robert Dennehy sold 252 shares of the company’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $275.20, for a total value of $69,350.40. Following the sale, the chief operating officer owned 12,758 shares of the company’s stock, valued at approximately $3,511,001.60. The trade was a 1.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 9,321 shares of company stock valued at $2,917,644 in the last ninety days. Company insiders own 0.36% of the company’s stock.

MACOM Technology Solutions Company Profile

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.