MACOM's adjusted operating profit jumped 51%. What changed?
A sharp sales increase met almost steady research, sales and administrative spending. The next forecast calls for higher margins despite a larger tax charge.
Ticker Byline
MACOM Technology Solutions Holdings, Inc.
MACOM supplies radio-frequency, analog and optical semiconductors used in data-center networks, telecommunications, industrial equipment and defense systems.
- Ticker
- MTSI
- Exchange
- XNAS
- SEC CIK
- 0001493594
MACOM Technology Solutions Holdings designs and manufactures semiconductors that transmit, amplify and process electronic and optical signals. Its customers build data-center networks, communications equipment, industrial systems and defense electronics. The shares trade on Nasdaq under MTSI.
Quarterly progress
MACOM's fiscal year ends around the start of October. These are consolidated quarterly results, with dollars in millions except per-share amounts. Adjusted measures exclude stock-based compensation, acquired intangible amortization and other specified costs.
| Measure | Q4 2025, ended Oct. 3 | Q3 2026, ended July 3 | Q4 2026, ended Oct. 2 |
|---|---|---|---|
| Revenue | $261.2 | $342.2 | $424.8 |
| Reported operating profit | $39.6 | $77.1 | $134.2 |
| Adjusted operating profit | $67.0 | $107.7 | $162.3 |
| Adjusted operating margin | 25.6% | 31.5% | 38.2% |
| Reported diluted earnings per share | $0.59 | $1.28 | $1.78 |
| Adjusted diluted earnings per share | $0.94 | $1.40 | $2.09 |
What happened to the previous forecast?
In August 2026, MACOM forecast fourth-quarter revenue of $415 million to $425 million, adjusted gross margin of 60% to 61% and adjusted earnings of $1.97 to $2.03 a share. Revenue finished inside the range; gross margin of 61.3% and adjusted earnings of $2.09 exceeded their upper ends.
Cash and financial position
Full-year operating cash flow increased to $357.1 million in fiscal 2026 from $235.4 million in fiscal 2025. Fiscal 2026 covered 52 weeks, against 53 in fiscal 2025; the extra prior-year week was in the first quarter. Purchases of property and equipment were $64.4 million, with another $10.7 million spent on software and licensed technology.
At October 2, 2026, MACOM held $112.0 million in cash and cash equivalents and $680.4 million in short-term investments. Debt had a carrying value of $340.7 million, excluding lease and separate financing obligations.
MACOM invested in a minority equity stake and a convertible loan to supplier IQE in May 2026, alongside supply agreements. The investment is separate from consolidated sales. Investment valuation gains added $19.4 million to fourth-quarter reported pretax income and are excluded from adjusted net income.
The next targets
For fiscal Q1 2027, ending January 1, MACOM forecasts revenue of $450 million to $460 million, adjusted gross margin of 62% to 63% and adjusted earnings of $2.21 to $2.29 a share. The earnings forecast uses a 6% adjusted tax rate, versus 3% in fiscal 2026. The useful comparison is whether sales and gross margins reach those ranges while operating expenses remain controlled.
Latest reporting