MaxLinear forecasts fourth-quarter revenue of $240 million to $260 million
Key Facts
MaxLinear forecast revenue of $240 million to $260 million for the fourth quarter of 2026, according to its third-quarter earnings release issued after the market close on October 22. The range puts revenue for the quarter ending in December above Wall Street estimates published before the announcement, even at the low end of the company's guidance. Those estimates stood at $226.6 million, according to an Investing.com report published on October 19, before the results and new outlook were released. The same report also cited fourth-quarter earnings-per-share expectations of $0.61, alongside the revenue estimate for the same period. The company issued its guidance as part of the same third-quarter earnings announcement, setting out its expected business range for the following period as revenue continues to grow.
MaxLinear reported third-quarter revenue of $218.1 million, up 29% from the previous quarter and 72% from the same period a year earlier, according to the company's statement. The result was within, and near the upper end of, its previous guidance range of $210 million to $220 million, announced with its second-quarter results. Second-quarter revenue had reached $168.8 million, up 23% quarter on quarter and 55% year on year, according to the earnings release for that period. Revenue growth thus accelerated on both a quarterly and annual basis in the third quarter compared with the pace recorded in the previous quarter. On profitability, adjusted diluted earnings per share were $0.62 in the third quarter on a non-GAAP basis. Revenue for the nine months ended September totaled $524.092 million, according to the official quarterly report.
The chief executive attributed momentum in the AI data center optical business to the volume production ramp-up of the company's Keystone digital signal processing platform, which uses four-level pulse amplitude modulation technology. In the earnings statement, he pointed to the "volume production ramp-up of our platform," linking activity in the business to expanding platform production. In the quarterly report, the company said "price changes had no material impact on revenue compared with the corresponding period," in explaining sales trends. On supply, Chief Financial Officer Steve Litchfield said the company's move to Samsung provides supply diversification amid industry constraints at Taiwan Semiconductor Manufacturing Co. He added, according to a transcript of his remarks at a Citi conference published by Investing.com, that "the industry faces some constraints at Taiwan Semiconductor Manufacturing Co., so this move to Samsung has caught a lot of people's attention."
The sales breakdown in the quarterly report showed infrastructure was the largest of the three markets cited by revenue in the third quarter. Revenue from this market totaled 124,907 thousand dollars, ahead of both broadband and connectivity revenue. The broadband market recorded revenue of 53,345 thousand dollars in the same period, placing it below infrastructure and above connectivity. Connectivity market revenue totaled 24,713 thousand dollars, according to the breakdown in the official filing. Infrastructure revenue exceeded broadband and connectivity revenue combined, illustrating the weight of this business in the company's quarterly sales mix.
In the market, MaxLinear shares had closed the October 21 session at $75.79, according to historical price data published on Investing.com. The stock rose 3.10% in that session, before the earnings announcement and new guidance were released after the market close the following day. Those gains preceded the company's announcement and formed part of trading ahead of the results. On financing, the quarterly report disclosed an amendment to the credit agreement during October 2026. The amendment added $70 million in revolving commitments to the company's credit facility.