EL7.AI
StocksMedium•25 October 2026•
3 min read

Vicor Revenue Rises 78.5% to $197.1 Million in Third Quarter

Key Facts

1Product and royalty revenue was $197.1 million, up 78.5% year over year and 37.5% quarter over quarter in the third quarter of 2026.
2Gross margin rose to 68.3%, compared with 58.0% in the second quarter and 57.5% a year earlier.
3Backlog was $406 million, up 7% quarter over quarter and 166% year over year.
4The company posted net income of $63.3 million and diluted earnings of $1.33 per share.
5Cash and equivalents totaled $513.1 million, and operating cash flow was $69.7 million in the third quarter.

Vicor reported product and royalty revenue of $197.1 million in the third quarter ended September 30, 2026, up 78.5% year over year and 37.5% from the previous quarter, according to its filing with the U.S. Securities and Exchange Commission. The company posted net income of $63.3 million, or $1.33 per diluted share, compared with $28.3 million and $0.63 per share a year earlier. Revenue and profitability growth coincided with a rising backlog, while Fab-1 nears full utilization, the chief executive said on the earnings call. These indicators put production capacity at the forefront of the challenges facing the company as demand continues to expand. The stock also closed at $176.04 on October 23, 2026, according to EL7 data.

Gross margin rose to 68.3% in the third quarter, compared with 58.0% in the second quarter and 57.5% in the third quarter of 2025, according to the filing. Revenue comprised $130.501 million from products and $66.613 million from royalties. In the year-earlier period, product revenue was $88.698 million, while royalties totaled $21.725 million. The comparison shows revenue expanded in both sources, with product and royalty revenue rising together over the year. The margin improvement came alongside higher sales, while increased production requires additional manufacturing capacity.

Backlog stood at $406 million at the end of September, up 7% from the end of the second quarter and 166% year over year, the company said. The balance indicates the volume of orders booked as Fab-1 nears full utilization. The chief executive said the company was approaching full utilization at the facility and preparing to move some manufacturing steps to Fab-2. The development combines revenue growth and order accumulation on one hand with the need to increase production capacity on the other. The filing did not specify when the two additional sites would be fully operational.

In the second quarter of 2026, product and royalty revenue totaled $143.4 million, up 26.9% from the first quarter, according to the previous earnings release. The comparison with the second quarter of 2025 included a $45 million legal settlement, as well as product and royalty revenue. This provides quarterly context ahead of the increase recorded in the third quarter, when revenue rose 37.5% from the previous quarter. Differences in the components of year-over-year comparisons remain important when assessing period performance, as the prior-year second-quarter figures included the settlement. Third-quarter revenue, by contrast, combined product sales and royalties.

Vicor ended the third quarter with $513.1 million in cash and equivalents on September 30 and generated $69.7 million in operating cash flow during the quarter, according to the filing. These figures show the company’s liquidity and operating cash flows alongside the rising backlog. The company said the purchase of two additional sites near ChiP Fab-1 would allow production capacity to increase to about five times Fab-1’s capacity across three factories. The plan ties the expansion to additional sites without implying that they will all begin operations at the same time. On the earnings call, the chief executive said some manufacturing steps are expected to move to Fab-2 beginning in the second quarter of 2027.