MACOM Revenue Jumps 62.7% to $424.8 Million, Beating Fourth-Quarter Estimates
Key Facts
MACOM reported on November 5 results for the fiscal fourth quarter ended October 2, with revenue of $424.8 million, up 62.7% year over year and 24.1% from the previous quarter. Adjusted earnings were $2.09 per share, above the average analyst estimate of $2.00, while revenue also exceeded the consensus estimate of $420.35 million. The company thus ended its fiscal quarter ahead of expectations on both measures, with strong growth from the previous period. MACOM said revenue in the prior quarter was $342.2 million, while revenue in the year-earlier quarter was $261.2 million. The results reflect growth across the company's three end markets, led by data centers, alongside improved margins and profitability.
Net income under generally accepted accounting principles (GAAP) was about $139.4 million, compared with $45.1 million in the fourth quarter of 2025 and $100.7 million in the third quarter of 2026. Adjusted net income rose to $163.3 million, or $2.09 per diluted share, compared with $71.4 million and $0.94 per share a year earlier. Adjusted gross margin increased to 61.3% from 59.7% in the previous quarter and 57.1% a year earlier, while adjusted operating margin was 38.2% of revenue. GAAP gross margin also rose to 59.9%, compared with 58.3% in the previous quarter and 54.5% in the year-earlier period. The comparisons show margins widening alongside higher revenue, while adjusted earnings per share exceeded consensus estimates.
Data centers led revenue growth, with sales reaching a record $188.1 million, up about 37% from the previous quarter. Industrial and defense revenue was $164.6 million, while communications revenue came to $72.1 million. Management said all three end markets contributed to quarterly revenue growth, with data centers leading the increase. On the earnings call, management linked continued activity to higher product volumes at 1.6T speeds and increased content opportunities in products. This detail underpins the company's expectation that data center revenue growth in fiscal 2027 will exceed the 74% recorded in fiscal 2026.
For fiscal 2026, revenue was $1,327.6 million, up 37.3% from $967.3 million in the prior year. The company reported net income of $335.3 million, compared with a net loss of $54.2 million in fiscal 2025. Adjusted net income for the year was $435.7 million, or $5.60 per diluted share, versus $263.4 million and $3.47 per share in the prior year. MACOM said the fiscal 2025 loss included a largely noncash debt extinguishment expense of $193.1 million, related to refinancing part of the convertible notes due in 2026. Chief Executive Stephen Daly said the company had delivered a strong fiscal year and looked forward to continued growth in fiscal 2027.
MACOM issued its near-term guidance for the fiscal first quarter ending January 1, 2027, forecasting revenue of between $450 million and $460 million. It also projected adjusted gross margin of between 62.0% and 63.0% and adjusted earnings of between $2.21 and $2.29 per diluted share. By segment, management expects data center revenue to grow about 15% sequentially and industrial and defense to post single-digit growth. Communications revenue is expected to be stable or decline slightly. The outlook keeps data centers at the forefront of growth drivers for the coming quarter, with a relatively weaker trajectory for communications, while the revenue, margin and earnings ranges set the company's framework for the period ahead.