| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 11 | 76.4x | 17.3x | Bottom tier | |
Growth | 91 | 28.4% | 7.1% | Top tier | |
Quality | 73 | 8.9% | 4.5% | Top tier | |
Safety | 90 | — | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.06% | Around median | |
Momentum | 51 | 108.3% | -1.6% | Around median | |
Sentiment | 46 | 11 | 3 | Around median |
The floor: what the company is worth if growth stopped today
91% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
MACOM Technology Solutions Holdings, Inc. develops specialized semiconductors and high-performance connectivity solutions for three primary markets: data centers, industrial and defense, and telecommunications. Its portfolio focuses on higher-power, higher-frequency, and higher-data-rate applications and includes TIAs and driver circuits, photodetectors and lasers, GaN products, and PAM4, NRZ, and coherent modulation solutions. The company generates revenue from selling chips and optical components, while manufacturing some photonics products in-house, to a customer base that expanded from approximately 8 customers each generating more than $10 million in revenue two years ago to more than 20 customers of that size, while its 10 largest end customers represented less than 40% of revenue from the beginning of fiscal 2026 through the end of Q3.
Revenue for Q3 fiscal 2026 reached approximately $342.2 million, up 35.8% year over year and 18.4% from the previous quarter. According to EDGAR, gross profit was $199.6 million, equivalent to a gross margin of approximately 58.3%, while net income was $100.7 million and earnings per share were $1.28; on an adjusted basis, the company recorded gross profit of $204.2 million and a gross margin of 59.7%, record operating income of $107.7 million and an operating margin of 31.5%, and diluted earnings per share of $1.40.
The data center segment led the Q3 fiscal 2026 mix with revenue of $137.6 million, or approximately 40.2% of the total, after growing 40% from the previous quarter. The industrial and defense segment recorded $133.4 million, or approximately 39.0%, with sequential growth of 11%, while the telecommunications segment generated $71.3 million, or approximately 20.8%, with sequential growth of 2%. On a last-twelve-month basis, revenue reached $1.1 billion, gross profit was $597.9 million, and net income was $176.8 million, compared with a net loss of $54.2 million in fiscal 2025.
The average analyst price target is $401.25, with a “Buy” consensus, but the wide target range of $300 to $475 reveals a meaningful divergence in estimates of the growth and execution trajectory. The average target is approximately 4.2% below the 52-week range high of $418.90, while the stock’s annual range extends from $121.97 to $418.90; therefore, the valuation assumes a substantial degree of success in data center growth and margin improvement, while product qualification, capacity expansion, and cost risks remain.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
The data center segment is the fastest-growing driver, with revenue reaching $137.6 million in Q3 fiscal 2026 after sequential growth of 40%. MACOM is benefiting from demand for 800G and 1.6T platforms, while 200G PAM4 products were the primary growth driver between fiscal 2025 and 2026. The ZR and ZR-light business also grew by more than 100% year over year, and 200G photodetectors entered volume production. Management expects sequential growth of approximately 35% for this segment in Q4 fiscal 2026.
MACOM expects revenue of between $415 million and $425 million for Q4 fiscal 2026, ending October 2, 2026. It expects an adjusted gross margin of between 60% and 61% and adjusted earnings per share of between $1.97 and $2.03 based on 78.9 million diluted shares. The guidance includes sequential growth of approximately 35% in data centers, 20% in industrial and defense, and a low-single-digit percentage in telecommunications. The company also expects an adjusted operating margin of approximately 37% and operating cash flow exceeding $100 million.
Automated analysis for informational purposes only — not investment advice.
Revenue reached $342.2 million, and gross profit according to EDGAR was approximately $199.6 million, equivalent to a margin of approximately 58.3%. Net income was $100.7 million and earnings per share were $1.28, compared with net income of $46.3 million and earnings per share of $0.60 in Q2 fiscal 2026. On an adjusted basis, gross margin was 59.7% and operating margin was 31.5%, compared with an operating margin of 25.2% in Q3 fiscal 2025. Management attributes the improvement to higher production volumes, increased factory utilization, improved yields, and operating efficiency.
The 200G photodetectors entered volume production and became a meaningful contributor to data center growth, with production capacity being added to meet demand. The 400G detector reached approximately 12 customers for evaluation in next-generation connectivity applications. The 75-milliwatt CW laser remains in the qualification stage, and management cannot yet declare it successful despite positive feedback and reliability testing results. The company is planning for potential production to begin in late 2027, while describing its entry into production in 2028 as a potential major inflection point if qualification is completed.
The industrial and defense segment generated revenue of $133.4 million in Q3 fiscal 2026, up 11% sequentially, and the company expects the defense business to grow by approximately 25% during fiscal 2026. Its applications include radar, missiles, missile defense, drones, and electronic warfare, and MACOM also received additional funding from AFRL to advance GaN-on-silicon carbide production. In telecommunications, the company was selected to support a next-generation optical communications platform for satellites and has two or three major LEO programs expected to begin production in late 2026 and early 2027. Telecommunications revenue reached $71.3 million in Q3 fiscal 2026, with sequential growth of 2%.
The first risk is execution, because the CW laser has not yet completed final qualification, and some of the 10 to 20 NPO projects may not reach production. The second is cost pressure, as labor, energy, and raw material costs are rising, alongside expectations that the adjusted tax rate will increase from 3% to the mid-single digits during fiscal 2027. Proposed restrictions on Chinese transceiver companies could also alter the customer mix and manufacturing chain, despite the company having no manufacturing inside China. Finally, the wide range of analyst targets from $300 to $475 indicates high sensitivity to the success of growth, margin, and production capacity plans.