MACOM Technology Solutions (NASDAQ:MTSI) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

MACOM Technology Solutions (NASDAQ:MTSI) announced its quarterly earnings results on Thursday. The semiconductor company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.00 by $0.09, FiscalAI reports. The business had revenue of $424.82 million for the quarter, compared to analyst estimates of $420.35 million. MACOM Technology Solutions had a return on equity of 22.46% and a net margin of 25.25%. MACOM Technology Solutions’s quarterly revenue was up 62.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.94 EPS. MACOM Technology Solutions updated its Q1 2027 guidance to 2.210-2.290 EPS.

Here are the key takeaways from MACOM Technology Solutions’ conference call:

• MACOM delivered record FY2026 revenue of $1.3 billion, up 37% year over year, and adjusted EPS of $5.60, up 61%. Q4 revenue rose 62.7% year over year to $424.8 million; the company also reported record backlog and a 1.4-to-1 quarterly book-to-bill ratio.
• For fiscal Q1 2027, MACOM guided to revenue of $450 million–$460 million and adjusted EPS of $2.21–$2.29, with adjusted operating margin expected around 40% at the midpoint. Management said it expects FY2027 to be a record year and is working toward approximately $2 billion in revenue, while noting execution and market risks.
• Data center is expected to remain the main growth driver: management expects FY2027 revenue growth to exceed FY2026’s 74% rate, citing 1.6T deployments, higher content opportunities, and potential near-packaged optics programs. It also highlighted developing products including 200G-per-lane components and continuous-wave lasers, though it expects the latter to be a more significant opportunity in 2028.
• Industrial and Defense revenue reached a record in Q4, and management is targeting FY2027 growth above FY2026’s 27.8%. Telecom is expected to grow at a similar pace to FY2026 for the full year, but management flagged near-term softness in PON and broadband and guided to flat-to-slightly-down Q1 telecom revenue.
• MACOM plans to increase FY2027 capital expenditures to $100 million–$110 million, mainly to expand manufacturing and R&D capacity, and expects its adjusted tax rate to rise from 3% to about 6%. The company said it has no current plans for buybacks or dividends, preferring to retain cash for investment and strategic opportunities.

MACOM Technology Solutions Price Performance

MACOM Technology Solutions stock traded up $20.63 on Friday, reaching $210.98. The company’s stock had a trading volume of 2,854,240 shares, compared to its average volume of 1,963,088. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.78 and a current ratio of 2.53. The company has a market cap of $16.11 billion, a price-to-earnings ratio of 49.07, a PEG ratio of 0.69 and a beta of 1.82. The business’s fifty day moving average price is $270.93 and its 200 day moving average price is $282.81. MACOM Technology Solutions has a twelve month low of $150.80 and a twelve month high of $418.90.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on MTSI shares. Benchmark assumed coverage on shares of MACOM Technology Solutions in a report on Thursday, August 13th. They issued a “buy” rating and a $375.00 target price on the stock. Raymond James Financial raised shares of MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $300.00 price target for the company in a report on Tuesday, October 27th. BMO Capital Markets raised shares of MACOM Technology Solutions from a “market perform” rating to an “outperform” rating and set a $335.00 price target for the company in a report on Friday, September 18th. Susquehanna reduced their price target on shares of MACOM Technology Solutions from $300.00 to $220.00 and set a “neutral” rating on the stock in a research report on Thursday. Finally, Truist Financial reduced their price target on shares of MACOM Technology Solutions from $375.00 to $310.00 and set a “buy” rating on the stock in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $321.67.

Key Headlines Impacting MACOM Technology Solutions

Here are the key news stories impacting MACOM Technology Solutions this week:

• Positive Sentiment: Fiscal Q4 adjusted EPS of $2.09 topped the $2.00 consensus, while revenue of $424.82 million exceeded the $420.35 million estimate and rose 62.6% year over year. MACOM fiscal Q4 and FY2026 results
• Positive Sentiment: Q1 fiscal 2027 guidance came in above expectations: EPS of $2.21–$2.29 versus the $1.96 consensus and revenue of $450–$460 million versus $431.1 million. The company cited data-center demand, including growing interest in 1.6T products, and expects further growth and margin gains. Q4 earnings and data-center outlook
• Neutral Sentiment: A valuation analysis argued MTSI could be substantially undervalued following its Q4 results, though this is an analytical estimate rather than a company announcement. Valuation analysis
• Negative Sentiment: Despite maintaining a Buy rating, Truist cut its price target to $310 from $375. Needham also lowered its target, to $300 from $410. The reductions may weigh on sentiment even as both firms remain positive on the shares. Truist price-target report
• Negative Sentiment: Market skepticism around supply-chain constraints and shifts in end-market demand appears to have tempered the reaction to strong results, with coverage noting that the stock fell after the sales beat. Market skepticism and supply-chain concerns

Insider Transactions at MACOM Technology Solutions

In related news, SVP Ambra R. Roth sold 653 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $300.00, for a total transaction of $195,900.00. Following the transaction, the senior vice president owned 9,184 shares in the company, valued at $2,755,200. This represents a 6.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Robert Dennehy sold 252 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $275.20, for a total transaction of $69,350.40. Following the sale, the chief operating officer directly owned 12,758 shares in the company, valued at approximately $3,511,001.60. This represents a 1.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 9,321 shares of company stock worth $2,917,644. Insiders own 0.36% of the company’s stock.

About MACOM Technology Solutions

MACOM Technology Solutions designs and supplies semiconductor products for applications that use radio frequency, microwave, millimeter-wave and optical signals. Its products include amplifiers, switches, diodes, mixers, attenuators and other components used in communications and electronic systems.

The company serves customers in markets including telecommunications, data centers, aerospace and defense, and industrial applications. Its components are used in equipment such as wireless infrastructure, high-speed optical networks, radar and test systems.

Headquartered in Lowell, Massachusetts, MACOM traces its history to Microwave Associates, founded in 1950.