MACOM Technology (NASDAQ: MTSI) Posts Record Q3 Revenue of $342.2M, Issues Stronger Q4 Guidance

MACOM Technology Solutions Holdings (NASDAQ: MTSI) reported record fiscal third-quarter revenue of $342.2 million, up 35.8% year over year, as the semiconductor supplier posted adjusted EPS of $1.40, beating the $1.37 consensus estimate. GAAP operating income more than doubled year over year to $77.1 million, reflecting meaningful operating leverage across the business. Shares rose 14.49% on Thursday, August 6, 2026, while the S&P 500 lost 0.16%.

Q3 Fiscal 2026 Results

• Revenue: $342.2 million, up 35.8% from $252.1 million in the year-ago quarter and up 18.4% from $289.0 million in the prior fiscal quarter
• Adjusted EPS: $1.40, compared to $0.90 in Q3 2025, a 55.6% year-over-year increase; beat the $1.37 consensus by approximately 2.0%
• GAAP EPS: $1.28 per diluted share, compared to $0.48 in the year-ago period
• Adjusted operating income: $107.7 million, or 31.5% of revenue, up from $63.5 million, or 25.2% of revenue, a year ago
• GAAP gross margin: 58.3%, compared to 55.3% in Q3 2025; adjusted gross margin was 59.7% versus 57.6% a year ago

What Drove the Results

Adjusted EPS of $1.40 beat the $1.37 consensus estimate, with revenue of $342.2 million surpassing analyst expectations by 2.13%, according to estimates cited in market coverage. GAAP operating income of $77.1 million represented a 104.5% year-over-year increase, with GAAP operating margin expanding 7.6 percentage points to 22.5%, the clearest illustration of operating leverage in the quarter.

GAAP net income of $100.7 million diverged from adjusted net income of $109.8 million, a gap primarily reflecting non-cash items excluded from the adjusted figures, including intangible amortization and stock-based compensation. MACOM cited demand across its data center, industrial and defense, and telecom markets as drivers of the quarter's performance, per earnings call coverage.

Q4 Fiscal 2026 Guidance

For the fiscal fourth quarter ending October 2, 2026, MACOM guided revenue of $415 million to $425 million, a material step up from the $342.2 million reported in Q3. Adjusted EPS is expected in the range of $1.97 to $2.03, based on a non-GAAP income tax rate of 3% and 78.9 million fully diluted shares outstanding. Adjusted gross margin is projected between 60.0% and 61.0%, which would represent a further sequential improvement from the 59.7% posted in Q3.

The Q4 revenue midpoint of $420 million implies sequential growth of approximately 22.7% from Q3, a substantial acceleration. Adjusted EPS at the midpoint of $2.00 would represent a 42.9% increase over the $1.40 reported in Q3.

Wall Street View

Analyst sentiment on MACOM heading into the print was broadly constructive. The stock's 14.49% gain on August 6 was concentrated in company-specific performance relative to a flat broad market, underscoring that the results and guidance were the primary market focus. No specific analyst price target revisions were available in the source data immediately following the report.

Investor Takeaway

MACOM's Q3 print confirms that operating leverage is materializing at scale: adjusted operating margin of 31.5% is up 6.3 percentage points year over year on revenue that itself grew 35.8%. The more significant forward signal is the Q4 guidance range, which at its midpoint implies an adjusted gross margin above 60% for the first time and an EPS run rate that substantially exceeds the full-year trajectory investors had been modeling. Whether MACOM can sustain this revenue trajectory into fiscal 2027 across all three of its end markets will be the central question for investors evaluating the stock at current levels.