MTSI Nasdaq Russell 1000 Earnings call
MACOM Technology Solutions (MTSI) · Q2 2026 results and valuation
Share price: $249.86 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 6 Aug 2026 and 7 May 2026
Net income up 117.4% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+117.4%
Net income vs Q1 2026
Outlook given
Net income 100.7M vs 46.3M
Revenue +18.4%
Against the same quarter last year (Q2 2025) it is +175.7%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Similar to last call.
3 · What stood out
Key theme
The Data Center business grew by 35% in 2024 and 48% in 2025, reflecting a trend of growing quite rapidly over the past 3 years.
Valuation
Is MACOM Technology Solutions undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-10-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 12.7% growth a year (3-year revenue growth), the model's fair value is $77.28 a share — the stock trades 223% above it. Today's price assumes 29.5% growth a year.
Current price
$249.86
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+29.5% for 10 yrs
Fair value / share
$77.28
Buy below
$57.96
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
MTSI expects revenue in the LEO networks market segment to continue to grow because the company is supporting a variety of these networks.
Source quote
“Today, we are supporting a variety of these LEO networks, and we expect our revenue in this market segment to continue to grow.”
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Guidance
The company expects ongoing quarterly sequential gross margin improvements through the remainder of fiscal 2026 and fiscal 2027.
Source quote
“As we move forward, we expect ongoing quarterly sequential gross margin improvements through the remainder of fiscal 2026 and fiscal 2027.”
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Figure
In total, these markets contain thousands of potential customers with a combined SAM that MACOM Technology Solutions now estimates to be in the range…
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Fading
Gross margins are expected to rise each quarter through fiscal 2027.
Source quote
“Our North Carolina fab has been increasing wafer production while simultaneously improving yields and lowering cycle times. Before turning it over to Jack, I would like to quickly highlight how teamwork across the organization directly impacts our financial results with operations and engineering being a great example. This performance is driving improved customer satisfaction and contributing to new business and enabling us to win new customers.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“And so if we continue to launch products that have strong pricing, are best-in-class, are non-commodity, then we should be able to continue to improve the profitability of the company.”
“I would like to highlight that due to the increasing profitability, we currently estimate our adjusted income tax rate will increase in fiscal 2027.”
“If you drill down and look at our highest growth market, which is our Data Center business, that number then trends to 50% year-over-year growth.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-03)
| Metric | Q2 2026period end 2026-07-03 | Q1 2026period end 2026-04-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 342.2M | 289.0M | +18.4% | 252.1M | +35.8% |
| Gross profit | 199.6M | 164.4M | +21.4% | 139.4M | +43.1% |
| Operating income | 77.1M | 50.8M | +51.7% | 37.7M | +104.8% |
| Net income | 100.7M | 46.3M | +117.4% | 36.5M | +175.7% |
| EPS | 1.28 | 0.60 | +113.3% | 0.48 | +166.7% |
| P/E today 104.6 | 102.6 | 101.4 | +1.2 | 12-mo loss | — |
Topics
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- This represents a gross margin increase of 120 basis points over the prior quarter.
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Faded since Q1 2026
- Fading Q2 revenue performance by end market was as expected, with all end markets growing sequentially.
- Fading MACOM Technology Solutions has seen operational improvements across the organization, which is driving increased revenue growth and…
- Fading As Jack mentioned in his commentary, MACOM Technology Solutions expects continued improvements in gross margin.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K