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MTSI Q1 Earnings Surpass Expectations, Revenues Rise Y/Y

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Key Takeaways

  • MTSI reported Q1 EPS of $1.02, up 29.1% Y/Y, while revenues rose 24.5% to $271.6M.
  • MTSI posted adjusted operating income of $73.97 million, up from year-ago quarter's $55.4 million.
  • MTSI guided Q2 revenues of $281-$289M and EPS of $1.05-$1.09, pointing to continued growth momentum.

MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) reported first-quarter fiscal 2026 earnings of $1.02 per share, which beat the Zacks Consensus Estimate of 99 cents per share. The bottom line grew 29.1% year over year.

MACOM Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.61%.

MTSI posted revenues of $271.6 million in the first quarter of fiscal 2026, surpassing the Zacks Consensus Estimate by 1%. The top line increased 24.5% year over year.

MTSI Operating Details

For the first quarter of fiscal 2026, MACOM’s adjusted gross margin was 57.6% compared with 57.5% in the prior-year quarter. Adjusted operating income came in at $73.97 million, up from $55.4 million reported in the year-ago period. As a percentage of revenues, the adjusted operating income came in at 27.2%, up 180 basis points from the year-ago quarter.

Non-GAAP operating expenses were $82.5 million, up 18% year over year. As a percentage of revenues, non-GAAP operating expenses came in at 30.4%, contracting 170 basis points from the prior-year period.

MTSI’s Balance Sheet and Cash Flow

As of Jan. 2, 2026, cash equivalents and short-term investments totaled $768.5 million, down from $785.9 million in the prior quarter.

Long-term debt was $339.91 million compared with $339.63 million in the previous quarter.

MTSI’s net cash flows from operating activities came in at $42.93 million.

MTSI’s Guidance for Q2 FY26

For the second quarter of fiscal 2026, MACOM Technology expects revenues between $281 million and $289 million. The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $274.54 million, indicating year-over-year growth of 16.4%.

The company anticipates adjusted earnings per share between $1.05 and $1.09. The Zacks Consensus Estimate for earnings is pinned at $1.02 per share, indicating growth of 20% year over year.

Zacks Rank & Stocks to Consider

Currently, MTSI carries a Zacks Rank #3 (Hold).

Amphenol (APH - Free Report) , Broadcom (AVGO - Free Report) and BILL Holdings, Inc. (BILL - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Broadcom and BILL Holdings sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s earnings for 2026 has been revised downwards by 7 cents to $4.32 per share over the past seven days and suggests a year-over-year increase of 29.3%. Amphenol shares have jumped 16.8% in the past six months.

The Zacks Consensus Estimate for Broadcom’s projected fiscal 2026 earnings is pegged at $14.06 per share, up from the prior estimate of $13.91 per share over the past 30 days, calling for a year-over-year surge of 37.6%. Broadcom shares have returned 0.2% in the past six months.

The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.22 per share over the past 60 days, suggesting year-over-year growth of 0.5%. BILL Holdings shares have declined 2% in the past six months. 

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