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On Sept. 30, Vicor raised its third-quarter sequential revenue growth guidance from more than 20% to more than 30%, driven by increased royalties from its first non-exclusive license for Vertical Power Delivery (VPD) technology.
The Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $187.20 million, indicating a 69.53% increase from the figure reported in the year-ago quarter.
The consensus mark for earnings is pegged at $1.39 per share, up 120.63% over the past 30 days. This indicates an increase of 95.77% from the figure reported in the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Vicor’s third-quarter 2026 performance is expected to have benefited from strong demand for Advanced Products, expanding AI infrastructure investments and increasing manufacturing capacity. In the second quarter of 2026, Advanced Products revenues jumped 45% sequentially to $94.2 million, which accounted for 65.7% of total revenues. Management anticipates double-digit sequential growth in Advanced Products revenues during the third quarter, reflecting continued momentum across its high-performance computing and other key end markets.
The company’s growing exposure to high-performance computing (HPC) and AI data centers is expected to have driven third-quarter performance. Hyperscalers and original equipment manufacturers (OEMs) increasingly require high-density, energy-efficient power delivery solutions to support advanced AI processors. Strong adoption of Vicor’s Factorized Power Architecture and advanced power conversion technologies is expected to have supported revenue growth.
VICR’s expanding backlog provides additional revenue visibility. In the second quarter, Vicor’s one-year backlog increased 26% sequentially to $379.7 million, while its book-to-bill ratio exceeded 1. Strong demand across HPC, industrial, aerospace and defense markets, alongside growing opportunities in automatic test equipment, is expected to have supported shipments in the third quarter.
Vicor’s manufacturing capacity expansion is another key growth catalyst. The company is adding equipment at its Andover facility to address growing customer demand. Higher capacity utilization and improved fixed-cost absorption are expected to have supported product gross margin expansion. Management also expects overall margin improvement as product revenues increase.
The company’s intellectual property licensing business is expected to have provided additional support. Vicor anticipates recognizing $5 million in royalty revenues during the third quarter from its latest licensing agreement.
Vicor Shares Beat Sector YTD, Trades at a Premium
VICR shares have jumped a whopping 123.8% year-to-date (YTD), outperforming the Zacks Computer & Technology sector’s return of 22.5%. The company has outperformed competitors including Monolithic Power (MPWR - Free Report) , Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) over the same timeframe. Shares of Monolithic Power, Analog Devices and Texas Instruments have appreciated 37.1%, 48.8% and 61.7%, respectively, YTD.
VICR Stock Performance
Image Source: Zacks Investment Research
Vicor’s Value Score of F suggests a premium valuation at this moment.
On a forward 12-month price/sales (P/S) basis, VICR is trading at 11.95X, higher than the broader sector’s 6.03X, Analog Devices’ 10.08X and Texas Instruments’ 12.54X. However, Vicor is trading at a discount compared with Monolithic Power’s 12.33X.
VICR Valuation
Image Source: Zacks Investment Research
VICR's AI Demand, VPD Innovation and Capacity Fuel Growth
Vicor’s long-term growth is supported by several structural drivers. Vicor’s second-generation VPD technology has been a major growth driver. The company has completed initial chipset development for its lead customer, achieving a current density of 3 amps per square millimeter. Management targets current density exceeding 5 amps per square millimeter by late 2026 or early 2027. Growing interest from hyperscalers and OEMs, alongside expanding customer engagements, strengthens its long-term growth prospects.
Meanwhile, investments in manufacturing capacity are expected to enable Vicor to address growing demand and support larger hyperscale customers. Continued AI infrastructure spending is expanding opportunities across data centers and high-performance computing, while strong demand from industrial, semiconductor test, aerospace and defense markets provides additional growth avenues. The company's expanding presence across these markets is expected to support diversified revenue growth over the long term.
Conclusion
Vicor enters third-quarter earnings report with improving fundamentals and expanding AI opportunity, providing meaningful support for the stock. Robust backlog growth, rising royalty revenues, strengthening demand across high-performance computing markets, and continued progress with its next-generation VPD technology position Vicor well for sustained growth. These factors justify the company’s premium valuation.
View the Zacks #1 Rank List
Image: Bigstock
Should You Buy, Sell, or Hold Vicor Stock Before Q3 Earnings Release?
Key Takeaways
Vicor (VICR - Free Report) is scheduled to release its third-quarter 2026 results on Oct. 20.
On Sept. 30, Vicor raised its third-quarter sequential revenue growth guidance from more than 20% to more than 30%, driven by increased royalties from its first non-exclusive license for Vertical Power Delivery (VPD) technology.
The Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $187.20 million, indicating a 69.53% increase from the figure reported in the year-ago quarter.
The consensus mark for earnings is pegged at $1.39 per share, up 120.63% over the past 30 days. This indicates an increase of 95.77% from the figure reported in the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Vicor Corporation Price and EPS Surprise
Vicor Corporation price-eps-surprise | Vicor Corporation Quote
Vicor’s Q3 Earnings: Factors to Consider
Vicor’s third-quarter 2026 performance is expected to have benefited from strong demand for Advanced Products, expanding AI infrastructure investments and increasing manufacturing capacity. In the second quarter of 2026, Advanced Products revenues jumped 45% sequentially to $94.2 million, which accounted for 65.7% of total revenues. Management anticipates double-digit sequential growth in Advanced Products revenues during the third quarter, reflecting continued momentum across its high-performance computing and other key end markets.
The company’s growing exposure to high-performance computing (HPC) and AI data centers is expected to have driven third-quarter performance. Hyperscalers and original equipment manufacturers (OEMs) increasingly require high-density, energy-efficient power delivery solutions to support advanced AI processors. Strong adoption of Vicor’s Factorized Power Architecture and advanced power conversion technologies is expected to have supported revenue growth.
VICR’s expanding backlog provides additional revenue visibility. In the second quarter, Vicor’s one-year backlog increased 26% sequentially to $379.7 million, while its book-to-bill ratio exceeded 1. Strong demand across HPC, industrial, aerospace and defense markets, alongside growing opportunities in automatic test equipment, is expected to have supported shipments in the third quarter.
Vicor’s manufacturing capacity expansion is another key growth catalyst. The company is adding equipment at its Andover facility to address growing customer demand. Higher capacity utilization and improved fixed-cost absorption are expected to have supported product gross margin expansion. Management also expects overall margin improvement as product revenues increase.
The company’s intellectual property licensing business is expected to have provided additional support. Vicor anticipates recognizing $5 million in royalty revenues during the third quarter from its latest licensing agreement.
Vicor Shares Beat Sector YTD, Trades at a Premium
VICR shares have jumped a whopping 123.8% year-to-date (YTD), outperforming the Zacks Computer & Technology sector’s return of 22.5%. The company has outperformed competitors including Monolithic Power (MPWR - Free Report) , Analog Devices (ADI - Free Report) and Texas Instruments (TXN - Free Report) over the same timeframe. Shares of Monolithic Power, Analog Devices and Texas Instruments have appreciated 37.1%, 48.8% and 61.7%, respectively, YTD.
VICR Stock Performance
Image Source: Zacks Investment Research
Vicor’s Value Score of F suggests a premium valuation at this moment.
On a forward 12-month price/sales (P/S) basis, VICR is trading at 11.95X, higher than the broader sector’s 6.03X, Analog Devices’ 10.08X and Texas Instruments’ 12.54X. However, Vicor is trading at a discount compared with Monolithic Power’s 12.33X.
VICR Valuation
Image Source: Zacks Investment Research
VICR's AI Demand, VPD Innovation and Capacity Fuel Growth
Vicor’s long-term growth is supported by several structural drivers. Vicor’s second-generation VPD technology has been a major growth driver. The company has completed initial chipset development for its lead customer, achieving a current density of 3 amps per square millimeter. Management targets current density exceeding 5 amps per square millimeter by late 2026 or early 2027. Growing interest from hyperscalers and OEMs, alongside expanding customer engagements, strengthens its long-term growth prospects.
Meanwhile, investments in manufacturing capacity are expected to enable Vicor to address growing demand and support larger hyperscale customers. Continued AI infrastructure spending is expanding opportunities across data centers and high-performance computing, while strong demand from industrial, semiconductor test, aerospace and defense markets provides additional growth avenues. The company's expanding presence across these markets is expected to support diversified revenue growth over the long term.
Conclusion
Vicor enters third-quarter earnings report with improving fundamentals and expanding AI opportunity, providing meaningful support for the stock. Robust backlog growth, rising royalty revenues, strengthening demand across high-performance computing markets, and continued progress with its next-generation VPD technology position Vicor well for sustained growth. These factors justify the company’s premium valuation.
Vicor currently sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.