MTSI Q2 Earnings Surpass Expectations, Revenues Rise Y/Y

MACOM Technology Solutions Holdings, Inc. MTSI reported second-quarter fiscal 2026 earnings of $1.09 per share, which beat the Zacks Consensus Estimate of $1.07. The bottom line grew 28.2% year over year.

MACOM Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.8%.

MTSI posted revenues of $289 million in the second quarter of fiscal 2026, surpassing the Zacks Consensus Estimate by 1.4%. The top line increased 22.5% year over year.

MTSI Operating Details

For the second quarter of fiscal 2026, MACOM’s adjusted gross margin was 58.5% compared with 57.5% in the prior-year quarter. Adjusted operating income came in at $80.5 million, up from $59.8 million reported in the year-ago period. As a percentage of revenues, the adjusted operating income came in at 27.8%, up 240 basis points from the year-ago quarter.

Non-GAAP operating expenses were $88.6 million, up 16.8% year over year. As a percentage of revenues, non-GAAP operating expenses came in at 30.7%, contracting 140 basis points from the prior-year period.

MTSI’s Balance Sheet and Cash Flow

As of April 3, 2026, cash equivalents and short-term investments totaled $664.9 million, down from $768.5 million in the prior quarter.

Long-term debt was $340.2 million compared with $339.9 million in the previous quarter.

For the second quarter of fiscal 2026, MTSI’s net cash flows from operating activities came in at $78.7 million. In the first half of fiscal 2026, MTSI’s operating cash flow totaled $121.6 million.

MTSI’s Guidance for Q3 FY26

For the third quarter of fiscal 2026, MACOM Technology expects revenues between $331 million and $339 million. The Zacks Consensus Estimate for third-quarter fiscal 2026 revenues is pegged at $297.3 million, indicating year-over-year growth of 17.9%.

The company anticipates adjusted earnings per share between $1.31 and $1.37. The Zacks Consensus Estimate for earnings is pinned at $1.12 per share, indicating growth of 24.4% year over year.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks ANET, Advanced Energy AEIS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Arista Networks have gained 12.3% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.54 per share, up by a penny over the past 30 days, indicating an increase of 18.8% year over year.

Shares of Advanced Energy have surged 72.3% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.37 per share, up by 5 cents over the past seven days, indicating a rise of 30.6% year over year.

Amphenol shares have jumped 2.5% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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