MACOM Earnings: Lowell Chipmaker Posts Record $424.8M Quarter, but Shares Fall 7%

Aerial view of downtown Lowell, Massachusetts (file photo). Photo: Quintin Soloviev / Wikimedia Commons (CC BY 4.0).

MACOM Technology Solutions, the Lowell, Massachusetts, chipmaker that supplies parts for data centers, telecom networks and defense systems, reported record quarterly revenue of $424.8 million on Thursday, up 62.7% from a year earlier, and forecast more growth for the current quarter, the company said in its earnings release. Its shares still fell more than 7% in morning trading as chip stocks slid.

MACOM earnings beat estimates

For the fiscal fourth quarter that ended Oct. 2, MACOM earned $139.4 million, or $1.78 a share, under standard accounting, up from $45.1 million, or 59 cents, a year earlier. Excluding certain items, it earned $163.3 million, or $2.09 a share, compared with 94 cents a year ago.

Analysts had expected adjusted earnings of $2.00 a share on revenue of about $420.4 million, according to a MarketBeat-based preview published Nov. 3. The company’s own earlier guidance had called for adjusted earnings of $1.97 to $2.03 a share, so the result landed above the top of that range.

Revenue rose 24.1% from the prior quarter’s $342.2 million. Adjusted gross margin widened to 61.3% from 57.1% a year earlier, and adjusted operating income climbed to $162.3 million, or 38.2% of revenue.

A turnaround year for the Lowell chipmaker

For the full fiscal year, revenue grew 37.3% to $1.33 billion from $967.3 million. MACOM posted net income of $335.3 million, or $4.31 a share, after a net loss of $54.2 million in fiscal 2025, Stock Titan’s summary of the release noted. Adjusted earnings for the year were $5.60 a share.

Chief Executive Stephen G. Daly said the company looks forward to continued growth in fiscal 2027. MACOM makes radio-frequency, microwave, analog, mixed-signal and optical semiconductors and names industrial and defense, data center and telecommunications as its three main markets. The release did not break out revenue by market.

The results make MACOM one of the larger Massachusetts names in this week’s tech news, alongside the AI-driven earnings wave covered on TBR’s AI news hub. More local company news is on the Boston business news page.

Guidance points higher

For the first quarter of fiscal 2027, which ends Jan. 1, MACOM expects revenue of $450 million to $460 million, adjusted gross margin of 62% to 63%, and adjusted earnings of $2.21 to $2.29 a share. That forecast assumes a 6% non-GAAP tax rate and about 79 million diluted shares. The midpoint, $455 million, would be roughly 7% above the quarter just reported.

The company held a conference call with analysts at 8:30 a.m. Eastern time Thursday, an hour after releasing the results.

Why the stock fell anyway

MACOM shares were down $18.78, or 7.44%, at $233.64 shortly after 11 a.m. Eastern time, against a previous close of $252.42, Yahoo Finance data showed. The stock traded between $230.82 and $240.76 in the morning session.

The drop came on a rough day for semiconductors. Chip and AI-infrastructure stocks sold off at the open, led by Qualcomm’s slide after its handset chip sales fell 26%, with Nvidia, Marvell and Intel also lower, as TBR reported in its Thursday market open story. MACOM did not comment on the share move in its release.

Wall Street was broadly positive on the company going into the report. The Nov. 3 preview counted two Strong Buy, 11 Buy and three Hold ratings, with an average price target of $338.08, well above where the shares traded Thursday.

Share prices are intraday figures as of late morning Thursday, Nov. 5, 2026, and can change. This article is for information only and is not investment advice.

Sources

• GlobeNewswire: MACOM Reports Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results
• Stock Titan: After a $54 million loss in fiscal 2025, MACOM reported $335 million in fiscal 2026 profit
• Daily Political: MACOM Technology Solutions (MTSI) Set to Post Earnings on Thursday
• Yahoo Finance: MACOM Technology Solutions Holdings (MTSI) quote