MACOM Technology Solutions Holdings, Inc. Q2 FY26 Earnings Analysis
Published 29 May 2026 | Semiconductors and Semiconductor Equipment | Market Cap: ₹29.8K Cr
Price
₹391.09
Market Cap
₹29.8K Cr
P/E Ratio
175.1
Revenue Rank
Margin Rank
Earnings Summary
- Fiscal ’26 revenue growth expected to be strong, driven primarily by Data Center (40% to over 60% growth) and Defense markets. - Fiscal 2026 earnings expected to show strong growth, with adjusted EPS guidance between $1.31 and $1.37 for Q3.
📊 Revenue & Sales Performance
Rank 1- →Fiscal ’26 revenue growth expected to be strong, driven primarily by Data Center (40% to over 60% growth) and Defense markets.
- →Fiscal ’27 anticipated to be a strong year with continued solid growth across Data Center, Defense, and Telecom segments.
- →Data Center growth fueled by expanding product portfolio, increased deployment of 1.6T and 800G PAM4 products, and growing interest in coherent light solutions.
- →Defense market showing over 20% growth in FY ’26, supported by expanding customer base in North America and Europe.
- →Telecom expected to achieve low double-digit growth in FY ’26 and a strong year in FY ’27, especially in SATCOM.
- →Incremental capacity expansions in existing fabs to support demand; no major new fabs planned.
- →Competitor exit from RF power market to contribute revenue growth starting in FY ’27.
- →Continued innovation in advanced GaN, indium phosphide, and photonic technologies expected to drive long-term growth.
📈 Profitability & Margins
Rank 2- →Fiscal 2026 earnings expected to show strong growth, with adjusted EPS guidance between $1.31 and $1.37 for Q3.
- →Adjusted operating margin forecasted to reach approximately 30% in Q3, up from 27.8% in Q2, indicating improving profitability.
- →Earnings growth anticipated to be driven by Data Center, Defense (I&D), and Telecom markets, with second half of fiscal 2026 seeing notably improved earnings.
- →Long-term fiscal 2027 expected to be a strong year with solid growth continuing across key markets.
- →Growth drivers include expanding product portfolio, increasing fab utilization, and new design wins especially from competitors exiting the RF power market.
- →Gross margin improvements expected to continue through 2026 and into 2027, supported by yield enhancements and volume scale.
- →EBIT and net income expected to benefit from disciplined capital spending (4-5% of revenue) without major investments in new fabs.
🏗️ Capital Expenditure Plans
Yes- →Fiscal ’26 capital expenditures (CapEx) are guided between $55 million to $65 million, about 4%-5% of revenue, focusing on incremental expansion within existing facilities without building new fabs.
- →Investments include:
- → - Increasing wafer production capacity by 30% at North Carolina fab (completed by end of calendar 2026) with less than $20 million spent.
- → - Equipment upgrades at Massachusetts fab for advanced GaN, expanded indium phosphide capacity, and general modernization.
- → - Transitioning French fab product line from 3-inch to 6-inch wafers with new MOCVD reactor installation to support future volumes.
- →No plans for greenfield fab construction.
- →Strategic investment includes a GBP 45 million stake in IQE (epitaxial services provider), securing long-term supply agreements to ensure supply chain security for indium phosphide and silicon carbide.
- →Management takes a disciplined, opportunistic approach balancing capacity needs and capital efficiency to support growth through fiscal ’27 and beyond.
💰 Fundraising & Capital Structure
No information- →As of April 3, 2026, MACOM held $664.9 million in cash, cash equivalents, and short-term investments.
- →The company is in a net cash position of approximately $325 million after comparing cash to $340 million of remaining convertible notes maturing in December 2029.
- →MACOM retired $161 million of its 2026 convertible notes during the quarter, reducing debt and deleveraging the balance sheet.
- →No mention of current or planned new fundraising through debt or equity was stated in the provided excerpts.
- →The company views its cash as a strategic asset to fund ongoing investments.
- →Capital expenditures for fiscal 2026 are planned between $55 million to $65 million, funded internally.
- →MACOM emphasizes disciplined capital management without plans for large fab investments or new factories.
- →Overall, no announced or imminent new debt or equity fundraising activities are evident.
📋 Order Book & Pipeline
Yes- →The company reported a strong book-to-bill ratio of 1.5x, indicating orders significantly exceed shipments.
- →New orders mainly came from the Data Center segment, but all three markets (Data Center, Industrial & Defense, Telecom) experienced strong bookings.
- →Orders are typically spread over multiple quarters and recognized within a 12-month delivery period.
- →The strong book-to-bill reflects orders expected to be delivered within the next 12 months.
- →The backlog benefits from customer transitions following competitor exits, expected to contribute revenue mainly in fiscal 2027.
- →The company anticipates continued order momentum across key markets, supporting strong growth in fiscal 2027.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were MACOM Technology Solutions Holdings, Inc. Q2 FY26 results?
- Fiscal ’26 revenue growth expected to be strong, driven primarily by Data Center (40% to over 60% growth) and Defense markets. - Fiscal 2026 earnings expected to show strong growth, with adjusted EPS guidance between $1.31 and $1.37 for Q3.
What is MACOM Technology Solutions Holdings, Inc. share price analysis?
MACOM Technology Solutions Holdings, Inc. currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 175.1 with a market cap of $29,839. Investors should review the full earnings analysis for detailed insights.
Is MACOM Technology Solutions Holdings, Inc. planning capital expenditure?
- Fiscal ’26 capital expenditures (CapEx) are guided between $55 million to $65 million, about 4%-5% of revenue, focusing on incremental expansion within existing facilities without building new fabs.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.