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MACOM reported Q3 FY2026 revenue of $342.2 million, above the consensus estimate of $335.1 million. Adjusted earnings per share were $1.40, also above the consensus estimate of $1.34.
Revenue rose from $252.1 million a year earlier. In its filing, MACOM attributed data center growth to higher sales of optical products supporting high-speed connections. Industrial and defense revenue grew primarily because of defense-related programs, while telecom revenue increased on higher sales for broadband access, metro long haul and PON.
MACOM’s gross margin rose to 58.3% from 55.3%. The filing attributed higher gross profit primarily to increased sales, including higher-margin products, partly offset by costs such as employee expenses and maintenance. Operating margin increased to 22.5% from 14.9%, while free cash flow rose to $57.8 million from $21.8 million.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $342.2 million | $252.1 million | 35.8% |
| Diluted EPS | $1.28 | $0.48 | 166.7% |
| Gross margin | 58.3% | 55.3% | 3.0 percentage points |
| Operating margin | 22.5% | 14.9% | 7.6 percentage points |
| Free cash flow | $57.8 million | $21.8 million | 165.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.40 | $1.34 | Beat by 4.48% |
| Revenue | $342.2 million | $335.1 million | Beat by 2.13% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, MACOM said it expects data center revenue to benefit from faster processing technologies and upgrades to data center architectures, which it expects to increase adoption of higher-speed optical and photonic components. The company also expects its industrial and defense portfolio to support revenue across applications including radar, space electronics, medical equipment and test and measurement.
MACOM said research and development expense increased in the quarter primarily because of employee-related costs, including additional headcount, as well as higher material and development foundry costs. The company also said increased sales and higher-margin products contributed to gross profit growth, partly offset by higher employee, maintenance and production supply costs.
Guidance
MACOM’s Q4 FY2026 outlook calls for revenue of $415.0 million to $425.0 million and adjusted earnings per diluted share of $1.97 to $2.03. The company also expects adjusted gross margin of 60.0% to 61.0%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | Q4 FY2026 | 3.00% | — | New |
| EPS, non-GAAP | Q4 FY2026 | $1.97–$2.03 | — | New |
| Gross margin, non-GAAP | Q4 FY2026 | 60.0%–61.0% | — | New |
| Revenue | Q4 FY2026 | $415.0 million–$425.0 million | — | New |
| Revenue growth, Metro Long Haul | FY2026 | 50.0% | — | New |
| Revenue growth, Cable Infrastructure | FY2026 | 40.0% | — | New |
| Market size, Data Center | FY2027 | $6.0 billion | — | New |
| Market size, Industrial and Defense | FY2027 | $6.0 billion | — | New |
| Capex | FY2027 | $60.0 million | — | New |
| Research and development | FY2026 | $250.0 million | — | New |
| Operating margin | FY2027 | 40.0% | — | New |
| Operating margin | Q4 FY2026 | 40.0% | — | New |
| Gross margin | Q4 FY2026 | 60.0% | — | New |
| Revenue, Telecom | FY2027 | MACOM expects telecom revenue growth in FY2027 to be similar to or better than FY2026’s double-digit growth. | — | — |
| Revenue, Telecom | FY2026 | MACOM expects telecom revenue to grow by double digits in FY2026. | — | — |
| Revenue growth, Data Center | FY2027 | 50.0% | — | New |
| Revenue growth, Data Center | FY2026 | 74.0% | — | New |