The Q4 guidance midpoint of $420M revenue and $2.00 adjusted EPS is dramatically above the $1.04 Street consensus for the next quarter, implying a massive upward revision cycle. Traders should expect multiple expansion as the market prices in sustained 35%+ revenue growth and 60%+ gross margins. The sequential revenue acceleration from Q3 ($342M) to Q4 guided ($420M) is the key catalyst — this is a step-function increase in the business trajectory.
Price Chart
Executive Summary
MACOM reported a massive beat for fiscal Q3 2026, with revenue of $342.2M (+35.8% YoY) crushing the $335.6M consensus and adjusted EPS of $1.40 beating the $1.35 estimate by 3.8%. The company guided Q4 revenue to $415-425M and adjusted EPS to $1.97-2.03, implying sequential acceleration of ~22% at the midpoint and a 44% YoY increase. GAAP operating margins expanded to 22.5% from 14.9% a year ago, while adjusted operating margins hit 31.5%. This is a strong_beat across the board with raised guidance, signaling accelerating demand in data center and telecom end markets.
Key Financial Metrics
Key Facts
- Revenue of $342.2M, up 35.8% YoY, above $335.6M consensus
- Adjusted EPS of $1.40, above $1.35 consensus (3.8% beat)
- GAAP EPS of $1.28, up 167% YoY from $0.48
- Adjusted gross margin expanded to 59.7% from 57.6% YoY
- Adjusted operating margin expanded to 31.5% from 25.2% YoY
- Q4 guidance: revenue $415-425M, adjusted EPS $1.97-2.03 (well above $1.04 Street consensus)
- GAAP net income of $100.7M vs $36.5M in prior year Q3
- Operating cash flow of $201.6M for the nine months, up from $165.7M YoY
Financial Impact
Revenue beat by ~$6.6M (2.0%) vs consensus; EPS beat by $0.05 (3.8%); Q4 guidance midpoint of $420M revenue implies 22% sequential growth and 44% YoY growth
Risk Factors
- Guidance assumes continued strong demand in data center and telecom; any macro slowdown could reverse the trajectory
- The $340.5M in short-term debt (up from $160.9M at fiscal year-end) warrants monitoring for refinancing risk
- Historical calibration shows score-8 calls on this ticker have only 41-50% observed probability of up-moves at T+20, suggesting potential for profit-taking after the initial pop
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493594-26-000036 |
| Document: mtsi-20260806.htm | 0001493594-26-000036 |
| Document: 0001493594-26-000036-index-headers.html | 0001493594-26-000036 |
| Document: 0001493594-26-000036-index.html | 0001493594-26-000036 |
| Document: 0001493594-26-000036.txt | 0001493594-26-000036 |
| 8-K Data (Synthetic) | 0001493594-26-000036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $301.64 $259.95 | ▼ −13.82% | ▼ −14.42% | $323.14 (+7.13%) |
Jun 9, 2026 16w ago | Press Release | $358.72 $304.82 | ▼ −15.03% | ▼ −16.47% | $323.14 (−9.92%) |
May 29, 2026 17w ago | 144 | $353.79 $380.37 | ▲ +7.51% | ▲ +8.81% | $323.14 (−8.66%) |
May 27, 2026 18w ago | 144 | $400.66 $390.19 | ▼ −2.61% | ▼ −0.71% | $323.14 (−19.35%) |
May 18, 2026 19w ago | Insider Cluster | $358.98 $367.11 | ▲ +2.26% | ▲ +1.28% | $323.14 (−9.98%) |
May 18, 2026 19w ago | Insider Cluster | $358.98 $367.11 | ▲ +2.26% | ▲ +1.28% | $323.14 (−9.98%) |
May 18, 2026 19w ago | Insider Cluster | $358.98 $367.11 | ▲ +2.26% | ▲ +1.28% | $323.14 (−9.98%) |
May 18, 2026 19w ago | Insider Cluster | $380.45 $395.70 | ▲ +4.01% | ▲ +3.68% | $323.14 (−15.06%) |
May 18, 2026 19w ago | Insider Cluster | $358.98 $367.11 | ▲ +2.26% | ▲ +1.28% | $323.14 (−9.98%) |
May 15, 2026 19w ago | Insider Cluster | $356.25 $368.32 | ▲ +3.39% | ▲ +1.81% | $323.14 (−9.29%) |
US Market Status
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