MACOM Technology Solutions Holdings Inc
NASDAQ:MTSI
MACOM Technology Solutions Holdings Inc
MACOM Technology Solutions Holdings Inc., a name synonymous with cutting-edge innovation in the semiconductor industry, is a key player in the world of electronic components. The company specializes in designing and manufacturing a broad array of high-performance radio frequency (RF), microwave, and millimeterwave products. Their suite of offerings plays a crucial role in enabling the infrastructure that underpins everything from wireless communications to aerospace and defense applications. MACOM’s razor-sharp focus on producing components that manage bandwidth, power, and signal integrity helps it cater to a diverse range of sectors which demand precision and reliability, driving consistent demand for its products.
The financial lifeblood of MACOM flows through its successful alignment with industries that are on the cutting edge of technology. By selling semiconductor products that empower telecommunications networks, industrial systems, and data centers, MACOM is positioned at the intersection of expanding digital and defense needs. The company generates revenue primarily through the sale of its highly specialized components, which are critical to the performance and efficiency of its clients’ systems. The ongoing rush towards next-generation communication infrastructure—such as 5G—and the rising need for rapid data processing are just the latest in a historical series of technological leaps that keep MACOM’s business model robust and its revenue streams active.
MACOM Technology Solutions Holdings Inc., a name synonymous with cutting-edge innovation in the semiconductor industry, is a key player in the world of electronic components. The company specializes in designing and manufacturing a broad array of high-performance radio frequency (RF), microwave, and millimeterwave products. Their suite of offerings plays a crucial role in enabling the infrastructure that underpins everything from wireless communications to aerospace and defense applications. MACOM’s razor-sharp focus on producing components that manage bandwidth, power, and signal integrity helps it cater to a diverse range of sectors which demand precision and reliability, driving consistent demand for its products.
The financial lifeblood of MACOM flows through its successful alignment with industries that are on the cutting edge of technology. By selling semiconductor products that empower telecommunications networks, industrial systems, and data centers, MACOM is positioned at the intersection of expanding digital and defense needs. The company generates revenue primarily through the sale of its highly specialized components, which are critical to the performance and efficiency of its clients’ systems. The ongoing rush towards next-generation communication infrastructure—such as 5G—and the rising need for rapid data processing are just the latest in a historical series of technological leaps that keep MACOM’s business model robust and its revenue streams active.
Record Revenue & EPS: MACOM delivered Q1 revenue of $271.6 million and adjusted EPS of $1.02, both new company records, with revenue up 24.5% year-over-year and 4% sequentially.
Strong Demand & Backlog: Bookings were robust across all three end markets, with a book-to-bill ratio of 1.3:1, the highest since Q3 2021, and backlog at record levels.
Raised Data Center Outlook: Data center revenue growth guidance was increased from 20% to 35–40% year-over-year, driven by strong demand for 1.6T optical products and hyperscaler investments.
Gross Margin Improvements: Adjusted gross margin was 57.6% in Q1, with management expecting sequential improvements of 25–50 basis points through the year.
Q2 Guidance: For Q2 2026, revenue is expected between $281 million and $289 million, adjusted gross margin of 57–59%, and adjusted EPS of $1.05–$1.09.
Strategic Initiatives: MACOM is expanding manufacturing capacity, strengthening its position in data center, 5G, industrial, and defense, and sees significant opportunities in SATCOM and new optical technologies.
Debt & Capital: Over $768 million in cash and short-term investments, with a plan to retire $161 million in convertible notes in March.
