MACOM Technology Solutions Holdings, Inc. Q2 FY2026 earnings call

Management provided a general company update, noting strong demand across end markets, backlog building, sequential financial improvement in Q2 with improved gross and operating margins. Progress on five goals for FY26 was summarized, including taking advantage of data center opportunity with revenue growth base case revised, expanding 5G market share with new process technologies, extending leadership in A&D with award and new product introductions, developing advanced III-V semiconductor technologies, and managing capital and investments. Teamwork across the organization was highlighted as impacting financial results, with manufacturing and engineering efforts driving market share gains and revenue growth.

In the second fiscal quarter of 2026, MACOM's revenue by product segment was as follows: Industrial and defense was $120.7 million, Data Center was $98.2 million, and Telecom was $70.1 million. Revenue contribution percentages were approximately 41.76% for Industrial and Defense, 33.98% for Data Center, and 24.26% for Telecom.

MACOM expects revenue in fiscal Q3 ending July 3, 2026, to be in the range of $331 to $339 million. Adjusted gross margin is expected to be in the range of 59 to 60%, and adjusted earnings per share is expected to be between $1.31 and $1.37, with sequential revenue growth expected in each end market.

Risks discussed include supply chain uncertainties, geopolitical factors affecting component availability, and potential variations in customer demand and program timelines.

Q: Good morning, and great results. Maybe I want to start on gross margin...

A: Yes, thank you for the question, Blaine. So certainly, volume is contributing to the improvements in the gross margins...; Q: Hey, guys. Thanks for taking my question. My first is on the SATCOM business and LEO...

A: Thanks for those questions, Tom. There's a lot there. Let me try to address as many as I can...