MACOM Technology Solutions Holdings Inc

Strong Q3 performance; record demand & profitability - Revenue $342.2M, +18.4% sequentially and +35.8% YoY. - Adjusted EPS: $1.40 (vs $1.09 in Q2), with operating leverage: Adjusted operating income $107.7M (+33.9% QoQ, +69.6% YoY). - Adjusted gross margin: 59.7% (+120 bps QoQ) and Adjusted operating margin: 31.5% (up from 25.2% a year earlier). - Record Q3 book-to-bill: 1.6x; orders booked & shipped within the quarter were 11% of revenue → indicates strong underlying demand and visibility.

End-market momentum: Data Center is the standout driver - Q3 revenue by segment: Data Center $137.6M (+~40% QoQ), Industrial & Defense $133.4M (+11% QoQ), Telecom $71.3M (+2% QoQ). - Data Center strength attributed to broad-based growth across PAM4 portfolio and multiple data-rate platforms, with emphasis that book-to-bill strength is primarily driven by 1.6T and 800G platforms. - Key Data Center product themes: scaling optical connectivity from NRZ/PAM4/coherent, higher-density interconnects, and growth in ZR/ZR-light (+100% YoY) plus strong 100G-per-lane and legacy 25G-per-lane products.

Q4 guidance and implied growth trajectory - Q4 (ending Oct 2, 2026) revenue: $415M–$425M (~35% sequential growth at midpoint). - Adjusted gross margin: 60%–61%; Adjusted EPS: $1.97–$2.03 (based on 78.9M diluted shares). - Segment growth outlook: Data Center ~35% sequential, Industrial & Defense ~20%, Telecom low single-digit. - Management suggests a strong start to FY27: using Q4 midpoint annualized implies company growth of roughly mid-to-high 20s / ~27–28%, with Data Center potentially around ~50% YoY.