MACOM Technology to Report Q3 Earnings: What's in Store for the Stock?
MACOM Technology Solutions Holdings, Inc. MTSI is set to report third-quarter fiscal 2026 results before market open on Aug. 6.
The Zacks Consensus Estimate for third-quarter earnings is pinned at $1.34 per share, indicating a 48.9% year-over-year increase. The consensus estimate for the bottom line has remained unchanged over the past 60 days.
The Zacks Consensus Estimate for MACOM Technology’s third-quarter revenues is pegged at approximately $335.1 million, suggesting a 32.9% jump from the year-ago quarter’s sales of $252.1 million.
MACOM Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.78%.
Let’s see how things are shaping up for the upcoming quarterly results.
MACOM Technology Solutions Holdings, Inc. Price and EPS Surprise
MACOM Technology Solutions Holdings, Inc. price-eps-surprise | MACOM Technology Solutions Holdings, Inc. Quote
Factors Likely to Have Shaped MTSI’s Q3 Performance
MACOM Technology’s third-quarter performance is likely to have benefited from strong growth across the data center business. During the lastearnings call management projected nearly 35% sequential growth in this segment, supported by rising deployments of 800G and 1.6T optical connectivity products, strong demand for photodetectors and increasing production of pluggable optical modules. The company also raised its fiscal 2026 data center growth outlook from more than 40% to more than 60%, reflecting strong customer demand.
Industrial & Defense (I&D) is likely to have remained another bright spot. MACOM Technology’s revenues from this segment reached record levels in the previous quarter, backed by healthy defense spending, growing radar and electronic warfare programs, and increasing demand from the company's top defense customers. Management expected this business to post nearly 10% sequential growth in the third quarter, supported by a healthy pipeline of production programs and modernization projects.
Telecom may also have contributed, although at a slower pace. Management had guided for low single-digit sequential growth, supported by improving cable infrastructure demand and ongoing activity in satellite communication programs. While major LEO production ramp-ups are expected to contribute more meaningfully in fiscal 2027, current low-rate production programs are likely to have provided incremental revenues during the to-be-reported quarter.
Operational execution is also expected to have remained a tailwind in the third quarter. Higher factory utilization, improving manufacturing yields and expanding production capacity are expected to have supported another quarter of gross margin expansion. Management had guided for adjusted gross margin of 59-60%, operating margin near 30%, and adjusted EPS between $1.31 and $1.37.
Q3 Earnings Whispers for MACOM Technology
Our proven model does not conclusively predict an earnings beat for MTSI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
MACOM Technology currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:
SanDisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 2.8% over the past 30 days. Shares of SanDisk have soared 411.7% year to date (YTD).
Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by a penny in the past 30 days. Shares of Western Digital have surged 216.2% YTD.
MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +1.59% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.94 per share, calling for a year-over-year jump of 66.1%. Earnings estimates for the quarter have been revised upward by a penny in the past seven days. Shares of MKS have rallied 86.1% YTD.
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See Stocks Now >>MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report
Western Digital Corporation (WDC) : Free Stock Analysis Report
Sandisk Corporation (SNDK) : Free Stock Analysis Report
MKS Inc. (MKSI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
