MTSI Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

MACOM Technology Solutions Holdings, Inc. MTSI reported fourth-quarter fiscal 2025 earnings of 94 cents per share, which beat the Zacks Consensus Estimate by a penny. The bottom line grew 28.8% year over year.

MACOM Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 0.9%.

MTSI posted revenues of $261.2 million in the fourth quarter of fiscal 2025, surpassing the Zacks Consensus Estimate by 0.81%. The toP line grew 32.3% year over year.

MTSI Operating Details

For the fourth quarter of fiscal 2025, MACOM’s adjusted gross margin was 57.1% compared with 58.1% in the prior-year quarter. Adjusted operating income came in at $67.0 million, up from $50.7 million reported in the year-ago period. The adjusted operating income came in at 25.6%, up 40 basis points from the year-ago quarter.

MACOM Technology Solutions Holdings, Inc. Price, Consensus and EPS Surprise

MACOM Technology Solutions Holdings, Inc. price-consensus-eps-surprise-chart | MACOM Technology Solutions Holdings, Inc. Quote

Non-GAAP operating expenses were $82.1 million, up 24.6% year over year. As a percentage of revenues, non-GAAP operating expenses came in at 31.5%, contracting 140 basis points from the prior-year period.

MTSI’s Balance Sheet and Cash Flow

As of Oct. 3, 2025, cash equivalents and short-term investments totaled $785.9 million, up from $735.2 million in the prior quarter. Long-term debt was $339.6 million compared with $339.4 million in the previous quarter. MTSI’s net cash flows from operating activities came in at $235.4 million.

MTSI’s Guidance for Q1

For the first quarter of fiscal 2026, MACOM Technology expects revenues between $265 million and $273 million. The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $260 million, indicating year-over-year growth of 29.6%.

The company anticipates adjusted earnings per share between 98 cents and $1.02. The Zacks Consensus Estimate for earnings is pinned at 93 cents, indicating growth of 27% year over year.

Zacks Rank & Stocks to Consider

Currently, MTSI carries a Zacks Rank #3 (Hold).

Reddit Inc. RDDT, Credo Technology Group CRDO and Amphenol APH are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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