MACOM Technology Solutions Holdings (MTSI) just posted Q2 2026 results with revenue of US$289.0 million and basic EPS of US$0.62, alongside trailing 12 month revenue of US$1.1 billion and EPS of US$2.36 that now reflect a profitable run rate. Over recent quarters, revenue has moved from US$235.9 million in Q2 2025 to US$288.9 million in Q2 2026, while quarterly basic EPS shifted from US$0.43 to US$0.62 as net income excluding extra items moved from US$31.7 million to US$46.3 million. This points to a business where earnings power is increasingly visible in the margin profile.

See our full analysis for MACOM Technology Solutions Holdings.

With the latest numbers on the table, the next step is to line them up against the prevailing narratives investors follow and see where the story on growth, profitability and risk still holds up and where it starts to look stretched.

TTM turnaround to US$176.8 million net income

• On a trailing 12 month basis, net income excluding extra items is US$176.8 million with basic EPS of US$2.36, compared with a loss and basic EPS of US$1.43 one year earlier on US$790.6 million of revenue.
• What stands out for a bullish view is that this profitability shift lines up with TTM revenue of about US$1.1b versus US$790.6 million a year ago, which supports the idea of a business now earning consistent profits on a larger revenue base.
  • Supporters can point to four consecutive quarters of positive quarterly EPS, from US$0.43 in Q2 2025 to US$0.62 in Q2 2026, as evidence that earnings quality is not just a one off result.
  • At the same time, the move from a TTM net loss of US$103.2 million to TTM net income of US$176.8 million shows the turnaround is visible in the full year picture, not just a single period.

Quarterly profits settle around US$46 million

• Q2 2026 net income excluding extra items is US$46.3 million on US$289.0 million of revenue, close to Q1 2026 net income of US$48.8 million on US$271.6 million of revenue, which suggests the recent quarters are clustering around a similar profit level.
• Critics who worry that recent profits may not be durable have to weigh that concern against five consecutive quarters of positive quarterly net income, from US$31.7 million in Q2 2025 up to US$46.3 million in Q2 2026, which points to a pattern of profits rather than a single spike.
  • Bears may still highlight that Q1 2025 showed a quarterly loss of US$167.5 million, so anyone looking at the story over more than a year should be aware of that earlier volatility.
  • Supporters can counter that every quarter after that loss shows positive net income, with TTM EPS rising from a loss of US$1.43 to a profit of US$2.36, which is the data set currently in front of investors.

P/E of 146x versus rich forecasts

• The stock trades on a trailing P/E of about 146.2x at a share price of US$344.47, compared with a peer average of 57.7x and an industry average of 53.7x, while earnings and revenue are forecast in the dataset to grow at about 37.1% and 20% per year respectively.
• What investors wrestling with the bullish case will notice is that this premium P/E and a share price of US$344.47 versus a DCF fair value of about US$102.42 both assume that the forecast growth profile can be sustained, yet the same dataset also flags that past five year earnings compounded at about 20.9% per year in the opposite direction.
  • Supporters of the optimistic view will argue that the shift from a TTM loss of US$54.2 million two reporting points ago to a TTM profit of US$176.8 million now helps justify paying above peer and industry multiples.
  • Cautious holders will point out that even with those forecasts, the gap between the current share price and the DCF fair value figure is wide, which keeps the valuation debate front and center.

For a fuller breakdown of how these growth forecasts, valuation multiples and profitability trends fit together, you can review the balanced community take on the stock through 📊 Read the what the Community is saying about MACOM Technology Solutions Holdings.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on MACOM Technology Solutions Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With both risks and rewards in play, the real question is how comfortable you are with the trade off at today’s valuation. Take a closer look at the underlying data, stress test your assumptions and see whether the balance still makes sense for your portfolio with the help of 2 key rewards and 1 important warning sign

See What Else Is Out There

The stock carries a very high P/E and a wide gap to the DCF fair value figure, which keeps valuation questions firmly in focus.

If that premium price makes you uneasy, compare it with companies screened for stronger value signals by checking out the 51 high quality undervalued stocks

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.