• In the first quarter ended January 2, 2026, MACOM Technology Solutions Holdings reported sales of US$271.61 million and net income of US$48.77 million, reversing a prior-year net loss and turning last year’s loss per share from continuing operations into earnings of US$0.64–US$0.65.
• Alongside this sharp swing back to profitability, MACOM issued revenue guidance of US$281 million to US$289 million for the April 3, 2026 quarter, signaling management confidence after a period of weaker results.
• Now we’ll consider how MACOM’s return to profitability and revenue guidance range reshape the existing investment narrative built before this report.

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MACOM Technology Solutions Holdings Investment Narrative Recap

To be a shareholder in MACOM, you need to believe its focus on data center, telecom, industrial and defense semiconductors can translate into sustained, profitable growth while it scales internal fabs without eroding margins. The sharp Q1 2026 return to profitability and US$271.61 million in sales, followed by Q2 revenue guidance of US$281 million to US$289 million, appears supportive of the near term growth catalyst, but does not remove the execution and utilization risks around the RTP fab and Lowell capacity.

The most relevant recent announcement here is MACOM’s Q2 2026 revenue guidance of US$281 million to US$289 million, issued alongside the Q1 results. This outlook sits against a backdrop where investors are watching to see if higher internal fab utilization can gradually turn current margin headwinds into a tailwind, particularly as management has previously pushed out its 60% gross margin target. The new guidance adds another data point for how quickly those margin and capacity narratives may evolve.

Yet against this recovery story, investors should still be aware of how underutilization and expansion risk across RTP and other fabs could...

MACOM Technology Solutions Holdings' narrative projects $1.2 billion revenue and $586.5 million earnings by 2028. This requires 11.2% yearly revenue growth and a $656.4 million earnings increase from $-69.9 million today.

Uncover how MACOM Technology Solutions Holdings' forecasts yield a $255.73 fair value, a 11% upside to its current price.

Exploring Other Perspectives

The lowest analyst estimates painted a much more cautious picture, assuming revenue around US$1.5 billion and earnings near US$415 million by 2029, so this latest swing to profitability and higher near term guidance could challenge some of those expectations, especially if you are worried about capacity expansion outpacing demand.

Explore 3 other fair value estimates on MACOM Technology Solutions Holdings - why the stock might be worth less than half the current price!

Build Your Own MACOM Technology Solutions Holdings Narrative

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• A great starting point for your MACOM Technology Solutions Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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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.