MACOM Technology (MTSI) Beats Revenue Estimates on Surging Demand for AI Optical Modules

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is one of the best optical networking stocks to buy according to analysts. On May 7, MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) reported its Q2 2026 financial results, where it recorded $289 million in revenue, up 22.5% year over year and 6.4% higher than Q1 2026. This revenue exceeded the $285.2 million that Wall Street expected.

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Management explained on the earnings call that all three of its business segments contributed to the growth. The Data Center segment led the way with $98.2 million in revenue, up about 14.5% sequentially. This increase was fueled by surging demand for pluggable optical modules and higher cable production volumes as AI infrastructure spending accelerated, said Steve Daly, the company’s President and CEO.

Daly added that the company’s adjusted (non-GAAP) EPS came in at $1.09, up from $1.02 in Q1 2026 and $0.85 a year earlier. Analysts had expected $1.07. The CEO explained that the EPS improvement tracked revenue growth and also received massive support from better product yields and higher utilization across the company’s North Carolina and Massachusetts semiconductor fabrication facilities. Gross margin also expanded to 58.5% (non-GAAP), which was up 90 basis points from the previous quarter. Management attributed the expansion to the company benefiting from scale, improved manufacturing efficiencies, and a growing share of higher-margin data center products.

MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is an optical networking and semiconductor company. It designs high-performance analog and mixed-signal solutions for telecom, data center, and industrial markets.

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