Vicor (VICR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $143.4M, up 26.9% sequentially and 1.6% year-over-year, with advanced products and new royalty income driving growth.

• Net income for Q2 was $49.8M, with GAAP diluted EPS of $1.04 on 47.7M shares, more than doubling from Q1.

• Backlog increased 26% sequentially and 145% year-over-year, reaching $380M.

• Strong demand in high-performance compute, industrial, aerospace, and defense segments is driving capacity utilization and expansion plans.

• Royalty income from a new license agreement contributed $15M to Q2 revenue, with future quarterly contributions outlined.

Financial highlights

• Advanced products revenue increased 45% sequentially to $94.2M; brick products up 2.4% to $49.2M.

• Gross margin was 58% ($83.1M), up 280 bps sequentially; Q1 margin was impacted by a prior year litigation settlement.

• Operating expenses rose 6.1% sequentially to $48.2M, mainly due to contingent legal expenses.

• Cash and equivalents at quarter-end were $453.6M, up $49.4M sequentially; operating cash flow was $34M.

• Capital expenditures for Q2 totaled $11.2M; inventories increased 10.2% to $104.5M.

Outlook and guidance

• Q3 revenue expected to increase nearly 10% sequentially; 2026 revenue projected to exceed $600M.

• Double-digit sequential growth in advanced product revenue anticipated.

• Margin expansion expected as capacity utilization improves.

• Long-term targets updated to $2.5B revenue, 70% gross margin, and 40% operating income.

• Management preparing for further capacity expansion with a second fab for next-generation products.