Vicor (VICR) Q3 2026 earnings summary

Executive summary

• Q3 product and royalty revenue was $197.1M, up 37.5% QoQ and 78.5% YoY; net income was $63.3M and diluted EPS was $1.33.

• Backlog reached $406M at quarter-end, up 7% QoQ and 166% YoY, as demand and licensing activity strengthened amid near-term capacity constraints.

Financial highlights

• Product revenue was $130.5M and royalty revenue was $66.6M; advanced products revenue, including royalties, rose 47.5% QoQ to $138.9M, while Brick Products revenue rose 18.4% to $58.3M.

• Gross margin was 68.3%, up 1,030 bps QoQ and 1,080 bps YoY; higher royalties and improved product volume, efficiency and mix contributed to the increase.

• Operating expenses rose 29.6% QoQ to $62.5M; legal expense increased $11.1M to $16.1M, including contingency fees for patent enforcement.

• Net income was $63.3M, or $1.33 diluted EPS, versus $28.3M and $0.63 diluted EPS YoY; the effective tax rate was 19.6%.

• 9M 2026 revenue was $453.4M versus $300.4M in 9M 2025; net income was $133.8M versus $72.1M.

Outlook and guidance

• Q4 product revenue is expected to increase low double digits sequentially, with advanced products expected to post another double-digit sequential increase.

• Q4 royalty revenue baseline is at least $43M, assuming no new license agreements; existing agreements may add royalties, while additional licensing remains subject to deal timing and lumpiness.

• Initial Fab-2 equipment deployment is expected in Q2 2027, targeting constrained process steps; Fab-1 utilization is nearing full capacity.

• Two additional sites within 30 miles of Fab-1 are expected to enable nearly 5X capacity across three fabs relative to Fab-1; Fab-3 construction timing remains undecided.