Vicor (VICR) Q3 2026 earnings summary

Executive summary

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

• Results benefited from stronger product demand, higher royalties and production efficiencies; gross margin also reflected product mix and tariff-related costs.

• Backlog scheduled for shipment within 12 months reached $406.0M, up 7% QoQ and 166% YoY.

Financial highlights

• Product revenue was $130.5M and royalty revenue was $66.6M, versus $21.7M in royalties a year earlier; total revenue was $197.1M.

• Advanced Products revenue, including royalties, rose 47.5% QoQ to $138.9M; Brick Products revenue rose 18.4% to $58.3M.

• Gross margin was $134.7M, or 68.3% of revenue, versus 57.5% a year earlier; operating income was $72.1M versus $20.9M.

• Operating expenses increased 29.6% QoQ to $62.5M; legal expense rose $11.1M to $16.1M, with near-term legal expense expected to average ~20% of royalty revenue.

• Net income was $63.3M and diluted EPS was $1.33; the tax provision was $15.4M and the effective tax rate was 19.6%.

Outlook and guidance

• Q4 product revenue is expected to increase low double digits sequentially, with another double-digit sequential increase in Advanced Products.

• Q4 royalty revenue baseline is at least $43M, excluding new license agreements; royalties from existing agreements or new deals could add upside, but timing and amounts are uncertain.

• Initial Fab-2 equipment deployment is expected in Q2 2027; Fab-1 utilization is nearing full capacity and expansion targets currently constrained process steps.

• Management expects further revenue growth to expand margins; manufacturing and equipment investment is expected to be funded with existing cash and operating cash generation.