Vicor (VICR) Q3 2026 Earnings Report
MX:VICR Q3 2026 EPS Results
- Actual EPS
- MXN 24.87
- Consensus EPS
- MXN 24.65
- Beat/Miss
- Beat by +MXN 0.22
- One Year Ago EPS
- MXN 11.78
MX:VICR Q3 2026 Revenue Results
- Actual Revenue
- MXN 3.69B
- Expected Revenue
- MXN 3.50B
- Beat/Miss
- Beat by +MXN 188.69M
- YoY Revenue Growth
- +78.51%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/20/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 20, 2026
Vicor's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive, with substantial year-over-year and sequential revenue growth, higher gross margin, strong cash generation, increasing bookings, robust AI-related demand, expanding licensing activity, and planned capacity expansion. The main challenges were near-term manufacturing constraints, elevated legal expense, lumpy royalty timing, uncertainty around IVR adoption, and the undetermined timing of Fab 3.
For Q4, Vicor expects a 10% increase in Q4 product revenue, including another double digit sequential increase in product revenue in its Advanced Products portfolio, or a low double digits increase in product revenue, and at least $43 million in royalty revenue assuming no new license agreements are closed this quarter; royalty revenue could be higher from existing arrangements or new deals. Legal expense is expected to average approximately 20% of royalty revenue in the near term, and further revenue growth will result in further margin expansion. Initial equipment deployment in Fab 2 is expected in Q2 of 27, increasing total manufacturing, while Fab 2 and Fab 3 could support even more than a 5x expansion; Fab 3 timing remains to be determined, and short-term capacity expansion can occur on a time scale of 5-6 months.
- Strong Third-Quarter Revenue GrowthProduct and royalty revenue was $197 million, up 37.5% sequentially from $143 million in Q2 2026 and up 78.5% year over year from $110 million in Q3 2025.
- Advanced Products and Brick Products GrowthAdvanced Products revenue, including royalty revenue, increased 47.5% sequentially to $139 million, while Brick Products revenue increased 18.4% sequentially to $58.3 million. Advanced Products represented 70.4% of total revenue, compared with 65.7% in Q2 2026.
- Royalty Revenue ExpansionRoyalty revenue increased 119.1% to $66.6 million. Management said the licensing practice is now generating recurring royalty revenue proportional to licensee use, with a Q4 baseline of at least $43 million assuming no new license agreements are closed.
- Improved Gross MarginConsolidated gross margin was 68.3%, up 40 basis points sequentially and up 1.08 thousand basis points from Q3 2025. Management attributed the improvement to increased royalty revenue, volume efficiency gains, and product mix.
- Higher ProfitabilityQ3 net income totaled $63.3 million, with GAAP diluted earnings per share of $1.33 based on a fully diluted share count of 47.6 million shares. Management said operating ratios for profitability and expense were approaching its long-term financial model and that further revenue growth would result in further margin expansion.
- Strong Cash Generation and LiquidityCash and cash equivalents increased $59.6 million sequentially to $513 million. Cash flow provided by operating activities totaled $69.7 million for the quarter.
- Positive Bookings and Backlog TrendsQ3 book-to-bill was above 1.1, and quarter-end backlog increased 7% sequentially to $46 million. Management also stated that backlog was closer to $400 million as of the day before the call and reported $100 million in bookings during the first two weeks of Q4.
- Q4 Product and Royalty OutlookWith incremental capacity, management expects a 10% increase in Q4 product revenue, including another double-digit sequential increase in Advanced Products revenue. Management also expects at least $43 million in Q4 royalty revenue assuming no new license agreements are closed during the quarter.
- Demand for Second-Generation VPDThe first two weeks of Q4 included a large order for second-generation VPD modules from Vicor's lead AI customer. Meetings with major hyperscalers and OEMs at Open Compute confirmed interest in second-generation VPD, and selected OEM and hyperscaler engagements can access demonstration systems in Vicor's Silicon Valley applications laboratory.
- VPD Performance AdvantagesManagement stated that Vicor's proprietary dual FPA enables a 10% to 15% reduction in AI processor power loss, more than 40x the current gain of IVRs, and 3x the current density of VRs. Initial second-generation VPD demonstrations reached 3 amps per square millimeter, with management stating that 5 to 6 amps per square millimeter is not far away.
- Capacity Expansion UnderwayVicor purchased sites for Fab 2 and Fab 3 to support increased demand. Initial equipment deployment in Fab 2 is expected in Q2 2027, with manufacturing capacity increasing incrementally beginning in that quarter. Management said the two sites could support more than a 5x expansion relative to Fab 1 and that Fab 2 and, in due course, Fab 3 can be funded without raising capital.
- First VPD License and Additional Licensing OpportunitiesVicor granted its first VPD license to a leading AI OEM at stage 2 unit royalty rates and responded to inquiries from two hyperscalers seeking all-inclusive licenses quoted at stage 2 and stage 3. Management said licensing royalty rates escalate by stage and that the licensing framework is intended to encourage early adoption.
- Growth Across Target MarketsManagement said its focus on the top 10 and top 100 customers and top channel accounts across four markets and four global regions is producing bookings and opportunity-pipeline growth. Leading automated test equipment customers for ASIC and memory test systems now represent more than $100 million in annual revenue, and major new product introductions are underway in industrial and aerospace and defense markets.
- Strong Customer Demand and Supply PlanningManagement reported a call with a major customer that is seeing demand doubling every year for the next several years and said customers are discussing capacity reservations for coming years. Management also stated that most customers are single-sourced with Vicor and that it has a responsibility to avoid gating their growth.
- Healthy Financial Position for ExpansionManagement said Fab 2's investment is well within Vicor's cash-flow capability and that the company expects to fund Fab 2 and Fab 3 without a capital raise. Capital expenditures were $16.1 million in Q3, with approximately $26.4 million of construction in progress and approximately $48.6 million remaining to be spent.
MX:VICR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 22.55- | 18.89 | ― | ― |
| Oct 20, 2026 | 2026 (Q3) | 24.6524.87 | 11.78 | 111.11% (+13.09) | |
| Jul 21, 2026 | 2026 (Q2) | 12.1919.45 | 17.02 | 14.29% (+2.43) | |
| Apr 21, 2026 | 2026 (Q1) | 6.998.23 | 1.12 | 633.33% (+7.11) | |
| Feb 19, 2026 | 2025 (Q4) | 8.1518.89 | 4.3 | 339.13% (+14.59) | |
| Oct 21, 2025 | 2025 (Q3) | 3.1811.78 | 4.86 | 142.31% (+6.92) | |
| Jul 22, 2025 | 2025 (Q2) | 3.2217.02 | -0.56 | 3133.33% (+17.58) | |
| Apr 29, 2025 | 2025 (Q1) | 4.731.12 | 1.12 | 0.00% (+0.00) | |
| Feb 20, 2025 | 2024 (Q4) | 3.554.30 | 3.55 | 21.05% (+0.75) | |
| Oct 22, 2024 | 2024 (Q3) | 2.434.86 | 6.92 | -29.73% (-2.06) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.