MACOM Technology Solutions Holdings (MTSI) Q3 FY2026 Earnings Call

Bottom line

The market will focus on the 18% revenue surge powered by a record 1.6× book‑to‑bill, but the true story is the stealthy ramp of indium‑phosphide capacity that is already lifting inventory turns and margins - a driver the street isn’t pricing in. The binding constraint remains fab capacity; the new 6‑inch line in France won’t be live until late‑2027, capping how much of the $15 B SAM can be captured now. If the Lowell fab utilization stalls or the G10 reactor under‑delivers, the margin tailwinds evaporate. My view changes if the company can lock in a $50 M CW‑laser volume commitment by Q4 or if the book‑to‑bill ratio falls below 1.4× in the next quarter.

The 30-second version

Sleeper story - Indium‑phosphide capacity is silently turning into a margin driver
Headline - Record 1.6× book‑to‑bill fuels 18% sequential revenue jump
Red flag - DSO fell to 48 days, a metric that vanished from Q2 disclosure

What changed this quarter

Metric	Q2'26	Q3'26	Change
Revenue	$289 M (+22% YoY)	$342.2 M (+35.8% YoY)	+53.2 M (+18% q/q)
Adjusted EPS	$1.09 (per diluted)	$1.40 (per diluted)	+$0.31
Adjusted Operating Income	$80.5 M	$107.7 M	+$27.2 M (+33.9% q/q)
Adjusted Gross Margin	58.5%	59.7%	+120 bps
Book‑to‑Bill	1.5×	1.6× (record)	+0.1×
Inventory	$252.2 M	$281.5 M	+$29.3 M (+11.6%)
Inventory Turns	1.9×	2.0×	+0.1×
Operating Cash Flow	$78.7 M	$80.0 M	+$1.3 M (+1.7%)
R&D Expense	$59.1 M	$65.3 M	+$6.2 M (+10.5%)
CAPEX Q3	$13.2 M (Q2)	$20.8 M	+$7.6 M (↑57%)

Accountability tracked

1 new promise made

Inside the full report

The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.

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MACOM Technology Solutions Holdings (MTSI)

The 30-second version

What changed this quarter

Accountability tracked

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