Vicor Corporation Q3 2026 Earnings Recap

Shares rose 7.1% after Vicor reported a sharp revenue increase and forecast further Q4 growth. The outlook calls for 10% sequential product-revenue growth and at least $43 million in royalty revenue, though management noted some Q3 royalty growth was nonrecurring.

Key Takeaways

• Q3 product and royalty revenue was $197 million, up 37.5% sequentially and 78.5% year over year.
• Royalty revenue rose 119.1% sequentially to $66.6 million; a fraction of the increase came from initial payments by a new licensee and was nonrecurring.
• Gross margin was 68.3%, up 40 basis points sequentially. Operating expenses increased 29.6% to $62.5 million, including $16.1 million in legal expense.
• Q4 outlook is for 10% sequential product-revenue growth and at least $43 million in royalty revenue, assuming no new license agreements close. Management expects another double-digit sequential increase in Advanced Products revenue.
• Book-to-bill exceeded 1.1, backlog rose 7% sequentially to $46 million, and the company cited $100 million in bookings in the first two weeks of Q4.