10-Q · July 29, 2026
Vicor delivered a strong Q2, with revenue of $143.352 million up 26.9% sequentially and 49.3% year over year, driven by 55.5% Advanced Products growth and a $30.426 million royalty contribution. Gross margin improved…
Earnings analysis · 10-Q
VICR earnings analysis
Filed October 26, 2026 · Our reading of the company's report
The latest report
Vicor delivered a strong Q3 2026, with revenue up 78.5% year over year to $197.114 million, gross margin expanding to 68.3%, and diluted EPS rising to $1.33 from $0.63. Advanced Products, including royalty revenue, more…
Read full summary
Vicor delivered a strong Q3 2026, with revenue up 78.5% year over year to $197.114 million, gross margin expanding to 68.3%, and diluted EPS rising to $1.33 from $0.63. Advanced Products, including royalty revenue, more than doubled and backlog increased to $406.043 million, supporting continued demand momentum. Liquidity is robust at $513.137 million of cash, although receivables, inventory, legal costs, and capital spending increased materially. No quantitative financial guidance or material formal risk-factor changes were provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.33
What stood out
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Revenue accelerated sharply
Q3 2026 revenue was $197.114 million, up 37.5% from $143.352 million in Q2 2026 and up 78.5% from $110.423 million in Q3 2025. Revenue exceeded the provided consensus estimate of $187.060 million by approximately $10.054 million.
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Gross margin expanded
Gross margin increased to 68.3% from 58.0% in Q2 2026 and 57.5% in Q3 2025. Gross profit rose 62.0% sequentially to $134.680 million and 112.1% year over year.
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Operating leverage drove EPS growth
Operating income was $72.148 million, implying a 36.6% operating margin versus 24.3% in Q2 2026 and 18.9% in Q3 2025. Diluted EPS increased to $1.33 from $1.04 sequentially and $0.63 year over year, exceeding the $1.27 consensus estimate.
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Both product lines grew
Advanced Products revenue increased to $138.861 million from $65.506 million year over year, primarily due to higher royalty revenue from a new license agreement and improved market demand. Brick Products revenue rose to $58.253 million from $44.917 million due to improved volume and market demand.
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Backlog reached $406 million
Backlog increased to approximately $406.043 million at September 30, 2026, from $379.736 million at June 30, 2026. Management attributed the sequential revenue increase to improved market demand and higher royalty revenue.
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Liquidity strengthened materially
Cash and cash equivalents increased to $513.137 million from $402.805 million at December 31, 2025, while working capital increased by $171.624 million to $693.666 million. Nine-month operating cash flow was $80.364 million against $39.700 million of capital additions, implying approximately $40.664 million of derived free cash flow.
What to watch
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Legal costs remain elevated
Selling, general and administrative expense increased 69.5% year over year to $38.563 million, including a $13.926 million increase in legal fees. Management attributed the legal-fee increase to licensing agreements and higher legal activity, creating a risk that elevated legal spending will limit operating leverage.
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Working capital absorption increased
Accounts receivable increased by $61.772 million and inventories increased by $19.582 million from December 31, 2025 to $122.488 million and $110.922 million, respectively. Management said inventory increased $6.433 million sequentially in anticipation of higher volume, creating working-capital and demand-forecast risk.
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Capacity spending is rising
Capital additions were $39.700 million in the first nine months of 2026, versus $14.775 million in the prior-year period, and outstanding capital expenditure commitments were $14.037 million at September 30, 2026. Execution risk remains as Vicor expands manufacturing capacity and production equipment.
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Tax rate was a headwind
The Q3 tax provision was $15.401 million, compared with a $4.988 million tax benefit in Q3 2025, resulting in a 19.6% effective tax rate versus negative 21.4%. The company also retained a $17.500 million valuation allowance primarily related to state tax attributes.
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Customer concentration and supply risk
Management stated that customer forecasts, particularly from high-volume OEM, ODM, and contract-manufacturing customers, are subject to short-notice schedule changes. The company also cited reliance on outsourced package-process steps and raw-material procurement as supply-chain risks that can reduce revenue, gross margin, operating profit, and cash flow.
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No formal risk-factor update
The filing states that there were no material changes to the risk factors reported in the 2025 Form 10-K. Separately, Vicor paid $28.557 million on March 18, 2026 to satisfy the SynQor judgment, while a securities class-action matter remains described in the commitments and contingencies disclosure.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that cash generated from operations and available cash and cash equivalents should be sufficient to fund planned operational needs and capital equipment purchases for the short and long term.
Earlier filings 4
10-Q · April 30, 2026
Vicor Corporation reported a strong first quarter of 2026 with revenue of $112.97 million, reflecting a significant increase of 20.3% year-over-year and a modest 3.7% rise quarter-over-quarter. The company delivered a…
10-K · March 2, 2026
Vicor describes a strategic pivot toward higher‑growth, higher‑performance "Advanced Products" (61.0% of 2025 revenue) driven by its Factorized Power Architecture (FPA) and Power‑on‑Package offerings. Financially, 2025…
10-Q · August 1, 2025
Vicor reported a materially stronger quarter driven by a $45.0M patent litigation settlement and higher product/royalty revenue, producing consolidated net income of $41.2M ($0.91 diluted) for Q2 2025 versus a net loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.