Vicor VICR reported second-quarter 2026 earnings of $1.04 per share, beating the Zacks Consensus Estimate by 68%. The figure increased 14.3% year over year.
Revenues increased 1.6% year over year to $143.4 million and surpassed the consensus estimate by 3.13%. Sequential growth in Advanced Products and a higher royalty contribution supported the quarterly results.
Vicor’s shares were 3.28% at the time of writing this article. Its shares have risen 95.9% in the year-to-date period.
Vicor Corporation Price, Consensus and EPS Surprise
Vicor Corporation price-consensus-eps-surprise-chart | Vicor Corporation Quote
VICR’s Advanced Products Revenues Accelerate
Advanced Products revenues increased 45% sequentially to $94.2 million. The business accounted for 65.7% of total revenues, up from 57.5% in the first quarter of 2026.
Brick Products revenues rose 2.4% sequentially to $49.2 million and represented 34.3% of total revenues.
Shipments to stocking distributors increased 4.2% sequentially and 38.8% year over year. Exports accounted for approximately 46% of revenues, down from 48.9% in the preceding quarter.
Vicor Benefits From Rising Royalty Income
Product revenues totaled $112.9 million, up 31.8% year over year. Royalty revenues surged to $30.4 million from $10.4 million, reflecting the growing contribution from the company’s intellectual-property licensing activities.
A recent licensing agreement contributed $15 million to second-quarter revenues. Under its accounting treatment, the agreement is expected to contribute $5 million in the third quarter and $10 million in each of the following four quarters. The contract provides for four quarterly payments of $5 million in its first year and four quarterly payments of $10 million in its second year.
Vicor’s Backlog Signals Broad-Based Demand
The book-to-bill ratio remained above 1, while one-year backlog increased 145% from $155 million a year earlier to approximately $380 million. Management said the licensing agreement accounted for relatively little of the backlog increase.
Demand remained strong across high-performance computing, automatic test equipment, industrial, aerospace and defense markets. The company highlighted growing automatic test equipment opportunities, where its low-noise performance and thin-package technology support differentiated power-system designs. Lead times extended modestly amid demand and capacity conditions.
VICR Margins Expand Despite Higher Costs
Gross profit increased sequentially to $83.1 million from $62.4 million. Gross margin expanded 280 basis points (bps) to 58%, aided by higher revenues and a more favorable contribution from royalties.
Operating expenses rose 6.1% sequentially to $48.2 million. The increase primarily reflected contingent legal expenses associated with the licensing agreement completed during the quarter. Management also cited costs tied to moving equipment within the first fabrication facility to accommodate incoming machinery, which weighed on product gross margin.
VICR Maintains a Strong Financial Position
As of June 30, 2026, Cash and cash equivalents were $453.6 million compared with $404.25 million in the previous quarter.
Operating activities generated $34 million in cash compared with cash usage of $3.9 million in the first quarter of 2026.
Vicor is installing additional equipment at its first chip fabrication facility as demand absorbs available capacity. Capital expenditures totaled $11.2 million during the reported quarter. Construction in progress, primarily related to manufacturing equipment, stood at $18.2 million, with $23.5 million of remaining planned spending.
The company is also evaluating sites for a second fabrication facility, which management said will be required to reach its $2.5 billion long-term revenue objective. Initial development would effectively double capacity, while the selected site could eventually support two to three times the capacity of the first facility.
Vicor also received a $14.3 million CHIPS Act investment tax credit refund after quarter-end.
VICR Raises Its 2026 Revenue Outlook
Vicor expects third-quarter revenues to increase nearly 10% sequentially. The company also projects more than $600 million in revenues for 2026, supported by licensing income and double-digit sequential growth in Advanced Products revenues.
The outlook assumes no additional licensing agreements before the final determination in the company’s second International Trade Commission case in 2027.
Vicor expects gross-margin expansion as factory utilization and manufacturing-cost absorption improve.
Zacks Rank & Other Stocks to Consider
Vicor currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Amphenol APH, Bandwidth BAND and Fortinet FTNT. Amphenol, Bandwidth and Fortinet sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol, Bandwidth and Fortinet are set to report their second-quarter 2026 results on July 29. Year to date, shares of Amphenol, Bandwidth and Fortinet have returned 16.8%, 355.4% and 99.1%, respectively.
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