MaxLinear MXL is set to report second-quarter 2026 results on July 23.
For the second quarter of 2026, MXL expects revenues between $160 million and $170 million. The company expects all four end markets — Infrastructure, Broadband, Connectivity and Industrial/Multi-market — to grow sequentially in the second quarter.
The Zacks Consensus Estimate for revenues is pegged at $165 million, implying growth of 51.64% from the year-ago quarter’s reported figure.
For the second quarter of 2026, the Zacks Consensus Estimate for earnings is pegged at 33 cents per share, unchanged over the past 30 days. MXL reported earnings of 2 cents per share in the year-ago quarter.
MaxLinear’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, meeting the same in the remaining quarter, the average surprise being 11.11%.
Consensus Estimate Trend
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Let’s see how things have shaped up for the upcoming announcement:
MaxLinear, Inc Price and EPS Surprise
MaxLinear, Inc price-eps-surprise | MaxLinear, Inc Quote
Key Factors to Aid MXL’s Q2 Results
MaxLinear’s second-quarter 2026 results are expected to have benefited from strong infrastructure segment revenues. The segment became the company’s largest business after surging 136% year over year in the first quarter of 2026. It specifically guided infrastructure to deliver the strongest sequential growth in the second quarter of 2026, led by optical interconnect products.
Broadband is expected to have recovered from a seasonally weak first quarter of 2026 as fiber PON deployments expanded with a second Tier-1 North American operator. Wireless infrastructure is expected to have contributed more meaningfully as telecom operators increased investments in 5G RAN, transport and AI-enabled edge infrastructure.
However, MXL’s to-be-reported quarter results are expected to have suffered from increasing wafer and packaging costs. The company expects non-GAAP gross margin between 58% and 61%, which is conservative given the strong revenue guidance.
MaxLinear identified unfavorable foreign exchange movements as the primary risk to second-quarter interest and other expense guidance. This is expected to have hurt earnings growth despite stronger operating performance.
MXL Shares Outperform Sector, Trades at a Premium
MXL shares have jumped 330.4% year to date (YTD), outperforming the broader Zacks Computer and Technology sector’s return of 12.1%. The company has outperformed competitors including Marvell Technology MRVL, Broadcom AVGO and Credo Technology CRDO. YTD, shares of Marvell, Broadcom and Credo have returned 129.4%, 9.2% and 47.4%, respectively.
MXL Stock’s Price Performance
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MaxLinear shares are overvalued, as suggested by Value Score F.
MXL stock is trading at a forward 12-month price/sales (P/S) of 9.3X compared with the broader sector’s 6.6X. However, the stock is trading at a discount compared with Broadcom’s 11.59X, Credo’s 15.23X and Marvell’s 12.24X.
MXL Shares Trade at a Premium
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Strong AI Infrastructure Demand Aids MXL’s Prospects
MaxLinear has emerged as one of the fastest-growing beneficiaries of AI networking infrastructure, with investors increasingly pricing in a multi-year optical data center growth cycle. MXL’s rapidly expanding optical connectivity business for hyperscale AI data centers has been a key catalyst.
The company’s expanding hyperscale AI clientele is a major driver. Management has disclosed that its Keystone PAM4 DSP platform is ramping at multiple major hyperscale customers across the United States and Asia for both 400G and 800G optical deployments. The company also expects a step-function increase in data center revenues beginning in the second quarter of 2026, with backlog already extending into 2027.
An expanding portfolio comprising Rushmore 200G/lane PAM4 DSP, Washington 200G/lane TIA and Annapurna 1.6T electrical retimer platform is expected to drive top-line growth. These innovative product pipeline targets next-generation 1.6T optical modules, Linear Pluggable Optics, Linear Receive Optics, Active Electrical Cables and Co-packaged optics. MaxLinear expects production ramps to begin in late 2026 with further revenue acceleration through 2027.
Despite strong demand from AI infrastructure customers, MaxLinear faces several near-term execution risks that are expected to hurt its near-term prospects. The company has acknowledged that industry-wide supply constraints remain a challenge, particularly for advanced wafers used in its optical data center products. To secure future production, MaxLinear has increased wafer prepayments, reflecting confidence in demand but also tying up working capital. At the same time, MXL warned that higher wafer, packaging and other manufacturing costs could weigh on profitability if they cannot be fully passed on to customers.
MXL Stock: Hold Right Now?
MaxLinear appears well positioned heading into its second-quarter 2026 earnings release. Strong momentum in AI-driven optical interconnect products, recovering broadband demand and continued investments in networking infrastructure are expected to support robust revenue growth. However, rising manufacturing costs, foreign exchange headwinds and ongoing supply constraints could limit margin expansion despite healthy demand.
Given the MaxLinear stock’s sharp rally this year and its premium valuation, much of the near-term optimism appears to be reflected in the share price. Investors already holding MXL may prefer to stay invested ahead of the earnings release, as the company’s long-term AI infrastructure opportunity remains compelling, while waiting for greater clarity on margin trends, execution and the sustainability of its optical networking growth before increasing their exposure.
MaxLinear currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).