VICR · Vicor Corporation

Vicor Corporation delivered strong Q1 2026 results driven by robust demand in high-performance compute, automatic test equipment, industrial, aerospace, and defense sectors, as evidenced by a 70% sequential backlog surge to $301 million from $177 million at year-end 2025. Revenues climbed 20.2% year-over-year to $113.0 million, with product revenue at $98.0 million and royalty revenue at $15.0 million, reflecting improved pricing power and IP enforcement that CEO Dr. Patrizio Vinciarelli noted is precluding unlawful importation of infringing systems. Gross margin expanded dramatically to 55.2% from 47.2% a year ago, fueled by a favorable product mix despite higher cost of goods at $50.6 million, though it dipped slightly from 55.4% in Q4. Operating expenses rose modestly to $45.5 million, with R&D up to $22.3 million supporting innovation in VPD power systems. This yielded operating income of $16.9 million versus a loss last year, and net income of $20.7 million after a small tax benefit. Q4's elevated $46.5 million net income included a $27.3 million tax benefit from deferred tax assets. Cash flow reflected a $28.6 million litigation payment, netting $(3.9) million used, offset by $12.4 million capex for CHiP fab expansion and plans for a second fab plus alternate VPD module sourcing to ensure supply redundancy for OEMs and hyperscalers. Balance sheet remains fortress-like with $404.2 million in cash, down accrued litigation to zero, and equity up to $754.1 million. No forward guidance provided, but management commentary signals capacity buildout to capture backlog conversion into future growth.