VICR · Vicor Corporation

Vicor's Q2 2026 results reflect strong execution and accelerating demand across key end markets. Revenue of $143.4 million rose 26.9% sequentially, driven by robust orders in high-performance computing, automatic test equipment, and industrial/aerospace/defense. Gross margin expanded to 58.0% from 55.2% in Q1, benefiting from higher volume and product mix, though down from 65.3% a year ago when a $45 million patent litigation settlement inflated margins. Operating expenses increased to $48.2 million, but net income surged to $49.8 million ($1.04 diluted EPS) from $20.7 million in Q1, reflecting operating leverage and a favorable tax benefit. Backlog reached $380 million, up 26% sequentially and 145% year-over-year, signaling sustained demand visibility. Cash flow from operations turned positive at $34.0 million, reversing a $3.9 million use in Q1 that included a $28.6 million litigation payment. The balance sheet strengthened with cash and equivalents of $453.6 million, up 12.2% from Q1. CEO Patrizio Vinciarelli highlighted that rising demand is absorbing capacity in the first ChiP fab, prompting steps toward a second fab for 2nd Gen VPD ChiPs. He noted that AI OEMs and hyperscalers face current density limitations with 1st Gen VPD systems, and Vicor's 2nd Gen VPD IP positions the company to overcome power challenges for next-generation TPUs, GPUs, and wafer-scale engines. No forward guidance was provided, but the robust backlog and commentary on capacity expansion suggest confidence in continued growth. The absence of specific guidance leaves investors to rely on operational momentum and end-market drivers. Overall, the quarter showcased operational improvement, strong cash generation, and strategic positioning in high-growth power delivery markets.