Vicor beats Q2 estimates as gross margin, backlog, cash flow, and adjusted earnings improve.
Stock Earnings Results
July 21, 2026
Table of Contents
July 21, 2026
Vicor Corporation (NASDAQ: VICR) reported second-quarter 2026 results above expectations, supported by higher sequential revenue, stronger gross margin, improved cash flow, and a sharp increase in backlog.
Vicor designs, manufactures, and sells modular power components and power systems used in high-performance computing, industrial equipment, automation, telecommunications, vehicles, transportation, aerospace, and defense electronics.
The company reported diluted EPS of $1.04, above estimates of $0.62, representing a 67.7% earnings surprise. Revenue came in at $143.35 million, above estimates of $138.70 million, with revenue growth of 1.6%.
Product and royalty revenue totaled $143.4 million, up 26.9% from $113.0 million in the first quarter.
Revenue compared with $141.0 million in the prior-year period, which included product revenue, royalty revenue, and a $45.0 million patent litigation settlement.
Gross margin increased sequentially to $83.1 million from $62.4 million in the first quarter.
Gross margin as a percentage of revenue improved to 58.0%, compared with 55.2% in the first quarter.
Net income was $49.8 million, or $1.04 per diluted share, compared with $20.7 million, or $0.44 per diluted share, in the first quarter.
Backlog totaled $380 million at the end of the second quarter.
That was up 26% from $301 million at the end of the first quarter and up 145% from $155 million a year earlier.
Management said rising demand across high-performance compute, from $301 million at the end of the first quarter and up 145% from automatic test equipment, industrial, aerospace, and defense markets is absorbing increased capacity at the company’s first ChiP fab.
Vicor said it is moving closer to full capacity utilization and is taking steps toward a second fab for high-current-density second-generation VPD ChiPs.
Management said AI OEMs and hyperscalers are facing current density and power delivery network limitations.
Vicor said its second-generation VPD intellectual property is designed to address power system challenges for future TPUs, GPUs, and wafer-scale engines.
The company positioned its technology as a potential solution for high-performance AI systems that require more efficient and denser power delivery.
Cash flow from operations was $34.0 million in the second quarter, compared with cash used for operations of $3.9 million in the first quarter.
Capital expenditures were $11.2 million.
Cash and cash equivalents increased 12.2% sequentially to $453.6 million, compared with $404.2 million at the end of the first quarter.
The stronger cash position gives Vicor more flexibility as it considers additional manufacturing capacity.
Vicor delivered a strong quarter tied to AI and high-performance computing demand.
Revenue beat expectations, EPS came in well above estimates, gross margin improved sequentially, and backlog more than doubled from a year earlier. Management also pointed to rising demand across AI, aerospace, defense, industrial, and test equipment markets.
The key question is whether Vicor can scale capacity fast enough to meet demand while maintaining margins.
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