Vicor Stock Earnings Reports

Vicor reported strong Q1 2026 results with product and royalty revenue of $113.0M, up 5.3% sequentially and 20.2% year-over-year. Advanced Products comprised 57.5% of revenue and gross margin was 55.2% (up 800 bps YoY). Bookings were robust (book-to-bill >2) and 1-year backlog rose 70% sequentially to $300.6M. Management provided guidance of nearly $126M for Q2 and nearly $570M for full-year 2026, noting this outlook conservatively assumes no new licensing agreements until a second ITC case reaches final determination in 2027. Demand strength is broad-based (HPC, industrial, aerospace & defense); the lead HPC customer is ramping wafer-scale and next-gen designs, and Vicor expects a generational transition to begin in H2 2026. Capacity is a key focus: management sees the ability to expand the current Andover (Federal Street) fab capacity from an earlier ~$1B/year plan to at least ~$1.5B/year through process improvements, a second 3D interconnect line, and interim nearby facilities while evaluating a second fab. Management expects to remain capacity constrained and therefore will be selective with new customers. Licensing/IP enforcement remains strategic: royalties are included in revenue guidance only conservatively, legal/IP costs increased SG&A this quarter, and licensing is viewed as high-margin, high-growth over time. Cash and liquidity remain strong ($404.2M cash), inventories $94.8M, DSOs 42 days; Q1 cash used in operations was $3.9M (including a $28.6M litigation settlement payment). Management expects long-term effective tax rate nearer to ~20% after a one-time quarter benefit from option exercises.