Earnings surpass forecasts but shares move lower
Vicor Corporation (NASDAQ:VICR) reported second-quarter financial results on Tuesday that came in ahead of Wall Street expectations for both earnings and revenue.
Despite the stronger-than-expected performance, the power components manufacturer’s shares declined 6.23% in pre-market trading following the release.
Adjusted earnings reached $1.04 per share, comfortably exceeding the analyst consensus estimate of $0.65.
Revenue increased to $143.4 million, ahead of the expected $138.4 million and up 1.7% from $141.0 million in the same quarter last year. The prior-year period included a $45.0 million patent litigation settlement. Excluding that one-off benefit, product and royalty revenue climbed 49% year over year from $96.0 million.
Profitability and order book strengthen
Net income rose to $49.8 million during the quarter, compared with $20.7 million in the first quarter of 2026 and $41.2 million in the corresponding period last year.
Gross margin improved to 58.0%, up from 55.2% in the previous quarter. However, it remained below the 65.3% reported a year earlier, when results benefited from the patent settlement.
Vicor’s backlog expanded sharply to $380 million, representing a 145% increase from $155 million a year earlier and a 26% rise from $301 million in the first quarter.
Capacity expansion planned as demand accelerates
“Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab,” said Chief Executive Officer Dr. Patrizio Vinciarelli. “As we get closer to full capacity utilization, we are taking steps toward a second fab for high current density 2nd Gen VPD ChiPs.”
Cash position improves
Cash and cash equivalents totaled $453.6 million at June 30, 2026, an increase of 12.2% from $404.2 million at the end of the previous quarter.
Operating cash flow improved to $34.0 million during the second quarter, compared with cash used in operating activities of $3.9 million in the first quarter, which reflected a $28.6 million litigation payment.
Capital expenditures were $11.2 million during the quarter, down from $12.4 million in the previous quarter but above the $6.2 million reported in the second quarter of 2025.