Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2026
Backlog increased 166% year over year as Vicor purchased two sites for a planned manufacturing capacity expansion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Vicor (NASDAQ: VICR) reported third-quarter 2026 product and royalty revenue of $197.1 million, up 78.5% from a year earlier. Revenue rose 37.5% sequentially. Net income attributable to Vicor was $63.321 million, with diluted earnings of $1.33 per share versus $0.63 a year earlier. Gross margin reached 68.3%, compared with 58.0% in the second quarter and 57.5% a year earlier.
Operating expenses rose to $62.5 million from $42.6 million a year earlier. Operating cash flow totaled $69.7 million, and cash reached approximately $513.1 million. Backlog was $406 million, up 7% sequentially and 166% year over year. Capital expenditures totaled $16.1 million. Vicor purchased two additional sites and expects three fabs to provide nearly five times Fab-1's capacity. It also granted its first vertical power delivery (VPD) license to an AI equipment manufacturer at Stage-2 unit royalty rates.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 product and royalty revenue reached $197.1 million, up 37.5% sequentially and 78.5% year over year.
- Moderate pointQ3 diluted earnings rose to $1.33 from $1.04 sequentially and $0.63 a year earlier.
- Moderate pointQ3 net income attributable to Vicor increased to $63.321 million from $28.292 million a year earlier.
- Moderate pointQ3 gross margin increased to 68.3%, versus 58.0% sequentially and 57.5% a year earlier.
- Moderate pointQ3 operating income rose to $72.148 million from $20.907 million a year earlier.
- Moderate pointQ3 operating cash flow increased to $69.7 million, versus $34.0 million sequentially and $38.5 million a year earlier.
- Moderate pointSeptember-end backlog reached $406 million, up 7% sequentially and 166% year over year.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Vicor expects nearly five times Fab-1's capacity across three fabs.
- Moderate pointVicor granted its first VPD license to an AI equipment manufacturer at Stage-2 unit royalty rates.
5 minor points
- Minor pointSeptember-end cash increased 13.1% sequentially to approximately $513.1 million.
- Minor pointVicor purchased two additional sites within 30 miles of Fab-1 for capacity expansion.
- Minor pointNine-month net revenue increased to $453.435 million from $300.437 million a year earlier.
- Minor pointNine-month net income attributable to Vicor rose to $133.757 million from $72.023 million a year earlier.
- Minor pointNine-month diluted earnings increased to $2.81 from $1.59 a year earlier.
Negative
- Moderate pointQ3 operating expenses rose to $62.5 million, versus $48.2 million sequentially and $42.6 million a year earlier.
- Minor pointQ3 capital expenditures increased to $16.1 million, versus $11.2 million sequentially and $4.0 million a year earlier.
- Minor pointQ3 income tax provision was $15.401 million, versus a $4.988 million benefit a year earlier.
- Minor pointNine-month operating expenses increased to $156.256 million from $133.863 million a year earlier.
Details
Market move: VICR +6.47% vs previous close. 3Q26 earnings report
On Oct 20, the day this news came out, the latest delayed price for VICR is 6.47% above the previous close. Our momentum scanner has recorded 13 alerts for this stock so far that day. The latest delayed price is $203.02. Relative volume is exceptionally heavy at 28.4x the average.
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Key Figures
- Product and royalty revenues
- $197.1 million
- Q3 2026; up 37.5% sequentially and 78.5% year over year
- Gross margin
- $134.7 million
- Q3 2026
- Gross margin as a percentage of revenue
- 68.3%
- Q3 2026; compared with 58.0% in Q2 2026 and 57.5% a year ago
- Net income
- $63.3 million
- Q3 2026
- Diluted earnings per share
- $1.33
- Q3 2026
- Cash flow from operations
- $69.7 million
- Q3 2026
- Backlog
- $406 million
- Q3 2026; up 7% sequentially and 166% year over year
Previous Earnings Reports
-
Prior-quarter report set $143.4 million revenue and $83.1 million gross margin baseline.
-
Year-ago Q3 reported $110.4 million revenue and $63.5 million gross margin baseline.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gross margin financial
capital expenditures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ANDOVER, Mass., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2026. These results will be discussed at 8:00 a.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.
Product and royalty revenues for the third quarter ended September 30, 2026 totaled
Gross margin increased sequentially to
Net income for the third quarter was
Cash flow from operations totaled
Backlog for the third quarter ended September 30, 2026 totaled
Commenting on recent developments, CEO Dr. Patrizio Vinciarelli stated: “With the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover, we will be able to provide a nearly 5X increase in capacity from 3 Fabs, relative to Fab-1. Capacity expansion is necessary in view of demand and industry trends.
Open Compute confirmed the challenges of VRs and IVRs. In addition to infringing patents to 1st GEN VPD, VRs and IVRs face electrical, mechanical and thermal barriers to escalating AI processor requirements. In private presentations and lab sessions with OEMs and Hyperscalers, we demonstrated the distinct advantages of Vicor’s 2nd GEN VPD. Participants paid attention, providing positive feedback and interest in engaging. The stage is set for broader adoption of high performance ALL-FPA current multiplier modules which enable 2nd GEN VPD.
On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates. Unlicensed OEMs and Hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD. The ITC decision to institute an investigation into VPD infringement is catching their attention, prompting inquiries about licenses at royalty rates that strongly favor early adopters."
For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.
Earnings Conference Call
Vicor will be holding its investor conference call today, Tuesday, October 20, 2026 at 8:00 a.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 8:00 a.m. on October 20, 2026. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2025, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
For further information contact:
James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com
| VICOR CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| (Thousands except for per share amounts) | ||||||||||||
| QUARTER ENDED | NINE MONTHS ENDED | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| SEPT 30, | SEPT 30, | SEPT 30, | SEPT 30, | |||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Product revenue | $ | 130,501 | $ | 88,698 | $ | 341,431 | $ | 257,597 | ||||
| Royalty revenue | 66,613 | 21,725 | 112,004 | 42,840 | ||||||||
| Total net revenues | 197,114 | 110,423 | 453,435 | 300,437 | ||||||||
| Patent litigation settlement | - | - | - | 45,000 | ||||||||
| Total net revenues and patent litigation settlement | 197,114 | 110,423 | 453,435 | 345,437 | ||||||||
| Cost of product revenues | 62,434 | 46,910 | 173,269 | 145,431 | ||||||||
| Gross margin | 134,680 | 63,513 | 280,166 | 200,006 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 38,563 | 22,747 | 89,356 | 75,836 | ||||||||
| Research and development | 23,969 | 19,859 | 66,900 | 58,027 | ||||||||
| Total operating expenses | 62,532 | 42,606 | 156,256 | 133,863 | ||||||||
| Income from operations | 72,148 | 20,907 | 123,910 | 66,143 | ||||||||
| Other income (expense), net | 6,585 | 2,407 | 14,149 | 9,198 | ||||||||
| Income before income taxes | 78,733 | 23,314 | 138,059 | 75,341 | ||||||||
| Less: Provision (benefit) for income taxes | 15,401 | (4,988 | ) | 4,265 | 3,278 | |||||||
| Consolidated net income | 63,332 | 28,302 | 133,794 | 72,063 | ||||||||
| Less: Net income attributable to | ||||||||||||
| noncontrolling interest | 11 | 10 | 37 | 40 | ||||||||
| Net income attributable to | ||||||||||||
| Vicor Corporation | $ | 63,321 | $ | 28,292 | $ | 133,757 | $ | 72,023 | ||||
| Net income per share attributable | ||||||||||||
| to Vicor Corporation: | ||||||||||||
| Basic | $ | 1.37 | $ | 0.63 | $ | 2.92 | $ | 1.60 | ||||
| Diluted | $ | 1.33 | $ | 0.63 | $ | 2.81 | $ | 1.59 | ||||
| Shares outstanding: | ||||||||||||
| Basic | 46,129 | 44,734 | 45,845 | 44,986 | ||||||||
| Diluted | 47,609 | 44,930 | 47,524 | 45,167 | ||||||||
| VICOR CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
| (Thousands) | ||||||||
| SEPT 30, | DEC 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 513,137 | $ | 402,805 | ||||
| Accounts receivable, net | 122,488 | 60,716 | ||||||
| Inventories | 110,922 | 91,340 | ||||||
| Other current assets | 13,594 | 32,502 | ||||||
| Total current assets | 760,141 | 587,363 | ||||||
| Long-term deferred tax assets | 23,439 | 27,463 | ||||||
| Long-term investment, net | - | 2,462 | ||||||
| Property, plant and equipment, net | 177,987 | 147,690 | ||||||
| Other assets | 20,053 | 20,853 | ||||||
| Total assets | $ | 981,620 | $ | 785,831 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 24,334 | $ | 12,290 | ||||
| Accrued compensation and benefits | 14,047 | 12,031 | ||||||
| Accrued expenses | 22,223 | 3,691 | ||||||
| Accrued litigation | - | 28,275 | ||||||
| Sales allowances | 3,512 | 3,136 | ||||||
| Short-term lease liabilities | 1,733 | 1,568 | ||||||
| Income taxes payable | 208 | 904 | ||||||
| Short-term deferred revenue and customer prepayments | 418 | 3,426 | ||||||
| Total current liabilities | 66,475 | 65,321 | ||||||
| Long-term income taxes payable | 3,143 | 3,086 | ||||||
| Long-term lease liabilities | 5,427 | 5,608 | ||||||
| Total liabilities | 75,045 | 74,015 | ||||||
| Equity: | ||||||||
| Vicor Corporation stockholders' equity: | ||||||||
| Capital stock | 518,247 | 462,805 | ||||||
| Retained earnings | 555,116 | 421,359 | ||||||
| Accumulated other comprehensive loss | (1,174 | ) | (1,672 | ) | ||||
| Treasury stock | (165,909 | ) | (170,935 | ) | ||||
| Total Vicor Corporation stockholders' equity | 906,280 | 711,557 | ||||||
| Noncontrolling interest | 295 | 259 | ||||||
| Total equity | 906,575 | 711,816 | ||||||
| Total liabilities and equity | $ | 981,620 | $ | 785,831 | ||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Vicor's third-quarter 2026 revenue and earnings?
Vicor reported $197.1 million in product and royalty revenue and $1.33 in diluted earnings per share. Revenue increased 78.5% from a year earlier and 37.5% sequentially. Net income attributable to Vicor was $63.321 million, compared with $28.292 million a year earlier.
How much did Vicor's backlog grow in the third quarter of 2026?
Vicor's quarter-end backlog reached $406 million, increasing 7% sequentially and 166% year over year. Backlog was $380 million at the end of the second quarter of 2026 and $153 million in the corresponding period a year earlier.