Vicor reports Q3 revenue of $197.1 million, up 37.5%

Vicor Corporation (NASDAQ: VICR) reported product and royalty revenues of $197.1 million for the third quarter ended September 30, 2026. The figure represents a 37.5% sequential increase from $143.4 million in the second quarter of 2026 and a 78.5% year-over-year increase from $110.4 million in the same period last year.

Gross margin expanded to $134.7 million in the third quarter, up from $83.1 million in the prior quarter and $63.5 million a year earlier. As a percentage of revenue, gross margin rose to 68.3% for the quarter, compared to 58.0% in the second quarter of 2026 and 57.5% in the third quarter of 2025.

Operating expenses, which include contingency fees to law firms enforcing Vicor IP, increased to $62.5 million for the third quarter of 2026. This compares to $48.2 million in the second quarter of 2026 and $42.6 million in the corresponding period a year ago.

Net income for the third quarter was $63.3 million, or $1.33 per diluted share. This exceeded net income of $49.8 million, or $1.04 per diluted share, in the second quarter of 2026, and $28.3 million, or $0.63 per diluted share, in the third quarter of 2025.

Cash flow from operations totaled $69.7 million for the quarter, doubling from $34.0 million in the second quarter of 2026 and increasing from $38.5 million a year ago. Capital expenditures for the third quarter were $16.1 million, compared to $11.2 million in the prior quarter and $4.0 million in the same period last year.

Cash and cash equivalents increased 13.1% sequentially to approximately $513.1 million as of September 30, 2026, from approximately $453.6 million as of June 30, 2026.

Backlog stood at $406 million at the end of the third quarter, a 7% sequential rise from $380 million at the end of the second quarter of 2026 and a 166% increase from $153 million a year earlier.

CEO Dr. Patrizio Vinciarelli stated that the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover will enable a nearly five-fold increase in capacity across three fabs relative to Fab-1. Vinciarelli noted that capacity expansion is necessary given demand and industry trends.

The CEO commented that Open Compute confirmed challenges associated with VRs and IVRs, which face electrical, mechanical, and thermal barriers to escalating AI processor requirements in addition to infringing patents on first-generation VPD technology.

Vinciarelli said that private presentations and lab sessions with OEMs and hyperscalers demonstrated the advantages of Vicor’s second-generation VPD technology. He reported that participants provided positive feedback and expressed interest in engaging with the company.

On licensing, Vinciarelli stated that Vicor granted its first VPD license to an AI OEM at Stage-2 unit royalty rates. He added that an ITC decision to institute an investigation into VPD infringement is prompting inquiries about licenses at royalty rates that favor early adopters.