Core Insights - MACOM Technology Solutions reported strong demand across its end markets, with revenue growth of 24.5% year-over-year and a record backlog, indicating a positive outlook for the company through calendar 2027 [1][2][4] Financial Performance - Fiscal Q1 2026 revenue was $271.6 million, with adjusted earnings per diluted share of $1.02, supported by robust demand in industrial and defense, data center, and telecom sectors [2][4] - The adjusted gross margin was 57.6%, with record adjusted operating income of $74.0 million, and the company ended the quarter with $768 million in cash and short-term investments [3][14] - The company guided Q2 revenue to be between $281 million and $289 million, with adjusted EPS projected at $1.05 to $1.09 [4][14] Market Segments - Data center revenue growth target was raised to 35%-40% year-over-year, up from a previous target of 20%, driven by demand for 800G and 1.6T optics [4][5] - In industrial and defense, MACOM is positioned as a supplier of choice among large U.S. defense OEMs, focusing on high-frequency and high-power RF/microwave solutions [10] - The telecom segment is seeing growth opportunities in satellite broadband and direct-to-cell applications, with a $55 million satellite contract expected to start production in the second half of calendar 2026 [11][12] Product Development - The company is focusing on near-packaged and co-packaged optics, with confirmed customer qualifications for its 75-milliwatt CW lasers [7] - MACOM is also supporting various optical transmission technologies and is seeing growth in pluggable optical modules tied to 800G and 1.6T PAM4 [8][9] Strategic Outlook - Management expressed confidence in the data center market, citing strong bookings and a healthy backlog, with expectations for stronger performance in the second half of the fiscal year [6][10] - The company does not plan to engage in share repurchases, focusing instead on retiring convertible notes and maintaining a strong balance sheet [3][14]