Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $1.2 billion | 63% higher than Q3 2025 |
| Quarterly Revenue | >$1 billion | First time achieved |
| Sequential Revenue Growth | 22% | Versus Q2 2026 |
| Stock Repurchases | $450 million | Not stated |
Guidance and outlook
- The company did not provide specific numerical guidance for the fourth quarter or full year 2027.
How management sounded
Positive (+7 on our -10 to +10 scale). Management expressed high confidence in long-term growth drivers, raised the enterprise data growth floor to 150%, and emphasized that they see no signs of a slowdown. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Enterprise Data Growth Floor
Asked: Quinn Bolton (Needham) asked about the new floor for enterprise data growth.
Answer: Tony Balow stated they are comfortable raising the floor from 130% to 150% year-over-year.
800-volt GaN Strategy
Asked: Tore Svanberg (Stifel) asked about the positioning and timing of 800-volt GaN solutions.
Answer: Michael Hsing explained they are sampling solutions and letting customers choose between GaN and silicon carbide based on reliability; revenue is expected in late 2027 or 2028.
OpEx and R&D Efficiency
Asked: Rick Schafer (Oppenheimer) asked about OpEx growth and scaling R&D.
Answer: Management emphasized that R&D efficiency is more important than spending, and they expect to fall below their model range for OpEx due to high growth.
Capacity Expansion
Asked: Gary Mobley (StoneX) asked about the capacity milestones and revenue velocity.
Answer: Tony Balow stated the goal is to keep capacity ahead of the business, with plans to reach $8 billion in capacity by the second half of 2027.
What to watch before the next call
- The ramp of 800-volt GaN solutions and their adoption in data centers and automotive applications.
- The progress of the switch business and its contribution to communications segment growth.
- The potential for notebook market recovery and AI-driven growth at the edge.
