From BigGo Finance · BigGo Finance · · 1m 50s
Vicor Q3 Revenue Surges 78.5% YoY
Vicor's Q3 revenue jumps 78.5% year-over-year to $197.1M on royalty surge, gross margin expands 1,030 bps to 68.3%.
In brief
Vicor's Q3 revenue jumps 78.5% year-over-year to $197.1M on royalty surge, gross margin expands 1,030 bps to 68.3%. Vicor reported $197.1M Q3 revenue up 78.5% YoY with royalty revenue at $66.6M, gross margin at 68.3%. Originally reported by BigGo Finance.
Q3 2026 Results
![[Vicor Q3 2026 Earnings Call] Vicor Revenue Jumps 78.5% YoY to $197.1M on $66.6M Royalty Surge; Gross Margin Expands 1,030 bps to 68.3%](https://img.biggo.com/-3auKCKWJ0AoJXXHUmn3bv4K0ns10l9ebEQ7IXqxHnM/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19WSUNSXzIwMjYtMTAtMjBfMTc5MjUwNTk0Mi53ZWJw.webp)
Vicor reported Q3 2026 revenue of $197.1 million, up 78.5% year-over-year.
Royalty Revenue Surge
Royalty revenue jumped 119.1% sequentially to $66.6 million, including initial payments from a new VPD license.
Gross Margin Expansion
Consolidated gross margin expanded 1,030 basis points to 68.3% from Q2 2026.
Q4 Revenue Guidance
Management guided for 10% sequential increase in total product revenue and double-digit growth in advanced products.
Licensing Strategy Shift
CFO Jim Schmidt redefined royalty revenue as recurring, setting a conservative Q4 baseline of $43 million.
Capacity Expansion Plan
Vicor purchased two sites for Chip Fab 2 and Chip Fab 3, potentially expanding capacity by nearly 5x.
AI Licensing Impact
Vicor's VPD licensing strategy is gaining traction with hyperscalers and OEMs facing escalating royalty rates.
Q4 Bookings
Bookings in first two weeks of Q4 reached $100 million, including a large order for second-generation VPD modules.
Q4 Royalty Baseline
Royalty revenue expected to be at least $43 million in Q4, assuming no new license agreements.
Capacity Timeline
Initial equipment deployment at Fab 2 expected in Q2 2027, focusing on process steps constrained at Fab 1.
Q4 Demand Visibility
A major customer sees demand doubling every year for the next several years, requiring capacity expansion.
Q&A Highlights
Analysts pressed on licensing timelines, capacity, and the potential for power supplies to enable higher-performance processors.
The Road Ahead
Vicor appears well-positioned for the AI power boom with $100 million in Q4 bookings and a doubling demand trajectory.
The takeaway
Vicor reported $197.1M Q3 revenue up 78.5% YoY with royalty revenue at $66.6M, gross margin at 68.3%.
