# 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%.
- Title: Vicor Q3 Revenue Surges 78.5% YoY · BigGo Finance | Shortify
- Summary: 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…
- Keywords: vicor, q3 2026, revenue, royalty, gross margin, ai licensing, chip fab, itc, finance, markets, Surges, YoY
- Source: BigGo Finance — https://finance.biggo.com/news/US_VICR_2026-10-20
- Author: BigGo Finance
- Published: 2026-10-20T14:14:17+00:00
- Read time: 1 min
- Topics: vicor, q3 2026, revenue, royalty, gross margin, ai licensing, chip fab, itc, finance, markets
## Q3 2026 Results
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.
## Key takeaway

Vicor reported $197.1M Q3 revenue up 78.5% YoY with royalty revenue at $66.6M, gross margin at 68.3%.