MTSI Q4 Earnings Call Highlights Data Center Growth and Margin Gains

MTSI posted fiscal fourth-quarter 2026 results that topped expectations, with revenue of $424.8M and adjusted EPS of $2.09. The bigger market driver is forward guidance: management projects fiscal 2027 data center revenue growth of roughly 80%, accelerating from the 74% growth delivered in FY2026.

Near-term guidance sets a clear bar. For Q1 FY2027, MTSI guided revenue of $450M-$460M, adjusted EPS of $2.21-$2.29, and gross margins of 62-63%. The EPS range sits above the $2.09 just reported, implying sequential earnings growth of roughly 6% to 10% at the range's low and high ends.

Margin expansion is the second leg of the story. Management targets operating margins above 40% in FY27, citing record backlog, manufacturing expansion, and optical technology development as supports. Interpretation: the combination of an accelerating data center growth rate and a 62-63% gross margin guide suggests the company is framing growth as profitable rather than purchased with margin dilution, though execution against the 40% operating margin target will determine whether that holds.

The 80% data center growth figure is the number the market will anchor on. Acceleration from 74% to roughly 80% on a larger base raises expectations for each coming quarter.