Vicor Sequential Revenue Growth Accelerates

The Tip Desk · October 22, 2026 · 3 min read

Product and royalty revenue reached $197.1 million in the third quarter, up 37.5% from the prior quarter, with gross margin at 68.3% of sales.

Vicor Corporation (VICR) posted a faster sequential rise in product and royalty revenue in the third quarter ended September 30, 2026, as the Andover, Massachusetts power-module maker reported $197.1 million of sales, a 37.5% increase from $143.4 million in the second quarter.

That sequential pace picked up from a 26.9% second-quarter increase. Revenue was 78.5% above $110.4 million a year earlier. Product revenue was $130.5 million and royalty revenue was $66.6 million.

Gross margin widened more than in the prior two sequential steps. It reached $134.7 million, or 68.3% of revenue, compared with $83.1 million, or 58.0%, in the second quarter. Gross margin a year earlier was $63.5 million, or 57.5% of sales.

Operating expenses, including contingency fees to law firms enforcing Vicor IP, rose to $62.5 million from $48.2 million in the second quarter and from $42.6 million a year earlier. Income from operations was $72.1 million. Net income was $63.3 million, or $1.33 a share, compared with $49.8 million, or $1.04 a share, in the second quarter and $28.3 million, or $0.63 a share, a year earlier.

Cash flow from operations was $69.7 million, compared with $34.0 million in the second quarter and $38.5 million a year earlier. Capital expenditures were $16.1 million, compared with $11.2 million in the second quarter and $4.0 million a year earlier. Cash and cash equivalents were approximately $513.1 million as of September 30, 2026, up 13.1% sequentially from approximately $453.6 million as of June 30, 2026.

Backlog totaled $406 million, a 7% sequential increase from $380 million at the end of the second quarter, after a 26% sequential increase in that quarter, and up 166% from $153 million a year earlier.

Chief Executive Officer Dr. Patrizio Vinciarelli said the company purchased two additional sites within 30 miles of ChiP Fab-1 in Andover, which he said would allow a nearly 5X increase in capacity from three fabs relative to Fab-1. He said capacity expansion is necessary in view of demand and industry trends.

Vinciarelli said Open Compute confirmed the challenges of VRs and IVRs, and that in private presentations and lab sessions with OEMs and hyperscalers the company demonstrated 2nd GEN VPD, with participants providing positive feedback and interest in engaging. He said the stage is set for broader adoption of high-performance ALL-FPA current multiplier modules that enable 2nd GEN VPD.

On licensing, the company said it granted its first VPD license to an AI OEM at Stage-2 unit royalty rates. Vinciarelli said unlicensed OEMs and hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD, and that an ITC decision to institute an investigation into VPD infringement is prompting inquiries about licenses at royalty rates that strongly favor early adopters.

Vicor licenses its patents to OEMs and hyperscalers needing supply-chain assurance, flexibility and scalability. Its modules and power-system technology are used in high-performance computing, industrial, transportation, aerospace and defense.