MaxLinear beats estimates but stock dips after-hours

Investing.com -- MaxLinear Inc (NASDAQ: MXL) reported third quarter results that exceeded analyst expectations, though shares slipped 3.3% in after-hours trading Thursday, likely due to investors "selling the news" of a beat following a 290% appreciation in MaxLinear's stock value in the past year.

The semiconductor company posted adjusted earnings per share of $0.62, beating the analyst estimate of $0.56 by $0.06. Revenue reached $218.1 million, surpassing the consensus estimate of $215.1 million and marking a 72% increase from $126.5 million in the same quarter last year. The company's infrastructure business surged 210% YoY, driven by accelerated adoption of optical AI data center products.

For the fourth quarter of 2026, MaxLinear issued revenue guidance of $240 million to $260 million. The midpoint of $250 million exceeds the analyst consensus of $226.7 million by $23.3 million.

"Our Q3 results underscore the significant growth inflection underway across MaxLinear's overall business," said Kishore Seendripu, Chairman and Chief Executive Officer. "Strong momentum in our optical AI data center business reflects the volume ramp of our Keystone PAM4 DSP platform, as well as the strength of our expanding infrastructure portfolio and customer activity centered around our Rushmore and Annapurna product families of 1.6T-capable optical and electrical products."

The company's adjusted gross margin for the quarter was 60.0%, up from 59.1% in the prior year period. Adjusted operating margin expanded to 29.5% from 12.1% YoY.

MaxLinear also announced it amended its Credit Agreement with Wells Fargo and other lenders to increase its revolving credit facility by $70 million to $200 million.

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