MaxLinear (NASDAQ:MXL) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

MaxLinear (NASDAQ:MXL) posted its quarterly earnings results on Thursday. The semiconductor company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.06, FiscalAI reports. The business had revenue of $218.06 million for the quarter, compared to analyst estimates of $214.95 million. MaxLinear had a positive return on equity of 2.24% and a negative net margin of 18.24%.

Here are the key takeaways from MaxLinear’s conference call:

• Q3 revenue rose 72% year over year to $218.1 million, with infrastructure revenue up 210% to approximately $125 million and non-GAAP operating margin reaching 29.5%.
• MaxLinear raised its 2026 optical data center revenue outlook to $250 million–$270 million and expects Q4 revenue of $240 million–$260 million, driven by accelerating 800G PAM4 deployments.
• Management cited strong bookings extending through 2027 and into 2028, with initial 1.6T Rushmore revenue expected in the first half of 2027 and a stronger ramp in the second half; Washington and Annapurna products are expected to contribute beginning in 2027.
• Foundry capacity remains a significant constraint for optical DSP supply, while the company expects to increase wafer prepayments and has expanded its revolving credit facility by $70 million to support demand and capacity commitments.
• Broadband and connectivity revenue grew sequentially in Q3 but are expected to decline seasonally in Q4; management nevertheless expects broadband growth to resume in 2027.

MaxLinear Trading Down 13.9%

NASDAQ MXL traded down $10.51 during trading on Thursday, hitting $65.28. The company had a trading volume of 5,199,832 shares, compared to its average volume of 3,133,658. The company’s fifty day moving average is $77.78 and its 200-day moving average is $75.70. MaxLinear has a one year low of $12.77 and a one year high of $128.30. The company has a current ratio of 1.78, a quick ratio of 1.15 and a debt-to-equity ratio of 0.26. The company has a market cap of $5.92 billion, a price-to-earnings ratio of -54.86 and a beta of 3.93.

Insider Buying and Selling at MaxLinear

In other news, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 7.70% of the company’s stock.

Analyst Ratings Changes

MXL has been the subject of several recent research reports. Morgan Stanley set a $125.00 price objective on MaxLinear in a research report on Monday, September 14th. Wells Fargo & Company cut their target price on shares of MaxLinear from $95.00 to $78.00 and set an “equal weight” rating on the stock in a report on Tuesday. Wall Street Zen raised shares of MaxLinear from a “hold” rating to a “buy” rating in a research note on Sunday, July 26th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MaxLinear in a research note on Thursday, October 15th. Finally, Susquehanna upped their price target on shares of MaxLinear from $45.00 to $80.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $88.91.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that designs, develops and sells integrated circuits and related solutions for broadband communications, wired and wireless infrastructure, data centers, industrial applications and consumer electronics. Its products are used by equipment manufacturers and service providers to support the transmission, processing and management of voice, video and data.

The company’s portfolio includes broadband access system-on-chip products, Ethernet transceivers and controllers, high-speed interconnect and communications devices, radio-frequency and analog products, optical and copper connectivity solutions, and power-management components.