Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 23, 2026 · Beat 4 of last 5 quarters
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MaxLinear's strong optical data center growth underscores the accelerating demand for high-speed interconnects in AI infrastructure. The company's raised outlook and expanding product portfolio (Keystone, Rushmore, Washington, Annapurna) position it as a key supplier across multiple generations of AI data center buildout. The shift toward 800G and 1.6T speeds signals continued investment in scale-up and scale-out architectures.
Q2 revenue was $168.8M, up 23% sequentially and 55% year-over-year, driven by a 145% increase in infrastructure revenue to $85M. Non-GAAP gross margin was 59.5%, and non-GAAP EPS was $0.35, with GAAP EPS turning positive at $0.02. The company raised its 2026 optical data center revenue outlook to $210M–$230M, all from Keystone 800G ramps. Cash flow from operations was $4.8M, with cash of $93.7M after substantial wafer prepayments. Q3 guidance calls for revenue of $210M–$220M and non-GAAP gross margin of 58.5%–61.5%.
Management raised Q3 2026 revenue guidance to $210M–$220M, with growth across all four segments and particular strength in infrastructure. They also raised the full-year 2026 optical data center revenue outlook to $210M–$230M, driven by Keystone 800G ramps, and expect continued growth into 2027. Non-GAAP gross margin is guided to 58.5%–61.5% for Q3, with a 60% midpoint, reflecting favorable mix and operating leverage. They expect Rushmore (1.6T), Washington (TIA), and Annapurna (retimer) to contribute initial revenue in 2027 with more meaningful volume in 2028. The tone was confident, citing strong visibility and backlog extending about six months.
“Keystone has established MaxLinear as a proven high-volume, high-quality supplier of 400 gigabit and 800-gigabit PAM4 DSPs and SerDes technology.”
on Keystone ramp
“we are now forecasting Q3 2026 non-GAAP gross margin to be 60% at the midpoint of our guidance range, as well as a substantial increase in our non-GAAP profitability.”
on Gross margin outlook
“we believe we are in the early stages of a multiyear cycle characterized by revenue growth and expanding operating leverage.”
on Multiyear growth cycle
You raised the optical transceiver revenue by more than $50 million for this year. Could you talk a little bit about what's driving that? Maybe talk a little bit about the regional nature of that? And also, if you could give us a sense for the mix between 400-gig and 800-gig.
Kishore Seendripu: All the revenue growth is driven by 800G PAM4 success, which will continue into 2027. Customers span both U.S. and Asia, including hyperscalers and Tier 1 data center customers. The mix is shifting substantially toward 800G.
The increase in the optical outlook, the $50 million increase, that is all just Keystone. Is that correct? That's not counting any Washington or Annapurna revenue in '26?
Kishore Seendripu: That's correct, Cody. It's all driven by Keystone product family. Steven Litchfield added that visibility is good, extending about six months, which supports the raise.
As you look at your qualification programs you're engaged in now, is that a sort of expanding set or expanding opportunity? Do you think you are sort of going after more 1.6T modules at your customers than, say, you were originally looking at on 800 gig?
Kishore Seendripu: We are now comprehensively designed across all optical module players on 800G. Keystone has created the footprint for 1.6T Rushmore. We expect initial revenue ramps in the second half of 2027.