A designer and maker of modular power components and systems, Vicor converts electricity from a source into the precise voltages that power everything from AI data centers and aerospace gear to industrial and defense equipment. Founded in 1981 by Patrizio Vinciarelli, a theoretical physicist who once worked at CERN, the company's name is a shortened take on its founder's surname, Vinciarelli. Its products include Power-on-Package and Factorized Power Architecture modules, built at a main plant in Andover, Massachusetts.
Backlog grew to $379.7M from $300.6M as Q2 revenue rose 49.3% to $143.4M
grew to $379.7M, the highest reported since 2023. rose 49.3% to $143.4M and was $1.04 as Advanced Products demand and a new IP license lifted volume, while of 58.0% reflected the absence of last year's one-off $45M settlement. The company enters the second half with a doubled backlog and $453.6M cash.
Key takeaways
grew to $379.7M at quarter-end from $300.6M at the end of Q1 2026, and inventories rose 10.2% sequentially to $104.5M to support anticipated shipments.
rose 49.3% to $143.4M, with Advanced Products up 55.5% on a new license agreement royalty and improved demand and Brick Products up 38.6% on improved demand.
fell to 58.0% from 65.3% a year earlier because the prior-year quarter included a $45.0M patent litigation settlement, while gross margin dollars fell 9.8% to $83.1M; the table shows Q2'26 gross margin of 55.2% and of $113.0M with +20.2% and of -$3.9M.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 49.3% YoY to $143.4M, driven by Advanced Products growth and a new IP license, while gross margin fell to 58.0% from 65.3% due to a prior-year litigation settlement.
⌄
Total net revenues increased 49.3% to $143.4 million, with Advanced Products up 55.5% on higher royalty from a new license agreement and improved demand, and Brick Products up 38.6% on improved demand.
was $49.8M, or $1.04 , aided by a $10.9M income tax benefit from excess deductions, an effective rate of -27.9%.
Cash and equivalents stood at $453.6M after $44.2M from stock option exercises and $30.2M from operations, with $23.6M used for equipment purchases; the table shows cash of $404.2M and total assets of $804.9M, up 21.0% .
rose 6.1% sequentially to $48.2M as SG&A increased $4.4M on compensation and , partly offset by a $1.6M R&D decline.
What changed
Q2 FY2026 Advanced Products confirmed growth holds without the $45M settlement benefit: Advanced Products rose 55.5% on a new license and demand, after Q2'25's 30.6% and Q1'26's 8.5% gains.
rose again to $379.7M from $300.6M, sustaining above the $160.8M year-end 2023 base after the Q1 rise to $300.6M from $176.9M reversed the prior slide to $152.8M.
at 58.0% (table 55.2%) normalized below the Q2'25 65.3% settlement-inflated rate but above the Q3'25 15.6% drop, as flagged for Q4'25 and Q1'26.
build continued to $104.5M against conversion, up from $94.8M at Q1 end as earlier flagged.
Remaining stock authorization pace was not stated this quarter against $453.6M cash, after $35.2M repurchased in FY2025 and $17.6M in Q2'25.
What to watch
Q3 FY2026 after the rise to $379.7M to see if it holds above the $300.6M Q1 level
Q3 Advanced Products to confirm the 55.5% growth holds as the new license royalties normalize
Q3 as the 58.0% rate faces mix and production-efficiency pressure without settlement or new-license skew
Pace of the remaining stock authorization against the $453.6M cash balance
dollars fell 9.8% to $83.1 million and margin percentage declined to 58.0% from 65.3%, primarily because the prior-year period included a $45.0 million patent litigation settlement, partially offset by higher sales volume and production efficiencies.
Operating expenses rose 6.1% sequentially to $48.2 million, as a $4.4 million increase in SG&A—driven by higher compensation and —was partly offset by a $1.6 million decline in R&D.
grew to $379.7 million at quarter-end from $300.6 million at the end of Q1 2026, and inventories increased 10.2% sequentially to $104.5 million to support anticipated shipments.
The company recorded a $10.9 million income tax benefit in Q2 2026 (effective rate -27.9%), largely due to excess tax deductions from , contributing to of $49.8 million, or $1.04 per diluted share.
Cash and equivalents stood at $453.6 million; primary cash sources were $44.2 million from stock option exercises and $30.2 million from operations, while $23.6 million was used for equipment purchases.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk is concentrated in a single $3M auction-rate security; currency risk stems from Yen exposure at the Japanese subsidiary.
⌄
Cash, equivalents, and short-term investments are in short-term instruments, so interest-rate risk on those holdings is deemed not significant.
The long-term investment portfolio consists of one $3M auction-rate security that has experienced failed auctions since February 2008.
That security is Aaa/AA+ rated, collateralized by student loans, and guaranteed by the U.S. Department of Education, but failed auctions could trigger charges.
Credit-related fair-value changes on the auction-rate security flow through earnings; non-credit mark-to-market changes go to accumulated other comprehensive income.
Foreign-currency exposure is tied to the Japanese Yen of VJCL; other foreign subsidiaries use the U.S. Dollar as their functional currency.
Currency translation gains and losses are recorded in accumulated other comprehensive income within .
We are involved in various claims and legal proceedings of a nature considered ordinary course in our business, including those described under Note 11. Commitments and Contingencies in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 – “Financial State…
⌄
We are involved in various claims and legal proceedings of a nature considered ordinary course in our business, including those described under Note 11. Commitments and Contingencies in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 – “Financial Statements.”
There have been no material changes in the risk factors and uncertainties related to our business described in Part I, Item 1A – “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
There have been no material changes in the risk factors and uncertainties related to our business described in Part I, Item 1A – “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.