Vicor Corporation (NASDAQ:VICR) reported fourth‑quarter 2025 results on February 19, 2026, posting earnings per share of $1.01, a $0.63–$0.64 beat over the consensus estimate of $0.37–$0.38 and a 170% increase in earnings. Total revenue reached $107.3 million, slightly below the $107.8 million consensus estimate, resulting in a modest $0.5 million miss.
The earnings beat was driven by disciplined cost management and a favorable product‑mix shift. Product revenue rose 15.3% year‑over‑year to $92.7 million, supported by strong demand from data‑center and automotive customers for Vicor’s Factorized Power Architecture and Vertical Power Delivery technologies. Licensing revenue continued to grow, offsetting a 7.8% decline in royalty income to $14.5 million. The combination of higher product sales and efficient cost control lifted gross margin to 55.4% from 52.4% in Q4 2024 and 57.5% in Q3 2025.
Revenue fell short of expectations because the decline in royalty revenue was not fully compensated by the increase in product sales. The company’s product mix shifted toward higher‑margin segments, but the overall revenue mix was still slightly less favorable than analysts had projected. The $0.5 million miss represents a 0.5% shortfall relative to the consensus estimate, a relatively small deviation in the context of the company’s overall performance.
Gross margin expansion reflects both pricing power in high‑density power solutions and effective cost controls. The 55.4% margin in Q4 2025 is an improvement over the 52.4% margin recorded in the same quarter a year earlier, indicating that Vicor is successfully scaling its high‑margin product lines while managing input costs. The sequential decline from 57.5% in Q3 2025 is attributed to a reduction in royalty revenue following a Q3 catch‑up amount.
Management reaffirmed its full‑year 2025 guidance and reiterated confidence in continued demand for high‑density power solutions. The company highlighted expectations of record product and licensing revenue in 2026 and announced plans to expand capacity, including the development of a second fabrication facility. The licensing business is projected to grow at roughly 50% annually, with nearly $300 million in revenue contributions anticipated through 2026, underscoring the strategic importance of intellectual‑property monetization alongside product sales.
The results reinforce Vicor’s position as a key enabler for AI, high‑performance computing, and automotive markets. Strong EPS growth, coupled with a modest revenue miss, signals that the company’s cost discipline and product‑mix strategy are delivering financial upside, while the continued expansion of its licensing portfolio and manufacturing capacity positions it for sustained growth in the coming years.
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