MACOM's Q2 2025: Unpacking Key Contradictions in Data Center Growth and Revenue Strategies

Data center market growth expectations, LPO solutions and contribution to revenue, data center business growth and market dynamics, telecom business growth and market share, data center market growth and sustainability are the key contradictions discussed in MACOM's latest 2025Q2 earnings call.



Strong Revenue Growth Across End Markets:
- MACOM Technology Solutions Holdings reported record revenue of $235.9 million for Q2 2025, up 8.1% sequentially, driven by double-digit growth in data center and telecom.
- The increase was attributed to rising demand in telecom infrastructure, broadband access, and metro long haul, as well as strong performance in the data center business.

Industrial & Defense Segment Performance:
- The Industrial & Defense segment reported $98.5 million in revenue, with an uptick of 1% sequentially.
- The growth was primarily driven by U.S. and international defense system upgrades in radar, EW, and communication systems, leveraging the company's strengths in higher frequency and power levels.

Data Center Business Growth:
- MACOM's data center revenue was $72.2 million, contributing to the overall growth with an 11% sequential increase.
- This was due to the adoption of higher data rates, such as 100G per lane platforms, and the acceleration of new technology deployments in data centers.

Telecom Infrastructure Expansion:
- The company's telecom revenue reached $65.2 million, marking an 18% sequential increase.
- Growth was driven by improvements in 5G infrastructure, broadband access, and SATCOM, with MACOM securing design wins in ground and space-based systems.