Vicor achieved 5.3% sequential revenue growth in Q1 2026, driven by a steep ramp in wafer-scale AI engine production for its lead customer. The company reported a book-to-bill ratio above 2, with strong demand across high-performance computing, industrial and aerospace markets, supported by its second-generation VPD solution offering 3 A/mm² density in a 1.5 mm thin package.

Full-year 2026 revenue guidance of nearly $570 million assumes no new licensing agreements before the 2027 ITC determination. Federal Street facility capacity is being expanded from a $1 billion to a $1.5 billion annual run rate through process optimizations and selective outsourcing, while a second-generation VPD rollout for the lead customer is slated for H2 2026. Management is pursuing a second fabrication site and alternate sourcing to address ongoing constraints.

Operating expenses rose 4% sequentially due to increased legal and IP enforcement costs. Operating cash flow used totaled $3.9 million for the quarter, reflecting a $28.6 million litigation settlement payment, while an effective tax rate of -1.3% resulted from a high volume of stock option exercises.

Management’s combinatorial strategy combines technology innovation with IP licensing to capture high-margin royalties, asserting competitors struggle with thermal and density limitations in first-generation designs. A potential third ITC case underscores the company’s aggressive litigation posture to safeguard its patent portfolio against infringing computing systems.