Start here if you're new
what it is
Vicor makes the power modules that turn messy electricity into usable power for servers, aircraft, factories, and other gear that hates failure.
how it gets paid
Last year Vicor made $408M in revenue.
what just happened
Vicor's last report landed with $1.01 in EPS versus a $0.30 estimate, a 236.7% surprise.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
65.1x trailing p/e — you're paying up for this one
19.0% return on capital — nothing to write home about
xvary composite: 65/100 — average
What they do
Vicor makes the power modules that turn messy electricity into usable power for servers, aircraft, factories, and other gear that hates failure.
Vicor sells into jobs where bad power is expensive. If your server, jet, or factory fails because of power conversion, the cheapest part on the bill becomes the most expensive mistake. That helps support a 49.1% gross margin and gives a founder-led company with 80% voting control room to stay patient.
How they make money
$408M
annual revenue · revenue was roughly flat last year
total revenue
$408M
+0.0%
The products that matter
power modules for defense programs
Defense & Government
$224M · 55% of revenue
it's the center of gravity at $224M, or 55% of total revenue. that gives you exposure to sticky programs, but it also means customer concentration is not theoretical.
55% of revenue
power solutions for commercial markets
Commercial
$143M · 35% of sales
this $143M segment is 35% of sales. if Vicor becomes a broader ai-infrastructure supplier, this is where you should expect to see it first.
growth lane
smaller residual revenue bucket
Other
$41M · 10% of revenue
the remaining $41M is only 10% of revenue. small line item, but in a $408M business even the leftovers can move quarterly optics.
small, not irrelevant
Key numbers
65.1x
trailing p/e
P/E → price-to-earnings → how many dollars you pay for $1 of profit → so what: you are paying a luxury multiple for a company with projected 5.5% earnings growth.
24.0%
operating margin
Operating margin → profit after running the business → so what: Vicor keeps about 24 cents from each sales dollar before interest and taxes.
19.0%
return on capital
Return on capital → profit earned on the money invested in the business → so what: Vicor is productive, even if the stock already charges you for it.
$45M
legal settlement boost
Settlement revenue → one-time legal payments → so what: roughly a tenth of 2025 revenue came from something you should not annualize.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- net profit margin 33.9% — keeps 34 cents of every dollar in revenue
- return on equity 19% — $0.19 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in VICR 3 years ago → it's now worth $38,730.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Vicor's last report landed with $1.01 in EPS versus a $0.30 estimate, a 236.7% surprise.
2025 revenue reached $452.7 million, up 26% vs. prior year, helped by a $45 million patent settlement and a shift toward higher-profit mix. Gross margin was 49.1%, which tells you this was not just a volume story.
$452.7M
revenue
$1.01
eps
49.1%
gross margin
the number that mattered
The number was the 236.7% EPS surprise, because it showed just how far estimates lagged the profit jump already hitting the income statement.
-
vicor corporation’s 2025 financial results were strong.
-
the year was marked by a massive surge in profitability and a decisive shift in its revenue mix.
-
indeed, the company reported total revenues of $452.7 million, a 26% increase vs. prior year.
-
this was boosted by the inclusion of $45 million in patent litigation settlements as well as a 23% rise in high-margin royalty revenue.net income soared to $118.6 million, or $2.61 per share, marking a dramatic jump from just $6.1 million, or $0.14 per share, in the prior year.
-
this performance was supported by a strong expansion in gross margins (57.3%) as the company capitalized on its advanced factorized power architecture (fpa) and a favorable product mix.the company is aggressively positioning its proprietary technology as the gold standard for ai-infrastructure. a central pillar of this is the rapid scaling of its ip (intellectual property) licensing practice, which management expects to contribute nearly $300 million in cumulative revenue this calendar year. additionally, vicor recently deepened its collaboration with kyocera to develop power-on-package solutions that enable vertical power delivery (vpd). by placing current multipliers directly underneath processors, vicor is solving the ″last inch″ power bottleneck for next-generation ai accelerators, reducing interconnect resistance and freeing up critical board space.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top threat is needing ai and defense demand to grow into a 65.1x earnings multiple.
med
the multiple already assumes a lot
VICR trades at 65.1x trailing earnings and roughly 20x sales on a $408M revenue base. that's a premium usually reserved for businesses with smoother growth than this one has shown.
if growth cools while the multiple stays this rich, the stock does not need bad news to fall — it just needs less good news.
med
55% of revenue sits in defense & government
that concentration can be a strength when programs are funded and scaling. it becomes a problem if a handful of customers delay orders or programs move slower than expected.
more than half of the revenue mix is tied to one bucket. in a business this size, that can move results fast.
med
2025 was helped by patent settlements
$45M in patent litigation settlements supported the annual result. that's real cash, but it is not the same thing as repeatable product demand.
when a single item that large helps a $452.7M year, you should be careful about extrapolating margins straight into the future.
med
headline profitability and recent profitability are not saying the same thing
the full-year snapshot shows a 27.6% net margin. the recent quarter shows 6.9%. that spread tells you operating leverage cuts both ways.
if net margin settles closer to the recent quarter than the full year, the valuation math gets uncomfortable quickly.
a stock valued at ~$8B on $408M of revenue can absorb some volatility. it cannot absorb a lasting shift from 27.6% net margin toward the recent 6.9% quarter and still look cheap.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether commercial starts taking share from defense
commercial is 35% of revenue today versus 55% for defense & government. if the ai story is broadening, you should see that mix change.
risk
how much of 2025 strength was one-time
$45M in patent litigation settlements helped the annual result. watch the next few reports for proof that product demand can carry the same weight.
metric
revenue growth versus the +13.5% baseline
this stock is priced for more than decent growth. if revenue slips back below the current baseline, the premium multiple becomes harder to defend.
calendar
next margin print
the last quarter showed a 6.9% net margin. you want to know whether that was a temporary dip or a warning shot.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this stock still has more near-term juice than most names.
risk profile
below average
stability score 4 — more volatile than most — so you should expect wider swings around earnings and headlines.
chart momentum
average
technical score 3. the stock is not breaking the tape on chart strength alone, which matters when valuation is already doing a lot of work.
earnings predictability
30 / 100
earnings can surprise in both directions. that's exciting when you're right and expensive when you're not.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 134 buyers vs. 67 sellers in 4q2025. total institutional holdings: 20.0M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$55
$236
$170
current price
$146
target midpoint · 14% from current · 3-5yr high: $300 (+75% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive