Vicor backlog soars 75% as AI data center demand fuels revenue growth

Vicor (NASDAQ:VICR) reported a significant acceleration in demand for its power conversion technologies during the first quarter of 2026, driven by the rapid expansion of AI-related data centers and industrial applications.

While the company’s bottom line was impacted by a one-time litigation settlement, its soaring backlog and robust gross margins point toward sustained momentum for the fiscal year.

For the quarter ended March 31, 2026, the Andover, Massachusetts-based company posted net revenue of $113 million, representing a 20.2% increase year-over-year and a 5.3% sequential climb.

Gross margin reached $62.4 million, or 55.2% of revenue, reflecting a substantial improvement from the 47.2% margin reported in the same period a year ago.

Net income for the quarter was $20.7 million, or $0.44 per diluted share, a marked increase from the $2.5 million reported in the first quarter of 2025.

However, cash used in operations totaled $3.9 million, a figure weighed down by a $28.6 million payment related to an award for past litigation.

Excluding this one-time item, operational cash flow remained positive.

The highlight of the report was the company's backlog, which surged to $301 million—an increase of 75% year-over-year and 70% sequentially.

Vicor ended the quarter with a strong liquidity position, holding approximately $404.2 million in cash and cash equivalents.

Capital expenditures for the period rose to $12.4 million as the company continues to invest in advanced manufacturing equipment and infrastructure.