Vicor reported Q3 2026 financial results before the market opened today.
Shares of Vicor have rocketed 87% higher since the start of 2026.
Vicor stock is trading at a premium to its historic valuation.
Outpacing the 0.3% rise in the S&P 500 (as of this writing) during today's market session, Vicor (NASDAQ:VICR) stock is climbing on the company's report of surprisingly strong third-quarter 2026 financial results released this morning before the opening bell.
As of 2:58 p.m. ET, shares of the modular power components manufacturer are up 7.4%.
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Beating analysts' expectations of $187 million, Vicor reported Q3 2026 revenue of $197.1 million, a quarter-over-quarter increase of 37.5% and a 78.5% increase over the same period last year.
At the bottom of the income statement, Vicor also provided a surprise, reporting net income of $63.3 million, or $1.33 per diluted share, compared to $28.3 million, or $0.63 per diluted share, in Q3 2025. Analysts had anticipated Vicor posting diluted earnings per share of $1.24 for Q3 2026.
It wasn't merely the insight into the company's recent financial performance that investors celebrated, however. Vicor reported a backlog totaling $406 million as of the end of September 2026 -- a 166% increase from the $153 million it had at the end of September 2025.
Because it licenses its power system technologies to hyper-scalers, Vicor has emerged as yet another artificial intelligence (AI) stock investment opportunity -- specifically one that provides data center exposure. And while the hype around AI investments has waned recently, Vicor stock is still up about 87% since the start of the year. And with the impressive performance, Vicor's stock has now soared to a rich valuation. Currently, shares are trading at 75.8 times operating cash flow, a premium to its five-year average cash flow multiple of 36.6. At this point, investors should wait for the stock to experience a pullback before they choose to pull the trigger on a Vicor investment.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.