Vicor Corporation shares fell 9.1% in after-hours trading Thursday despite reporting fourth-quarter earnings that more than doubled analyst expectations. The power component manufacturer posted earnings per share of $1.01, tripling the $0.44 consensus estimate, but investors focused on a slight revenue miss and declining margins.

While Vicor generated $107.26 million in revenue, the figure fell just short of the $107.78 million Wall Street anticipated. The company attributed the shortfall to a 33.1% sequential drop in royalty revenue, which management explained resulted from a one-time "catch up amount" that had inflated the previous quarter's results. CEO Dr. Patrizio Vinciarelli remained optimistic about the business trajectory, citing rising demand across high-performance compute, automatic test equipment, and defense applications.

Profitability metrics showed year-over-year improvement with gross margin climbing to 55.4% from 52.4% in the same period for 2024, though the figure declined from 57.5% in the third quarter due to reduced high-margin royalty contributions. The company is also navigating intellectual property challenges, having initiated a second ITC investigation regarding the illegal importation of power modules. Vicor concluded the year with a strengthened balance sheet, reporting cash and cash equivalents of approximately $402.8 million and a backlog of $176.9 million.