Silicon Laboratories (SLAB) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $250.9M, up 21.8% YoY and 10% sequentially, with broad growth across end applications; quarterly GAAP profitability returned.

• Nine-month revenue reached $692.6M, while net loss narrowed to $17.6M from $62.2M.

Financial highlights

• Q3 gross profit was $152.6M, up $33.6M YoY; GAAP gross margin was 60.8% versus 57.8%.

• Q3 operating income was $8.0M versus a $12.3M loss, and net income was $8.9M versus a $9.9M loss; diluted EPS was $0.26 versus a $0.30 loss.

• Non-GAAP Q3 operating income was $40.2M, or 16.0% of revenue, and diluted EPS was $1.05, up 228% YoY.

• Nine-month operating loss was $19.8M versus $67.3M; diluted loss per share was $0.53 versus $1.91.

• Nine-month gross margin was 60.7% versus 56.4%; operating margin was (2.9)% versus (11.7)%.

Outlook and guidance

• Backlog and design-win ramps were cited as supporting continued revenue growth and meaningful earnings expansion; forward guidance was suspended amid the pending acquisition.

• Merger closing is expected in H1 2027, subject to customary conditions and regulatory approvals; additional merger costs could be significant.

• Existing cash, investments, credit availability and operating cash flow are expected to cover capital requirements, though additional funding may be sought or chosen.

• Higher demand and production-capacity constraints may continue affecting product costs and gross margins.