Silicon Labs Reports First Quarter 2026 Results
Wireless IoT leader delivers
"The Silicon Labs team delivered a strong start to 2026 with revenue of
"Over the course of the quarter we saw an acceleration in bookings with declining inventory positions at our distributors and end customers, led by our broad industrial business. Design win momentum continued during the first quarter, exceeding both our internal targets and our 2025 run rate, which was a prior record year for the company. This performance underscores the breadth and depth of our innovative product portfolio across end applications.
Our leading indicators point to both near- and long-term strength, with book-to-bill ratio at a multi-year high and two quarters of record design wins, reinforcing our conviction in Silicon Labs' durable growth trajectory. At the same time, our proposed merger with Texas Instruments continues to advance, and we remain focused on disciplined execution and delivering for our customers."
First Quarter Financial Highlights
- Revenue was
$214 million , up 20% year-over-year - Industrial & Commercial revenue was
$128 million , up 33% year-over-year- Strength in electronic shelf labels and smart metering end applications
- Home & Life revenue was
$86 million , up 5% year-over-year- Medical end applications revenue grew by 21% year-over-year
Results on a GAAP basis:
- GAAP gross margin was 59.5%
- GAAP operating expenses were
$144 million - GAAP operating loss was
$17 million - GAAP effective tax rate was (16.1)%
- GAAP diluted loss per share was
$(0.48)
Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, acquisition-related costs, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:
- Non-GAAP gross margin was 59.7%
- Non-GAAP operating expenses were
$109 million - Non-GAAP operating income was
$18 million - Non-GAAP effective tax rate was 18%, which is the expected long-term rate for the remainder of the year
- Non-GAAP diluted earnings per share was
$0.53
Due to the announced pending acquisition of Silicon Labs by Texas Instruments, Silicon Labs has suspended providing forward-looking guidance.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives. Merging cutting-edge technology into the world's most highly integrated SoCs, Silicon Labs provides device makers the solutions, support, and ecosystems needed to create advanced edge connectivity applications. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements regarding Silicon Labs' current expectations, which are based on its current views and assumptions. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements, although the absence of such words does not necessarily mean a statement is not forward-looking. These forward-looking statements include, but are not limited to, Silicon Labs' expectations regarding its near- and long-term strength and durable growth trajectory and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations that are expressed or implied herein. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: our ability to complete the merger with Texas Instruments within the time frame expected, or at all, as well as potential disruptions in our business and restrictions on our activities during the pendency of the merger; fluctuating changes in global trade policies, including the imposition of tariffs, duties, trade sanctions, or other barriers to international commerce; the impact of the current global memory chip shortage; the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in
Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) | |||
Three Months Ended | |||
|
| ||
Revenues | $ 213,500 | $ 177,714 | |
Cost of revenues | 86,502 | 79,937 | |
Gross profit | 126,998 | 97,777 | |
Operating expenses: | |||
Research and development | 88,594 | 88,219 | |
Selling, general and administrative | 55,486 | 41,638 | |
Operating expenses | 144,080 | 129,857 | |
Operating loss | (17,082) | (32,080) | |
Other income (expense): | |||
Interest income and other, net | 3,626 | 3,793 | |
Interest expense | (232) | (284) | |
Loss before income taxes | (13,688) | (28,571) | |
Provision for income taxes | 2,209 | 1,899 | |
Net loss | $ (15,897) | $ (30,470) | |
Loss per share: | |||
Basic | $ (0.48) | $ (0.94) | |
Diluted | $ (0.48) | $ (0.94) | |
Weighted-average common shares outstanding: | |||
Basic | 32,963 | 32,465 | |
Diluted | 32,963 | 32,465 | |
Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Non-GAAP Income | GAAP Measure | GAAP Percent of Revenue | Stock Compensation Expense | Intangible Amortization | Acquisition- | Other Costs | Non-GAAP Measure | Non-GAAP Percent of Revenue | ||||||||
Revenues | $ 213,500 | |||||||||||||||
Gross profit | 126,998 | 59.5 % | $ 442 | $ — | $ — | $ — | $ 127,440 | 59.7 % | ||||||||
Research and development | 88,594 | 41.5 % | 11,416 | 2,295 | — | 664 | 74,219 | 34.8 % | ||||||||
Selling, general and | 55,486 | 26.0 % | 9,197 | — | 11,213 | — | 35,076 | 16.4 % | ||||||||
Operating expenses | 144,080 | 67.5 % | 20,613 | 2,295 | 11,213 | 664 | 109,295 | 51.2 % | ||||||||
Operating income (loss) | (17,082) | (8.0 %) | 21,055 | 2,295 | 11,213 | 664 | 18,145 | 8.5 % | ||||||||
Three Months Ended | ||||||||||||||
Non-GAAP Earnings (Loss) | GAAP Measure | Stock Compensation Expense* | Intangible Asset Amortization* | Acquisition- | Other Costs* | Income Tax Adjustments** | Non- GAAP Measure | |||||||
Net income (loss) | $ (15,897) | $ 21,055 | $ 2,295 | $ 11,213 | $ 664 | $ (1,668) | $ 17,662 | |||||||
Shares Excluded Due to Net Loss | ||||||||||||||
Diluted shares outstanding | 32,963 | 585 | 33,548 | |||||||||||
Diluted earnings (loss) per share | $ (0.48) | $ 0.53 | ||||||||||||
* Represents pre-tax amounts |
** Represents the application of an 18% non-GAAP tax rate |
Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) | |||
|
| ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 383,089 | $ 364,222 | |
Short-term investments | 55,767 | 79,400 | |
Accounts receivable, net | 77,120 | 64,513 | |
Inventories | 103,232 | 95,566 | |
Prepaid expenses and other current assets | 57,113 | 70,316 | |
Total current assets | 676,321 | 674,017 | |
Property and equipment, net | 131,821 | 128,643 | |
Goodwill | 376,389 | 376,389 | |
Other intangible assets, net | 20,836 | 23,130 | |
Other assets, net | 61,094 | 67,138 | |
Total assets | $ 1,266,461 | $ 1,269,317 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 56,384 | $ 50,717 | |
Deferred revenue and returns liability | 9,822 | 5,359 | |
Other current liabilities | 66,273 | 87,711 | |
Total current liabilities | 132,479 | 143,787 | |
Other non-current liabilities | 35,448 | 31,112 | |
Total liabilities | 167,927 | 174,899 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock – | — | — | |
Common stock – | 3 | 3 | |
Additional paid-in capital | 177,551 | 157,402 | |
Retained earnings | 920,917 | 936,814 | |
Accumulated other comprehensive income | 63 | 199 | |
Total stockholders' equity | 1,098,534 | 1,094,418 | |
Total liabilities and stockholders' equity | $ 1,266,461 | $ 1,269,317 | |
Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||
Three Months Ended | |||
|
| ||
Operating Activities | |||
Net loss | $ (15,897) | $ (30,470) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation of property and equipment | 6,047 | 6,248 | |
Amortization of other intangible assets | 2,295 | 5,437 | |
Stock-based compensation expense | 21,055 | 19,714 | |
Deferred income taxes | 1,153 | (1,514) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (12,608) | 2,412 | |
Inventories | (7,616) | 22,098 | |
Prepaid expenses and other assets | 6,813 | 2,973 | |
Accounts payable | 3,387 | 9,234 | |
Other current liabilities and income taxes | (7,415) | 11,870 | |
Deferred revenue and returns liability | 4,463 | 3,405 | |
Other non-current liabilities | 3,257 | (3,279) | |
Net cash provided by operating activities | 4,934 | 48,128 | |
Investing Activities | |||
Purchases of marketable securities | — | (19,728) | |
Sales of marketable securities | — | 10,005 | |
Maturities of marketable securities | 23,461 | 10,675 | |
Purchases of property and equipment | (9,837) | (4,852) | |
Proceeds from capital-related government incentives | 1,265 | — | |
Net cash provided by (used in) investing activities | 14,889 | (3,900) | |
Financing Activities | |||
Payment of taxes withheld for vested stock awards | (956) | (958) | |
Net cash used in financing activities | (956) | (958) | |
Increase in cash and cash equivalents | 18,867 | 43,270 | |
Cash and cash equivalents at beginning of period | 364,222 | 281,607 | |
Cash and cash equivalents at end of period | $ 383,089 | $ 324,877 | |
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SOURCE Silicon Labs