Second Quarter 2026
Filed Aug 11, 2026Silicon Labs Reports Second Quarter 2026 Results Wireless IoT leader delivers $228 million in revenue and strong earnings growth
Revenue grew 18% year-over-year, both reported operating segments grew, and GAAP and non-GAAP profitability improved materially. Bookings and new orders accelerated while distributor and end-customer inventory declined. The principal limitation is the suspension of forward guidance due to the pending acquisition by Texas Instruments.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $228,189 (In thousands) | – | 18% |
| Cost of revenuesGAAP | 87,515 (In thousands) | – | – |
| Gross profitGAAP | 140,674 (In thousands) | – | – |
| Gross marginGAAP | 61.6% | – | – |
| Research and development expenseGAAP | 95,016 (In thousands) | – | – |
| Selling, general and administrative expenseGAAP | 56,324 (In thousands) | – | – |
| Operating expensesGAAP | 151,340 (In thousands) | – | – |
| Operating lossGAAP | (10,666) (In thousands) | – | – |
| Interest income and other, netGAAP | 2,489 (In thousands) | – | – |
| Interest expenseGAAP | (251) (In thousands) | – | – |
| Loss before income taxesGAAP | (8,428) (In thousands) | – | – |
| Provision for income taxesGAAP | 2,164 (In thousands) | – | – |
| Net lossGAAP | $(10,592) | – | – |
| Basic loss per shareGAAP | $(0.32) | – | – |
| Diluted loss per shareGAAP | $(0.32) | – | improving by 52% |
| Weighted-average basic common shares outstandingGAAP | 33,206 (In thousands) | – | – |
| Weighted-average diluted common shares outstandingGAAP | 33,206 (In thousands) | – | – |
| Gross marginnon-GAAP | 61.9% | – | – |
| Operating expensesnon-GAAP | 114,312 (In thousands) | – | – |
| Operating incomenon-GAAP | 26,825 (In thousands) | – | – |
| Net incomenon-GAAP | $23,832 | – | – |
| Diluted earnings per sharenon-GAAP | $0.71 | – | 545% |
| Diluted shares outstandingnon-GAAP | 33,710 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial & CommercialRevenue was reported as up 23% year-over-year. | $135 million | – | 23% |
| Home & LifeRevenue was reported as up 12% year-over-year. | $93 million | – | 12% |
What drove it
- Bookings and new orders accelerated.
- Inventory at both distributors and end customers declined.
- Medical achieved record revenue in the quarter, up 78% year-over-year.
- Total opportunity funnel and design wins both materially accelerated.
- The company cited operating leverage inherent in its model.
- Gross margin reflected the value customers place on the company’s industry-leading solutions.
Concerns
- Silicon Labs suspended providing forward-looking guidance due to the announced pending acquisition by Texas Instruments.
- The filing identifies the ability to complete the merger with Texas Instruments and potential business disruptions and activity restrictions during the pendency of the merger as risks.
- The filing identifies the current global memory chip shortage, global trade policies, semiconductor cyclicality, and challenging macroeconomic conditions as risks.
- GAAP results remained a net loss and operating loss for the quarter.
What to watch
- Progress toward completing the pending acquisition of Silicon Labs by Texas Instruments.
- Whether accelerated bookings, new orders, opportunity funnel, and design wins convert into reported revenue.
- Whether distributor and end-customer inventory continues to decline.
- Sustained GAAP profitability improvement and the non-GAAP operating-income profile.
- Any resumption of forward-looking guidance.
Balance sheet and cash flow
- Cash and cash equivalents were $ 362,191 (In thousands) at July 4, 2026, compared with $ 364,222 (In thousands) at January 3, 2026.
- Short-term investments were 35,051 (In thousands) at July 4, 2026, compared with 79,400 (In thousands) at January 3, 2026.
- Accounts receivable, net were 79,801 (In thousands) at July 4, 2026, compared with 64,513 (In thousands) at January 3, 2026.
- Inventories were 123,340 (In thousands) at July 4, 2026, compared with 95,566 (In thousands) at January 3, 2026.
- Total assets were $ 1,253,056 (In thousands) at July 4, 2026, compared with $ 1,269,317 (In thousands) at January 3, 2026.
- Total liabilities were 158,254 (In thousands) at July 4, 2026, compared with 174,899 (In thousands) at January 3, 2026.
- Total stockholders’ equity was 1,094,802 (In thousands) at July 4, 2026, compared with 1,094,418 (In thousands) at January 3, 2026.
- For the six months ended July 4, 2026, net loss was $ (26,489) (In thousands), compared with $ (52,287) (In thousands) for the six months ended July 5, 2025.
Analysis
Silicon Labs reported second-quarter revenue of $228,189 (In thousands), up 18% year-over-year from $192,845 (In thousands). Industrial & Commercial revenue was $135 million, up 23% year-over-year, while Home & Life revenue was $93 million, up 12% year-over-year. Management also reported accelerated bookings and new orders, declining inventory at distributors and end customers, record Medical revenue, and materially accelerating opportunity funnel and design wins. These indicators support the reported growth across both operating segments.
Profitability improved substantially from the comparable prior-year quarter, although GAAP results remained negative. GAAP gross margin was 61.6%, GAAP operating loss was (10,666) (In thousands), and GAAP net loss was $(10,592), versus operating loss of (22,867) (In thousands) and net loss of $(21,817) in the prior-year period. GAAP diluted loss per share was $(0.32), improving by 52% over the comparable period last year. The filing does not provide a printed prior-quarter income statement comparison, so the magnitude of sequential financial change cannot be quantified from this document.
The non-GAAP reconciliation shows a profitable core operating result after excluding stock compensation expense, intangible asset amortization, merger-related costs, and income tax adjustments. Non-GAAP gross margin was 61.9%, non-GAAP operating expenses were 114,312 (In thousands), non-GAAP operating income was 26,825 (In thousands), and non-GAAP diluted earnings per share was $0.71, up 545% over the comparable period last year. The difference between GAAP operating loss and non-GAAP operating income includes 25,649 (In thousands) of stock compensation expense, 2,295 (In thousands) of intangible asset amortization, and 9,547 (In thousands) of merger-related costs.
The balance sheet reported $ 362,191 (In thousands) of cash and cash equivalents, 35,051 (In thousands) of short-term investments, and 123,340 (In thousands) of inventories as of July 4, 2026. Cash and short-term investments were lower than the January 3, 2026 balances printed in the filing, while accounts receivable and inventories were higher at July 4, 2026. The company did not report capital-return activity in the provided text, and the supplied cash-flow statement is incomplete, preventing an assessment of operating cash flow or free cash flow.
The forward outlook is the central constraint on the release. Silicon Labs suspended providing forward-looking guidance because of the announced pending acquisition by Texas Instruments. As a result, investors have no company-issued revenue, gross-margin, operating-expense, or tax-rate outlook for the next period in this filing. Attention therefore shifts to merger completion, the reported demand indicators, inventory trends, and the durability of the improved profitability profile.
Management, verbatim
We delivered revenue of $228 million, continuing our strong sequential and year-over-year growth - a testament to the execution and dedication of the Silicon Labs team.
Matt Johnson, President and Chief Executive Officer
Overall profitability improved meaningfully in the quarter, demonstrating the operating leverage inherent in our model. Gross margin was nearly 62%, reflecting the value customers place on our industry-leading solutions.
Matt Johnson, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter revenue, gross profit, operating-expense, operating-income, net-income, and EPS figures and quantitative sequential changes.
- Prior-year gross-margin figures and comparisons for GAAP and non-GAAP gross margin.
- Prior-year non-GAAP gross margin, operating expenses, operating income, net income, and diluted earnings per share amounts.
- Forward guidance ranges for revenue, gross margin, operating expenses, tax rate, or other metrics. The company stated that it suspended providing forward-looking guidance.
- Prior guidance for comparison. No previous quarterly outlook was provided.
- Quarterly operating cash flow, capital expenditures, and free cash flow. The provided cash-flow statement is truncated.
- Debt balance.
- Share repurchases, dividends, or other capital-return figures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.