10-Q · May 5, 2026
Silicon Laboratories reported Q1 2026 results showing a revenue of $213.5 million, up 20.1% year-over-year, and improved gross margin of 59.5%. The company continues to incur losses as it prepares for a merger with…
Earnings analysis · 10-Q
SLAB earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Silicon Laboratories delivered $228 million of revenue in the quarter, up approximately 6.5% sequentially and 18% year over year, while GAAP diluted EPS improved to $(0.32) from $(0.48) in the prior quarter and $(0.67)…
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Silicon Laboratories delivered $228 million of revenue in the quarter, up approximately 6.5% sequentially and 18% year over year, while GAAP diluted EPS improved to $(0.32) from $(0.48) in the prior quarter and $(0.67) a year earlier. Adjusted profitability was stronger, with non-GAAP EPS of $0.71 and non-GAAP operating income of $26.825 million, but GAAP profitability, cash flow and current-period margin data were not available in the supplied filing extract. Sentiment remains neutral because forward guidance is suspended pending the proposed Texas Instruments merger, while merger execution, memory shortages, geographic concentration and distributor exposure remain significant risks.
Reported figures
- Earnings per share
- $-0.32
What stood out
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Revenue accelerated to $228M
Revenue was $228 million, up $14 million, or approximately 6.5%, from $214 million in the prior quarter and up approximately 18% from $193 million in the prior-year quarter.
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GAAP EPS improved materially
GAAP diluted EPS improved to $(0.32) from $(0.48) in the prior quarter and $(0.67) in the prior-year quarter, an improvement of $0.16 sequentially and $0.35 year over year.
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Adjusted profitability strengthened
Non-GAAP EPS was $0.71 and non-GAAP operating income was $26.825 million, indicating materially better adjusted profitability than the GAAP result.
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Disclosure controls remain effective
Management concluded that disclosure controls and procedures were effective as of July 4, 2026, and reported no change during the quarter that materially affected internal control over financial reporting.
What to watch
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Merger execution and termination risk
The proposed merger remains subject to remaining closing conditions, including required regulatory approvals, despite stockholder approval on April 30, 2026. The merger agreement provides for a $259 million termination fee under specified circumstances, creating meaningful execution and downside risk if the transaction fails.
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Memory shortages and geopolitical exposure
The filing identifies a current global shortage of memory components driven by AI-related demand, which could cause customers to reduce, delay or cancel orders. International exposure is significant: 90% of six-month revenue came from outside the United States, with China representing 19% by end-customer location and 31% by shipped-to location.
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Distributor and inventory concentration
Distributor concentration and channel exposure remain material: distributors generated 75% of revenue during the six months ended July 4, 2026, while the two largest distributors accounted for 51%. The filing also states that the company builds products from customer forecasts before receiving binding purchase orders, increasing inventory and obsolescence risk.
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High R&D investment and execution risk
Research and development expense was $183.6 million, or 41.6% of revenue, during the six months ended July 4, 2026. The filing highlights the risk that delays or failure of emerging technologies and standards to achieve market acceptance could reduce the value of these investments.
Management's outlook
No quantitative revenue or EPS outlook was provided. Forward guidance remains suspended because of the pending merger with Texas Instruments.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.