Silicom Reports Q1 2026 Results
Rhea-AI Summary
Silicom (NASDAQ: SILC) reported Q1 2026 revenue of $19.1M, a 33% year-over-year increase, with GAAP net loss of $2.4M (loss of $0.41 per share) and non-GAAP net loss of $1.5M (loss of $0.25 per share).
The company gave Q2 2026 revenue guidance of $20M–$21M (up to ~40% YoY at the top end) and reiterated full-year 2026 revenue targets of $82M–$83M. Management highlighted multiple design wins and multi-year customer paths including an $8–10M annual run-rate expansion and a streaming win with a $25–30M five-year path.
Positive
- Revenue +33% YoY in Q1 2026 to $19.1M
- Non-GAAP loss reduced 31% YoY to $1.5M in Q1 2026
- Q2 2026 guidance of $20M–$21M (up to ~40% YoY growth)
- FY 2026 revenue target reiterated at $82M–$83M
- Streaming infrastructure win with $25–30M revenue path over five years
- Customer expansion to $8–10M annual run-rate with a global networking customer
Negative
- GAAP net loss of $2.4M in Q1 2026 (loss of $0.41 per share)
- Company remains unprofitable on a GAAP basis in the quarter
- Revenue concentration risk tied to a limited number of large, multi-year design wins
News Market Reaction – SILC
On the day this news was published, SILC gained 37.75%, reflecting a significant positive market reaction. Argus tracked a peak move of +22.7% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $67M to the company's valuation, bringing the market cap to $245.02M at that time. Trading volume was very high at 3.6x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SILC was up 2.14% while key peers AMPG (-5.1%), CMTL (-1.13%), OCC (-2.46%), LTRX (-2.35%) and CRNT (-2.02%) were down. Momentum scanner only flagged INSG up ~10.89%, indicating a largely stock‑specific reaction to the earnings news rather than a sector‑wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Results release notice | Neutral | +4.9% | Announcement of Q1 2026 results date and conference call logistics. |
| Jan 29 | Q4 & FY 2025 results | Positive | +28.6% | Q4 and FY 2025 revenue growth with 2026 double‑digit growth guidance and design wins. |
| Jan 05 | Results release notice | Neutral | +6.7% | Scheduling of Q4 and full‑year 2025 results and related conference call. |
| Oct 30 | Q3 2025 results | Negative | -14.3% | Q3 2025 results with modest revenue growth but continued losses and cautious reaction. |
| Sep 30 | Results release notice | Neutral | +1.9% | Scheduling of Q3 2025 results and conference call details. |
Earnings‑tagged events for SILC have often produced positive price reactions, including a 28.62% move on Q4/FY 2025 results, though one prior results release in Q3 2025 coincided with a -14.25% decline. Announcement‑only scheduling releases have generally seen moderate gains.
Across recent earnings‑related events, Silicom has combined gradual revenue growth with ongoing losses and increasingly detailed guidance. Q3 2025 results outlined design wins and long‑term targets, but the stock fell 14.25%. The Q4 and full‑year 2025 report showed revenue of $16.9M for Q4 and $61.9M for 2025, with a strong 28.62% next‑day move as investors reacted to 2026 growth guidance. Subsequent scheduling releases on Jan 5 and Mar 31, 2026 both drew positive but smaller reactions. Today’s Q1 2026 report continues that narrative with faster top‑line growth and narrower losses.
Historical Comparison
In the past five earnings‑tagged releases, SILC’s average one‑day move was 5.57%, including a 28.62% jump on Q4/FY 2025 results and a -14.25% drop on Q3 2025. Against that backdrop, a modest 2.14% gain ahead of/around this Q1 2026 report looks comparatively muted for an event featuring 33% YoY revenue growth and narrowed GAAP and non‑GAAP losses.
Earnings communications show a progression from Q3 2025’s smaller revenue base and ongoing losses, to Q4/FY 2025 guidance for double‑digit 2026 growth, and now to Q1 2026 results that outperform prior revenue guidance while still posting GAAP and non‑GAAP losses. Management continues to emphasize design wins and multi‑year revenue targets as it builds an earnings narrative around a core‑business inflection.
Market Pulse Summary
The stock surged +37.8% in the session following this news. A strong positive reaction aligns with Silicom’s history of sizeable moves around earnings, including a 28.62% jump on Q4/FY 2025 results and an average earnings‑tagged move of 5.57%. The Q1 2026 report delivered $19.1M in revenue, up 33% year over year, and narrowed both GAAP and non‑GAAP losses while guiding to $20–$21M for Q2 and $82–$83M for 2026. Ongoing net losses and execution on design‑win ramps would have remained key factors for sustainability of any sharp advance.
Key Terms
gaap financial
non-gaap financial
smart nic technical
fpga technical
post-quantum cryptography technical
ai inference technical
AI-generated analysis. Not financial advice.
- Core business at inflection point:
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KFAR SAVA,
Financial Results
Silicom's revenues for the first quarter of 2026 were
On a GAAP basis, the company's net loss for the quarter totalled
On a non-GAAP basis (as described and reconciled below), net loss for the quarter totalled
Guidance
We are excited to report that not only did we surpass our revenue expectations this quarter, but that our momentum continues to accelerate, and that we anticipate even greater achievements for the second quarter. We expect second quarter revenues to range from
Comments of Management
Liron Eizenman, Silicom's President and CEO, commented, "The first quarter was exceptionally strong in both sales and pipeline development, confirming the beyond-projection performance of our strategic plan and execution. After achieving
"In fact, these four recent design wins are a concrete demonstration of the strength and momentum of our core business. The expansion of our global networking and security-as-a-service customer to an
Mr. Eizenman continued, "While our core business accelerates through this key inflection point, we are also building deep momentum with two of the world's most promising contenders in the high-stakes race to architect the future infrastructure of AI inference. Reinforcing our position as a forward-thinking solutions provider in this space, we recently commenced the co-development of a specialized AI inference solution in cooperation with a major customer. Our pursuit of this upside is made possible by our unique platform of core assets, including our deep technological expertise and proprietary IP roots, our rapid, reliable customization and support capabilities, and our extensive and growing Tier-1 customer base."
Mr. Eizenman concluded, "As we move forward through 2026, we are ideally positioned to benefit from a stronger-than-ever pipeline and from the extraordinary momentum of our target markets, both for our core products and for our AI inference infrastructure offerings. We are excited about the opportunities that lie ahead, and moving aggressively to actualize our full growth potential. We look forward to reporting the significant value that this will create for our shareholders, both in the quarters ahead and over the long term."
Conference Call Details
Silicom's Management will host an interactive conference today, April 30th, at 9am Eastern Time (6am Pacific Time, 4pm Israel Time) to review and discuss the results.
To participate, investors may either listen via a webcast link hosted on Silicom's website or via the dial-in. The link is under the investor relations' webcast section of Silicom's website at https://www.silicom-usa.com/webcasts/
For those that wish to dial in via telephone, one of the following teleconferencing numbers may be used:
US: 1 866 860 9642
INTERNATIONAL: +972 3 918 0609
At: 9:00am Eastern Time, 6:00am Pacific Time, 4:00pm Israel Time
It is advised to connect to the conference call a few minutes before the start.
For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call under the above-mentioned webcast section of Silicom's website.
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions. Designed to optimize performance and efficiency in Cloud, Data Center and Edge environments, Silicom's solutions increase throughput and minimize latency, serving as the infrastructure backbone for today's most critical technologies. Our innovations empower high-demand workloads across Artificial Intelligence (AI) inference, SD-WAN, SASE, cyber security, fabric switching, NFV, and more.
Our comprehensive portfolio, including high-speed server adapters, advanced hardware offloading and acceleration engines, AI NICs, FPGA-based smart cards, Post Quantum Cryptography (PQC) hardware accelerators, white label switches and Edge CPEs, is used by Tier-1 customers throughout the world, including cloud players, service providers and OEMs, to enable their networks to scale efficiently. With engineering excellence, a strong financial position and a legacy of over 400 active Design Wins, Silicom serves as the "go-to" connectivity and performance partner for technology leaders around the globe, and drives the next generation of infrastructure.
For more information, please visit: www.silicom.co.il
Statements in this press release which are not historical data are forward-looking statements within the meaning of applicable securities laws which involve known and unknown risks, uncertainties, or other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or other expectations implied by these forward-looking statements.
For example, when the Company discusses its revenue outlook or guidance for future periods, growth opportunities, market demand for its products and solutions, expected customer deployments, the scalability of its business model, operating performance, strategic partnerships, technology leadership, or industry trends affecting cloud infrastructure, artificial intelligence workloads, networking acceleration technologies or telecommunications markets, it is using forward-looking statements.
Additional factors include, but are not limited to, Silicom's dependence for substantial revenue growth on a limited number of customers, industry trends affecting networking and data center infrastructure, including the migration to cloud architectures, disaggregation of networking systems and the separation of hardware and software solutions; the pace of adoption of emerging technologies such as artificial intelligence inference infrastructure; the timing and extent of market adoption of Silicom's new products and of new Design Wins achieved by Silicom; fluctuations in customer purchasing cycles and the timing of customer deployments; protection of intellectual property, changes in exchange rates; and the wars in
Further information about the company's businesses, including information about factors that could materially affect Silicom's results of operations and financial condition, are discussed in our Annual Report on Form 20-F and other documents filed by Silicom and that may be subsequently filed by the company from time to time with the SEC. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "expect," "should," "believe," "anticipate" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. In light of significant risks and uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by Silicom that it will achieve such forward-looking statements. The company disclaims any duty to update such statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
This release, including the financial tables below, presents other financial information that may be considered "non-GAAP financial measures" under Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission (the "SEC") as they apply to our company. These non-GAAP financial measures exclude compensation expenses in respect of options and RSUs granted to directors, officers and employees, as well as lease liabilities - financial expenses (income). Non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the non-GAAP financial measures as well as reconciliation between the non-GAAP financial measures and the most comparable GAAP financial measures. The non-GAAP financial information presented herein should not be considered in isolation from or as a substitute for operating income (loss), net income (loss) or per share data prepared in accordance with GAAP.
Company Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
Investor Relations Contact:
Ehud Helft
EK Global Investor Relations
Tel: +1 212 378 8040
E-mail: silicom@ekgir.com
-- FINANCIAL TABLES FOLLOW –
Silicom Ltd. Consolidated Balance Sheets | |||||
(US$ thousands) | |||||
March 31, | December 31, | ||||
2026 | 2025 | ||||
(Unaudited) | (Audited) | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 30,032 | $ | 35,156 | |
Short-term bank deposits | - | 6,000 | |||
Marketable securities | 4,982 | 6,958 | |||
Accounts receivables: Trade, net | 13,866 | 9,194 | |||
Accounts receivables: Other | 3,802 | 3,155 | |||
Inventories | 63,485 | 52,650 | |||
Total current assets | 116,167 | 113,113 | |||
Marketable securities | 27,775 | 25,518 | |||
Assets held for employees' severance benefits | 1,683 | 1,670 | |||
Property, plant and equipment, net | 3,302 | 3,140 | |||
Intangible assets, net | 3,491 | 2,569 | |||
Right of Use | 6,389 | 6,147 | |||
Total assets | $ | 158,807 | $ | 152,157 | |
Liabilities and shareholders' equity | |||||
Current liabilities | |||||
Trade accounts payable | $ | 20,406 | $ | 11,116 | |
Other accounts payable and accrued expenses | 12,578 | 14,116 | |||
Lease Liabilities | 2,204 | 2,019 | |||
Total current liabilities | 35,188 | 27,251 | |||
Lease Liabilities | 4,397 | 4,252 | |||
Liability for employees' severance benefits | 3,127 | 3,049 | |||
Deferred tax liabilities | 71 | 116 | |||
Total liabilities | 42,783 | 34,668 | |||
Shareholders' equity | |||||
Ordinary shares and additional paid-in capital | 77,549 | 76,647 | |||
Treasury shares | (55,171) | (55,171) | |||
Retained earnings | 93,646 | 96,013 | |||
Total shareholders' equity | 116,024 | 117,489 | |||
Total liabilities and shareholders' equity | $ | 158,807 | $ | 152,157 | |
Silicom Ltd. Consolidated Statements of Operations | |||||||||||
(Unaudited, US$ thousands, except for share and per share data) | |||||||||||
Three-month period | |||||||||||
ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Sales | $ | 19,098 | $ | 14,385 | |||||||
Cost of sales | 13,455 | 10,110 | |||||||||
Gross profit | 5,643 | 4,275 | |||||||||
Research and development expenses | 5,266 | 4,926 | |||||||||
Selling and marketing expenses | 1,861 | 1,487 | |||||||||
General and administrative expenses | 1,324 | 1,077 | |||||||||
Total operating expenses | 8,451 | 7,490 | |||||||||
Operating income (loss) | (2,808) | (3,215) | |||||||||
Financial income (expenses), net | 452 | 703 | |||||||||
Income (loss) before income taxes | (2,356) | (2,512) | |||||||||
Income taxes | 11 | 294 | |||||||||
Net income (loss) | $ | (2,367) | $ | (2,806) | |||||||
Basic and diluted income (loss) per ordinary share (US$) | $ | (0.41) | $ | (0.49) | |||||||
Weighted average number of ordinary shares used to compute basic and diluted income (loss) per share (in thousands) | 5,706 | 5,735 | |||||||||
Silicom Ltd. Reconciliation of Non-GAAP Financial Results | |||||||||
(Unaudited, US$ thousands, except for share and per share data) | |||||||||
Three-month period | |||||||||
ended March 31, | |||||||||
2026 | 2025 | ||||||||
GAAP gross profit | $ | 5,643 | $ | 4,275 | |||||
(1) Share-based compensation (*) | 87 | 77 | |||||||
Non-GAAP gross profit | $ | 5,730 | $ | 4,352 | |||||
GAAP operating income (loss) | $ | (2,808) | $ | (3,215) | |||||
Gross profit adjustments | 87 | 77 | |||||||
(1) Share-based compensation (*) | 815 | 747 | |||||||
Non-GAAP operating income (loss) | $ | (1,906) | $ | (2,391) | |||||
GAAP net income (loss) | $ | (2,367) | $ | (2,806) | |||||
Operating income (loss) adjustments | 902 | 824 | |||||||
(2) Lease liabilities - Financial expenses (income) | 11 | (119) | |||||||
Non-GAAP net income (loss) | $ | (1,454) | $ | (2,101) | |||||
GAAP net income (loss) | $ | (2,367) | $ | (2,806) | |||||
Adjustments for Non-GAAP Cost of sales | 87 | 77 | |||||||
Adjustments for Non-GAAP Research and development expenses | 406 | 360 | |||||||
Adjustments for Non-GAAP Selling and marketing expenses | 236 | 180 | |||||||
Adjustments for Non-GAAP General and administrative expenses | 173 | 207 | |||||||
Adjustments for Non-GAAP Financial income (loss), net | 11 | (119) | |||||||
Non-GAAP net income (loss) | $ | (1,454) | $ | (2,101) | |||||
GAAP basic and diluted income (loss) per ordinary share (US$) | $ | (0.41) | $ | (0.49) | |||||
(1) Share-based compensation (*) | 0.16 | 0.14 | |||||||
(2) Lease liabilities - Financial expenses (income) | - | (0.02) | |||||||
Non-GAAP basic and diluted income (loss) per ordinary share (US$) | $ | (0.25) | $ | (0.37) | |||||
(*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R)) | |||||||||
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SOURCE Silicom Ltd.