Silicom Reports Q3 2026 Results

Silicom raised its full-year revenue outlook, although its return to quarterly profitability was on a non-GAAP basis.

Rhea-AI Summary

Silicom (NASDAQ: SILC) reported third-quarter 2026 revenue of $26.7 million, returning to non-GAAP profitability ahead of its initial expectations. Revenue rose 71% year over year. The GAAP net loss narrowed to $341,000, or $0.06 per share, from $2.802 million, or $0.49 per share. Non-GAAP net income reached $257,000, compared with a $2.075 million loss.

First-nine-month revenue increased 55% to $69.6 million, while the GAAP net loss narrowed to $4.795 million from $8.945 million. Silicom expects fourth-quarter revenue of $27–$28 million, representing 66% year-over-year growth at the upper end. It raised full-year revenue guidance to $96–$98 million, representing 57% growth. Two new design wins—customer selections of its products—brought the year-to-date total to eight, exceeding the low end of its full-year target.

19 points · 1 major

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0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue guidance raised to $96–$98 million, representing 57% year-over-year growth.
• Moderate pointThird-quarter revenue increased 71% year over year to $26.7 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue expected at $27–$28 million, with 66% year-over-year growth at the upper end.
• Moderate pointThird-quarter non-GAAP net income reached $257,000, or $0.04 per share, versus a $2.075 million loss.
• Moderate pointFirst-nine-month revenue increased 55% to $69.6 million versus the same period in 2025.

14 minor points

• Minor pointThird-quarter GAAP net loss narrowed to $341,000, or $0.06 per share, from $2.802 million, or $0.49.
• Minor pointFirst-nine-month GAAP net loss narrowed to $4.795 million, or $0.84 per share, from $8.945 million, or $1.57.
• Minor pointFirst-nine-month non-GAAP loss narrowed to $2.097 million, or $0.37 per share, from $6.147 million, or $1.08.
• Minor pointThird-quarter GAAP gross profit rose to $8.021 million from $4.897 million a year earlier.
• Minor pointFirst-nine-month GAAP gross profit rose to $20.833 million from $13.887 million a year earlier.
• Minor pointThird-quarter GAAP operating loss narrowed to $848,000 from $3.080 million a year earlier.
• Minor pointFirst-nine-month GAAP operating loss narrowed to $5.649 million from $9.451 million a year earlier.
• Minor pointThird-quarter non-GAAP operating income reached $20,000, versus a $2.432 million loss a year earlier.
• Minor pointFirst-nine-month non-GAAP operating loss narrowed to $2.976 million from $7.187 million a year earlier.
• Minor pointTwo new design wins brought the year-to-date total to eight, exceeding the full-year target's low end.
• Minor point. Forward-looking: it has not happened yet and may not happen.Silicom expects to meet or exceed the high end of its full-year design-win target.
• Minor pointThird-quarter net financial income increased to $643,000 from $514,000 a year earlier.
• Minor pointThird-quarter income taxes decreased to $136,000 from $236,000 a year earlier.
• Minor pointFirst-nine-month income taxes decreased to $347,000 from $834,000 a year earlier.

Negative

• Minor pointThird-quarter operating expenses increased to $8.869 million from $7.977 million a year earlier.
• Minor pointFirst-nine-month operating expenses increased to $26.482 million from $23.338 million a year earlier.
• Minor pointFirst-nine-month net financial income decreased to $1.201 million from $1.340 million a year earlier.
• Minor pointTotal liabilities increased to $39.585 million at September 30, 2026, from $34.668 million at year-end 2025.
• Minor pointShareholders' equity decreased to $116.548 million at September 30, 2026, from $117.489 million at year-end 2025.

News Explained

The balance sheet adds liquidity and inventory context: at September 30, 2026, cash and equivalents were $13,741 thousand versus $35,156 thousand at December 31, 2025, while inventory was $72,791 thousand versus $52,650 thousand.

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Key Figures

Q3 revenue: $26.7 million GAAP net loss: $0.3 million loss Non-GAAP net income: $0.3 million +3 more

Q3 revenue

$26.7 million

Q3 2026; up 71% year over year

GAAP net loss

$0.3 million loss

Q3 2026; compared with a $2.8 million loss in Q3 2025

Non-GAAP net income

$0.3 million

Q3 2026; compared with a $2.1 million loss in Q3 2025

Q4 revenue guidance

$27–$28 million

Q4 2026; 66% year-over-year growth at the upper end

Full-year revenue guidance

$96–$98 million

FY 2026; raised, with 57% year-over-year growth

Design Wins

2 new; 8 year to date

Q3 2026

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 earnings results

   24h Move

   -8.2%

   Q3 revenue guidance was $25–$26 million, with a second-half non-GAAP profitability target.

2. Apr 30

   Q1 earnings results

   24h Move

   +37.8%

   Full-year revenue target was $82–$83 million, alongside Q2 revenue guidance of $20–$21 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, regulation g, rsus, fpga, +1 more

5 terms

non-gaap financial measures financial

"presents other financial information that may be considered "non-GAAP financial measures""

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

regulation g regulatory

""non-GAAP financial measures" under Regulation G"

Regulation G is a U.S. securities rule that requires companies to show and explain how any highlighted financial numbers that differ from standard accounting figures were calculated, and to provide a clear bridge to the official results. For investors this acts like a recipe card: when a company presents a simplified or adjusted profit number, Regulation G forces them to show the original ingredients and steps so readers can judge whether the adjusted figure gives a clearer or misleading picture of financial health.

rsus financial

"compensation expenses in respect of options and RSUs granted to directors"

RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.

fpga technical

"Edge systems, Smart NICs and FPGA"

A field-programmable gate array (FPGA) is a type of computer chip whose internal wiring can be changed after it is made, allowing engineers to program custom hardware functions without designing a new chip. For investors, FPGAs matter because that flexibility lets companies quickly adapt products to new software, standards, or customer needs—like a toolbox that can be rearranged to build different machines—so demand and pricing can shift with trends in data centers, telecommunications, AI, and specialized electronics.

forward-looking statements regulatory

"are forward-looking statements within the meaning of applicable securities laws"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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-  Return to Non-GAAP Profitability ahead of initial expectations -

-  71% revenue growth backed by strong Design Win momentum -

KFAR SAVA, Israel, Oct. 29, 2026 /PRNewswire/ -- Silicom Ltd. (NASDAQ: SILC), an industry-leading provider of high-performance server/appliance networking solutions, today reported its financial results for the third quarter ended September 30, 2026.

Financial Results

Third quarter: Silicom's revenues for the third quarter of 2026 reached $26.7 million, up 71% from $15.6 million for the third quarter of 2025.

On a GAAP basis, the Company recorded a net loss of $0.3 million, or $0.06 per ordinary share (basic and diluted), compared with a net loss of $2.8 million, or $0.49 per ordinary share (basic and diluted), in the third quarter of 2025, an improvement of 88%.

On a non-GAAP basis (as described and reconciled below), the Company recorded net income of $0.3 million, or $0.04 per ordinary share (basic and diluted), compared with a net loss of $2.1 million, or a net loss of $0.36 per ordinary share (basic and diluted), for the third quarter of 2025.

First Nine Months: Silicom's revenues for the first nine months of 2026 rose by 55% to $69.6 million, compared with $45.0 million in the first nine months of 2025.

On a GAAP basis, net loss for the period totalled $4.8 million, or $0.84 per ordinary share (basic and diluted), a 46% improvement compared with $8.9 million, or $1.57 per ordinary share (basic and diluted), for the first nine months of 2025.

On a non-GAAP basis (as described and reconciled below), net loss for the period totalled $2.1 million, or $0.37 per ordinary share (basic and diluted), a 66% improvement compared with a net loss of $6.1 million, or $1.08 per ordinary share (basic and diluted), for the first nine months of 2025.

Guidance

Based on highly predictable recurring revenues from the company's Design Win platform, revenues for the fourth quarter are expected to reach $27 - $28 million, representing 66% year-over-year growth at the upper end of the guidance. As a result, full-year 2026 revenue projections are being raised once again to $96 - $98 million, representing 57% year-over-year growth.

Comments of Management  

Liron Eizenman, Silicom's President and CEO, commented, "We are pleased to report outstanding third quarter revenues of $26.7 million, a 71% increase over Q3 2025. Driven by strong execution and the significant leverage inherent in our business model, we returned to non-GAAP profitability well ahead of our initial expectations. These results reinforce our confidence in the strength of our target markets, the effectiveness of our execution, and the soundness of our strategic plan."

Mr. Eizenman continued, "Our growth continues to be fueled by strong Design Win momentum. The Design Wins we secure today drive growth for years to come, making them one of the most important indicators of our future performance. The two new Design Wins we added this quarter bring our year-to-date total to eight, already exceeding the low end of our full-year guidance while positioning us on track to meet or exceed the high end. 

"Our pipeline remains deep and diverse, with opportunities across our entire product portfolio - Edge systems, Smart NICs and FPGA - as well as AI Inference, White Box Switches, and Post-Quantum Cryptography. We are particularly encouraged by the success of our strategic plan, which is giving us the means to invest both in our core business and in the significant long-term potential upside of AI Inference, a natural extension of our core expertise, capabilities, customer base and IP roots."

Mr. Eizenman concluded, "Taken together, these achievements demonstrate clearly that Silicom has passed an inflection point. Customer demand continues to expand, growth momentum continues to build, and our return to profitability marks a significant milestone. With accelerating revenues and our business fundamentals strengthening, we expect to close 2026 on a high note, carrying this exceptional momentum into a highly promising 2027."

Conference Call Details
Silicom's Management will host an interactive conference today, October 29^th, at 9am Eastern Time (6am Pacific Time, 3pm 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
ISRAEL: 03 918 0609
INTERNATIONAL:  +972 3 918 0609
At: 9:00am Eastern Time, 6:00am Pacific Time, 3:00pm 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 Gaza, Lebanon and with Iran, as well as the war in the Ukraine, and existing and potential disruptions to global shipping routes such as the Straits of Hormuz and the Red Sea.

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)
	September 30, 2026			December 31,  2025
	(Unaudited)			(Audited)
Assets
Current assets
Cash and cash equivalents	$	13,741		$	35,156
Short-term bank deposits		-			6,000
Marketable securities		13,898			6,958
Accounts receivables: Trade, net		16,906			9,194
Accounts receivables: Other		4,784			3,155
Inventories		72,791			52,650
Total current assets		122,120			113,113
Marketable securities		17,317			25,518
Assets held for employees' severance benefits		1,744			1,670
Deferred tax assets		175			-
Property, plant and equipment, net		3,802			3,140
Intangible assets, net		5,060			2,569
Right of Use		5,915			6,147
Total assets	$	156,133		$	152,157
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable	$	19,871		$	11,116
Other accounts payable and accrued expenses		10,472			14,116
Lease Liabilities		2,038			2,019
Total current liabilities		32,381			27,251
Lease Liabilities		3,960			4,252
Liability for employees' severance benefits		3,244			3,049
Deferred tax liabilities		-			116
Total liabilities		39,585			34,668
Shareholders' equity
Ordinary shares and additional paid-in capital		80,501			76,647
Treasury shares		(55,171)			(55,171)
Retained earnings		91,218			96,013
Total shareholders' equity		116,548			117,489
Total liabilities and shareholders' equity	$	156,133		$	152,157

 

 

Silicom Ltd. Consolidated Statements of Operations
(Unaudited, US$ thousands, except for share and per share data)
	Three-month period						Nine-month period
	ended September 30,						ended September 30,
	2026			2025			2026			2025
Sales	$	26,720		$	15,614		$	69,624		$	45,018
Cost of sales		18,699			10,717			48,791			31,131
Gross profit		8,021			4,897			20,833			13,887
Research and development expenses		5,547			4,998			16,559			15,033
Selling and marketing expenses		1,947			1,791			5,808			4,796
General and administrative expenses		1,375			1,188			4,115			3,509
Total operating expenses		8,869			7,977			26,482			23,338
Operating income (loss)		(848)			(3,080)			(5,649)			(9,451)
Financial income (expenses), net		643			514			1,201			1,340
Income (loss) before income taxes		(205)			(2,566)			(4,448)			(8,111)
Income taxes		136			236			347			834
Net income (loss)	$	(341)		$	(2,802)		$	(4,795)		$	(8,945)
Basic and diluted income (loss) per ordinary share (US$)	$	(0.06)		$	(0.49)		$	(0.84)		$	(1.57)
Weighted average number of ordinary shares used to compute basic and diluted income (loss) per share (in thousands)		5,784			5,706			5,735			5,707

 

     

Silicom Ltd. Reconciliation of Non-GAAP Financial Results
(Unaudited, US$ thousands, except for share and per share data)
	Three-month period						Nine-month period
	ended September 30,						ended September 30,
	2026			2025			2026			2025
GAAP gross profit	$	8,021		$	4,897		$	20,833		$	13,887
(1) Share-based compensation (*)		67			64			225			215
Non-GAAP gross profit	$	8,088		$	4,961		$	21,058		$	14,102
GAAP operating income (loss)	$	(848)		$	(3,080)		$	(5,649)		$	(9,451)
Gross profit adjustments		67			64			225			215
(1) Share-based compensation (*)		801			584			2,448			2,049
Non-GAAP operating income (loss)	$	20		$	(2,432)		$	(2,976)		$	(7,187)
GAAP net income (loss)	$	(341)		$	(2,802)		$	(4,795)		$	(8,945)
Operating income (loss) adjustments		868			648			2,673			2,264
(2) Lease liabilities - Financial expenses (income)		(270)			79			25			534
Non-GAAP net income (loss)	$	257		$	(2,075)		$	(2,097)		$	(6,147)
GAAP net income (loss)	$	(341)		$	(2,802)		$	(4,795)		$	(8,945)
Adjustments for Non-GAAP Cost of sales		67			64			225			215
Adjustments for Non-GAAP Research and development expenses		391			245			1,233			939
Adjustments for Non-GAAP Selling and marketing expenses		231			207			688			568
Adjustments for Non-GAAP General and administrative expenses		179			132			527			542
Adjustments for Non-GAAP Financial income (loss), net		(270)			79			25			534
Non-GAAP net income (loss)	$	257		$	(2,075)		$	(2,097)		$	(6,147)
GAAP basic income (loss) per ordinary share (US$)	$	(0.06)		$	(0.49)		$	(0.84)		$	(1.57)
(1) Share-based compensation (*)		0.15			0.12			0.47			0.40
(2) Lease liabilities - Financial expenses (income)		(0.05)			0.01			-			0.09
Non-GAAP basic income (loss) per ordinary share (US$)	$	0.04		$	(0.36)		$	(0.37)		$	(1.08)
GAAP diluted income (loss) per ordinary share (US$)	$	(0.06)		$	(0.49)		$	(0.84)		$	(1.57)
(1) Share-based compensation (*)		0.14			0.12			0.47			0.40
(2) Lease liabilities - Financial expenses (income)		(0.04)			0.01			-			0.09
Non-GAAP diluted income (loss) per ordinary share (US$)	$	0.04		$	(0.36)		$	(0.37)		$	(1.08)
(*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R))

 

 

 

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SOURCE Silicom Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Did Silicom return to profitability in the third quarter of 2026?

Silicom returned to non-GAAP profitability, earning $257,000, or $0.04 per ordinary share, but recorded a GAAP net loss of $341,000, or $0.06 per ordinary share. Both basic and diluted per-share results were the same.

What is Silicom's revenue guidance for the fourth quarter and full year 2026?

Silicom expects fourth-quarter revenue of $27–$28 million and raised full-year revenue guidance to $96–$98 million. The quarterly outlook represents 66% year-over-year growth at the upper end, while the full-year outlook represents 57% year-over-year growth.

What adjustments does Silicom make to calculate non-GAAP earnings?

Silicom excludes share-based compensation and financial expenses or income related to lease liabilities from its non-GAAP results. These measures supplement, rather than replace, GAAP results.

How much cash and marketable securities did Silicom hold at September 30, 2026?

Silicom held $13.741 million in cash and cash equivalents, $13.898 million in current marketable securities and $17.317 million in noncurrent marketable securities at September 30, 2026. It had no short-term bank deposits, compared with $6 million at December 31, 2025.

How did Silicom's inventory and trade receivables change through September 2026?

Silicom's inventory increased to $72.791 million at September 30, 2026, from $52.650 million at December 31, 2025. Net trade receivables increased to $16.906 million from $9.194 million over the same period.