Silicon Labs Reports Second Quarter 2026 Results

Rhea-AI Summary

Silicon Labs (NASDAQ: SLAB) reported second quarter 2026 revenue of $228 million, up 18% year-over-year, with Industrial & Commercial revenue of $135 million (up 23%) and Home & Life revenue of $93 million (up 12%). GAAP gross margin reached 61.6%, while non-GAAP gross margin was 61.9%. Bookings and new orders accelerated and distributor and end-customer inventories declined, with medical applications delivering record revenue, up 78% year-over-year.

Silicon Labs recorded a GAAP operating loss of $11 million and GAAP diluted loss per share of $(0.32), both improved versus the prior year. On a non-GAAP basis, operating income was $27 million and diluted EPS was $0.71, up 545% year-over-year. Cash and cash equivalents were $362 million, with total assets of $1.25 billion and stockholders’ equity of $1.09 billion. Due to a pending acquisition by Texas Instruments, the company suspended forward-looking guidance.

Positive

• Revenue $228 million, up 18% year-over-year
• Industrial & Commercial revenue $135 million, up 23% year-over-year
• Home & Life revenue $93 million, up 12% year-over-year
• Medical applications revenue up 78% year-over-year, record level
• Non-GAAP operating income $27 million, margin 11.8%
• Non-GAAP diluted EPS $0.71, up 545% year-over-year
• GAAP operating loss improved to $11 million from $22.9 million
• Bookings and new orders accelerated as inventories declined in channels
• Cash and cash equivalents of $362 million and equity of $1.09 billion

Negative

• GAAP net loss of $10.6 million in Q2 2026
• Six-month GAAP net loss $26.5 million and operating loss $27.7 million
• Operating cash flow $(9.6) million for first six months of 2026
• Inventories increased to $123.3 million from $95.6 million since January 2026
• Non-GAAP results rely on $25.6 million stock-based compensation and other exclusions in Q2
• Forward-looking guidance suspended due to pending acquisition by Texas Instruments

News Explained

Silicon Labs has reported the quarter ended July 4, 2026, and its balance sheet shows common shares issued and outstanding at 33,366 versus 32,955 at January 3, 2026. The release also reports proceeds of $7,760 thousand from issuing common stock; the added shares reduce an existing holder’s percentage ownership absent offsetting changes.

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Wireless IoT leader delivers $228 million in revenue and strong earnings growth

AUSTIN, Texas, Aug. 11, 2026 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), the leading innovator in low-power wireless, reported financial results for the second quarter, which ended July 4, 2026.

"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," said 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."

Second Quarter Financial Highlights 

• Revenue was $228 million, up 18% year-over-year
• Industrial & Commercial revenue was $135 million, up 23% year-over-year
• Home & Life revenue was $93 million, up 12% year-over-year
• Bookings and new orders accelerated, while inventory at both our 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, reinforcing our durable growth trajectory
• GAAP diluted loss per share was $(0.32), improving by 52% over the comparable period last year
• Non-GAAP diluted earnings per share was $0.71, up 545% over the comparable period last year

Results on a GAAP basis:

• GAAP gross margin was 61.6%
• GAAP operating expenses were $151 million
• GAAP operating loss was $11 million
• GAAP diluted loss per share was $(0.32)

Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, merger-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 61.9%
• Non-GAAP operating expenses were $114 million
• Non-GAAP operating income was $27 million
• Non-GAAP diluted earnings per share was $0.71

Due to the announced pending acquisition of Silicon Labs by Texas Instruments, Silicon Labs has suspended providing forward-looking guidance.

For more information: Silicon Labs Investor Relations, investor.relations@silabs.com 

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 Austin, Texas, Silicon Labs has operations in over 16 countries and is the trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets. Learn more at silabs.com.

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 Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of public health crises on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; risks relating to compliance with laws and regulations; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.

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				Six Months Ended
	July 4, 2026		July 5, 2025		July 4, 2026		July 5, 2025
Revenues	$       228,189		$       192,845		$       441,689		$       370,559
Cost of revenues	87,515		84,736		174,017		164,673
Gross profit	140,674		108,109		267,672		205,886
Operating expenses:
Research and development	95,016		87,821		183,610		176,040
Selling, general and administrative	56,324		43,155		111,810		84,793
Operating expenses	151,340		130,976		295,420		260,833
Operating loss	(10,666)		(22,867)		(27,748)		(54,947)
Other income (expense):
Interest income and other, net	2,489		3,833		6,115		7,626
Interest expense	(251)		(251)		(483)		(535)
Loss before income taxes	(8,428)		(19,285)		(22,116)		(47,856)
Provision for income taxes	2,164		2,532		4,373		4,431
Net loss	$       (10,592)		$       (21,817)		$       (26,489)		$       (52,287)
Loss per share:
Basic	$           (0.32)		$           (0.67)		$           (0.80)		$           (1.61)
Diluted	$           (0.32)		$           (0.67)		$           (0.80)		$           (1.61)
Weighted-average common shares outstanding:
Basic	33,206		32,682		33,084		32,570
Diluted	33,206		32,682		33,084		32,570

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 July 4, 2026
Non-GAAP Income Statement Items		GAAP Measure		GAAP Percent of Revenue		Stock Compensation Expense		Intangible Asset Amortization		Merger- Related Costs		Non-GAAP Measure		Non-GAAP Percent of Revenue
Revenues		$ 228,189
Gross profit		140,674		61.6 %		$        463		$          —		$         —		$         141,137		61.9 %
Research and development		95,016		41.6 %		12,902		2,295		3,289		76,530		33.5 %
Selling, general and administrative		56,324		24.7 %		12,284		—		6,258		37,782		16.6 %
Operating expenses		151,340		66.3 %		25,186		2,295		9,547		114,312		50.1 %
Operating income (loss)		(10,666)		(4.7 %)		25,649		2,295		9,547		26,825		11.8 %

 

		Three Months Ended July 4, 2026
Non-GAAP Earnings (Loss) Per Share		GAAP Measure		Stock Compensation Expense*		Intangible Asset Amortization*		Merger- Related Costs*		Income Tax Adjustments**		Non- GAAP Measure
Net income (loss)		$ (10,592)		$     25,649		$       2,295		$       9,547		$      (3,067)		$     23,832
				Shares Excluded Due to Net Loss
Diluted shares outstanding		33,206		504								33,710
Diluted earnings (loss) per share		$     (0.32)										$         0.71

*	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)
	July 4, 2026		January 3, 2026
Assets
Current assets:
Cash and cash equivalents	$       362,191		$       364,222
Short-term investments	35,051		79,400
Accounts receivable, net	79,801		64,513
Inventories	123,340		95,566
Prepaid expenses and other current assets	70,840		70,316
Total current assets	671,223		674,017
Property and equipment, net	130,902		128,643
Goodwill	376,389		376,389
Other intangible assets, net	18,541		23,130
Other assets, net	56,001		67,138
Total assets	$     1,253,056		$     1,269,317
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$          52,407		$          50,717
Deferred revenue and returns liability	5,176		5,359
Other current liabilities	66,563		87,711
Total current liabilities	124,146		143,787
Other non-current liabilities	34,108		31,112
Total liabilities	158,254		174,899
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued	—		—
Common stock – $0.0001 par value; 250,000 shares authorized; 33,366 and 32,955  shares issued and outstanding at July 4, 2026 and January 3, 2026, respectively	3		3
Additional paid-in capital	184,456		157,402
Retained earnings	910,325		936,814
Accumulated other comprehensive income	18		199
Total stockholders' equity	1,094,802		1,094,418
Total liabilities and stockholders' equity	$     1,253,056		$     1,269,317

 

Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows  (In thousands)  (Unaudited)
	Six Months Ended
	July 4, 2026		July 5, 2025
Operating Activities
Net loss	$       (26,489)		$       (52,287)
Adjustments to reconcile net loss to net cash provided by (used in) operating  activities:
Depreciation of property and equipment	12,171		12,701
Amortization of other intangible assets	4,589		8,780
Stock-based compensation expense	46,704		39,605
Deferred income taxes	1,663		1,504
Changes in operating assets and liabilities:
Accounts receivable	(15,289)		(2,017)
Inventories	(27,734)		24,631
Prepaid expenses and other assets	(803)		5,112
Accounts payable	2,051		12,812
Other current liabilities and income taxes	(7,925)		8,377
Deferred revenue and returns liability	(183)		783
Other non-current liabilities	1,667		(6,965)
Net cash provided by (used in) operating activities	(9,578)		53,036
Investing Activities
Purchases of marketable securities	—		(32,507)
Sales of marketable securities	—		14,986
Maturities of marketable securities	44,119		17,019
Purchases of property and equipment	(22,153)		(13,549)
Proceeds from capital-related government incentives	5,272		—
Net cash provided by (used in) investing activities	27,238		(14,051)
Financing Activities
Payment of taxes withheld for vested stock awards	(27,451)		(13,752)
Proceeds from the issuance of common stock	7,760		7,619
Net cash used in financing activities	(19,691)		(6,133)
Increase (decrease) in cash and cash equivalents	(2,031)		32,852
Cash and cash equivalents at beginning of period	364,222		281,607
Cash and cash equivalents at end of period	$       362,191		$       314,459

 

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SOURCE Silicon Labs

FAQ

How did Silicon Labs (NASDAQ: SLAB) perform financially in Q2 2026?

Silicon Labs reported Q2 2026 revenue of $228 million, up 18% year-over-year. According to Silicon Labs, GAAP diluted loss per share was $(0.32), while non-GAAP diluted earnings per share reached $0.71, reflecting improved profitability after adjusting for stock compensation and other items.

What were Silicon Labs’ key segment results for Q2 2026 (SLAB)?

In Q2 2026, Industrial & Commercial revenue was $135 million, up 23% year-over-year, and Home & Life revenue was $93 million, up 12%. According to Silicon Labs, medical applications achieved record revenue, increasing 78% year-over-year within its portfolio.

What margins did Silicon Labs report for Q2 2026 and how do they compare on a GAAP vs non-GAAP basis?

Silicon Labs reported Q2 2026 GAAP gross margin of 61.6% and non-GAAP gross margin of 61.9%. According to Silicon Labs, GAAP operating loss was $11 million, while non-GAAP operating income reached $27 million, reflecting lower operating expenses after adjustments.

Did Silicon Labs generate a profit in Q2 2026 and what was the EPS (SLAB)?

Silicon Labs recorded a GAAP net loss of $10.6 million, or $(0.32) per diluted share, in Q2 2026. According to Silicon Labs, non-GAAP net income was $23.8 million, resulting in non-GAAP diluted earnings per share of $0.71 for the quarter.

What is Silicon Labs’ cash and balance sheet position as of July 4, 2026?

As of July 4, 2026, Silicon Labs held $362 million in cash and cash equivalents and $35.1 million in short-term investments. According to Silicon Labs, total assets were $1.25 billion and stockholders’ equity was $1.09 billion, indicating a largely equity-funded balance sheet.

How did Silicon Labs’ operating cash flow trend in the first half of 2026 (SLAB)?

Silicon Labs used $9.6 million of cash in operating activities during the first six months of 2026. According to Silicon Labs, this compares with $53.0 million of operating cash provided in the prior-year period, reflecting higher inventories and changes in working capital.

Why did Silicon Labs suspend forward-looking guidance following Q2 2026 results?

Silicon Labs suspended forward-looking guidance due to its announced pending acquisition by Texas Instruments. According to Silicon Labs, the company will no longer provide quarterly outlook while the transaction is pending, though it continues to report GAAP and non-GAAP historical results.