Silicom Q3 revenue jumps 71%
Overview
Networking solutions provider's Q3 revenue rose 71% yr/yr, driven by Design Win platform momentum
Company returned to non-GAAP profitability after a loss a year earlier
Q4 revenue guidance raised to $27-$28 mln, up to 66% yr/yr growth
Outlook
Silicom expects Q4 revenue of $27 mln to $28 mln
Company raises 2026 revenue outlook to $96 mln to $98 mln
Company expects strong growth momentum to continue into 2027
Result Drivers
DESIGN WIN MOMENTUM - Co said Q3 revenue growth was driven by strong momentum in securing new Design Wins
BUSINESS MODEL LEVERAGE - Co attributed return to non-GAAP profitability to leverage in its business model and execution
PRODUCT PIPELINE - Co said a deep and diverse product pipeline contributed to growth, including Edge systems, Smart NICs, FPGA, AI Inference, and Post-Quantum Cryptography
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $26.72 mln | $25.45 mln (1 Analyst) |
Q3 Net Loss | Miss | $341,000 | $231,000 (1 Analyst) |
Q3 Operating Income | Miss | -$848,000 | -$421,000 (1 Analyst) |
Q3 Pretax Loss | Miss | $205,000 | $26,000 (1 Analyst) |
Q3 Gross Profit | $8.02 mln | ||
Q3 Operating Expenses | $8.87 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Silicom Ltd is $60.00, about 35.9% above its October 28 closing price of $44.16
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)