CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Silvaco Q3 adjusted net income misses estimates on EDA weakness

By Reuters News


Overview

  • Semiconductor design software firm's Q3 revenue fell 13% yr/yr

  • Adjusted EPS and adjusted net income for Q3 missed analyst expectations

  • Company expects record Q4 revenue and 17% revenue growth in 2026


Outlook

  • Silvaco expects Q4 revenue of $22.0 mln, plus or minus 10%

  • Company guides Q4 bookings of $21.0 mln, plus or minus 10%

  • Silvaco anticipates non-GAAP gross margin around 88% in Q4


Result Drivers

  • TCAD AND SIP GROWTH - Co said TCAD revenue rose 16% yr/yr and SIP revenue more than doubled, driven by a major new tier-1 FTCO customer and 4 tier-1 wins for Jivaro Pro

  • EDA WEAKNESS - EDA revenue dropped 56% yr/yr, with no specific explanation provided by the company

  • STREAMLINED OPERATIONS - Co attributed business inflection and improved profitability to streamlined operations and a focused product roadmap


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

-$0.04

$0.01 (6 Analysts)

Q3 Loss Per Share

$0.14

Q3 Adjusted Net Income

Miss

-$1.30 mln

$423,200 (5 Analysts)

Q3 Adjusted Gross Margin

85.00%

Q3 Gross Bookings

$19.30 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Silvaco Group Inc is $14.00, about 129.1% above its November 3 closing price of $6.11

  • The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 42 three months ago


Reuters Recommended Reads

  • Nov 2 - Israel's Check Point Software Q3 revenue slightly misses estimates

  • Nov 4 - Customer experience software maker NICE slightly beats Q3 revenue on AI growth, raises FY outlook

  • Nov 3 - Freshworks Q3 adjusted profit beats estimates on upmarket momentum


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.