SLAB · Silicon Laboratories Inc.

Silicon Laboratories reported strong first quarter results for fiscal 2026, with revenue of $214 million, up 20% year-over-year, driven by a 33% increase in Industrial & Commercial revenue to $128 million, particularly in electronic shelf labels and smart metering. Home & Life revenue grew 5% to $86 million, with medical applications up 21%. On a GAAP basis, the company reported a gross margin of 59.5%, operating expenses of $144 million, and an operating loss of $17 million, resulting in a GAAP diluted loss per share of $(0.48). However, on a non-GAAP basis, which excludes stock compensation, amortization of acquired intangibles, acquisition-related costs, and other items, gross margin improved to 59.7%, operating expenses were $109 million, operating income was $18 million, and diluted earnings per share were $0.53. The non-GAAP effective tax rate was 18%. Management highlighted an acceleration in bookings, declining inventory positions at distributors and end customers, and record design wins that exceeded both internal targets and the prior year's record run rate. The book-to-bill ratio reached a multi-year high, signaling strong near-term demand. The company also noted that its proposed merger with Texas Instruments continues to advance, and as a result, forward-looking guidance has been suspended. The strong operational performance and leading indicators suggest durable growth, though the pending merger introduces execution and integration risks.