Silicon Laboratories (SLAB) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $228.2 million, up 18.3% year-over-year, driven by growth in Industrial & Commercial and Home & Life segments.

• Gross margin reached 61.6% GAAP and 61.9% non-GAAP, reflecting strong product value.

• Operating loss narrowed to $10.7 million from $22.9 million in Q2 2025, despite higher operating expenses due to merger-related and personnel costs.

• Non-GAAP diluted EPS was $0.71, up 545% year-over-year; GAAP diluted loss per share improved to $(0.32).

• The company is in the process of being acquired by Texas Instruments, with the merger expected to close in the first half of 2027 and guidance suspended.

Financial highlights

• Q2 2026 revenue: $228.2 million (up 18.3% year-over-year); six-month revenue: $441.7 million (up 19.2%).

• Industrial & Commercial revenue grew 23% year-over-year to $135 million; Home & Life revenue increased 12% to $93 million; Medical segment achieved record revenue, up 78%.

• Gross margin: 61.6% GAAP, 61.9% non-GAAP in Q2 2026, up from 56.1% in Q2 2025.

• Operating expenses increased to $151.3 million in Q2 2026, mainly due to merger costs and higher personnel expenses.

• Net loss for Q2 2026: $10.6 million GAAP; non-GAAP net income: $23.8 million.

Outlook and guidance

• The merger with Texas Instruments is expected to close in the first half of 2027, pending regulatory approvals.

• Management expects to continue incurring significant merger-related costs until completion.

• Forward-looking guidance suspended due to the pending acquisition.

• The company believes existing liquidity is sufficient for both short- and long-term capital requirements.