Abstract
Silicon Laboratories will report its fourth-quarter results on February 10, 2026 Pre-Market, with investors watching revenue re-acceleration, margin normalization, and EPS trajectory as consensus points to sequential improvement amid cyclical recovery signals.
Market Forecast
Market expectations for the current quarter indicate revenue of $207.58 million, an adjusted EBIT of $19.79 million, and adjusted EPS of $0.55, implying year-over-year growth of 24.98% for revenue, 3.26% for EBIT, and 6.11% for EPS. Street models embed modest gross margin improvement and incremental net profitability; management’s prior outlook suggested sequential growth driven by demand stabilization in core industrial and home markets, with year-over-year comparisons turning favorable.
The company’s main business mix emphasizes “Industrial & Commercial” and “Home & Life” applications, where recovery in channel sell-through and replenishment is expected to drive volume and operating leverage; outlook highlights include tightening inventories and improving visibility from customers. The most promising segment is Industrial & Commercial, which accounted for $117.61 million last quarter and is positioned to lead growth as factory and building automation demand stabilizes and connectivity projects resume, with improving year-over-year trends into the first half.
Last Quarter Review
In the previous quarter, Silicon Laboratories reported revenue of $206.00 million, a gross profit margin of 57.78%, a GAAP net loss attributable to the parent company of $9.94 million with a net profit margin of -4.82%, and adjusted EPS of $0.32, reflecting year-over-year improvement against depressed prior-year comparables. Management executed cost controls and maintained pricing discipline to preserve gross margins amid still-sluggish unit volumes.
A key highlight was solid gross margin resilience at 57.78% despite mix headwinds, supporting the company’s transition into a margin-recovery phase as demand normalizes. Main business highlights included Industrial & Commercial revenue of $117.61 million and Home & Life revenue of $88.39 million, with the former benefitting from gradual restocking in industrial IoT and the latter pacing with improving home automation and smart energy shipments.
Current Quarter Outlook (with major analytical insights)
Main business: Industrial & Commercial connectivity
Industrial & Commercial remains the center of gravity for revenue and incremental profit. With last quarter revenue at $117.61 million, this franchise is set to benefit from easing inventory overhang and renewed orders in building automation, smart metering, and factory connectivity. Channel feedback implies that distributors have worked through excess inventory, enabling more normalized sell-in and improved linearity across the quarter. The key swing factor is volume elasticity versus price: as unit demand rebuilds, fixed-cost absorption should unlock incremental gross margin, sustaining the 57.78% zone and enabling a path toward 58.50%–59.50% over the intermediate term if mix skews toward higher-value modules and software-enabled silicon. Further upside could stem from design wins in grid, metering, and commercial HVAC that enter production, improving revenue visibility. Risks center on a slower-than-expected restock pace and elongated approval cycles in utilities and building infrastructure, which could push revenue recognition into later quarters.
Most promising business: Home & Life platform recovery
Home & Life, at $88.39 million last quarter, has meaningful rebound potential as smart home and consumer-adjacent IoT normalize following a multiquarter digestion. Momentum is tied to ramping Matter-enabled devices, low-power wireless demand for home security, and smart energy applications attached to residential solar and EV charging ecosystems. As channel inventory rightsizes, the segment can re-accelerate on unit recovery and product refreshes that carry better ASPs, supporting incremental gross profit even under a cautious consumer spending backdrop. YoY comparables are turning supportive, and the forecasted 24.98% YoY growth in total revenue suggests Home & Life’s contribution will be accretive to overall growth. Constraints include macro sensitivity and retail sell-through variability; however, the diversified customer base and expanding software stacks may temper volatility. Execution on supply continuity and time-to-market for new modules will be critical to sustaining momentum beyond the quarter.
Stock-price drivers this quarter: Revenue inflection, margin cadence, and EPS leverage
The stock is likely to react most to whether revenue clears the $207.58 million mark with a constructive qualitative outlook, indicating that the trough is behind and replenishment continues into the March quarter. Investors will scrutinize gross margin cadence after the prior quarter’s 57.78% level; any guide toward incremental improvement would underpin the earnings recovery narrative and support multiple stability. Adjusted EPS of $0.55 is a focal point for operating leverage, given the prior quarter’s $0.32; achieving or topping this threshold would validate cost structure actions and mix normalization. Balance sheet and inventory trends will be another focal area; evidence of channel days returning to historical norms would bolster confidence in sustained sell-through. Management color on design-win pipelines in industrial, utilities, and home automation ecosystems, alongside lead-time updates, will influence the durability assessment of recovery.
Analyst Opinions
Sell-side previews over the past months tilt cautiously bullish, with the majority anticipating sequential improvement in revenue and gradual margin expansion as inventories normalize and end-market orders resume. Analysts point to resilient pricing, a disciplined opex framework, and a healthier channel as drivers of better EPS conversion in the short term. Notable institutions emphasize that guidance quality will be decisive; a reiteration or lift versus the implied $207.58 million revenue and $0.55 EPS framework would be read positively. The constructive camp also highlights green shoots in industrial automation and smart energy demand that could offset lingering weakness in consumer-adjacent subsegments. Overall, the prevailing view expects a recovery trajectory through the first half, with valuation support contingent on visible top-line inflection and credible gross margin progress.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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